Submitted by Jim Wagner
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People may comment anonymously, but any comments that degenerate into 1) personal attacks against individual blog participants; 2) incomprehensible gibberish; or 3) attempts to turn conversations into grade-school playground brawls, will be removed.
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25 comments:
HahahaheheHEHEHEHEhahahaha, that felt good.
I got excited there for a second, but from what I can tell, though current "owner" is bailing, the property will still be operated as a Walgreens.
Here are the DETAILS.
Maybe someone with more familiarity in commercial real estate can chime in.
If they could make any money out here, they'd stay. It can't work in Manor because everyone goes over the hill for this stuff even if it's available here. Nice of Walgreen's to try. Next?
Perfect for a baby Trader Joe's.
They're selling the building but Walgreen's stays as the tenant with "longterm rent increases" contracted, right? Explain it Wagner.
It's a NNN or triple net lease. That's usually an equity investment rather than a cash flow property. Tenant (Walgreen's) pays rent AND the real estate taxes, insurance, and maintenance. Usually the prop is held for a few years to build equity and then sold. Owners make their money off the tax shelter and the equity being built not a big positive cash flow. Maybe they want to leverage up or have enough equity for their needs. Sounds like the great tenant, Walgreen's, stays with.
Hellooo...they are staying. It's the building being sold not the business and its longterm lease. Got to read the fineprint or you won't stand a chance in Pacifica.
Holy Toledo! Jeez people get a clue. Some of these posters should be writing for one of those newspaper tabloids. You know the ones, "ALIEN EATS SMALL TOWN IN NORTH DAKOTA!". Everyone's an expert. Triple NNN lease. Oh, so smart. I'm impressed. Wagner's gaming everyone. Enjoying the mania. I like ALIEN'S EAT PACIFICA better.
Say what? Wagner moved to North Dakota with an illegal alien who used to work at Walgreens?
Living la vida loca.
Love it. The Kase Group refers to the property on their website as Trophy Real Estate. Not a phrase usually associated with Pacific Manor but maybe things are looking up! The asking really is $8,600,000.
No mention of the community's beautiful trails, unspoilt hillsides, quaint and rustic roads and streets in the Trophy Property description? Aren't those a selling point?
Guess not. "Our economy is our bottom line".
I'd like to know where the advertised "signalized intersection" is?
hmmm what kind of signals?
hahahafunny stuff, Bray too, either Wags didn't read the fine print or he doesn't think anyone on here can, good we're not losing these local jobs and the $10,000 or so in annual sales tax from Walgreen's, now how about getting some more huh city council, situation way past desperate ya know?
Jim, could you add a explanation to this article, or a follow-up comment. Something to indicate the status of the Walgreen's listing? Similar to Todd Bray (I think), I assumed the listing was a mock-up hoax. And, in a quick search, the details I found were similar to those Chris Fogel linked-to: a blank screen (viewable on my computer).
If the article was intended to be a "rubix cube" riddle, also please confirm. Some explanation is needed to avoid rumor confusion. The rumor is out there. A friend called about this two days ago, and he was concerned. Similar other others I don't know. Please end the avoidable confusion about this Walgreen sale and advise.
The explanation given by Anon@4:38PM sounds reasonable.
Yes, Steve, that sounds reasonable, but "Just Listed at $8,600,000" is posted at top of the flyer.
An equity hold (rather than cash flow hold) listed at $8.6 million seems like a lot of money and risk in this city. Also, how does a potential sale affect the existing NNN Lease?
The Anonymous comment was good, still there is confusion. As Aoon @4:16pm asks, it would be helpful to have Jim Wagner (a mortgage broker professional) clarify his thoughts about this.
New building with a solid tenant with a 20 year lease. Great lease for the landlord. Leases generally convey to new owner and obviously that's a major selling point. And let's not forget the "Trophy Property" distinction. In crumbling Pacific Manor...Who knew? Commercial property owners decide to sell for many reasons. Let's think positive!
Kathy, from what I can tell, the owner of the building isn't trying to lease the building. It's already leased to Walgreens.
Rather, the owner is trying to sell it for $8,600,000, and whoever buys it is the new landlord. It would be like the owner of an apartment building selling it to someone else. I have no idea whether the price is too high, but I would guess that since Walgreens is a good tenant, and the lease is favorable to the owner, that the current owner thinks it's a legitimate price.
I don't see why the city is at risk.
* This explanation was brought to you by someone with no real estate background, BTW. Believe me at your own risk.
Thanks Steve, that's my assessment as well. An email from Jim Wagner, and comment from Anons (340) and (1/10, 438 pm) seem to indicate the same. (Jim's computer has not been able to access the blog for several days).
The risk I was referring to is the $8.6 million private investor risk in Pacifica. Maybe the store appreciation and rent cash flow will support the investment over 20 years, details unknown.
*Your qualification is funny. Same for me, except I took the courses. Forgot everything.
Fuzzy recall of this project but believe this building and land owned by a SF based investment firm back in 2005 or so. I'm sure someone remembers from all the planning stuff. The SF owners had all the studies done on traffic, etc. and it took couple years before construction started. Walgreen's as longterm tenant (20 or 25 years) was part of the deal from the beginning. Build equity for the owners thru that very favorable lease and then use that still longterm lease to attract a new buyer. Don't recall what they paid for the property, probably not much because it was a nasty eyesore for a decade or more. We need more, many more of these types of retail projects with their jobs and sales tax revenue.
Maybe the investment firm is selling because Walgreens was in the paper recently about a problem with a middle man company and pharmaceuticals.
Doubt it. The investors bought it cheap, increased its value, enjoyed the tax shelter and zero landlord costs and now its time to cash out and do it all over again. Happens all the time with commercial real estate... but rarely in Pacifica.
New home for city hall? If the SMC sheriff's come to the rescue they sure won't need that grand enormous police station all to themselves. Make the police station city hall and if they can't share then have the sheriffs take the planning or PB&R offices on Francisco. Plenty of room for everybody. Cubicles.
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