CCIM Live! Vendor Runway - Cole Real Estate

1 ©2011 Cole Capital Advisors. All Rights Reserved.

COLE REAL ESTATE INVESTMENTSCCIM Live! Vendor Runway – October 2011

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Cole Real Estate Cole Real Estate InvestmentsInvestments

Real Estate Acquisitions

Boyd Messmann, CCIM

Senior Vice President, Acquisitions



Cole Real Estate Investments – 30-year historyCole Real Estate Investments – 30-year history

• Commercial real estate investment management firm focused on net lease properties:

• Single-tenant retail

• Multi-tenant retail (Power centers and grocery anchored centers)

• Single-tenant office and industrial

• Founded in 1979 in Arizona

• Based in Phoenix, Arizona with more than 280 employees and growing

• 186 employees at end of 2009

• 242 employees at end of 2010

• Up to 310 employees projected by end of 2011

Data as of 03/31/11



Cole Real Estate InvestmentsCole Real Estate Investments

• Approximately $9 billion in commercial real estate assets

• Owns properties across 46 states and the U.S. Virgin Islands

Data as of 03/31/11



Cole Real Estate InvestmentsCole Real Estate Investments

• Cole entities own and manage a consolidated portfolio of more than 1,500 properties

• Average remaining lease term of more than 13 years

• Occupancy rate of 97.5%

• Industry diversification

• More than 50 industry sectors

• Nearly 500 tenant concepts

• Targeting $10 billion of total combined commercial real estate assets acquired by year end

Data as of 03/31/11



Cole Real Estate Investments - 2010Cole Real Estate Investments - 2010

Data as of 03/31/11

* United States, March/April 2011

• In 2010, acquired $2.5 billion of high-quality real estate

• $1.2 billion single-tenant retail

• $500 million power centers/ grocery anchored centers

• $700 million office & industrial

• Closed $1.4 billion in financing in 2010

• Ranked No. 13 by Retail Traffic for retail real estate owners and No. 15 for retail real estate property managers for 2010*



Recent track recordRecent track record



A market leader in quality acquisitionsA market leader in quality acquisitions

Transaction date:8/26/10 through 8/25/11 | Excludes joint

ventures

#1 #3

#3 #9



2011 Goals2011 Goals

• Targeting $3 billion of acquisitions in 2011− $1.0 billion single-tenant retail− $500 million retail sale-leaseback− $750 million multi-tenant retail− $750 million office & industrial

• Acquired $1.55 billion through August 2011• $669 million single-tenant retail• $525 million office & industrial• $358 million power centers/grocery

anchored centers



Cole in ArizonaCole in Arizona

Data as of 03/31/11

Through August 15, 2011

• 49 properties• 20 retail assets• 10 storage facilities• 3 shopping centers• 3 office assets• 1 industrial asset

• $534 million acquisition cost

• 3.1 million square feet

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©2011 Cole Capital Advisors. All Rights Reserved.


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Acquisitions StrategyAcquisitions Strategy

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Acquisition criteriaAcquisition criteria

SINGLE-TENANT RETAIL, OFFICE & INDUSTRIALPOWER CENTERS AND GROCERY-ANCHORED CENTERSPUBLIC, PRIVATE

NN, NNN

PREFER 10 YEARS OR GREATER

NATIONAL

PREFER INVESTMENT GRADE OR CREDITWORTHY

SALE-LEASEBACKS, BUILD-TO-SUITS, JOINT VENTURES, DEVELOPMENT CAPITAL

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Conservative underwritingConservative underwriting

Single-tenant retail example

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Active buyer, selective processActive buyer, selective process

For illustrative purposes only; Closed through December 31, 2010.

PROPERTIES SCREENED (EST.)

LETTERS OF INTENT SENT

LETTERS OF INTENT SIGNED

PROPERTY ACQUISITIONS

$25 BILLION

$11.3 BILLION

$3.2 BILLION

=

$2.5 BILLION

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Advantages of working with ColeAdvantages of working with Cole

• Certainty of close

• All-cash transactions

• Quick and efficient closing process

• Pre-approved letter of intent

• National profile, including secondary and tertiary markets

• Opportunities include sale-leasebacks, build-to-suits, joint ventures and development capital

Data as of 03/31/11

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AcquisitionsAcquisitions

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PetSmart Campus Headquarters

Acquisition spotlightAcquisition spotlight

Phoenix, AZ356,000 SFNNN lease3 mid-rise office towers1 parking garageMission-critical facility1997 original construction/2008 expansion & upgrade

$102,500,000

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Apollo Group’s University of Phoenix Office Complex

Acquisition spotlightAcquisition spotlight

Phoenix, AZ600,000 SF20-year NNN lease3 mid-rise office towers2 parking garagesMission-critical facility2006-07 construction

$170,000,000Sale-leaseback

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Walgreens - 201118 States | 23 Pharmacies$108,000,000

Single-Tenant retail acquisitionsSingle-Tenant retail acquisitions

Kohl’s – 20113 States | 4 Stores$31,500,000

PetSmart Portfolio7 States | 11 Stores$74,000,000

Buffets, Inc. Portfolio13 states | 32 Restaurants$82,000,000

CVS Portfolio11 States | 13 Pharmacies$70,000,000

Tractor Supply - 201015 states | 28 Stores$77,600,000

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Multi-Tenant acquisitionsMulti-Tenant acquisitions

Manchester HighlandsSt. Louis, MO | 354,000 SFWalMart, Best Buy, Bed Bath & Beyond, PetSmart, ULTA, Mattress Firm$48,500,000

Whitwood Town CenterWhittier, CA | 688,000 SFTarget, Sears, JCPenney, Vons, PetSmart, Kohl’s, Cost Plus, CVS, AT&T$83,500,000

Breakfast Point MarketplacePanama City Beach, FL | 98,000 SFPublix, Office Depot, Dunkin’ Donuts and approximately 11,000 SF of shops$16,000,000

Atascocita CommonsHumble, TX | 307,000 SFKohl’s, TJ Maxx/Home Goods, Ross, Office Depot, Party City, Petco$56,500,000

Camp Creek MarketplaceEast Point, GA | 425,000 SFBJ’s, Marshalls, Ross, TJ Maxx, Staples, Old Navy, Party City$76,350,000

Folsom Gateway IIFolsom, CA | 109,000 SFBed Bath & Beyond, PetSmart, DSW, ULTA$36,000,000

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Medtronic Office BuildingSan Antonio, TX | 145,000 SFClass A office$32,900,000

Office & industrial acquisitionsOffice & industrial acquisitions

Hanesbrands Distribution CenterRural Hall, NC | 930,000 SF$31,700,000

HealthNow New YorkBuffalo, NY | 430,000 SFClass A office$84,500,000

The Home Depot Distribution CenterTolleson, AZ | 467,000 SF$30,500,000

Freezer FacilityRiverside, CA | 496,000 SFWarehouse/Distribution Facility$91,500,000

ConAgra Distribution CenterMilton, PA | 719,000 SF$28,500,000

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Sale-Leaseback acquisitionsSale-Leaseback acquisitions

Alimentation Couche-Tard8 states | 83 convenience stores$132,000,000

Albertsons15 states | 32 grocery stores$266,000,000

Apollo Group/University of PhoenixPhoenix, AZ | 600,000 SF$170,000,000

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Joint ventures & Strategic initiativesJoint ventures & Strategic initiatives

• Strategic partnerships and programmatic joint ventures− JV programs with leading developers− Build-to-suits & development capital− Acquisitions− Re-capitalization & re-positioning− Note purchases – performing & non-performing

• Long-term benefits− Creates pipeline of future projects− Enhanced yield on investments

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Build-to-suits, Re-capitalization, Note purchaseBuild-to-suits, Re-capitalization, Note purchase

Kohl’sRice Lake, WI | 64,000 SF $5.9 million | Build-to-suit

Waterside MarketplaceChesterfield, MI | 244,000 SF$26,500,000 | Re-capitalization

Nature Coast CommonsSpring Hill, FL | 226,000 SF$29 million | Note purchase

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Cole Real Estate Cole Real Estate InvestmentsInvestments

Real Estate Acquisitions

www.ColeCapital.com

[email protected]

CCIM Live! Vendor Runway - Cole Real Estate

Business

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