The Dallas-based Champion's top executives are believed to have pushed the portfolio to market due to the compression on cap rates guaranteeing a quick $20-million return for the short hold--and no other reason. The portfolio, chased by at least 20 deep-pocketed buyers, sold at a 7.6% cap rate versus the 8.8% when it was bought, sources say. For the previous story, click here.
The portfolio anchor--1.2 million sf in Dallas--is reported to have brought $30 per sf to $34 per sf from the Boston-based TA Associates Realty. The sources say the portfolio's occupancy and submarket strength had changed very little during the hold, but Champion saw the opportunity for a quick return due to the demand from the institutional crowd to place money. Today's capital game is allowing sellers to gain a 5% to 9% premium for big-ticket sales.
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