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| 8-K - Summit Healthcare REIT, Inc | v193100_8-k.htm |
Cornerstone
Core Properties REIT
Acquires
$1.3 Million Industrial Facility
(Irvine,
CA) August 10, 2010 -
Cornerstone Real
Estate Funds announced that the Cornerstone Core Properties
REIT has acquired a 13,200 square foot free-standing industrial
building. The property is situated on approximately one acre of land
in a planned industrial area of Santa Ana, California.
The
property, currently 100% occupied, is centrally located in the Santa Ana
submarket of Orange County and is close to both the I-5 and Costa Mesa freeways
providing easy access to important freight and logistics transportation
corridors. The Orange County industrial market boasts a strategic
location, modern infrastructure, outstanding quality of life and a highly
trained workforce. The Orange County industrial market is made up of four
markets, consisting of 248 million square feet of industrial space – North
Orange County, West Orange County, Airport and South Orange
County. According to the Voit Real Estate Services 1st Quarter
2010 Industrial Market Report, the Santa Ana industrial market is the Airport
Area’s largest submarket with 32 million square feet. The
availability rate at the end of Q1 2010 for Santa Ana was 9.51%, lowest among
all of the Airport Area’s submarkets.
Terry Roussel,
Cornerstone’s founder commented, “What is interesting about this acquisition is
that we purchased the building on a cap rate or investment basis, but our intent
is to sell the property to a business on an owner-user basis at some point in
the future. Industrial real estate pricing is such that business
owners who want to own the real estate in which they operate pay a premium to do
so. In this case, the property appraised for $1.315 million assuming
sale to an investor like Cornerstone. However, the owner-user
appraisal came in at $1.525 million. With this strategy, we have
built in attractive property appreciation right from the beginning that is not
dependent upon future rental rate increases. With the uncertainty
surrounding future rental rates, taking advantage of the spread between cap rate
and owner-user pricing is a creative industrial real estate strategy that
provides a very comforting safety net.”
Cornerstone
Real Estate Funds has been helping individuals and institutions invest in real
estate for more than 20 years in both good and bad economic
conditions. The company prides itself on its impressive track record,
8 full-cycle programs, experienced management team and successful joint
ventures. Today, Cornerstone offers a variety of public and private
real estate offerings for individuals and institutions. For more
information, please visit www.CREfunds.com.
Contact
Information:
Robert
Bruce
Cornerstone
Real Estate Funds
Vice
President, Sales & Marketing
949-263-4325
This
release contains forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Such statements involve risk and uncertainties which could cause actual
results to vary materially form those expressed in or indicated by the
forward-looking statements. Factors that may cause actual results to differ
materially include changes general economic conditions, changes in real estate
conditions, changes in interest rates, lease-up risks, lack of financing
availability and lack of capital proceeds.
Cornerstone
Real Estate Funds is the brand/logo associated with Cornerstone Ventures, Inc.
(CVI). CVI is the sponsor and advisor of real estate investment funds that are
distributed by Pacific Cornerstone Capital, Inc. Securities are offered through
Pacific Cornerstone Capital, Inc. Member FINRA and SIPC.
CL0208_07/2010