Real Estate Journal — December 11 - 23, 2015 — 3A
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M id A tlantic R eal E state J ournal Colliers represents both parties in the transaction CenterPointProps. announces lease on 142,447 s/f facility F ranklin Park , IL — CenterPoint Prop- erties announced a
“Ask the Professor”
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The financial structure (commonly known as the capital stack) in a real estate transaction is a very important concept in real estate finance. Most real estate assets employ dif- ferent layers of funding. Each layer of funding represents a different level of risk and return. The layers of funding which comprise the capital stack most commonly are: A) rent abatements, expense reim- bursements, management fees & bank loans B) cash, tax credits, leasing commissions & home equity lines of credit C) rental revenues, expense adjust- ments, cash & tax losses D) equity, senior debt, preferred equity & mezzanine debt Equity represents the ownership interest in the asset while debt usually represents the secured position given to a lender or investor to collateral- ize his investment in the asset. The equity does not have a specific rate of return or interest rate while the debt and preferred equity positions do. Each investment will have a different amount of equity and debt. The capital stack assists owners and investors to understand the risk and return features of each layer of equity and debt. The correct answer is “D”. A Ronald M. Shapiro is Assistant Professor of Professional Practice in the Finance and Economics Department at Rutgers Business Real estate assets are usually financed with a combination of equity and debt.
long-term lease agreement with Tax Air Freight for 10700 Waveland Ave., Frank- lin Park in the O’Hare sub- market. Tax Air Freight will lease 55,251 s/f of the 142,447 s/f facility and is the third of three tenants in the building, bringing the facility’s occu- pancy to 100%. TomRodeno of Colliers represented Tax Air Freight in the transaction, as Jim Estus of Colliers rep- resented CenterPoint. "This location provides us easy transportation access to the highway and airport, and the ability to add office space and docks," saidMark Zeidler, president and CEO of Tax Air Freight. "With the trailer stor- age and parking, CenterPoint was able to accommodate our need for space and growth, helping us to better serve our customers." Tax Air Freight offers trans- portation trucking services throughout the Greater Mid- west as well as nationwide logistics solutions through its Flyer Logistics service team. The company chose this loca-
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10700 Waveland Ave.
tion because of its strategic proximity to Chicago O’Hare Airport. Located on an 8.23-acre site, the building offers immedi- ate access to I-294 and is in close proximity to Chicago’s O’Hare International Airport. Tax Air’s facility features include 3,500 s/f of office space, 23 dock positions, 27 trailer stalls and room for 14 truck-parking stalls. Tax Air
Freight’s lease will commence in March 2016. “CenterPoint has had a relationship with Tax Air Freight in other markets in the past. We are happy to con- tinue to build our relationship by providing the company with a solution for their air transportation needs,” said Ed Harrington , senior vice president of development at CenterPoint. n
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School of Newark and New Brunswick. He teaches real estate finance and serves as the director of student services for the Center for Real Estate. Prior toRutgers Business School, Ron was
Kaplin Stewart
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SVPwithUnionCenterNational Bank (now Connect One) and served in executive management positions at Prudential Financial and Wells Fargo. n
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