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Beccaria Partners, a group of hotel investors from Los Angeles (John and Mark Beccaria, principals) coming from a 1031 exchange decided to diversify when they purchased the Children’s Learning Adventure for[mepr-show rules=”58038″]$8.45 million. The stand alone childcare center was a ground up development, built-to-suit by the seller, Cole Real Estate Investments a private REIT of Phoenix (Mark Nemer, CEO) in 2008 for the Children’s Learning Adventure.

Strategically located within a strong employment corridor, west of the northwest corner of Alvernon and Valencia Road, two mile southwest of   I-10. The build-to-suit facility is state-of-the-art designed with infant, preschool and after-school programs in mind. The 25,744 sq. ft building has five specialized learning classrooms specifically designed to provide unique learning opportunities for children. It also has a 30,890 sq. ft. playground on the 3.78 acres for expansion, if needed.

This was the investors’ first asset purchase in Tucson and was attracted to the property for what they believed to be the tenant’s competitive advantage in the marketplace. Children’s Learning Adventure Lifetime Adventures™ curriculum is based on best practices that incorporate the works of early child development theorists Jean Piaget, Erik Erickson, and Lev Vygotsky as well as neuroscientist Bruce Perry’s extensive research in brain development. Lifetime Adventures™ incorporates modern educator’s theories of constructivism including John Bransford, Roger McClintok, Roger Shank and David Elkind. This curriculum follows the guidelines for developmentally appropriate practice set forth by National Association for the Education of Young Children (NAEYC) as well as the national academic school standards.

Children’s Learning Adventure™ is a National, privately-held provider with two locations in Tucson, the second one is at 2190 E River Road. Its curriculum fosters physical growth, cognitive and social-emotional development for children, and incorporating the family and community as an integral component of learning.

A brand new twenty (20) year triple net lease agreement with two five-year renewals options and attractive 10% increases every five years backed by a corporate guarantee helped to seal the deal.

The lender was Hamni Bank, a Korean-American bank with U.S. headquarters in Los Angeles, CA.

Chad Tiedeman of Phoenix Commercial Advisors in Phoenix represented the seller in the transaction while the investor was self-represented.

Nemer at Cole Real Estate Investments may be reached at (602) 778-6000. Beccaria can be contacted at (310) 473-6564. Tiedeman should be contacted at (602) 288-3472.[/mepr-show]

St. Louis Federal Reserve President James Bullard and Josh Thimons of Pacific Investment Management Company (Pimco), the world’s largest fixed income fund gave their economic forecasts recently.  They actually agree.

According to James Bullard, speaking Monday at  the 19th Annual Conference of the International Economic Forum of the Americas in Montreal, low U.S. inflation has been a surprise. That means that the central bank can continue to “pursue its aggressive asset purchase program,” Bullard said. But he was careful not to say that the central bank would do so, just that it could without too much worry about inflation.

This fell on the heels of Pimco’s announcement last week that it expects the Federal Reserve will probably refrain from selling assets from its balance sheet over the next three to five years, as the U.S. falls short of a return to full employment.

Josh Thimons said Pimco expects the U.S. economy to grow in a range of 1.5% to 2.5% per year over the next three to five years. While the economy will benefit from such “pockets of strength”, it will be held back by an “unsustainable fiscal situation,” he said.

Thimons said, as the expansion continues in the coming years, the Fed will begin to raise interest rates in a move toward “policy normalization,”. The central bank’s target for federal funds rate, that is the interest rate that commercial banks charge each other for overnight loans, currently stands at near zero. The Fed’s balance sheet though will “likely remain elevated for years to come as the proactive sale of assets is unlikely” for the next three to five years, Thimons added.

Back in Montreal Bullard said, “Labor market conditions have improved since last summer, suggesting the Federal Open Market Committee (FOMC) could slow the pace of purchases, but surprisingly low inflation readings may mean the Committee can maintain its aggressive program over a longer time frame.”  Currently the central bank is running at about $85 billion in bond purchases (aka debt) each month in an effort to shore up employment. The purchases have expanded the Fed assets to about $3.4 trillion as it considers paring down.

Bullard also asserted that the Fed has its eye on irrational exuberance among investors “An important concern for the FOMC is that low interest rates can be associated with excessive risk-taking in financial markets,” Bullard said. “So far, it appears that this type of activity has been limited since the end of the recession in 2009.”

The Newport Beach, California-based Pimco said it is shying away from risky investment because it sees a growing disconnect between the performances of financial markets and the global economy.  Thimons said the U.S. economy is “much further along the road to repair” than other developed nations. As such, the dollar may strengthen in the longer term against currencies of other industrial nations, though it will probably also weaken against those of faster growing emerging markets, he said.

Reprinted from the ADI News Services, June 11, 2013 article