Restaurant assets are seeing impressive growth in 2017 thanks in part to investors using 1031 exchanges. Since the first quarter of 2016, franchise-backed leases have grown 18 percent in the casual dining sector. Along with that growth, casual dining restaurant properties saw some of the highest cap rates in the industry. Corporate guarantee leases had cap rates of 5.75 percent and franchisee-leased properties were at 6.25 percent. The chain restaurant industry is estimated to be worth $112.3 billion, but many analysts are forecasting slower revenue growth ahead due to saturation and increasing competition from fast food chains.
Capstak friend and advisor, Ed Friedrichs, wrote about his recent experience with mixed-use communities working on the West 2nd Project. They are seeing a significant number of new jobs, many of them with technology firms (e.g., Tesla, Panasonic, Apple, Google, Switch, etc.), being filled by bright, young millennials relocating from California and other states. Those transplants are coming from urban settings where they lived in apartments or condominiums – where they can walk to their favorite café, a grocery store, a pharmacy, the hair salon or barber shop and other conveniences that make for an attractive lifestyle. This is the same lifestyle they are looking for in Northern Nevada, and that same trend is being seen from the older segment of our population whose children have left the family home, which is larger than the empty-nesters want to maintain at this stage of their lives.
This week, three Reno-based startups talked to Venture Beat about what it’s like being a startup outside a major tech center. Capstak, represented by CEO and Co-founder Heather Goldman, was one of the startups chosen for the interview. Heather noted the differences working in a smaller city, saying, “You do not have the developed capital ecosystem relative to New York or Silicon Valley. But there is a lot of business opportunity here.” Along with Capstak, startups TrainerRoad and Bombora were featured in the article.
Capstak announced our strategic partnership with RECA this week. This partnership brings over $27 billion in debt and equity financing experience to Capstak Real Estate Services' intelligent referral platform. Capstak Real Estate Services (CRES) uses our proprietary technology to connect capital seekers with capital sources throughout the United States.
Apple’s new campus has been called many names like the Ring, the Death Star and the Spaceship. But, the one thing it hasn’t been called is bad – yet. In a follow-up to a previous article on the mega-headquarters, WIRED points out that Apple is further exacerbating transportation, housing and the economics in the suburb of Cupertino. Critics of the $5 billion development question, “If Apple ever goes out of business, what would happen to the building?” And, that may be a long-term problem, but then again Apple’s new headquarters was built on the old home of Hewlett Packard. Until then, we’ll just have to speculate how the 12,000 Apple employees who fit in this building will navigate the only 9,000 parking spaces. Maybe they can ask Tesla for parking advice?