Commercial Real Estate Weston WI | Real Estate Ambassador by Ark Rhowmine

Bellwethers – FedEx, considered a bellwether for the economy | Grubb & Ellis | Wausau Wisconsin

filed under: Commercial Real Estate Market posted on June 18th, 2010

Bellwethers – FedEx: Bellwethers – FedEx, considered a bellwether for the economy, yesterday reported strong results for its fiscal fourth quarter ending May 31^st. The company made a profit of $419 million or $1.33 a share on revenues of $9.43 billion, up by 20 percent from the year-ago quarter. FedEx forecasted earnings for its new fiscal year of $4.40 to $5 a share. Notably, it reported no slowdown in its European business despite the financial turmoil and economic concerns clouding the outlook for the region.

Another bellwether, the Conference Board’s index of leading indicators rose 0.4 percent in May while April’s reading was revised from -0.1 percent to flat – so no sign of a double-dip recession.

Have a great weekend.

Source: Robert Bach , SVP, Chief Economist , Grubb & Ellis , 312.698.6754

Personal Note From Ark:

For those of you who are receiving ”Good News Friday” for the first time, and those who have been right along, approximately a year ago Robert Bach, Senior VP, Chief Economist of Grubb & Ellis, started writing GNF to help readers find GOOD in the economy. Some days it has been a little difficult for him. But all-in-all he has been able to share good news with us. With permission, I have picked this up and have been forwarding GNF on to my friends and business contacts for about year now. I have received positive feedback from many of you. I hope to continue this service and that you continue to enjoy and gain from it.

If you would like to receive Good News Friday, please feel free to contact me direct at arkr@gepwi.com and I will place you on the distribution list.

Thank you for allowing me into your office,

Ark Rhowmine

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For your Commercial and Investment Real Estate needs hire the professionals. Grubb & Ellis | Pfefferle is the ONLY National Commercial Real Estate Broker in North Cenrtal Wisconsin. Independently Owned and Operated

View Ark Rhowmine’s Commercial Listing.

For More Good Morning Friday Articles:

Financing for Commercial Real Estate is Starting to Thaw

Don’t Blame Canada

Where Will The Jobs Come From

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16.58 Acres of Commercial Land For Sale | Weston Wisconsin | Grubb & Ellis

filed under: Commercial Property For Sale, Investment Property For Sale posted on April 21st, 2010

16.58 Acres of Commercial Land For Sale in Weston, Wisconsin. Prime development area in the fast growing Village of Weston. Located just off State Hwy-29 at exit-177 and County Road J in Weston. Near the Weston Technology Industrial Park. High commercial traffic. Will subdivide or build to suit.

Snap Shot:

Total Acres 16.58
Buildable Acres 14.5
Wetlands Acres 2.0
Asking Price $1,950,000.00
Zoned M-1 Commercial
Utilities Municipal Sewer & Water

Property Profile

Prime Commercial Land – Zoned M-1
Located on the intersection of Hwy-29 & Count Rd. J in Weston, Wisconsin
Traffic County:
- Hwy- 29 16,500 ADT
- County Rd J 5,000 ADT
Near Weston Technology Industrial Park
7-minutes east of Wausau on Hwy-29 towards Green Bay, WI

Seller Offering

Seller willing to trade or Partner
Seller willing to Build or Subdivide to Suit. Preliminary CSM available.
Seller Financing Available with certain terms and conditions for qualified buyers.

For more information regarding this commercial property click here.

To learn more about commercial real estate and investing opportunities
please contact Ark Rhowmine, Broker.

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Self-Directed Retirements Plans & Opportunies for Small Accounts | IRAs & 401kS

filed under: IRA & 401K Invest in Real Estate, Real Estate Investment Strategies posted on April 14th, 2010

Self-Directed Retirment Plans & Opportunies for Small Accounts | IRAs & 401Ks: Tax Liens on Raw land, Building lots, Single-family homes, Multi-family homes, Vacation properties excellent opportunies for those investors with small accounts to start investing in real estate properties.

While some investments require a large amount of cash, tax liens can provide investment options for small accounts. Here’s how it works: When a property owner does not pay his property taxes, the taxing entity will place the property up for a “tax sale.” An investor will pay the amount of past due taxes, and the homeowner has a pre-defined period of time to pay their taxes (and thus repay the investor) before they lose their rights to the property. The investor typically receives a pre-determined interest rate on the investment he made.

If the property owner does not pay the past due taxes, then the investor can proceed with foreclosure to recoup his investment. While the likelihood of acquiring a property through this process is very low, investors use this investment to earn a good pre-determined rate of return. Rules governing tax liens vary among local, county and state governments so be sure to research the municipality before investing.

For more information Join Security Trust Company and their guest speaker, Nicheole Amundsen, as she shares investment opportunities for retirement account owners with small account balances.

You’ll learn the basics of self-directed retirement accounts and Ms. Amundsen will discuss both ownership and notes in mobile home investing.

Reserve your webinar seat now for April 20th 7:00 p.m – 8:00 p.m. EDT
Click Here for more information.

To learn more about real estate investing opportunities contact Ark Rhowmine, Broker.

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Changes in Lending and Obtaining Commercial Financing | Commercial Real Estate | Wausau WI

filed under: Commercial Real Estate Market, Real Estate Investment Strategies posted on December 31st, 2009

Changes in Lending and Obtaining Commercial Financing: The following are notes taken at a presentation by a regional bank to Grubb & Ellis | Pfefferle Commercial Brokers on December 8, 2009

Profile of Banking Past:

Assumption that bank funding will be available
Little to no equity
Push for limit or no personal guarantee
High appraisal values
Many banks actively lending – - multiple bank competition for new projects
Lack of a strong dialogue and good communication between all parties
2^nd Mortgages as collateral to support projects
Mini perm loans with no principal payments for up to 3 years
Short lead times to obtain financing
Project only cash flow’s
Transactions done based on projections

Profile of Banking Present:

Need to plan, discuss, interview and strategize prior to seeking financing
Owner’s equity is a critical part of funding a project – equity needs to be cash
Personal guarantees are part of the banking terms. Limited guarantee structures can be negotiated
Fewer banks active in lending
Capital costs are low – - historically low rates
Great opportunity for developers and bankers to collaborate
Many alternative low interest rate programs like the Midwest Disaster Act tax-exempt bonds for Winnebago County and 504 debenture bonds. Both programs are designed for owner-occupied projects.
Global cash flow’s required
Debt service requirements of at least 1.15 on new projects
Very few, if any, loans are being done on projections
No more interest only loans

What can be done:

Early communication with lenders
Present deal to multiple financial institutions
Be realistic in your loan request
Foster good relationships with lenders of all types
Coach and educate both buyers and sellers as to the changing landscape
Become knowledgeable of government loan programs

The Commercial Environmet:

Regulatory crack down on commercial real estate lending. Developer and investor loans can no longer exceed 300% of a bank’s capital position.
- Community banks have historically obtained significant amount of their growth via CRE financing. With new regulations, the ease of financing for some projects is expected to decline.
Commercial Mortgage Backed Securities markets and other alternative lenders are gone or have become less attractive.
- $1.4 trillion in CMBS financing maturing over the next few years. This could lead to significant sales activity.
- Sellers’ expectations are still in excess of where the market is today. I would expect that over the next 6-12 months they will reset their expectations closer to market conditions.
Clients are now questioning their banks and their ability to continue to service their needs.
Some banks’ capital position has deteriorated to where they must shrink their loan portfolios or significantly increase pricing at renewal to achieve new required return levels.
- Expectations for some of the marginal/average deals to experience difficulty in renewal. This may force an injection of capital to “right size the deal” or encourage sales.
- At tenant renewal time, rent reductions are being negotiated due to the tenants seeing a reduction in their revenue, increase in CAM charges and overall deterioration in their business operations. Landlords are more likely to accept lower rents versus a tenant loss. Typical negotiation includes lower rent with a longer-term lease (or exercising of option).
Appraised values have seen approximately 30% decline in values compared to 2007 levels with an expectation for further decline. 5/10% additional drop in investment values; larger drops in industrial properties.
From 2007 to the end of 2010 will see in the area of a 50% drop in values of industrial buildings from the 2007 levels.
Speculative commercial financing, residential lot development and project redevelopment financing is essentially dead for now.
Banks are seeing 9-10% cap rates on 5-year lease terms.
Expectation of more stress in the commercial real estate industry. New development will be minimal as vacancies are expected to increase.
- Retail Sector should obtain some clarity upon completion of this Christmas time –Potential for additional shake out.
- Industrial Sector should continue to see some contraction as company’s look to bring as much internally to reduce outside rental costs.
- Office Market remains soft with tenants able to drive their rental rates.
As we continue in this economic cycle, those with liquidity and/or low leverage will be able to capitalize on opportunities within the marketplace.
Assessed valuations are not indications of values.

To view commercial properties listed by Ark Rhowmine , Commercial Real Estate Broker click here.
_______________________________________________________________
Ark Rhowmine | Commercial Real Estate Agent | Broker
Grubb & Ellis | Pfefferle
P.O. Box 865 | Wausau | WI | 54402-0865
C: 715.297.1953 | O: 715.355.6060 | F: 715.355.6044

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We Should Never Forget 911

filed under: God Bless America posted on September 11th, 2009

September 11, 2001

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Become a Financial Detective When Investing in Real Estate | Commercial Real Estate | Wausau WI

filed under: Real Estate Investment Strategies posted on August 14th, 2009

Become a Financial Detective When Investing in Real Estate: When comparing real estate investment purchases due diligence is of the utmost importance to your efforts. Like any business or investment, owning real estate has risks. You may accept higher or lower risk levels but you need to know the facts in order to weigh the risk/reward opportunity. How can you know if what you are about to invest your hard earned money into is a good deal if you do not have all the facts? You need to know the facts. Do not going to a transaction with your heart and not your brain. Your emotions can cause a lot of grief if you do not invest wisely and due diligence in finding the facts.

Topics and select questions to ask when researching a property:

Seller’s Motivation: Ask a question of the seller, why are they selling? It might be a simple reason. They are planning to retire or they want to invest into a different type or property.
Operating History: Find out how long they have been in the business. Did they buy the business from someone else? And how long has the business itself been in existence? Also going to community and find out what the reputation of the business has been.
Profit / Loss statement (3 years)
Balance Sheet (3 years)
Schudule “E” (3 years)
Accountant: Have your business accountant reviewed the three documents above. They will be able to analyze the financial history of the property/business and give you their opinion.
Financing: Maybe, the seller would be willing to finance a portion of the sale.
Tax Issues: Again, have your accountant review and give you their opinion.
Market Study: Do a market study. Is there a great demand for this type of business that you are but to invest in? Do you have compotion, if so can you bring a better product?
Demographics: While performing a market study, note the demographics of the area of which this investment is located and asked these questions. Is the target market nearby? In five years from now can I sell the business or will the area change?
Leases/Tenants: If the business has tenants, how long are there leases for? Get copies of the leases.
Appraisals: Always get an appraisal, the lending institution will want an appraisal, it is a good tool to see the current value of the investment.
Building and property condition: Even though you have walked through the property it is always a good practice to hire a home inspector or commercial property inspector who will provide inspection report of their findings. You never know what they might find.
Capital Improvements (Past, Present and Future): Ask what improvements they have made to the business or property and what they recommend. This again will give you somewhat of a history and a better idea of what you could possibly expect.
Legal: When writing an offer to purchase on an investment property or commercial business it is highly recommended that both parties have a real estate/business attorney review the contract.
Underwriting: Contact an insurance agent who has experience in the underwriting capabilities of providing coverage for this investment or type of business.
Title: All property sales in the state of Wisconsin need to have title filed in the county records. It is highly recommended to use an abstract / title company who will file these documents for you, do property background checks and provide a title insurance and warranty deeds. This will protect you as the buyer from any hidden liens on the property or any unknown claimants to the property.

After researching these topics, and you are staified with the answers, you will be well on your way to understanding what is really going on and if this property is truly worth acting on. These tasks may seem overwhelming, however a good commercial and investment real estate agent will guide you through these processes.

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Gimme Shelter – Housing Market Grabbed Attention | Commercial Real Estate | Wausau WI

filed under: Commercial Real Estate Market posted on July 31st, 2009

Gimme Shelter – The housing market grabbed attention this week as the latest indicator to suggest the economy is at or near the bottom.

The closely watched Standard & Poor’s/Case-Shiller 20-city home price index reported a 0.5 percent gain in the average price of a single-family home from April to May, the first increase in 34 months. Prices in 15 of the 20 cities in the survey increased or remained stable. On a seasonally adjusted basis, the composite price fell 0.2 percent, the smallest decline in 27 months. (The index is based on a three-month moving average, i.e. the three months ending in May compared with the three months ending in April.)
Existing home sales in June rose to an annualized rate of 4.89 million, the third consecutive monthly gain according to the National Association of Realtors. The months’ supply of available inventory on the market fell to 9.4 from a peak of 11 months one year ago.
New home sales also increased for a third consecutive month, rising to an annualized pace of 384,000 in June according to the Census Bureau. After peaking in January at 12.4, the months’ supply has fallen to 8.8.
Housing starts jumped 3.6 percent in June to an annualized rate of 582,000, the fastest pace since November. Although construction remains weak, it’s another sign that the market is stabilizing.

The housing slide triggered the credit crisis and the recession, and a housing recovery is necessary for the economy to grow again. Recent news suggests this is beginning to happen.

Source: Robert Bach, SVP, Chief Economist, Grubb & Ellis

Commercial Real Estate & Investment Properties listed by Ark Rhowmine click here.

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Grubb & Ellis

Ark Rhowmine Grubb & Ellis | Pfefferle PO Box 865 Wausau, WI 54401 Direct/Cell // 715.297.1953 ArkR@gepwi.com