Marathon County Wisconsin | Real Estate Ambassador by Ark Rhowmine

Commercial Real Estate Loans – Supply & Demand

filed under: Commercial Real Estate Market posted on January 31st, 2012

Commercial Real Estate Loans – Supply & Demand: Banks are slowly ramping up their commercial real estate lending according to the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices. In the newly released January survey, 1.8 percent of respondents said their banks eased standards for CRE loans in the prior three months, the fourth consecutive quarter of easing. Nearly 34 percent reported stronger demand for CRE loans from creditworthy borrowers. While demand for commercial real estate loans has returned to pre-recession levels, banks are loosening standards at a cautious pace. The 30-day delinquency level for bank CRE loans has declined from 8.76 percent in the second quarter of 2010 to a still-elevated 6.69 percent in the third quarter of 2011. Overall, capital availability is increasing for commercial real estate across most sources of debt and equity, which will fuel increasing transaction volume in 2012.

Source: Weekly Market Insight, Robert Bach, Senior Vice President, Chief Economist, Grubb & Ellis, has 30 years of professional experience in real estate market research, consulting and city planning.

Serving: Marathon County, Portage County, Lincoln County, Langlade County, Wood County, Taylor County, Clark County, Chippewa County

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Habitat for Humanity of Wausau Dedicates Fifty-first Home

filed under: Community Events, Habitat for Humanity of Wausau posted on August 19th, 2010

Habitat for Humanity of Wausau Dedicates Fifty-first Home: Habitat for Humanity of Wausau will host its fifty-first home dedication, the second this summer, on Sunday, August 22, 2010 at 7812 Volkman Street in Rothschild.

The traditional dedication ceremony will begin at 1 p.m. as Habitat for Humanity volunteers join the family to celebrate the completion of another home and the transfer of the mortgage. Special guest, Ron Foreman, principal of the Rothschild Elementary School will welcome the children to his school and will present each one with a small gift. The house will be open for inspection and visitation at 12:30 p.m. on Dedication Day. The community is welcome to attend.

The 1,458 square foot, ranch style house with four bedrooms and two bathrooms, was partially built by 18 DC Everest students under the direction of teacher Chad Pernsteiner as part of the students’ 2009/2010 technology education class. Everest students gained many construction skills as they framed the house from floor joists to rafters.

The house was moved from DC Everest to its current location on May 14, 2010 and set on a foundation that includes a full basement; a one car garage was built at the site by the students after then house was set.

Habitat partner families are required to invest 300 hours of “sweat equity” as part of their purchase agreement – a minimum of 150 of the required hours must be put in at the construction site. The partner family for this house helped to clear the lot of trees and shrubs; helped to rake and seed the entire yard; and helped to do finish trim work. This work along with an additional 150 hours of community service satisfied their required time commitment, making the family eligible to assume the mortgage of their home.

“It is rewarding providing a home for a family that works hard and needs help,” said Ark Rhowmine, president of Habitat for Humanity of Wausau. “Whether volunteers help plant grass, drive nails or are students from the local school system, everyone feels the same satisfaction when a home is dedicated.”

Though the poor economy makes funding a challenge, Habitat Humanity of Wausau is already making plans to build the 53rd Habitat home. Since the high school partnership has been suspended for the coming school year, the next house will probably be built on site.

Before construction begins, Habitat for Humanity of Wausau has several important tasks to complete related to the home 53. First, HFH of Wausau must choose a recipient family who presently resides in substandard housing, but has the financial ability to pay the property taxes and the monthly, zero interest mortgage payments. Once the family is located, HFH of Wausau will begin designing the home and finding a suitable building lot the fits the house plan.

Donations for this home are already being accepted. Many companies have come forward to make house 53 a reality: a millwork company has offered to provide all of the windows; County Materials will 25 yards of concrete needed for the foundation; and grants are available to help pay for some of the framing lumber.

Habitat for Humanity of Wausau’s work is not done – there are many families in the area that still need help. Habitat for Humanity of Wausau operates under the auspices of Habitat for Humanity International. The organization is committed to helping families in the area who face challenging life circumstances own their own homes. Families are awarded homes after undergoing a stringent screening process for eligibility and the ability to service the mortgage.

Habitat for Humanity is thankful for its many volunteers who come forward to make homes a reality for area families. We thank the entire community and our many vendor partners for their continued support.

To learn more about Habitat for Humanity of Wausau, to volunteer, to make a donation, or to complete a home application, please contact Jackie at the Habitat for Humanity office at 715.848.5042 or email her at office@habitatwausau.org.

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For your Commercial & Investment Real Estate needs, hire the Commercial Broker.

Grubb & Ellis | Pfefferle
Independently Owned & Operated

The ONLY National Commercial Real Estate Brokerage located in North Central Wisconsin.

Local Presents | Global Reach

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Serving: Marathon County, Portage County, Wood County, Lincoln County, Langlade County, Clark County, Taylor County, Oneida County, Shawano County, Chippewa County, Eau Claire County and other points of Wisconsin.

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2010 Wausau Area Small Businesses of the Year | Wausau, Wisconsin

filed under: Area Businesses posted on July 7th, 2010

Congratulations 2010 Wausau Area Businesses of the Year! We would like to recognize two businesses in our area that were awarded as Small Business of the Year for 2010 by the Wausau Regional Chamber of Commerce. Each year the Wausau Chamber awards two area small businesses as the Small Business of the Year and this years awards went to Home Insulation company, Inc. and Becher Hoppe.

Home Insulation Company, Inc. has been serving the Wausau area since 1938. Always the innovators, Home Insulation developers are marketing their “snug fit” product where the technologically driven insulation fits into every crevice nook and cranny. The innovative products are designed to save homeowners precious dollars and works to enhance efficient energy use. For more information about Home Insulation Company, Inc. click here.

Becher Hoppe began as an engineering and surveying firm back in 1954. Today Becher Hopper is located right at the heart of our Central Business District. Premier architectural services round out their firm’s offerings. Becher Hoppe offers an array of services to municipalities(site development plans), business (expansion and development work) and individuals (home and small business solutions). For more information about Becher Hoppe click here.

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For your Commercial & Investment Real Estate needs, hire the Commercial Broker.

Grubb & Ellis | Pfefferle
Independently Owned & Operated

The ONLY National Commercial Real Estate Brokerage located in North Central Wisconsin.

Local Presents | Global Reach

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Where Will the Jobs Come From? | Grubb & Ellis | Wausau Wisconsin

filed under: Commercial Real Estate Market posted on May 21st, 2010

Where Will the Jobs Come From?

Many people I speak with are skeptical that the labor market recovery is real and sustainable. It’s true that the 573,000 net new payroll jobs created year-to-date is merely a down payment on the 8.4 million jobs lost in 2008 and 2009, but the trend is moving in the right direction. A particularly hopeful sign is that new business creation surged to a 14-year high in 2009. “Challenging economic times can serve as a motivational boost to individuals who have been laid-off to become their own employers and future job creators,” according to the Kauffman Foundation, the study’s author. Entrepreneurship is strongest in the West and South. Click here to view a summary of the study, and click here to listen to a story from American Public Media’s “Marketplace” radio show.

What kinds of jobs are being created? Moody’s Economy.com reports that the following sectors will see the biggest percentage gains in jobs added this year:

Medical Services
Industrial Services
Computer Software & Services
Restaurants
Biotechnology
Environmental Services
Retail Stores – General
Banking
Medical Supplies
Retail Stores – Specialty Lines

The American free enterprise system is working as advertised.

Have a great weekend.

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

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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.

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Grand Slam of Good News | Commercial Real Estate | Wausau Wisconsin

filed under: Commercial Real Estate Market posted on April 9th, 2010

Grand Slam of Good News |Commercial Real Estate: Maybe it’s just that spring has arrived along with its sense of rebirth and optimism (especially for Cubs fans, whether it’s warranted or not), but it really seems like the news keeps getting better.

Last Friday the Bureau of Labor Statistics reported that payroll employment rose by 162,000 in March including 123,000 in the private sector, the best performance in three years. That number comes from the establishment survey. Less noticed was that the household survey, from which the unemployment rate is derived, reported that 264,000 more people were employed in March than in February following an increase of 308,000 the previous month. Coming out of a recession, the household survey is believed to be the more reliable indicator because it picks up hiring by start-up companies.
Thomson Reuters reported yesterday that same-store retail sales rose 9.1 percent in March, the strongest monthly gain since 2000 when the company began tracking the data. The gains were spread across all merchandise categories. March sales benefited from warm weather and because Easter occurred a week earlier this year, pushing holiday-related shopping into March. Nonetheless, this performance handily beat expectations for a 6.3 percent increase and seems to signal that consumers are getting back in the game.
The Institute for Supply Management’s non-manufacturing index, which tracks the service sector, increased to 55.4 in March. Like the more widely publicized manufacturing index, values above 50 indicate expansion. The manufacturing index has been above 50 for eight consecutive months as business capital spending began to grow again, but the non-manufacturing index has been slower to rebound. The recent strength suggests the recovery is broadening out across the economy.
If you didn’t catch it last night, Jim Cramer gave a ringing endorsement for commercial real estate on his CNBC show, “Mad Money.” Click here to read the summary and view the video.

4-9-10

Lastly, if you can’t quite believe that all this good news is for real, take a look at this article in today’s New York Times on why people remain skeptical about the recovery. Economic weak spots persist, but psychological and political factors are at work, too.

Re-Post and Source:
Robert Bach, SVP, Chief Economist, Grubb & Ellis, 312.698.6754

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Warehouse – Truck Terminal | For Sale or For Lease | Central WI

filed under: Commercial Property For Lease, Commercial Property For Sale posted on April 6th, 2010

Warehouse – Truck Terminal For Sale or For Lease: Central WI: This warehouse is located in the Abbotsford Industrial Park near the Hwy-29 and Hwy13 exit in Abbotsford, WI. This warehouse is ideally for the firm serving Minniapolus – St. Paul and the Fox River Valley – Green Bay and Appleton, WI area.

Property Profile:

Located in Central Wisconsin on Hwy-29 halfway between the Twin Cities and Fox River Valley.
Parcel is 10.7 acres allowing room for expansion.
Abbotsford Industrial Park.
City water and sewer.
Large drive-thru warehouse.
Driver’s bunk room with shower, restroom and kitchenett

Snapshot:

Asking Price: $849,000.00
Lease Rate: $5,700/month – $2.88 SF NNN
Total Acreage: 10.7 acres
Total Square Feet: 23,800 SF
Office: 4,200 SF
Mezzanine: 4,200 SF
Warehouse: 19,600 SF
Service Doors: (4) 14 ft service doors
Docks: Will build
Ceiling Height: 17 Ft. High
Year Built: 2003

Address: 300 S. 11th Street, Abbotsford, WI

For more information on this property please click here.

To view other commercial properties listed by Ark Rhowmine , Commercial Real Estate Broker, please click here.
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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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Commercial Real Estate Forecast | Wausau WI

filed under: Commercial Real Estate Market posted on April 2nd, 2010

Commercial Real Estate Forecast: The first quarter of 2010 is now behind us and there are signs of improvement of all major economies. The US growth is finally trending up which could be contributed to many different reasons. Within the four major areas of commercial real estate, each are showing some up swing. However, each area will return at its own pace.

Industial – The industrial market appears to have bottomed out and a recovery is expected to be in full swing the second half of this year. In fact a few markets across the U.S. have already began to come back. Rents are expected to increase again in 2011.
Office – The office market is expected to begin its recovery mid-year as well although much of it will depend on job growth.
Retail - Retail development has slowed considerably. However, neighborhood and local centers are starting fill with tenants.
Multifamily – Multifamily demand will supersede supply in 2011 with families having to relocate from their single family homes. This shortage will continue through 2014 due to the downward trend in home ownership.

To view other commercial properties listed by Ark Rhowmine , Commercial Real Estate Broker, please click here.
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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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Auction | Commercial Property | Weston WI

filed under: Commercial Property For Sale, Investment Property For Sale posted on April 1st, 2010

Auction Commercial Property Weston WI: Due to unacceptable purchase terms and contingencies on submitted bids, the seller is once again offering these two properties to interested buyers. This is a second opportunity to buy either one or both of these properties where the minimum bids have also been reduced! The seller is serious about selling with no contingencies and with a fast escrow closing. The bid deadline has been extended to 5PM CDT on April 22nd to give you time to consider your purchase, visit the properties and submit your bid.

LFC Auction #857-1 | 6615 County Road J, Weston, WI
This auction is for 7.7 +/- acres of commercially zoned M-1 land, including a newly constructed retail/office complex. The bulding features 4 suites consisting of 2 conference halls, a restaurant, and a large office suite. There are also 3 out-lots available for future construction. All suites and future out-lots share a common parking lot (200 +, paved, curbed and guttered).
Minimum Bid: $700,000.00

LFC Auction #857-2 | 5705 County Road J, Weston, WI
This auction is for 4 =/- Acres of commercially zoned M-1 land near the Weston Industrial Park. Conveniently off Hwy-29.
Minimum Bid: $250,000.00

All bids are Sealed Bids. Click here for more information.

To view other commercial properties listed by Ark Rhowmine , Commercial Real Estate Broker, please click here.
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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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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.
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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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Business of the Week | Wausau To Go

filed under: Area Businesses posted on October 26th, 2009

Each week we will post a local business or service from the North-Central Wisconsin Area. This week is Wausau To Go. Wausau To Go is Wausau’s family owned restaurant delivery service. Today, more people are realizing the added convenience of using Wausau To Go for off-premises dining – for lunch, dinner, catered business and social events. Your favorite restaurant menus are now at your fingertips in our menu guides and on our website. Your Favorite restaurant is only a phone call away. Our delivery area covers the Wausau Metro Area, Weston, Schofield, Rib Mountain, Rothschild , Marathon City and the Mosinee Industrial Park. Wausau To Go has customer service representatives who can help you plan meals for large group meetings or special events. 849.FOOD (3663) At Wausau To Go, we care about our customers and will do everything possible to exceed your expectations with excellent customer service. Orders can be placed on-line as well at www.WausauToGo.com

The Business of the Week is brought to you by Ark Rhowmine, Commercial Real Estate Broker providing Full-Service Commercial Real Estate brokerage service to North Central Wisconsin. To view properties Ark Rhowmine has available click here.

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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

posted by Ark Rhowmine // Leave A Comment