My Loan Is Coming Due!
May 24, 2013 at 8:23 am | Posted in Uncategorized | Leave a commentTags: Commercial Realtor, Loan, Mortgage, refinance, Title Company
What do I do now to insure I can get my loan refinanced by my current lender or a different lender? What if my property value is substantially less than when I bought the property? My rents are down, expenses are up, and my Net Operating Income is down. Help, what can I do?
Don’t panic, yet! Here are some things to do to ensure your best opportunity to refinance the loan:
- Review the mortgage to assess your current terms and determine if there is a prepayment penalty, when does the note expire and when the balance due? Review the amortization schedule, and get the remaining balance.
- This process will take some time; don’t wait until the last month to start conversations with your lender. It could take 90 to 180 days to complete this process.
- Determine the strategy: Refinance current debt? Need money for building upgrades or tenant improvements? Know the amount you need to service the debt and complete any necessary repairs or upgrades to the property?
- Get the right “teammates” on the bus. Title Company, Mortgage Banker, and Real Estate Attorney. Assembling the right team will be a strong asset in the process.
- What documents will you need? Probably a current survey, rent roll with lease expiration, title work to determine any issues with title, updated environmental if applicable. Review expenses and determine if property taxes have been protested and insurance policies updated. Competitively bid insurance to get the lowest possible rates. Every dollar saved in expenses will go straight to the bottom line. The more documents that are ready to go, the quicker the process will move along. Have it all together so when documents are requested, they will be available to deliver to the Lender.
Will all these items be necessary to refinance? Most will and by going through this process you will be up to date with all documents required by the Lender to refinance the loan and you will give yourself the best chance to achieve a successful refinance.
Good Luck!
CRE Report 06.28.12
June 28, 2012 at 10:11 am | Posted in Uncategorized | Leave a commentTags: Albuquerque Retail Market, demand, market report, rent rates, retail, Retail Forecast, Retail Summary, vacancies
Albuquerque Retail Forecast
Bob – Walt last week you spoke about the office and industrial markets. Can you give an update on the retail market?
Walt – Good morning Bob, The retail market remains robust, although a lot of the movement is a lateral move, meaning a tenant is relocating from another property in the metro area from one property to another. With virtually no new construction, if the market continues on its upswing of activity, the vacant space will get filled quickly and with little new construction on the horizon, the retail market could get very interesting as demands gets stronger. This might be a welcome site for landlords as they will be able increase rates.
Bob – Target is building its property in Uptown. Are there any other “Big Box” projects planned in the metro area?
Walt – The target property is a 165,000 square feet building and will transform the intersection of Indian School and Louisiana, but as far as other “Big Box” users, we are probably unlikely to see any entering the market in 2012.
When I look at the retail numbers for the first quarter of 2012, the vacancy rate fell to 12.5%, down from last quarter and also down from a year ago. The overall median asking rate is $13.50, but that median number includes everything from small shop space to ABQ Uptown so location of the retail store is crucial when determining the lease rate. The rate could be from $5.00/SF/NNN in small community centers to $45.00/SF/NNN in ABQ Uptown. The rates are based on location, traffic and the condition of the center. Some of the notable deals were Dick’s Sporting Goods, 49579 at Cottonwood, a 14,800 square foot strip center on the Paseo Corridor a 4,287 square foot freestanding restaurant at Montgomery Plaza.
So Bob, the retail market is slowly filling up the supply of vacant space, which will increase demand for retail space, which will create interest from developers to assess the possibilities of constructing new retail space and the demand will cause landlords to push the envelope on rates. The real estate cycle continues.
Bob – Walt how can people get a hold of you to discuss Commercial Real Estate?
Walt – Thanks Bob, Call me 256-1255 my website is waltarnold.com follow me on twitter @waltarnold. If you’re looking to purchase office, industrial, or retail properties give me a call to discuss your real estate requirements. Sperry Van Ness is a national commercial firm with 160 offices across the country. We position buyers, sellers, landlords and tenants to make great choices in commercial real estate. Give me a call to discuss the Sperry Van Difference. Thanks Bob, have a great week.
CREReport 08.08.2011
August 29, 2011 at 1:17 pm | Posted in Uncategorized | Leave a commentCommercial Real Estate vs. Stock Market
Getting Through “The Dog Days” of Commercial Real Estate
August 7, 2011 at 8:09 pm | Posted in Uncategorized | Leave a commentHow to Navigate Commercial Real Estate’s “Dog Days”
CRE Report 07.18.2011
July 18, 2011 at 11:35 am | Posted in Uncategorized | Leave a commentAlbuquerque Development News
Bob – Walt, what do you have for us today?
Walt – Good morning Bob, I want to mention a few projects that are moving forward in the Albuquerque market. Mesa del Sol which is a 13,000 acre project developed by Forest City Covington just south of the airport has landed a 50,000 sf data center. Nova Corp will build the building and have 25,000 sf for cloud initiatives and 25,000 for business innovation for Navajo students and entrepreneurs and will employ about 40 people. Another proposed project is a new Walmart located on the southeast corner of Coors and Montano. The plan is still in the pre-application process and has some neighborhood and traffic issues to overcome, but Walmart is moving through the process. Bernalillo has a new Firestone store on Highway 528. That makes a total of 14 Firestones in New Mexico. Unfortunately, Xilinx will close its operations in the Journal Center. Xilinx is a semiconductor company and is currently analyzing whether to stay in the location with its aerospace and defense marketing group or relocate elsewhere. Their current facility has 45,000 square feet.
Bob – You also wanted to mention an auction you have coming up.
Walt – Yes thanks, Ed Anlian in my office has an auction schedule for August 4th. The property is located at 3801 Eubank. The online auction with no hidden reserve will start at $396,500, it was recently for sale at $762,000. This is a great opportunity to acquire a 7,000 square foot office building on Eubank just south of Montgomery. Call me for details at 256-1255.
Bob – So the auction is totally online, how do buyers get information on the property,
and, I take it, there is no auctioneer onsite the day of the auction?
Walt – Yes it’s totally online and there is no auctioneer. We have uploaded all the due diligence information to the website and the process is similar to eBay. The winning bidder will have about a month after the auction to close the property. The auction website is www.auctionsvn.com/3801eubank. Get online and register, this is a great opportunity! I think we will continue to see online auctions for commercial real estate.
Bob – Anything else today and how can people contact you?
Walt – I just want to mention that this current real estate market requires an expert in commercial real estate. As one of my former coaches use to say, “Don’t leave your personal development to chance”. Don’t chance it; make sure you’re using an expert with your commercial real estate needs and requirements.20 years in commercial real estate, an SIOR and CCIM, which requires years of education and proven experience and production, I help buyers, sellers, landlords and tenant navigate these rough waters.
Bob, thanks for the time today, my direct line is 256-1255, website www.waltarnold.com. Bob, have a great week and we’ll talk again next week.
Sperry Van Ness Services
July 5, 2011 at 11:02 am | Posted in Uncategorized, Videos | Leave a commentTags: Buy, CRE Services, for lease, for sale, Lease, Sale, sperry van ness, tenant, tenant representation, tenants
Tenant Representaion Services
If you have any interest in our Tenant Representation Services don’t hesitate to call me today (505)256-1255. You can also follow me on Twitter and Facebook for daily CRE news, info and tips.
CRE Report for 05.02.2011
May 31, 2011 at 2:16 pm | Posted in Uncategorized | Leave a commentAdvantages of Buying vs. Leasing
Sperry Van Ness Video Series
May 31, 2011 at 11:38 am | Posted in Uncategorized | Leave a commentProperty Management Services
Give us a call we would love to discuss your property management needs and requirements
Direct Line (505) 256-1255
CRE Video Report 04.25.2011
May 23, 2011 at 10:44 am | Posted in Uncategorized | Leave a commentTitle Insurance & Abq’s Industrial Market
Visit Walt on Facebook or Follow him on Twitter for daily CRE news, info, and tips.
CRE Report for 5/2/2011 – Benefits of Leasing and Purchasing
May 3, 2011 at 11:51 am | Posted in Uncategorized | Leave a comment
Bob – Walt, with the values in commercial real estate falling now would seem like a good opportunity for tenants to look at buying property instead of continuing to lease properties. So to buy or not to buy is that is the question?
Walt – Good morning Bob that is a great question and my answer would “maybe”.
Many companies will shy away from leasing over buying based on the flexibility of leasing. However, there are some good buying opportunities in today’s market for companies, but financing is just not readily available.
Bankers want to lend, unfortunately, underwriters and regulators are securitizing every line in the buyer’s financial statement. And with leasing values also declining this leads to a difficult decision in the lease versus buy analysis.
Bob – So Walt, what are the advantages of leasing?
Walt – The advantages of leasing are:
1. Flexibility- Leases allow for terms from one to five plus years and many leases also allow for the ability to cancel the lease with penalties.
2. What you need- When leasing you set the exact amount of footage you need.
3. Choices-For every building for sale there are many more for available for lease.
4. Location- There are simply more choices in the leasing market than the sales market.
5. Capital- Usually the only money required in leasing is a security deposit and the first month’s rent and this allows working capital to stay in the business.
6. Dynamism- Business grow and shrink and leasing provides them with the alternatives they need to make adjustments on the move.
Bob – So why do companies purchase, what advantages are there to buying a property?
Walt – Purchasing allows for the benefits of depreciation, appreciation and build up of equity. It allows for business owners to create exit strategies for their company and hopefully income in retirement.
The window for purchasing is currently open for opportunities and will stay open into the future. There will continue to be opportunities to purchase properties and exceptional pricing. And with interest rates currently at low rates the opportunity is “now” to look at both alternatives- leasing and purchasing.
Bob – How can people contact you to talk further about purchasing or leasing commercial properties?
Walt – Thank you Bob, give me a call direct line, 505-256-1255 website www.waltarnold.com, you can also find me on Twitter and on Facebook. The leasing/buying decision requires a real estate broker with experience and knowledge to help you though the process. As an SIOR and CCIM, 20 years in commercial estate and thousand of closed transactions the brokers at Sperry Van Ness have the tools, knowledge and experience to direct and guide you through the process. Give us a call. Thanks Bob have a great week.
Walt Arnold, SIOR, CCIM
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