Whitepaper: Getting Your Property Financed
August 12, 2010 at 9:30 am | Posted in Whitepapers | 2 CommentsTags: acquisitions, asset, banks, capital, commercial, CRE, demand, economy, equity, financing, investment, investments, investors, liquidity, listings, market, opportunities, property, property values, real estate, recession, walt arnold, white paper
I rarely have a conversation these days where the topic of financing doesn’t arise as a serious concern for my clients. When the economy is robust, and the capital markets are frothy, financing a commercial real estate transaction is a relatively simple matter. However during today’s recessionary times, the commercial capital markets are severely constrained. Not only is the supply of capital tight, but the demand may be near all time highs as well. Depending on which industry source you quote there is between $150 and $200 billion dollars of CMBS debt maturing in 2009 alone. This figure doesn’t include maturing loans from insurance companies, banks and other lenders, which means that many borrowers will be forced to secure financing in a market that presently offers little liquidity.
Given the current lack of liquidity and financing options described above, only the savviest of sponsors with solid projects will be receiving attention from lenders and investors. In the text that follows I’ll provide you with an overview of the information you need to possess in order to speak fluent finance and to increase the odds of getting your project financed.
The first thing to keep in mind is that financing serves multiple purposes beyond rate and term considerations. The proper financing strategy can allow you to increase project velocity, improve operating efficiency, conserve internal capital, increase leverage, and lower the overall cost of capital. Good sponsors focus on developing an integrated capital formation strategy
Continue Reading Whitepaper: Getting Your Property Financed…
Albuquerque Commercial Real Estate Report 7.19.10: Market Resources
August 9, 2010 at 8:58 am | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, banks, commercial, CRE, distressed assets, economy, for lease, for sale, industrial, investment, investors, leased space, listings, market report, New Mexico, office, opportunities, property, property management, radio show, real estate, recession, retail, sperry van ness, tenant representation, walt arnold
>>> Click HERE to listen to the Commercial Real Estate Report for 7-19-10 <<<
Bob Clark, News Radio 770 KKOB: Walt this is such a difficult environment in commercial real estate, do you have any advice on how to navigate this market.
Walt Arnold: Bob, this is a commercial landscape seen for the first time. We are in an extremely tight credit market, strict regulations from the feds on lending, high unemployment and many financial constraints on companies.
This is a market that requires professional advice from someone that is in the commercial real estate market every day. At Sperry Van Ness we are analyzing this market daily, we are up to speed on the developments in the market and can advise landlords, tenants, buyers and sellers on how to position themselves and their property to have the greatest amount of success in this market.
Bob: What are some of the services you provide that can help people make decisions?
Walt Arnold: We have a myriad of sources that we pay to belong to pull data from to provide our clients with the best information to make good decisions, along with being an SIOR, one of 2800 worldwide, and the CCIM membership that requires years of classroom study and analysis, I am able to provide clients a wealth of information to analyze each situation to its fullest.
Bob: You also have spoken before about Sperry Van Ness’ marketing materials and the online publishing system. Can you tell us more about it?
Walt Arnold: We are able to provide our clients with the best marketing materials for the properties in the industry. We can also create a specific website for a specific property through our proprietary OTS system. We have the experienced brokers, tools and programs to analyze lease spaces for tenants or present property for sale to the largest number of Continue Reading Albuquerque Commercial Real Estate Report 7.19.10: Market Resources…
Albuquerque Commercial Real Estate Report 7.12.10: Retail Markets
July 21, 2010 at 9:40 am | Posted in Radio Show Reports | 1 CommentTags: acquisitions, albuquerque, asset, Auction, banks, CRE, economy, for sale, industrial, investments, leased space, listings, market, market report, New Mexico, opportunities, property, real estate, retail, sperry van ness, tenant, walt arnold
>>> Click here to listen to the Commercial Real Estate Report 7-12-10 <<<
Bob Clark, News Radio 770 KKOB: Walt you had a few things to talk about today. What do you want to start with?
I wanted to talk a little about the retail market which took a cautionary track in June. Although sales numbers were mixed, consumers just aren’t stepping up and spending at the pace retailers expected. This news is part of a larger downshift as consumer confidence slumped last month and consumer borrowing also fell.
Unfortunately the bounce back retailers were hoping for is not happening. So retailers are still in for a tough road.
Bob: You also had some economic news from Sperry Van Ness you wanted to discuss.
Yes, Sam Chandan, an economist had some interesting information last week.
What he said is that there is a lag when the underlying conditions begin to improve and although the recession is technically over, it sure doesn’t feel like it and the main reason is the Labor markets still remain challenged.
We have had growth in the labor markets for 6 months in a row. So, technically we are coming out of this recession better than the 2001 recession, but it is going to take some time for the fundamentals to improve and show meaningful improvement in commercial real estate properties. Continue Reading Albuquerque Commercial Real Estate Report 7.12.10: Retail Markets…
Lender Ordered Auction: Commercial Real Estate Industrial Warehouse Albuquerque, New Mexico
July 19, 2010 at 8:47 am | Posted in Property Listings | 4 CommentsTags: acquisitions, albuquerque, asset, Auction, commercial, CRE, for sale, investment, investments, leased space, listings, market, New Mexico, office, opportunities, property, real estate, sperry van ness, walt arnold, warehouse
9920 & 10000 Trumball SE, Albuquerque, New Mexico | View Google Map!
Auction Date and Time
August 5, 2010 @ 11:00 AM
Public Inspection Date and Time
July 29, 2010 11:00 AM – 1:00 PM
• Well maintained industrial flex space consisting of two legal separate buildings that have been joined to create one structure.
• 19,757 +/- square feet of useable warehouse space
• Built in 1970
• Zoned M-1
• Improvements sit on 1.06 +/- acres
• 6 Ground Level Doors
• Excellent location – just blocks from Central Avenue
• In close proximity to Interstate 40
• 154 miles from Kirkland Air Force Base
• Foreclosed Lender orders Nationwide Portfolio Liquidation – Buy Now at Your Price!
• Offers considered pre-auction, Seller Financing Available to qualified buyers
• No Back Taxes & No Liens – Clear Title with Title Insurance Provided! Continue Reading Lender Ordered Auction: Commercial Real Estate Industrial Warehouse Albuquerque, New Mexico…
Albuquerque Commercial Real Estate Report 5.17.10: The latest on BGK Group & others
May 24, 2010 at 2:43 pm | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, BGK Group, capital, commercial, CRE, for lease, investment, investors, leased space, liquidity, listings, market, New Mexico, office, opportunities, radio show, real estate, retail, tenant, transactions, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 5-17-10! <<<
Bob Clark, News Radio 770 KKOB: Walt there was some news last week about BGK Group, can you give us some details?
Sure good morning Bob. BGK Group, which is the largest holder of commercial real estate in New Mexico with over 2 million square feet, was purchased by New York’s Rosemont Real Estate. Rosemont acquired a 51% controlling interest and will rename the company Rosemont Realty LLC. The headquarters will remain in Santa Fe.
The deal gives BGK a needed cash and management infusion. The sale also helps with a succession issue as BGK leader, Eddie Gilbert is 88 years old.
The New Mexico holdings include 19 Albuquerque office buildings, 6 properties in Santa Fe and one in Hobbs. BGK is Rosemont’s first major acquisition.
Bob: Walt, what’s going on with La Bella Spa at ABQ Uptown, are they back in there space?
Yes, that’s an interesting deal and a sign of the times when a tenant vacates a property over a year ago; the space remained vacant until La Bella worked out a deal with the Landlord to go back into ½ of their original space. The balance of the space will be leased to another retail tenant. This is a creative approach to solving a problem by both the tenant and landlord to fill some vacant space. Both Hunt Development and La Bella are happy to be back in ABQ Uptown.
Bob: What else do you have for us today? Continue Reading Albuquerque Commercial Real Estate Report 5.17.10: The latest on BGK Group & others…
Albuquerque Commercial Real Estate Report 5.10.10: 3 Approaches to Valuing CRE
May 24, 2010 at 7:32 am | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, broker's opinion of value, cap rate, capital, commercial, cost analysis, cost approach valuation, CRE, income approach valuation, investments, investors, leased space, market comparison, opportunities, price analysis, property values, radio show, real estate, sperry van ness, valuation, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 5-10-10 <<<
Bob Clark, News Radio 770 KKOB: Walt you wanted to discuss how commercial real estate is valued and the different approaches to valuing commercial real estate.
Good morning Bob. Residential properties are usually valued in one way and that is by comparison approach or analyzing comparable properties. The market comparison approach is also used in commercial real estate. The comparison approach is analyzing similar properties in similar areas and adjusting values for any differences both positive and negative versus the subject property.
The second approach is the cost approach. The value of the land is first figured separately from the improvements. An estimate is made to the replacement cost of all improvements, as if new, on the property and then deducting depreciation from the improvements. This requires an excellent knowledge of building costs. Again, the Cost approach is value of land plus costs of improvements as if new minus depreciation.
The third approach, the income approach, analyses the income and expenses of the investment and then assigns a capitalization rate or a cap rate to analyze the investment.
Bob: Walt, we hear the term “cap rate” a lot in commercial real estate. I know there are several parts to the term Cap Rate, can you elaborate on it?
Sure, I’ll give the “Cliff Notes” version. Investment property is analyzed by looking at the total income of the property, Continue Reading Albuquerque Commercial Real Estate Report 5.10.10: 3 Approaches to Valuing CRE…
Investment Opportunity: Albuquerque Bank Owned (REO) Building Available
May 4, 2010 at 9:25 pm | Posted in Property Listings | 1 CommentTags: acquisitions, albuquerque, asset, bank owned, banks, commercial, CRE, distressed assets, for sale, investment, investments, leased space, listings, market, New Mexico, opportunities, property, real estate, sperry van ness, walt arnold
Financial Institution Real Estate Owned (REO) Property For Sale – Financing Available
LOCATION: Eagle Ranch Road between Irving & Coors Bypass NW | View Google Map
BUILDING: 4,058± Sq. Ft
LAND: 99,705± Sq. Ft. | 2.2889 acres
SALE PRICE: $2,000,000
ZONING: SU-1 for C-2, R-2
ACCESS: Convenient from either Coors Boulevard or Paseo del Norte.
For terms, features and floorplans, watch the video or view and share the brochure, below! Email Walt Arnold or Dana Van Doren for more information, or call (505) 256-7573.
Albuquerque Commercial Real Estate Report 4.19.10: Finding The Bottom
April 26, 2010 at 6:36 am | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, banks, capital, commercial, CRE, distressed assets, economy, industrial, investment, investments, investors, market, market bottom, New Mexico, office, opportunities, property, real estate, recession, retail, sperry van ness, strategy, walt arnold, white paper
>>> Click here to listen to the Commercial Real Estate Report for 4-19-10 <<<
Bob Clark, News Radio 770 KKOB: Walt, there have been some indicators that the economy is starting to turn. Have we seen the bottom of this commercial real estate market and more importantly are there opportunities in this market for investors?
The key for investors today is not some much finding the bottom of the market but its finding value. By the time most people figure out where the bottom is, they will probably miss it. There are opportunities, and for the astute investors it will require the ability to add value to the property. Adding value can be accomplished through operational improvements, repositioning, restructuring, recapitalization, re-tenanting or other proactive strategies or tactical value enhancements.
Bob: So Walt, what are some strategies people can use to help them find value in commercial real estate assets?
There are a few things someone can do to help insure success. First, to try to time the market is extremely difficult and waiting for the exact bottom to get in is a million to one shot. The second strategy is to realize that a declining market is where lasting wealth is created. The next opportunity in this market is to seek opportunities, don’t get too caught up on the product type — for example, office or retail — of the investment, and if you like return of the investment the rest of the details can be worked out.
Understand it is critical to seize the opportunity and that it is better to be the one who catches the fish rather than the one who tells about the big one that got away. Lastly, seek sound counsel. The brokers at Sperry Van Ness can provide sound, professional analytical advice to help our clients make the right decision. Continue Reading Albuquerque Commercial Real Estate Report 4.19.10: Finding The Bottom…
Investment Opportunity: 9201 Montgomery Blvd NE, Albuquerque NM
April 22, 2010 at 10:16 am | Posted in Property Listings | Leave a commentTags: acquisitions, albuquerque, asset, banks, commercial, CRE, investment, investments, leased space, listings, market, New Mexico, office, opportunities, property, real estate, sperry van ness, walt arnold
This 3 building complex is located on Montgomery Blvd, 2.5 blocks east of Wyoming Blvd.
- Building I: 6,529+/- sq. ft.
- Building V: 5,711+/- sq. ft.
- Building VII: 3,513+/- sq. ft.
Offered at $3,622,960 for all 3 | $230.00/sq. ft.
Can be sold individually.
For terms, features and floorplans, view the brochure below! Email Walt Arnold or Dana Van Doren for more information, or call (505) 256-7573.
Understanding the Acquisitions Process
February 26, 2010 at 4:38 pm | Posted in Whitepapers | Leave a commentTags: acquisitions, albuquerque, asset, capital, commercial, CRE, investments, liquidity, market, property, real estate, white paper
Here’s my latest white paper that aims to dispel some common myths and explain some of the ingredients needed for a successful aquisition…
One of the most important parts of the commercial real estate lifecycle is the acquisition phase. I believe most reasonable people would admit that the best way to have a successful outcome to any real estate venture is to get off on the right foot to begin with. While it’s certainly possible to “rescue” a troubled project, the best way to safeguard against a troubled scenario is to minimize future risk through the implementation of a sound acquisition plan. In the text that follows, I’ll offer some thoughts about some of the most common acquisition mistakes and how to avoid them.
Put simply, bad acquisitions are not healthy for financial sustainability. I’ve had the displeasure of watching lenders, investors, tenants and owners all suffer through the devastation and turmoil created by a bad acquisition. Whether it was due to lack of planning, leasing the wrong space, lending or investing in the wrong asset class or in the wrong market, getting whipsawed by buying into changing market conditions, paying too much for a property, or missing a critical window of opportunity, a bad acquisition usually spells trouble down the road. The sad part about what I’ve just described is that in most cases, these bad acquisitions could have been easily avoided by filtering them through a well conceived acquisition model. click below to continue reading>>>
Walt Arnold, SIOR, CCIM
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