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…
Albuquerque Commercial Real Estate Report 6.28.10: Bank Failures
July 13, 2010 at 7:25 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, bank failure, banks, capital, cash reserves, commercial, CRE, development loans, econo, First American Bank of Artesia, for sale, High Desert Bank, leased space, non-performing, properties, real estate, recession, regulators, sperry van ness, split commissions, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 6-28-10 <<<
Bob Clark, News Radio 770 KKOB: Walt, you wanted to start with a comment on the closure of High Desert Bank last Friday.
Yes, good morning Bob. There was another bank failure in Albuquerque on Friday, High Desert Bank was closed by state regulators and will open up on Monday as First American Bank of Artesia. Banks continue to struggle with regulators and the increased requirements for cash reserves and capital. As we go forward we will unfortunately see this probably play out again as the banking sector continues to struggle with non-performing commercial real estate and development loans that have put a strain on the health of banks.
Bob: What else do you have for us?
I wanted to talk today about how in this tough environment if someone is considering listing a property for sale or lease it is important to analyze the real estate company hired to get the property sold or leased. And in this economy you need a company that has the strength and resources to get it done.
Sperry Van Ness has the tools and the people to get properties sold and leased. We provide a comprehensive proposal and marketing plan to properly position the property in the market. Once listed the listing is immediately distributed to numerous listing portals such as Loopnet and Property Line. Through our 575 marketing approach we can target the most likely prospects for the property and contact them either directly or through our e-mail or direct mail marketing campaigns and provide detailed monthly reports of the progress.
Bob: Walt, aren’t these similar to what other companies can do when they list a property for sale or lease?
They might develop a marketing plan, make a flyer and put up a sign, but Sperry Van Ness goes the extra mile to serve our clients. We split all of our fees 50/50 with the selling broker and that doesn’t always happen in commercial real estate. We want to encourage and incentivize other real estate brokers to bring their buyers to the property. Continue Reading Albuquerque Commercial Real Estate Report 6.28.10: Bank Failures…
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.
Albuquerque Commercial Real Estate Report 3.29.10: Foreclosures & Bank-Owned Opportunities
April 9, 2010 at 12:06 pm | Posted in Radio Show Reports | 3 CommentsTags: albuquerque, asset, banks, commercial, CRE, distressed assets, foreclosure, foreclosures, investment, investments, market, New Mexico, opportunities, property, radio show, real estate, sperry van ness, walt arnold
>>> Click here to listen to the Commercial Real Estate report for 3-29-10 <<<
Bob Clark, News Radio 770 KKOB: Walt we have heard a lot about commercial real estate foreclosures and the coming wave of more foreclosures. Is this a good time to be looking at purchasing commercial real estate?
We are starting to see some properties make substantial discounts in their asking sale prices. We sold an out of state bank owned office condo that started out at $170.00/sf which was already a discounted price and the final price was less than $120.00. So the opportunities are starting to show up and lenders that need to sell their real estate are beginning to look deep discounts in pricing. There will be buying opportunities in this market.
Bob: That leads me to two questions. First is, what can someone do to get ready for these discounts, and the second is what about the property owner that is trying to sell in this market and is not a lender trying to dispose of an asset?
On the first question if someone is serious about going after opportunities they need to talk to a commercial real estate company like Sperry Van Ness and develop a strategy to analyze and acquire some of these banked owned assets. We talk weekly to lenders across the country regarding their assets in the Albuquerque market. But the important thing is to be ready to act.
Regarding an individual trying to sell in this market, if the property is well located, or if it is an income property and has good leases in place, it might not be worth what it was in 2007 and if it still has strong attributes it will hold its value. And if the sale of the property could wait a few years that would probably be the best option at this time.
Bob: What is the financing situation for properties in this market? Continue Reading Albuquerque Commercial Real Estate Report 3.29.10: Foreclosures & Bank-Owned Opportunities…
Albuquerque Commercial Real Estate Report 3.1.10 | Opportunities & Distressed Assets
March 11, 2010 at 11:48 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, banks, commercial, CRE, distressed assets, foreclosures, investments, lenders, market report, opportunities, property, radio show, real estate, walt arnold
Click HERE to listen to the Real Estate Report 3.1.10
Bob Clark, News Radio 770 KKOB: Walt, there is so much doom and gloom in commercial real estate these days, are there any opportunities in this market?
Good morning Bob. Before I start, I just want to mention how much I enjoyed the Winter Olympics. There were so many great stories and the drama was exceptional. I have to admit I am still baffled by curling, the teamwork, the strategy, the preciseness in making the correct move. The enthusiasm of the crowd was a little hard to figure out and as much as I watched it, I still have no idea how the game is won. But I did understand the student sign in the Pit against Air Force that said Curling is more exciting than AFA Basketball, now that made sense.
Back to opportunities… Yes, that is one lesson that always plays itself out and that is, out of difficult times, come opportunities. There will be some great opportunities to purchase properties at bargain prices, but it will take strategy and planning to accomplish it.
Bob: There is so much news about distressed assets, how can investors or people find out about properties that are available?
At Sperry Van Ness we are talking to banks and lenders on a continual basis, not only in Albuquerque but across the country, regarding assets that are in New Mexico. Sperry Van Ness also has an Asset Recovery team of which I am a team member working with banks everywhere to help dispose of assets through real estate brokers or through the auction process.
Bob: So there a lot of foreclosures that are taking place in Albuquerque that are from out of state lenders? Continue Reading Albuquerque Commercial Real Estate Report 3.1.10 | Opportunities & Distressed Assets…
Albuquerque Commercial Real Estate Report 1.25.10 | Cost Segregation
February 5, 2010 at 6:16 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, banks, commercial, cost segregation, CRE, investments, market report, property, radio show, real estate, walt arnold
Click HERE to listen to the Real Estate Report 1.25.10
Bob Clark, News Radio 770 KKOB: Walt, you wanted to talk about Cost Segregation and also about Charter Bank and the FDIC’s closing of the bank.
Yes good morning Bob, It is getting close to tax time and cost segregation is a tax strategy to consider for property owners. If a property is going to be held for several years it is worth having a discussion about cost segregation. Cost segregation or separating the parts of the property based on their depreciable life can lead to significant tax savings.
Assets depreciate over time and in real estate the life of the asset for an office building is 39 years. Obviously, most elements of a building such as carpet, interior walls, parking lots and roofs don’t last 39 years. Cost segregation allows property owners to write off many elements of the property over a shorter life, which increases the amount of depreciation that can be taken in any one year.
Bob: How is cost segregation done and what is required to make sure it’s done properly? Continue Reading Albuquerque Commercial Real Estate Report 1.25.10 | Cost Segregation…
Walt Arnold, SIOR, CCIM
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