Walt – Good morning Bob. I thought it would be a good time to talk about some property management. One area where a few hours of investigation in property management can save thousands of dollars is preventative maintenance on the roof.
Bob – Walt the thought of the roof and any repairs makes me think of one question, “How much is it going to cost”?
Walt – Well roofs are expensive and the way to keep the costs down is to make the roof last as long as possible and minimizing repairs. The word is “preventative maintenance”. Basic roof maintenance can save thousands of dollars byincreasing the life of the roof and reducing maintenancecosts. Here are some basic bare bones tips on roof maintenance:
1. You can’t see the roof from the ground. I know this sounds elementary but someone has to get on the roof to survey any maintenance issues.
2. Check for ponding on the roof. Areas of ponding will cause problems. Get with your roofer and determine a course of action regarding ponding.
3. Take pictures or have your roofer take pictures and make notes on each photo. It is so much easier to understand when you can see the problem.
4. Make sure the roof drains and canales are free of debris. A clogged drain can lead to severe roof problems.
A few dollars for the inspection and maintenance of necessary repairs can save thousands of dollars if the roof can be maintained and repairs kept to a minimum. Conduct a roof inspection at least once a year, twice is better.
Bob – Walt, Sperry Van Ness manages a substantial portfolio of commercial properties, can you tell us a little more about your property management services?
Walt – We manage approximately 500,000 square feet of commercial space and work diligently every day to preserve the asset and increase the cash flow. Property management is the nuts and bolts of the commercial real estate industry. Irene Carr, property manager, and Barb Buell do a great job in handling the day-to-day details of serving our owners, tenants and managing the properties.
We manage vendors, contractors, pay bills, collect rents, deal with insurance and mortgages and provide in depth analyses on all activity on the property and also provide financial reports on a monthly basis. Get out of town and let us handle all the details!
Bob – How can people contact you to discuss commercial real estate?
Walt – Quickly, I have to get in a word on the auction of 401 San Pedro. Originally listed at $330,000. Opening bid is $199,000. Call me for details at 256-1255, don’t miss this opportunity. Auction is next Wednesday May 23, 2012 from 1:00 AM to 3:00 PM. It’s an online auction. Get signed up and participate in this excellent opportunity. Also follow me on twitter @waltarnold or become a fan of Sperry Van Ness on Facebook for daily up to date Abq CRE news updates. Bob, have a great week!
Sperry Van Ness has all the tools for success in CRE
Bob – Walt I hope had a great Easter weekend and enjoyed watching the Masters, would you have for us today?
Walt – Thanks Bob, I did have a great Easter weekend and the Masters was a great one! Congratulations to Bubba Watson on winning this year’s Masters.
I’m sure Bubba used every club in his bag at least once, some clubs he use more than others, some maybe only once the whole weekend, but it was important that he had all those clubs in his bag.
At Sperry Van Ness we have a lot of clubs also available to us, some we use more often than others, and some every once in a while, but it’s important to have all those clubs in the bag. For example, we use our office, industrial and retail leasing for landlords and tenants probably more than most, but sometimes we might need to use our auction services, sale/leaseback or net leased investments to help our clients.
We don’t always use these, but it’s important that we have them and like in golf, you’ve got to have those clubs in your bag to be a complete player and at Sperry Van Ness we have all the clubs to help our owners, landlords, tenants and investors to make the right decisions regarding their commercial real estate.
Bob – So what you’re what you’re saying is that you have your Driver, 7-iron, pitching wedge and putter, but once in a while, you might need a lob wedge or a utility club.
Walt – Yes Bob that is the analogy, you use your driver, wedge and putter on most holes but sometimes you need that 64 degree lob wedge and in commercial real estate that might be auction services or we have an asset recovery team for our lender clients to help them make decisions regarding their assets, if someone has a special needs like property management,hospitality, receivership or sale-leaseback we also have the ability to help them with those selections if needed.
As a golfer you wouldn’t play in the Masters with six clubs in your bag and I think it’s important to project that we have the full 14 club selection that you need to be a champion; and every day at Sperry Van Ness we are helping our clients and customers not only with their day-to-day real estate requirements, but if they need a club for that special situation, we can pull the right club and strategy out of the bag and help our clients make the shot that they need and the decision process to make the right choice in commercial real estate.
Bob – How can people contact you today regarding commercial real estate?
Walt – Thanks Bob, Walt Arnold 256-1255, web site waltarnold.com. Also you can follow me on Twitter @waltarnold or like us on Facebook for daily ABQ CRE news updates. If you have any questions regarding commercial real estate give me a call. Bob have a great week, talk to next week.
Who needs a loan sale advisor? Great question, as my attorney says of loan sales, “it’s not exactly rocket surgery.” In addition there has never been more capital available for the purchase of distressed debt. Problem banks with problem loans make the headlines in newspapers every day. Bankers are inundated with calls from prospective loan buyers or “vultures” as my banker friends call them.
So “who” does need a loan advisor?
Not banks who are unconcerned about creating an arms length transaction;
Not sellers that personally know several hundred qualified buyers;
Not banks with workout departments experienced in file assimilation for due diligence; conversion of paper files to electronic files; development of relevant loan data spreadsheets; and creation of a marketable loan summary
Not sellers with special asset departments prepared to obtain confidentiality statements from scores of curious potential bidders; with sufficient staff to police the actions of those people receiving such confidential information; with the ability to evaluate and understand indicative bids, letters of intent, loan sale agreements, buy back provisions, eleventh hour re-trading and closing documents;
Not banks that have executive staff well versed in dealing with sophisticated loan buyers that have been involved in hundreds of millions, if not billions, of dollars in previous distressed loan purchases;
Not lenders that don’t have to answer to a board of directors regarding lender liability; did we get a “fair” price, much less the “best” price; do we have ongoing liability; who is this company or person that is now out collecting, or trying to collect, on our documents with our bank name plastered all over them;
And certainly NOT banks with a proven, written business plan in place of how they will price loans, market them efficiently, sell them without recourse and maximize their collection efforts.
Come to think of it “who needs a loan sale advisor?”
For More Information on Patrick Blount and Benewolf’s services visit Patrick’s blog here
For more info on Walt Arnold/Sperry Van Ness Visit my website www.waltarnold.com
Every Monday Morning Walt Arnold, Managing Director of Sperry Van Ness/Walt Arnold Commercial Brokerage in Albuquerque, NM sits down with 770 KKOB raido host Bob Clark to discuss commercial real estate. I this episode Walt give property owners a maintenance tips to help prevent any costly repairs. Also Walt talks about a few bank owned property listings in the Albuquerque area.
Bob – Walt, as we head into springtime, are their some spring cleaning details commercial properties owners should be thinking about?
Walt – Good morning Bob, yes there are and it is a good time to think about some preventive maintenance items. As the weather starts to warm up and with the time change it is time for maintenance and here are a few items to consider.
1.Check the timer for outside lighting so it is coming on and going off at the correct times.
2.Change batteries in any systems that require it, for example smoke detectors, backup batteries for lighting interior lighting and any other critical systems that require batteries.
3.Many events are scheduled throughout the year, but use the time change for fire inspection, alarm inspections, elevator inspections, and parking lot inspection for restriping or sealing.
4.It’s also time to service the refrigeration equipment for air conditioners and coolers for the upcoming warm up. Make sure filters and evaporative coolers are serviced and for refrigerated air conditioning it is important to clean the coils and change the filters. The systems will run much more efficiently with regular maintenance.
Bob – So the saying an ounce of prevention….
Walt – Yes it really is amazing, if an owner will spend a few dollars on periodic maintenance how much it will save in the long run. One area this is very evident is on roofs. During the spring and fall when we don’t get much rain it gives the roofer time to inspect the roof and do the preventative maintenance required. Maintaining roofs twice a year will save thousands of dollars over the life of the roof. Don’t forget to inspect the roof or gutters for leaves or any debris that might clog up a roof drain or canale.
Bob – Anything else for us today?
Walt – I would like to mention that we manage almost 600,000 square feet of commercial space and if anyone is thinking about a need in commercial real estate property management services, give me a call and we can set up a meeting to discuss our services.
Bob, I also want to talk about some bank owned properties we are selling. The first is 3701 San Mateo a 12,000 square foot office building for $1,200,000. The second is 521 Rankin an industrial property just south of Comanche, west of I-25 7,800 sf for $544,000 and we also have a 3,000 square foot restaurant on Zuni just east of San Pedro. Call me for details.
Bob – How can people reach you today?
Walt – Thanks Bob, call Walt Arnold with Sperry Van Ness, my direct line is 256-1255, website is waltarnold.com, you can also follow me on twitter @waltarnold. We know commercial real estate we do it all day, every day, and very well, give us a call. Go Lobos. Bob, have a great week!
Walt – Good Morning Bob. Fortunately, I haven’t had a major earnest money dispute, at least not yet. In a commercial transaction there can be a significant amount of money in a deposit. In a residential transaction the consumer protection laws will help to enforce the contract. But in a commercial transaction a judge in court usually decides the ambiguous language. Let’s talk about some things to help protect the earnest money deposit.
1. Make the contract terms clearly spell out what happens to the earnest money upon termination of the contract.
2. Get good counsel. If there is any doubt of the language get an attorney to review the document and make sure it has language that will work for all parties and situations that might come up.
3. Termination notices should be broadly worded, for example if there is specific termination language in the contract the court might find the specific language to be invalid, but then rule that a purchaser might still be bound to the rest of the contract, so make terminations broadly worded.
4. Make sure the person holding the money is an unbiased third party. A good idea is to put the money in a title company and not one party’s agent or attorney.
Bob – What else is going on in the commercial real estate world?
Walt – I think an interesting project to watch will be the redevelopment of the rail yard buildings and land just south of downtown. This is a very unique property abutting the Barelas neighborhood. Mayor Berry called it a Diamond in the Rough and it really is, if they do it right it could be an outstanding project. It is a joint venture between Samitaur and Build NM.
Samitaur is known for re-development of urban blighted areas such as Conjunctive Points, a mixed use project in Culver City which is located next to Los Angeles. So I wish the best of luck to Samitaur and Build NM in redeveloping the rail yard project.
Bob – How can people get a hold of you today to talk about commercial real estate?
Walt – Thanks Bob, call me Walt Arnold at 256-1255, website waltarnold.com also follow me on Twitter @waltarnold. Check us out! Sperry Van Ness is a national commercial real estate company with 160 offices across the country. We help people make wise real estate decisions with specialists in commercial sale, leasing, property management, tenant representation, auctions and loan sales, if it involves commercial real estate call us we can help. Thanks Bob have a great week.
Bob – Walt I know this is the commercial real estate report, but I have to ask if you watched the Oscars last night?
Walt – Bob I did, and I love watching the Oscars. It is always exciting to watch people perform at exceptional levels and to watch actors be rewarded for outstanding performances.
Congratulations to all the winners and also congratulations to Tom Hooper, The King’s Speech, for winning best director. A director has to coordinate a myriad of events to put together a movie. Bob we’ve talked before about how a commercial real estate broker helps put together all the pieces of the puzzle in a real estate transaction including coordinating landlords, tenants, attorneys, CPAs , architects, environmental issues and title concerns all resulting in the finished product of a successful real estate transaction, similar to the multi tasking ability a director must have to create a successful movie.
It takes a lot of work and it is important to have a professional to help in that process. At Sperry Van Ness we have the skills to produce great work.
Bob – Let’s get back to the commercial real estate. What is happening in the commercial markets?
Walt – I would like to quickly focus on the year-end numbers for the office and industrial markets.
The office market continues to struggle but there are some signs of stabilizing. Median asking rates are up, but when you factor in concessions from landlords the effective rates are down slightly, vacancy rates continue to edge up and there were some employment increases in temporary staffing which was a good sign. However we will need to see significant improvement in jobs for the office market to show strong recovery signs.
In the industrial market the vacancy decreased for the first time since 2009, construction again was the lowest in recorded history. The owner user market or owner occupied real estate remains strong although price expectations are still difficult between buyers and sellers. And like office, employment in certain sectors will have to increase for the leasing activity to get stronger.
Bob – Walt, what happening with Coronado Shopping Center, are they getting some new tenants?
Walt – They are, Bob you will be happy to know that Coach, Joppa and Rue21 will be moving in to Coronado. 3 national retailers, that’s good news. Coronado is also going to demolish an 8,400 square foot building on the east end, which was a former Gateway computer store. The demolition will provide a pad site for a national restaurant hopefully like the Cheesecake Factory or something similar.
Bob – Walt, how can people contact you today about commercial real estate?
Thanks Bob, call Walt Arnold at 256-1255, website is waltarnold.com. You can also find me on Facebook.com/waltarnold, or on Twitter @waltarnold. Give me a call to discuss your commercial real estate needs.
Sperry Van Ness®/Walt Arnold Commercial Brokerage, Inc.
Today's real estate industry is more demanding and challenging than ever, yet at the same time filled with opportunity. Sperry Van Ness®/Walt Arnold Commercial Brokerage, Inc. of Albuquerque NM would enjoy helping you with those challenges and opportunities.
Walt Arnold is a member of the Society of Industrial and Office Realtors (SIOR), member of CCIM-Certified Commercial Investment Member past President of the Commercial Association of Realtors of New Mexico (CARNM), past CARNM Realtor of the year, and former professional football player with the L.A. Rams, Houston Oilers and Kansas City Chiefs.
Albuquerque Commercial Real Estate News 