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.
CRE Report 06.05.2011
June 5, 2012 at 11:08 am | Posted in Market Reports, Radio Show Reports | Leave a commentTags: Admiral Beverage, Albuquerque commercial market, Albuquerque Industrial, Albuquerque REtail, Albuquerque Uptown, retail
Bob – Walt, what do you have for us this morning?
Walt– Good Morning Bob, I have some updates for you in the Albuquerque commercial market. First of all, some good construction news, Admiral Beverage is going to build a 219,000 square foot building at Rio Bravo and Prince. The $15 million dollar project will employ at least 55
Image Credit: http://www.dpsdesign.org/abq-uptown
contractors and add 20 permanent jobs in addition to the 185 current employees. So that is good news!
Admiral Beverage acquired Maloof Distributing in 2010. Admiral will start on 24 acres for its warehouse and delivery operation. The remaining 17.5 will be for future use.
In the retail world ABQ Uptown has a couple of new tenants for the Lifestyle Center. J. Crew and North Face will take space in the former Border’s location. There will be one remaining space in the 20,000 square foot building and when that space gets leased the center will be 100% occupied.
J. Crew and North Face could also create additional retailers to start to look at the Albuquerque market. As retailers see that J Crew and North Face have selected the Albuquerque market it will entice others to look at the opportunities in the Albuquerque retail market for opening stores in ABQ Uptown, Coronado or the Winrock project. J. Crew and North Face are two strong retailers with successful platforms and will add to the strength of ABQ Uptown. As more retailers continue to make there way to Albuquerque it continues to open the door for additional retailers and also higher end specialty retailers.
It’s like the story of the Burger King real estate department. The story is it was just one person. The task was to find where McDonald’s was building a restaurant and buy the land next door and build a Burger King. All the heavy site analysis and demographics was done, which is similar for retailers, as more retailers look to invest in specific locations and other retailers are already there and doing well, the risk of putting in a store begins to ease.
Bob – Anything else and how can our listeners contact you regarding commercial real estate?
Walt – Thanks Bob, Sperry Van Ness is a full service commercial real estate company in 160 markets across the country. We have specialists in sales and leasing of office, industrial and retail properties. We help Tenants find space through our Tenant Representation platform, we have a full service professional property management company and we have disciplines in loan sales, bank Real Estate Owned sales through our Asset Recovery Team, Auction Services, Investments sales, and Loan Workouts through a strategic partner. We have what’s required to make the right choice in commercial real estate.
If you have any commercial real estate requirements we have solutions.
Direct line for me, Walt Arnold is 505-256-1255, our website is www.waltarnold.com, also follow me on Twitter and become a fan on Facebook fore more up to date CRE news updates. Give me a call to discuss the Sperry Van Ness difference in commercial real estate.
CRE Report 05.29.12
May 28, 2012 at 10:08 pm | Posted in Market Reports, Radio Show Reports | Leave a commentTags: Albuquerque Malls, Albuquerque REtail, BJ's Restaurant Albuquerque, Construction Albuquerque, Dave and Busters Albuquerque, Gengis Grill Albuquerque, IMAX Albuquerque, Regal Cinema Albuquerque, sperry van ness, Tax Increment Development District, TIDD, Uptown Albuquerque, Winrock Mall
Construction beginning at Winrock Mall
Bob – Walt, what is going on it Winrock, it sounds like some things are in the works?
Walt – Good morning Bob. Yes things are beginning to happen at Winrock. Regal Entertainment’s 70,000 ft.² cinema, along with an IMAX auditorium and three restaurants, Dave and Busters, Genghis Grill and BJ’s Restaurant and Brewery are all scheduled to open at Winrock in the near
future. The Cinema is scheduled to open Memorial Day 2013. So looks like there’s some positive traction at Winrock and deals are in the works, and eventually there will be 30 national and local retailers in this first phase of Winrock.
Bob, one of the mantras for real estate is location, location, location and other key word for any investment is timing. Winrock ran into some timing issues when the developers, Goodman Realty Group, initially planned to redevelop the shopping center.
This location has not diminished and if you look at Winrock’s location at Louisiana and I-40, it’s tough to think of a better long term retail location in the metro area. The proposed 165,000 square foot Target at Indian School and Uptown will also be a significant traffic driver to the Uptown core as well.
Bob – The Winrock project has been in the works for some time, it’s good to see some movement on that property. Why did it take so long?
Walt – There were several issues, the Uptown Sector plan took time to get through approvals, the TIDD (tax increment development district) had to be created and it took time to get its approvals, but the big stick holding it up the most was the economy. But retailers are pressing forward due to the strong demographics, convenient access and synergy of the Uptown commercial area.
Bob – Walt what else do you have for us today?
Walt – Yeah Bob, I’d just like to take a moment to thank all service men and women for serving our country and protecting our freedom.
Also remember for daily CRE news updates follow me on Twitter @waltarnold or become a fan of Sperry Van Ness on Facebook today. Thanks, Bob I’ll talk to you next week have good one.
CRE Report 05.21.21
May 24, 2012 at 7:07 pm | Posted in Radio Show Reports | Leave a commentTags: Auction, Copper Theft, sperry van ness
Copper theft on the rise
Bob – Walt there has been some news stories lately of copper theft from commercial properties. It seems to be a growing problem. What can property owners do to protect themselves from copper theft?
Walt – Good morning Bob, this problem is serious and it is expensive for property owners when it happens. The Albuquerque Board of Realtors was shut down the other day when copper was stolen from the main transformer to the building.
Image Credit: http://sfist.com
I have had three buildings we are trying to sell or lease have copper stolen in the same way from the main transformer to the property. An industrial building experienced the theft just last week and an office building a month ago.
I had one owner that had it stolen, replaced it, had it stolen the next day, replaced it and had it stolen again. It’s crazy!
Bob – What is the solution? This sounds like a difficult problem.
Walt – It is a tough dilemma for property owners. One strategy we have implemented is to combine the building alarm with arming the exterior panel so if anyone tries to open the exterior electrical panel the alarm will go off. Another solution is to increase lighting around the building and to take all necessary steps to secure access to the building’s main electrical panel.
It can happen so quickly and it can happen to any building in Albuquerque. If anyone sees any activity around a building that is at all suspicious call 911 immediately.
Even if the building has insurance coverage the amount of disruption to tenants or your day-to-day business is significant. And my last piece of advice on copper theft is if the building is vacant have a discussion today with your insurance agent today regarding a vacant building and copper theft, because it might not be covered in that scenario.
Bob – Walt, two more days to your Auction, this is your last chance to tell our listeners about it.
Walt – Yes thanks to KKOB and the mega 50,000 watt blow torch to let me talk once more about our auction of 401 San Pedro this Wednesday from 11:00am to 3:00pm. The best news is there is still time to get signed up. Give me a call at 256-1255; the auction site is www.auctionsvn.com/sanpedro. 401 San Pedro is a 4,900 square foot originally listed at $330,000; the opening bid is $190,000.
Bob – How can people reach you again to talk about commercial real estate?
Walt – Thanks Bob, call me Walt Arnold at Sperry Van Ness, 256-1255. Sperry Van Ness is a full service commercial real estate company in 160 markets across the country. If you have a requirement for sales, leasing and property management or tenant representation let’s get together and discuss your specific needs.
Bob, have a great Memorial Day weekend and I will talk to you in a couple of weeks
CRE Report 05.14.12
May 16, 2012 at 11:19 pm | Posted in Radio Show Reports | Leave a commentTags: 401 San Pedro, Auction, opportunities, preventative maintenance, property maintenance, property management, radio show, repairs, roof, ROof Repair
Property Maintenance
Bob – Walt, what do you have for us today?
Photo Credit: http://www.brigley.com/
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!
CRE Report 04.23.12
May 14, 2012 at 9:31 am | Posted in Radio Show Reports | Leave a commentTags: Albuquerque Apartments, Albuquerque Commercial Real Estate, Apartments, Auction, develop, development, sperry van ness, vacancies, Vacancy Rates, walt arnold
Albuquerque’s apartment market continues to thrive.
Bob -Walt, what is going on with Albuquerque’s commercial real estate this week?
Walt – Good morning, Bob. The apartment market continues to shine as the choice for real estate investors, developers and sellers. All this good news has opened the door for development in multi-family properties.
Development is starting; a local real estate group is developing 201 units at Eagle Vista on the Westside, with more units
planned. Rob Dickson (Albuquerque High developer) is planning to convert the De Anza Motor Lodge into 50 apartments in a 4.5 million dollar project. Titan Development and Phoenix Alliance Residential are planning projects in the northeast heights.
Some other projects are American Real Corp’s 568 units south of the Westside Costco along with a 166-unit expansion at the Aspens, Bay Hill Development is building 240 apartments at Coors and Montano and Real Capital Solutions is adding several hundreds units as expansion to Westside projects. So projects are in the works and working their way to construction!
Bob—-With all these planned projects coming on the market, what will happen with the vacancy? Is this going to create an overbuilt situation?
Walt – Even with all these apartments, it will have little impact on the vacancy rate, as these units will be absorbed quickly.
With the increased requirements to get into a home loan, more people will remain in the rental market. And this scenario could continue to play out for some time with the low interest rates available on multi-family, decreasing land prices (which helps the developers make their projections to build) and the increased demand for rental housing, the multi-family market for investors, developers and sellers will remain a strong play in this market.
Bob – On to another topic! You have an auction coming up with the Auction set for May 23. What are the details on the Auction?
Walt – Yes, 401 San Pedro NE, located just south of Lomas, the building is a 4,952 square foot multi-tenant building. This property is a little gem across from the Fairgrounds. It is an attractive property set for Auction on Wednesday, May 23rd. This property works well as a small multi-tenant investment property or another possibility is for an owner user with some tenants to help pay any debt obligations.
It’s an online auction from 11:00 AM to 3:00 PM on May 23rd. The auction website is www.auctionsvn.com/sanpedro. Again, that’s www.auctionsvn.com/sanpedro. This property will be sold on May 23rd; the opening bid is $199,000.
Bob – Walt, how can people reach you today?
Walt – Thanks Bob, my direct line is 505-256-1255. Did I mention the auction website? www.auctionsvn.com/sanpedro. This is an opportunity to acquire a nice, well maintained property in northeast Albuquerque. The online auction process makes it easy to participate and we have all the documents up on the website to review. Also check out my new and improved website waltarnold.com or follow me on Twitter @waltarnold or become a fan of SVN on Facebook for daily CRE news updates.
Thanks Bob for the time today, have a great week.
CRE Report 04.16.12
May 10, 2012 at 12:18 pm | Posted in Radio Show Reports | Leave a commentTags: capital, Cash, expenses, income, Internal rate of return, Investing, IRR, Return on investment, Returns, ROI
Commercial real estate investment returns
Bob – Walt let’s talk about Commercial Real Estate Investments returns today. How do you size up a commercial real estate investment, to make sure it’s analyzed correctly?
Walt – There are two significant elements you need to consider in determining a successful commercial real estate investment, and they are cash flow and return on investment.
It’s all about cash. Cash flow is King, at least for some people. When going into a commercial investment it’s critical to analyze all the expenses including, vacancy loss and the cost of vacancy’s impact on the investment, creating a replacement reserve to plan to replace major items in the
Photo Credit: http://jdfletcherassociates.com/blog/?p=371
future, on going maintenance items, advertising, tenant repairs and one of my favorites, lease commissions. It is critical to analyze all the costs associated with the property because every dollar that goes on the expense line is a dollar that disappears from the profit line. So you can create cash flow by raising rents, closely monitoring expenses and or by putting more cash in to the deal.
Bob – Where does the property appreciation show up in that investment analysis?
Walt – Well it really doesn’t in that scenario. And interestingly, it doesn’t come into play in one of the most popular method of investment measurement, which is the capitalization rate or cap rate, which basically analyzes the investment based on one year of net operating income and also
assigns a risk factor to the asset to determine the value.
Another popular and more comprehensive analysis requires looking at the internal rate of return of the property or IRR, which takes into account the purchase price, the current financing on the investment, all income and expenses, property depreciation, and a sale price at the end of a determined time frame usually five years.
Said again, the IRR calculates the dollars in the investment and creates a return calculating the purchase price, annual cash flows and eventual sales price. We can analyze the return on the cash flow or the appreciation or a combination of both.
Bob – Walt, that sounds like a very detailed approach to analyze a commercial real estate investment, can this be done on any type of income property, regardless of the value of the property?
Walt – It can and it is a great way to analyze commercial investment real estate. Owners of commercial investment real estate want to know what their property is worth, and the IRR is an excellent way to value all aspects of the property and based on those numbers the Internal Rate of Return is going to provide an excellent analysis of the property’s return to the investor.
Bob – Walt how can people reach you to talk about commercial real estate?
Walt – Thanks Bob, Walt Arnold, 256-1255, website, waltarnold.com also follow me on Twitter or become a fan on Facebook. If you have a question about your real estate property values, give me a call for a free property evaluation. Thanks Bob, have a great week.
CRE Report 04.09.2012
April 30, 2012 at 11:20 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Bubba Watson, CRE, GOlf, Golf Clubs, Masters, property management, sperry van ness
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.
Photo credit http://www.businessinsider.com/sportspage
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.
CRE Report 04.02.2012
April 2, 2012 at 11:54 am | Posted in Radio Show Reports | Leave a commentTags: Aerotropolis, air travel, airports, albuquerque, Albuquerque air travel, Albuquerque Commercial Real Estate, cities, CRE, development, GDP, infrastructure, mesa del sol, southwest airlines, sperry van ness, urban, urbanize, walt arnold, wright law
Aerotropolis – The future of cities
Bob – Walt, Todd Clarke talked about the Aerotropolis event, you were there, and can you give fill us in on what he talked about?
Walt – Greg Lindsay the author had a lot to say about what’s ahead for the cities of the world.
One interesting point he discussed was the strength of cities, as they get larger. He drew an analogy that larger animals are not more efficient than smaller animals, for example the elephant is not more efficient than a mouse. But for cities the larger they get they better they get. Cities prosper more as they increase in size and population. And what do larger cities have, they have more amenities and a greater network effect. Large cities feed on themselves and the larger cities will continue to prosper. 
Bob, here is an amazing statistic about the top 100 cities in the world. The top 100 cities produce 33% of the World’s GDP. The top 600 cities in the world produce 66% of the World’s GDP. The world is now 50% urbanized. The US is currently 80% urbanized so this trend of larger cities is going to continue.
Bob – So what is the story with the title of the book Aerotropolis? What is the link to air travel?
Walt – Just as major cities were once built around ports, or railroads, the future world cities will be built around air travel. The ability to ship by air and to get anywhere in the world quickly will be key for the future of cities. And not all of those cities will be large cities; some smaller cities will also have success in the future air travel of the Aerotropolis.
Bob – What were his thoughts on Albuquerque?
Walt – Well, we weren’t on any of his slide or any lists that he talked about. But he did talk about Mesa Del Sol and how it is an example of how cities and developments will need to be constructed in the future. Close to air travel, great infrastructure for connectivity, which Mesa del Sol has and creating a sense of place and connection.
One concern he spoke about was the Wright Law that controls some of Southwest’s flights connections out of Texas and when that law expires it could have an effect on Albuquerque air travel.
Bob – How can people get a hold of you to talk about commercial real estate?
Walt – Thanks Bob, Walt Arnold 256-1255, follow me on Twitter and become fans with us on Facebook for daily CRE news updates in ABQ and around the globe . One last thought, Lindsay talked about how great cities have a sense of place and a quality of life. If ABQ can develop a strong sense of place and reason for people to be here, we will be fine. We need to find our comparative advantage, we need to improve our educational system and need to figure out a way to capitalize on our strengths especially cooperation with Sandia and Los Alamos. If we can do these things we will be a great city and a great place to own commercial real estate.
Walt Arnold, SIOR, CCIM
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