|
block1_top
Thanks for stopping by the Three West Blog. Hopefully we can offer you some expertise regarding commercial real estate, brokerage, leasing, property management, and business issues in Northern Michigan. The main purpose for our blog is to educate and help those looking for a resource as it relates to your real estate and business needs. If you have a specific question, shoot us an e-mail at info@threewest.net and we'll do our best to provide an answer. We'll also post many of the frequently asked questions and answers that we come across on a daily basis. We look forward to hearing from you. Check back often. Commercial Real EstateInvesting in Commercial Real EstatePosted by Kevin Endres - Jul 19, 2010The worst of the residential real estate issues are beginning to move toward resolution and a certain normalcy is returning to the market. But what about the commercial real estate market, is it still trending downward, will there be a “crash”, has the market hit bottom, when will it rebound? All of these are excellent questions with no easy answer, however there are indications that the commercial market will not “crash”. There seems to be a resiliency that is allowing for adjustments in value, mortgage work outs, and lenders are becoming interested in loaning money for owner occupied commercial properties utilizing the SBA Loan programs. Additionally, prices are depressed and interest rates are low. Investors, with cash enough to structure a 60% loan to value transaction, may be able to seize opportunities that are great investments. Adding commercial real estate to an investment portfolio can enhance diversification, provide a hedge against inflation and generate income. Determining what type of commercial real estate investment is best for your portfolio hinges on understanding the relationship of risk and return. There are three primary categories of commercial investment strategy, each offering certain risk and return characteristics. A balanced investment portfolio includes a mix of these three strategies. CORE INVESTMENTS: Core commercial real estate investment programs generally use conservative strategies for lower-risk investments. Core properties are typically well-leased and well-maintained office properties located in well established markets with stable credit worthy tenants. Core investments are designed to protect against inflation and have a primary investment objective of creating income and capital preservation. Typically core investments have a long-term holding period of eight (8) to twelve (12) years. Core Investments:
VALUE-ADDED INVESTMENTS Value-added investments offer a moderate level of risk. The goal of value-added investments is to acquire properties that need improvement or repositioning. Properties classified as value-added usually require amenity and aesthetic upgrades, or require management or operational improvements. Value-added investments usually have a short-term holding period of three (3) to six (6) years and focus on appreciation of value rather than income. Value-Added Investments:
OPPORTUNISTIC INVESTMENTS Opportunistic real estate investment programs assume the greatest risk of all three asset classes, but have the objective of generating higher returns. These investments generally require the investment program to convert, redevelop, or reposition an existing property in order to seek its highest and best use. Opportunistic investments generally have a short-term holding period of three to six years and are geared to maximize appreciation. To add value property managers may re-tenant, reposition, recapitalize, develop or re-develop the property. Opportunistic Investments:
In conclusion, there are many considerations and options that need to be explored and evaluated when investing in real estate. This is an excellent time, with prices depressed and interest rates low, to invest in commercial real estate. Three West has the expertise to assist investors in all facets of the evaluation process, we can provide the property management services necessary to maximize the investment and at the end of the holding period apply our marketing strategies to sell the property.  PermaLink Comments (0)
FinancingMay SBA 504 RatesPosted by Kevin Endres - May 18, 2010 The effective SBA 504 Loan rates for May 2010 are as follows:
For more information on the SBA 504 Loan program, please visit the SBA Website. Please contact us about local banks in the Traverse City Area that can assist you with an SBA loan for the purchase of real estate for your business. PermaLink Comments (0)
FinancingApril SBA 504 Loan RatesPosted by Kevin Endres - Apr 13, 2010 The effective SBA 504 Loan rates for April 2010 are as follows:
*This is the March 10-Year Bond rate. The 10-Year Bonds are sold every other month. The next sale of the 10-Year bonds will be in May. For more information on the SBA 504 Loan program, please visit the SBA Website.Please contact us about local banks in the Traverse City Area that can assist you with an SBA loan for the purchase of real estate for your business. PermaLink Comments (0)
Commercial Real EstateHow Healthcare Reform Affects Commercial Real EsatePosted by Kevin Endres - Apr 08, 2010Outpatient facilities provide investors with great opportunities for reliable returns. Prior to the passage of the healthcare reform investors began injecting capital into the medical real estate market. Outpatient facilities in particular are getting special treatment from investors due to growing demand for alternatives to traditional hospital care. Some studies indicate that most hospital systems today provide 60% of their treatments on an inpatient basis and 40% as ambulatory care, or outpatient treatments. But that ratio is changing. Many believe that over the next five years, those percentages are going to be reversed. The demand for outpatient services and buildings where those services are offered will mushroom as the large population of Baby Boomers age and require more medical attention and treatments.Now that the health care reform has been signed into law the medical industry has gained a sense of certainty regarding the need to expand. A real estate formula for calculating medical space indicates that a health care system requires about 1.9 square feet of medical office space per patient. With the healthcare reform it is estimated that 32 million people will be added to the ranks of insured, which equates to a potential demand for 64 million square feet of additional medical space. While demand for space will increase we suggest that investment criteria for the health care sector won’t change. Perhaps the initial prudent investment will be to invest in existing medical properties that have vacancy and arrange advantageous financing. The anticipated increased demand will fill the vacancy and foster the growth of successful investments. If you wish to discuss investment possibilities please contact Three West LLC and discover the possibilities at Cooper Ridge, Traverse City's most prominent medical office campus. PermaLink Comments (0)
Commercial Real EstateCynergy Becomes Part of Three WestPosted by Kevin Endres - Feb 16, 2010 Three West is pleased to announce today that Cynergy, a local leasing, management and brokerage group, has become part of Three West. Cynergy members David Frost and Stan Tornga have joined Three West as principals. Cynergy was formed in 2007 and had been part of Real Estate One. Commenting on the announcement, Three West Principal Rick Deneweth said, “We are very excited, in part because of Dave and Stan’s combined 40+ years of experience and the incredible book of commercial listings they bring. Three West is now able to offer so much more to our existing and future clients.” Frost has leased more than 400 properties in the last 16 years to tenants such as the State Of Michigan, the U.S. government, Sears, Plante & Moran, Waddell & Reed, Tower Automotive and Wells Fargo. During his time at Real Estate One, he was awarded several Presidents Circle, Division Volume Leader Commercial, and Office Top Producer Commercial Awards. Tornga is a licensed real estate broker and certified property manager. He has been in the real estate business since 1971. During his tenure, he has sold income-producing properties, provided property management services for office buildings, apartments and neighborhood retail centers. Three West now offers a complete suite of commercial real estate services for Industrial, Office, Retail and Investment properties to compliment their businesses consulting services for their large and small clients, including:
PermaLink Comments (0)
FinancingJanuary SBA 504 Loan RatesPosted by Kevin Endres - Jan 13, 2010 The effective SBA 504 Loan rates for January 2010 are as follows:
For more information on the SBA 504 Loan program, please visit the SBA Website. Please contact us about local banks in the Traverse City Area that can assist you with an SBA loan for the purchase of real estate for your business. PermaLink Comments (0)
Commercial Real EstateProper Environmental Due Diligence Is Key To The Success Of Any Commercial Real Estate TransactionPosted by Kevin Endres - Jun 17, 2009Addressing environmental issues, through proper due diligence, has emerged as one of the most significant concerns in commercial real estate transactions today. What is “due diligence”? According to Black’s Law Dictionary, due diligence is defined as "Such a measure of prudence, activity, or assiduity, as is proper to be expected from, and ordinarily exercised by, a reasonable and prudent [person] under the particular circumstances; not measured by any absolute standard, but depending upon the relative facts of the special case." The strict liability nature of environmental laws has resulted in a heightened awareness of environmental issues in real estate transactions. The primary reason buyers are conducting such studies is to ascertain if property is contaminated, since under state and federal law (CERCLA), an owner of property is strictly liable for contamination on that property; no causation must be proven to impose cleanup liability. Proper environmental due diligence during commercial real estate and transactions can include Phase I and Phase II Environmental Site Assessments. If a buyer purchases a property that turns out to be contaminated, but that person exercised the proper environmental due diligence prior to the purchase that person would then have a defense to liability. For a couple thousand dollar investment with an Environmental Engineering firm, a purchaser can eliminate the chances of inheriting any environmental liability that could cost them hundreds of thousands of dollars in the future. Be sure your Commercial Realtor is advising you to take the proper precautions in all of your transactions and not just looking to close a quick deal. PermaLink Comments (0)
Commercial Real EstateJust listed this Class-A Office Space in Traverse City, MichiganPosted by Kevin Endres - Jun 02, 2009 We just listed this 1,350 sq-ft of finished Class-A Office/Medical space in Building A of Copper Ridge, Northern Michigan's Premier Health and Wellness Development. Copper Ridge is home to the Northwest Michigan Surgery Cecnter and Munson Hospital's Woman's Health Center. This space is ideal for a professional, medical, or dental office. The space has 4 offices, a reception/bullpen area big enough for three people, a waiting room area that could easily converted to a conference room, a small breakroom complete with a kitchenette and a private bathroom. Each office has incredible panoramic views of Traverse City. Building-A provides ample parking for staff and clients, and this space comes with two private spaces in the underground parking garage. For more details click here. PermaLink Comments (0)
Commercial Real EstateWho's Representing You?Posted by Kevin Endres - Apr 15, 2009Are you looking to buy a commercial building for your business? Perhaps you need to lease new office space. When you call the phone number on a Realtor’s “For Sale” sign outside of property you are interested in, the Realtor on the other end of line has one interest in mind, the Sellers! How would you like to have someone fully representing your best interests in this transaction, and at no cost to you! When you enlist the services of a Commercial Buyer Representative, you’ll be served, not sold. Your interests become their interests. You will be working with someone who will go the extra mile in determining what is best for you and your business. When working with a Commercial Buyer Representative you will be working with someone who will:
It doesn’t matter what kind of business you operate, the real estate decisions you make should align with your business goals. Do yourself a favor and work with a real estate broker that will look out for you and your business interests. PermaLink Comments (0)
General Real EstateLooking for Riverfront or Waterfront Property?Posted by Kevin Endres - Mar 17, 2009 Northern Michigan is home to some of the most spectacular lakes and rivers in the world! Not familiar with every lake up North... no problem. HomeWaters.net includes links to lake bottom maps and lake descriptions so you can do your own research and find the property and lake that best suits the needs of you and your family. There are 1,000's of miles of pristine rivers and streams in Northern Michigan to choose from. In addition to providing the most complete and accurate riverfront property listings, HomeWaters.netwas built to be a resource with river maps, conditions and hatch reports, float and fish times, river histories, and other helpful information. My friends at Home Waters are the most knowledgable Realtors and leaders/pioneers in the rivers and lakes real estate industry. Besides their expertise, their website www.homewaters.netis the most powerful and user friendly search engine for available river and lakefront properties on the web. If you are in the market for such a property, a bookmark to their site is a must. Tell them that Three West, LLC says hi. PermaLink Comments (0)
HealthcareTough Times Impact HealthcarePosted by Kevin Endres - Mar 17, 2009Tough economic times have a negative impact in many industries and health care is not immune. As a manager of two area phyical therapy clinics, I see the impact in the increasing number of patients who are unable to complete their recommended number of treatments, because they can’t afford the copays. The trend of employer provider health coverages to higher deductible and higher copays has been increasing for a number of years. With the economic downturn, the impact of the higher employee costs are being seen much more frequently. Where in the past we may have had an average of one patient per month decline continued treatment because of costs, we now see one or two patients a week choosing to cut therapy short. Not knowable are the increasing number of folks who are foregoing physical therapy treatment completely, because of high deductibles and $40 copays. To read more on this topic visit upnorthlive.com This post was written by Three West Associate Christopher Bosio.
PermaLink Comments (0)
Commercial Real EstateThe difference between a NNN Lease and a Gross LeasePosted by Kevin Endres - Mar 12, 2009If you’re in the market for new space for your business and are looking to lease, it is imperative that you understand the difference between the two common types of leases, NNN and Gross. The term NNN Lease, or Triple Net Lease, refers to a lease where the tenant is responsible for not only the rent but the operating expenses also. The NNN, or Net-Net-Net, generally refers to the Common Area Maintenance (CAM), real estate taxes, and insurance. In this case, the tenant bears the entire risk of unexpected changes in operating expenses. A Gross Lease is a term used for a lease where the Landlord assumes the operating expenses. A Gross Lease is generally an all inclusive “out the door” payment structure. The Landlord is one who bears the risk of all unexpected changes in operating expenses. With any lease, it is important to read the details very carefully to determine who pays for what. Some spaces may be advertised for a very low dollar amount per square foot, but have very high CAM fees, creating an overall payment that is more expensive than originally anticipated. The type of building construction will also play a large role in the type of lease advertised for a building. A $14/SF NNN lease for an older building, with old windows, and low energy efficiency will generally have a greater overall cost to the tenant compared to a newer energy efficient building due to the operating expenses required to heat and cool the space. In either case, it is always important to make sure that you have buyer representation, just like in a real estate purchase, looking out for your best interest in any lease negotiation. PermaLink Comments (0)
block2_bot
block3_top
rightcolumn_bot
|
Browse by Month