Seacoast Market Report

Wall Street Boosts Borrowers as Real Estate Bond Market Returns

noreply@blogger.com (Bill Faulkner) — Thu, 10 Feb 2011 22:20:00 +0000

Wall Street Boosts Borrowers as Real Estate Bond Market Returns

By Sarah Mulholland and Nadja Brandt - Feb 9, 2011

Bloomberg.com

Randy Waesche was running out of time to retire debt he took on to build a Marriott hotel in downtown New Orleans. Then Citigroup Inc. showed up.

Waesche had spent six months seeking a more affordable alternative to terms being offered by his lender, a unit of Capmark Financial Group Inc. Citigroup was able to offer a better rate as the market for bonds tied to commercial mortgages revives following its 2008 collapse. The loan was completed in November, and was part of an $876 million securitized debt sale by Citigroup and Goldman Sachs Group Inc. in December.

“We went to life insurance companies, we went to everybody,” said Waesche, president of Resource Management Inc., a Metairie, Louisiana-based financial-planning firm, and an investor in several New Orleans-area hotels. “There were very few rocks we didn’t turn over. Wall Street was the only venue available.”

Banks and other firms that bundle mortgages into bonds are lending more money as demand for the securities increases from investors seeking higher yields. That’s making refinancing easier for property owners that have been passed over by institutions that usually hold real estate debt on their books, aiding a recovery in commercial property values.

The rebound in commercial-mortgage backed securities is benefiting borrowers with smaller properties and in areas outside the biggest cities. CMBS issuers fare better in these markets because they can get the higher rates they need to cover the costs of packaging and selling loans. Institutions that keep mortgages on their balance sheets, including insurance companies and non-U.S. banks, focus on top-tier buildings in large metropolitan areas.

‘Smaller Assets’

“Loans from CMBS lenders are more often on smaller assets or Class B office properties,” said Ben Thypin, an analyst at Real Capital Analytics Inc., a commercial-property research company based in New York. “They haven’t been able to compete that well with insurance companies and international lenders in the office market on the highest-quality buildings.”

About 71 percent of commercial-property lending by insurance companies was done in primary markets in 2010, compared with 67 percent for foreign banks and 47 percent for CMBS lenders, according to Real Capital. About one-third of loans from CMBS firms were in tertiary markets, compared with 6.6 percent for insurance companies and 12 percent for non-U.S. banks, the data show.

‘Good, Stable Properties’

“Just because it’s a secondary or tertiary market doesn’t mean it’s a bad market,” said Mitchell Resnick, co-head of commercial real estate origination and securitization capital markets at Goldman Sachs in New York. “Some of these markets didn’t experience as much of a downturn because they didn’t experience as much of an upturn during the boom years.

What people are really looking for is stability. You can find good, stable properties in secondary and tertiary markets.”

Primary markets include metropolitan areas such as New York and San Francisco that are mostly located on the U.S. coasts, while secondary and tertiary markets are comprised of smaller cities and towns.

Citigroup has originated more than $1 billion in CMBS loans over the past six months, about half of which are backed by properties outside major cities, said Marcus Giancaterino, global head of real estate finance at the New York-based bank.

“That is the bread and butter of CMBS,” he said. “The insurance companies have a lot of flexibility on pricing. They select the best. If an insurance company wants a deal, they are going to beat you.”

Sales to Quadruple

Sales of commercial mortgage-backed securities plunged to $11.2 billion in 2008 from a record $230 billion in 2007 when credit markets seized during the financial crisis. Less than $4 billion was sold in 2009, according to data compiled by Bloomberg. Last year, $11.5 billion was sold, and sales may reach $45 billion in 2011, JPMorgan Chase & Co. said in a Nov. 24 report.

Wall Street banks were able to land more trophy assets during the real estate boom as sales of commercial-mortgage bonds surged. Still, one of the primary benefits of CMBS is the ability to bundle smaller mortgages and create a diverse investment pool, according to Alan Todd, an analyst at JPMorgan in New York.

“The CMBS market was never solely intended to be the lender to the stars,” he said. “For commercial real estate to fully recover, the CMBS market has to originate loans that insurance companies aren’t vying for.”

CMBS lenders are most competitive on high-profile buildings when the loan is too big to be taken on by a single insurance company, according to Giancaterino of Citigroup. A loan secured by One Bryant Park, home to Bank of America Corp.’s midtown Manhattan offices, was sold in June in a $650 million commercial-mortgage bond deal.

Medical Facilities

George Yerrall, managing director at RiverOak Investment Corp. in Stamford, Connecticut, needed to refinance debt on six properties leased toNovant Health, a Winston-Salem, North Carolina-based operator of medical facilities. Five of the properties were in Winston-Salem and the sixth was in Loganville, Georgia.

While Novant carries an investment-grade credit rating, insurance companies and commercial banks couldn’t come up with attractive bids because of where the properties are located, according to Yerrall.

“It was all reflected in the price,” he said in an interview. “The tertiary market was more influential than the credit rating.”

Ladder Capital Finance LLC, a New York-based company that makes loans that are packaged into bonds by Wall Street, came up with the only “reasonable offer,” Yerrall said.

Recovering Property Prices

Most traditional insurance companies are focused on cities where property prices are recovering and rents are showing signs of stabilizing, according to Pat Halter, chief executive officer of Principal Real Estate Investors, the fourth-largest U.S. institutional real estate manager.

“In the past year, that’s been mainly in the gateway markets such as New York, D.C., Boston, some parts of Seattle and San Francisco,” Halter said in a telephone interview. Last year was “a story of trying to find high-quality assets in those markets,” he said.

The CMBS originators, while also competing in big cities, are willing to look at a broader base of locations than most major insurance companies, Halter said. In a $2.2 billion sale of commercial-mortgage bonds yesterday by Deutsche Bank AG and UBS AG, properties span the U.S., from Manhattan and Washington to Knoxville, Tennessee, and Stillwater, Oklahoma, according to documents distributed to investors and reviewed by Bloomberg.

Self-Storage Centers

Extra Space Storage Inc., a Salt Lake City-based real estate investment trust that operates self-storage centers, used the CMBS market for about 80 percent of its financing until the market froze three years ago, Chief Financial Officer Kent Christensen said. Unable to refinance the debt, the company turned to bank loans, he said.

The company took out an $82 million mortgage from Bank of America last month, the company’s first CMBS loan since February 2007, he said. One of the major advantages in using CMBS debt is that it’s non-recourse, meaning the lender can’t seize the borrower’s assets in the event of default.

“Repayment is subject to the performance of the asset,” Christensen said in an interview. “I like loans that don’t have covenants in them that make it difficult to repay them in a difficult environment, like we had in the past two years.”

Banks, insurance companies and foreign investors are chasing lending assignments across the U.S. amid signs commercial real estate may be recovering. Property values, which have declined 42 percent from 2007 peaks, rose for the third consecutive month in November, Moody’s Investors Service said on Jan. 24.

Late Payments

While late payments on commercial mortgages bundled and sold as bonds increased to 8.8 percent in December from 4.9 percent a year earlier, the pace of rising delinquencies is slowing, according to Moody’s.

Still, many borrowers will have difficulty coming up with the additional cash to pay off debt that exceeds the current value of the property. Additionally, occupancies and rents have yet to recover in many areas, said Halter of Principal Real Estate, based in Des Moines, Iowa.

“It is a good time to be thinking about lending,” he said. “You have to be prudent and you have to be careful about the risk you take.”

New Entrants

Some of the CMBS lending in smaller cities is by new entrants, primarily non-bank finance companies that contribute loans for Wall Street to pool for sale, said Jonathan Pollack, head of commercial real estate capital markets at Deutsche Bank. The Frankfurt-based company’s CMBS lending is concentrated in major metropolitan areas and on the coasts. As the market evolves, the bank plans to expand its reach, he said.

“Sooner rather than later, we intend to be more regionally focused,” Pollack said. “When you look within these markets, there are clear winners and losers. Things are happening within those markets that create lending opportunities.”

Loans being written for sale as securities today are conservative compared with those done when sales peaked in 2006 and 2007, when borrowers were allowed to take on more debt with the assumption that rising rents would cover future payments, said Frank Innaurato, a managing director at Horsham, Pennsylvania-based credit-rating company Realpoint LLC.

Boom-Time Excesses

As competition among lenders increases, investors need to be on the lookout for the excesses found in loans made during the boom, Innaurato said.

Borrowers are benefiting as investors drive CMBS prices up, with some top-ranked bonds trading for as much as 108 cents on the dollar, according to JPMorgan data. Higher bond prices translate to lower rates on new loans.

“Today, we have about 60 percent CMBS and 40 percent other debt,” said Christensen of Extra Space Storage. “I think we will be above 60 percent CMBS again, but not above 80 percent. After seeing the CMBS market go away, we don’t want to be as dependent on it as we were.”

Waesche, who opened his Marriott five weeks before Hurricane Katrina hit in 2005, was able to extend the construction loan from Capmark for five years in the wake of the storm. Capmark, which filed for bankruptcy in 2009, would have extended the loan again -- an expensive, short-term fix, Waesche said. Thomas Fairfield, a Capmark representative, didn’t return a phone call seeking comment.

While financing for hotels has become easier to obtain in the past three months, they remain the toughest type of property to borrow against, Waesche said. Had Citigroup not come through with a loan, he would have taken Capmark’s terms, he said.

“We would have cried every month when we saw all our earnings go out the door to pay the mortgage,” Waesche said.

Two more Portsmouth restaurants seek valet approval

noreply@blogger.com (Bill Faulkner) — Tue, 08 Feb 2011 15:38:00 +0000

This is such a no brainer! ~bf

Two more restaurants seek valet approval

Parking Committee to mull request, hear legal response on targeting time-limit scofflaws

By Charles McMahon

February 08, 2011 2:00 AM

SeacoastOnline.com

PORTSMOUTH — The city's Parking Committee on Thursday will take up two more requests from downtown restaurants for valet service, and hear a response on the legality of creating a new fine for drivers who remove chalk from their cars.

The city's Legal Department has issued a report advising parking officials of how to proceed with creating the fine for scofflaws who attempt to circumvent the system by removing chalk from their tires in order to park past the posted time limits.

Currently, parking enforcement officers who notice chalk has been removed routinely tickets that note a vehicle has been parked past the allowed time limit. Any new fine could be in addition to the time violation.

Parking Committee members will also hear a report back from the Legal Department regarding making it illegal to park on grass on city property.

Also on Thursday, owners of The Wellington Room and Pesce Italian Kitchen are expected to request privatized valet parking through Atlantic Parking Service.

Last month, owners of Brazo and The Green Monkey were granted 90-day trial periods for the service.

Parking Committee Chairman Ken Smith said the new requests will be considered for a 90-day trial period as well.

"Private valet companies have been a win for the city," Smith said. "It really allows for one space to turn into several hundred spaces."

Calling it a "great way to manage parking," Smith said the city has granted similar valet arrangements that have proven successful over time.

A pair of requests from Councilor Eric Spear regarding possibly using parking spaces for bike racks and adjusting parking fees in the High-Hanover parking garage will also be put on the table Thursday.

Adjustments to the parking fee schedule in the parking garage involve making the first hour of parking free and then increasing the hourly rate from 75 cents to $1.

"The Parking Committee will take it all in and analyze what's best for the city," Smith said.

Thursday's meeting begins at 7:30 a.m. and will be held in Conference Room A at City Hall.

Newburyport waterfront plans soon to resume

noreply@blogger.com (Bill Faulkner) — Sat, 29 Jan 2011 15:51:00 +0000

Karp's group expects stalled project to move forward

NewburyportNews.com

By Katie Lovett

NEWBURYPORT — As the bleak economy starts to brighten and a resolution nears on long-debated flood maps, representatives of developer Stephen Karp's Newburyport Development are optimistic that stalled waterfront plans are about to move forward again.

Ann Lagasse, the retail leasing director for Karp's local entity, said yesterday the company was told an appeal filed on new flood maps will be resolved by the end of the month.

The maps and the weak economy have been the two most recent roadblocks for the development of Waterfront West, Lagasse told attendees at the North of Boston Convention and Visitors Bureau Annual Tourism Conference in Peabody.

Waterfront West, as it is known, is Karp's 8-acre plot of land from the Black Cow Restaurant to the Route 1 bridge along the Merrimack River.

Since Lagasse and her husband, Chuck, partnered with Karp in 2005, the city has speculated as to what sort of development would be built on the valuable, treasured waterfront.

The remaining undeveloped land on the waterfront is public property, managed by the Newburyport Redevelopment Authority.

Newburyport Development, the local arm of Karp's New England Development, worked with the city to rezone the waterfront land to allow for construction of a mixed-use project. The move allowed for the creation of different types of development, including housing, offices and retail establishments.

The zoning changes also cleared the way for a hotel on the waterfront, Lagasse said.

As Waterfront West currently boasts marinas and restaurants, any future development will keep that feel, she said. There will not be any boat storage facilities on Newburyport Development's property.

"The key to the success of Newburyport is our mixed uses," Lagasse told the conference audience at the Boston Marriott Peabody hotel.

In response to a question from program moderator, Peter Milano, a senior regional director for the Mass. Office of Business Development, on how far along the Waterfront West development is, Lagasse was optimistic that plans would be progressing soon.

Newburyport Development is now feeling a change in the economic climate, Lagasse said. Hotel companies have also reached out and started to express enthusiasm, she said.

"There's a light at the end of the tunnel," she said.

In 2009, the Federal Emergency Management Agency unveiled new flood maps depicting changes in the base flood elevation, which can change up to 6 feet depending on which flood zone the property is located in.

Waterfront West falls almost entirely in a new high-risk zone. The new rules, slated to take effect June 1, would significantly impact plans for the development. The city filed an appeal of the flood maps on behalf of Karp and his company.

"We're in the process of evaluating where we can build," Lagasse said.

Once the flood maps are resolved, the developer will go back to the city's Planning Board to discuss the plans for Waterfront West.

"The key to our success will be working with the city," Lagasse said.

New law to impact landlords, owners of restricted property

noreply@blogger.com (Bill Faulkner) — Thu, 27 Jan 2011 18:10:00 +0000

New law to impact landlords, owners of restricted property

If you are a landlord, or if you have a client who owns restricted property, you should to be aware of a new law under RSA 540:1-b.

If you are an owner of restricted property who resides within the state, you must file a statement with the town or city clerk of the municipality in which the property is located, providing the name, address and telephone number of a person within the state who is authorized to accept service of process for any legal proceeding brought against the owner relating to the property. The owner of the premise can be the individual authorized to accept service.

Restricted property is defined as all real property rented for residential purposes excluding owners of single-family houses if the owner of such a house does not own more than three single-family houses at any one time, rental units in an owner-occupied building containing a total of four dwelling units or fewer, or single-family houses acquired by banks or other mortgagees through foreclosure.

If the landlord is not a New Hampshire resident, he or she must file a statement with the municipality providing the name of someone who does reside in the state and who is authorized to accept service of process brought against the owner.

NHAR suggests: that you contact your municipality to confirm to whom the letter should be sent or delivered; and that any statement sent through the mail is certified to ensure a proof that notification was given.

Municipalities may begin enforcing fines of up to $1,000 for failure to comply starting Feb. 1.

TITLE LV
PROCEEDINGS IN SPECIAL CASES

CHAPTER 540
ACTIONS AGAINST TENANTS

Section 540:1-b

[RSA 540:1-b effective January 1, 2011.]    540:1-b Landlord's Agent Required. –
    I. An owner of restricted property, as defined in RSA 540:1-a, II, who resides within the state of New Hampshire shall, within 30 days of becoming the owner or within 30 days of the effective date of this section, whichever occurs later, file a statement with the town or city clerk of the municipality in which the property is located that provides the name, address, and telephone number of a person within the state who is authorized to accept service of process for any legal proceeding brought against the owner relating to the restricted property. Such person authorized to accept service may be the owner of the premises.
    II. An owner of restricted property who resides outside the state of New Hampshire shall, within 30 days of becoming the owner or within 30 days of the effective date of this section, whichever occurs later, file a statement with the town or city clerk of the municipality in which the property is located that provides the name, address, and telephone number of a person within the state who is authorized to accept service of process for any legal proceeding brought against the owner relating to the restricted property.
    III. In any legal proceeding in which the property owner resides out of state and said owner fails to: (a) comply with paragraph II, and (b) appear in said proceeding, service of process pursuant to RSA 510:4 shall create a rebuttable presumption that such service was lawful and adequate. As used in this section the term "legal proceeding'' includes, but is not limited to, any action at law or in equity or for the enforcement of any provision of RSA 48-A:14, or any housing code adopted by a municipality pursuant to RSA 48-A, or for the enforcement of any municipal health code, building code, or fire or life safety code. A municipality may establish a reasonable filing fee to cover the cost to the town or city clerk of maintaining a record of the filings required by this section.
    IV. Any owner of restricted property who violates paragraph I or II of this section shall be subject to a $1,000 civil penalty.Source. 2010, 203:2, eff. Jan. 1, 2011.

Portsmouth eyes shift of parking fees from commercial to residential

noreply@blogger.com (Bill Faulkner) — Mon, 24 Jan 2011 17:33:00 +0000

Portsmouth officials are beginning to review a draft plan of parking issues called the Downtown Parking Strategies Concept Plan. Five “priority strategies” will get the first look.

By Charles McMahon

cmcmahon@seacoastonline.com

January 24, 2011 2:00 AM

PORTSMOUTH — The city is on pace to begin addressing its most pressing parking priorities.

A report released Thursday by city staff calls for major changes to the parking landscape and could have overarching affects on residential development downtown. Called the Downtown Parking Strategies Concept Plan, the report is considered a draft plan for implementing coordinated strategies to increase the supply and enhance the management of off-street parking in the Central Business District.

The strategic plan is considered to be among the next steps following the release of a Downtown Parking Focus Group report last year. In the 22-page report, seven recommendations were identified to protect some limited free and low-cost parking around the downtown, create a parking enterprise fund and turn some parking revenues into enhancements for the downtown.

The most recent report groups the recommendations into five "priority strategies" and other "longer-range strategies." The five priorities include eliminating off-street parking requirements in the central business districts, repealing the optional payment in lieu of parking fee, creating additional off-street parking, creating a parking enterprise fund, and providing variable on-street parking rates and durations.

As the slate of recommendations could have a major impact on development downtown and could require changes to the zoning ordinance, the concept plan has fallen under the purview of various city boards.

On Jan. 20, members of the Planning Board, Economic Development Commission and Parking Committee gathered to discuss the concept plan. Planning Director Rick Taintor said the city will try to move on the five priorities this year "as quickly as possible." From a zoning perspective, Taintor said the city should be cognizant of how off-street parking requirements and in lieu of parking fees affect economic vitality downtown, and how requirements affect the balance between residential and non-residential uses.

Taintor said recommendations to eliminate off-street parking requirements and in-lieu fees are based on a concern that the city shifted the balance too much from commercial use toward residential use. The concept plan calls for eliminating off-street parking requirements for all projects, including residential, except "large projects" on lots of 20,000 square feet or more and on which 40,000 square feet or more of gross floor area is proposed. The change would require amendments to the zoning ordinance, Taintor said.

That change raised concerns from the Economic Development Commission. EDC chairman Dana Levenson said the committee feels strongly that there needs to be a balance of residential and non-residential uses. Levenson said the EDC is opposed to eliminating off-street parking requirements for residential development and would advocate for an in-lieu parking fee charged to residential projects.

"The EDC has long held a vision of having ample and affordable parking in the central business district," he said. "It is the No. 1 tool in the toolbox to promote economic vitality in the downtown."

Another major recommendation deals with creating additional off-street parking, particularly the construction of a parking garage at the Worth Lot. The strategic plan calls for the city to proceed expeditiously with the design and construction of the garage. If the City Council is to authorize continued planning and design in March, the city would have a new $12 million garage by November 2013.

The fourth recommendation to create a parking enterprise fund "would be coordinated with funding of the new parking garage," Taintor said.

The fifth and final priority recommendation calls for variable parking rates and durations throughout the downtown. Taintor said the recommendation would be needed to ensure normal turnover of on-street parking and would help shift long-term parking patrons to places like the High-Hanover Parking Garage.

The changes would involve on-street spaces costing $1 an hour and "high-occupancy" spaces on Congress, Market and Pleasant streets costing $1.25 an hour. The hourly rate in the parking garage would remain at 75 cents.

Longer-term strategies that will be up for consideration include providing free and low-cost parking for downtown residents and employees, investing some revenues in downtown enhancements, expanded hours for metered spaces, increasing monthly rates in the parking garage and installing meters at the Parrott Avenue parking lot.

City Manager John Bohenko said it appears the city will move forward to eliminate the in lieu of parking fee for non-residential uses, but could consider applying a fee toward residential uses. "We are moving rapidly toward an over amount of residential use in the downtown," he said. "Not that it's bad, but you need a good mix and at some point you won't be able to reduce that spiral."

Bohenko said in order to move the recommendations forward, he would like to package them as an "omnibus" of changes. Bohenko said he plans to issue a comprehensive recommendation for further consideration in the near future.

People's United has a hankering for commercial real estate lending

noreply@blogger.com (Bill Faulkner) — Mon, 24 Jan 2011 17:28:00 +0000

People's United has a hankering for commercial real estate lending

Boston Business Journal

People’s United Bank’s big splash into the Massachusetts banking sector marks the arrival of a massive — and rapidly growing — appetite for commercial real estate lending.

Local real estate players likely had a warm reception to yesterday’s news that the Connecticut-based bank will pay $493 million to acquire Danvers Bancorp.

While Danversbank has made some waves in recent years, opening more downtown branches and moving most of its commercial loan operations to the city, its business and commercial real estate portfolio is dwarfed by its new parent’s. As of Dec. 31, People’s reported $7.3 billion commercial real estate loans on its books. That was up 35 percent on a year-over-yeare basis, an impressive uptick that stemmed from both organic growth as well as acquisitions.

By comparison, Danversbank had only $392 million in CRE loans at the end of September, its most-recent reporting period. Danversbank also had another $117 million in construction loans, but you get the picture. Needless to say, People’s will bring some extra heft to a market desperately in need of ... well, heft.

Portsmouth Restaurants Seek Approval to Valet Park

noreply@blogger.com (Bill Faulkner) — Wed, 12 Jan 2011 15:58:00 +0000

When I read this, I thought "why would anyone or the city possibly object to this?". Seems like a no brainer to me. Facilitating parking in a city that is parking challenged, and enabling businesses to prosper... Let's keep an eye on this one, I think it's a fantastic idea! ~bf

By Charles McMahon

cmcmahon@seacoastonline.com

January 12, 2011 2:00 AM

PORTSMOUTH — Privatized valet service for downtown diners appears to be becoming a popular tool for restaurant owners these days.

A pair of proposals to allow the parking service are expected to go before the city's Parking Committee on Thursday.

The city has been approached by the owners of Brazo and The Green Monkey on Pleasant Street, as well as, by owners of The Wellington Room on Bow Street. Owners of Brazo and The Green Monkey have proposed a valet service to be operated by Atlantic Parking Services. The valet parking company formerly conducted a public valet service on Congress Street, but ended that operation last year.

According to Parking Committee Chairman Ken Smith, the group is back as part of a proposal for a private valet service. Smith said the business, created by former valets of Warren's Lobster House in Kittery, Maine, was in good standing when they ended up calling it quits.

"They were open and up front with the city and terrific to work with," he said.

Smith said it is unclear who would operate the valet service proposed by The Wellington Room.

The Parking Committee has historically granted a six-month trial period for similar proposals, he said.

By allowing restaurants to offer the service, Smith said it helps alleviate congestion in downtown parking and the High-Hanover parking garage. Smith said studies have shown people will drive around the city three times before they head to the garage. With a valet service at restaurants, people will no longer have to search for parking, he said.

Another positive aspect of valet parking is that the operators normally have arrangements to park the vehicles in private lots so the city's parking stock is not affected, Smith added.

Examples of other downtown businesses that offer valet service include the 100 Club, Common Man and Agave restaurant, Smith said. The Music Hall and Seacoast Repertory Theatre also considered the service at one time.

Thursday's meeting begins at 7:30 a.m. in Conference Room A at City Hall.

Business NH Magazine Sold

noreply@blogger.com (Bill Faulkner) — Mon, 03 Jan 2011 18:56:00 +0000

Portsmouth publisher, former candidate sells Millyard Communications

Press release

MANCHESTER — A Peterborough publisher, Heidi Copeland, has acquired Millyard Communications, Inc., from Portsmouth resident and former Congressional candidate Sean Mahoney.

Millyard publishes Business NH Magazine and produces the Made in NH Try It and Buy It Expo and seven other statewide events. For the past six years, Copeland has been the associate publisher of Business NH Magazine. Earlier in her career, she held senior positions in other publishing ventures.

“I am looking forward toward building upon the growth Millyard has experienced over the past several years. Business NH Magazine is recognized as the premier monthly publication focused on issues concerning the New Hampshire business community, and we intend to build upon that reputation in the future. The talented editorial, sales and events professionals assembled at Millyard are the company’s best assets and I look forward to building the business with them,” said Copeland.

“The team at Millyard has done a superlative job covering the New Hampshire business community and featuring issues that matter to the magazine’s readership. Heidi has lived in New Hampshire for many years, and she has an in-depth understanding of the Granite State. I’m delighted that the magazine will remain New Hampshire-owned. Heidi has the skills, leadership and drive to bring the magazine to the next level, and I wish her the best in that endeavor,” said Mahoney.

Terms of the transactions were not disclosed.

New IRS 1099 Requirements for Landlords

noreply@blogger.com (Bill Faulkner) — Thu, 23 Dec 2010 16:50:00 +0000

Starting in 2011, there is a new tax requirement for landlords. All landlords who receive $600 or more in rent for the year must send a 1099 to all service providers that the landlord paid $600 or more during the year, such as plumbers, carpenters, yard services or repair people.

The new requirement applies to owners of both residential and commercial property. Prior to 2011, this requirement had only applied to those involved in full-time property management, but now the requirement covers all types of landlords.

Landlords will need to gather federal tax ID numbers from service providers in order to file the 1099s. Failure to file the 1099s with the IRS can result in fines of $50 per 1099 not filed. In 2012, these requirements will expand to cover providers of goods to landlords.

Portsmouth Restaurant Seeks OK To Expand Patio To City Owned Land

noreply@blogger.com (Bill Faulkner) — Sun, 05 Dec 2010 22:13:00 +0000

Nice idea, Cliffe! The owner of Pesce Blue in downtown Portsmouth, trying to gain support and authorization to expand the outside patio service… Great idea! Other cities offer this arrangement, and it’s a perfect fit for Portsmouth!

as seen in Seacoast Online

www.seacoastonline.com

By Charles McMahon

December 05, 2010 2:00 AM

PORTSMOUTH — The city is floating an idea to allow liquor service on public sidewalks after requests from at least one restaurant looking to expand service in the downtown.

The topic came up at the recent City Council retreat and is fueled by a request from Cliff Arrand, owner of Pesce Blue on Congress Street. The Italian kitchen and bar has featured an outdoor patio near Vaughan Mall the past seven years. Arrand said the current patio is on the restaurant's property and allows patrons to dine outside during summer days and drink alcohol, if they choose. "It really adds to downtown Portsmouth and the look and the feel of the city," he said.

Arrand said he has made several proposals to the city to increase patio seating down the side of the building on Vaughan Mall. The expanded patio is proposed on city land, and according to Arrand is not rare for cities like Boston, Providence and New York.

In order for the city to allow the expanded patio, and the liquor service in it, much needs to be done at the municipal level first. City Manager John Bohenko said the subject is in its early stages. "Right now we haven't started to evaluate the pros and cons of it," he said.

Bohenko said the city will consider everything from how other communities handle allowing liquor service on city-owned property, what the state Liquor Commission allows and restrictions that may be in place on public property. Assuring alcohol remains on the premise will also be evaluated, he said.

State Liquor Enforcement Chief Eddie Edwards said the state allows extended service of alcohol in outside areas and there are many establishments across the state that do so. Rules that enforce the law are simple and Edwards said they involve making sure the service area has a defined barrier, whether it be blocks, bushes, ropes or chains.

To allow for the expanded outdoor service, Edwards said a restaurant must request the extension with a letter of support from the city. He said there are rarely enforcement issues with the outdoor service. "Responsible people usually take on this additional responsibility," he said. "Those people, generally speaking, run a very responsible operation."

Arrand said he has never had an issue with the Liquor Commission over his current outdoor patio and liquor service. He said, if anything, his business should be considered the "model" establishment for outdoor service with alcohol.

Bohenko said because the city has never allowed the service of alcohol on public property, the issue must be vetted. He added the issue has not been recommended by city staff, but was something he was asked to look into following a request from the council. "I think it's very early on in the process," he said.

If guidelines and parameters are created, Bohenko said the city would need to work out an agreement with Arrand for the use of the sidewalk. "Whatever we do is going to be well researched and that will take some time," he said. "Ultimately, it will be a City Council decision.

Arrand said he is willing to negotiate a lease for the space on a seasonal basis. "This could be a good revenue stream for the city," he said. "This is a town based around restaurants and I think this definitely could be a good place for this. It will improve the scene in Portsmouth and really create a unified type of look to the downtown."

Survey: Business Confidence Up For 2011

noreply@blogger.com (Bill Faulkner) — Thu, 02 Dec 2010 13:17:00 +0000

Very interesting report just released on how BUSINESS OWNERS feel about prospects in the coming year... this cuts through the political posturing to get to the source... business owners.. Please email me at bf@beangroup.com and I'll send you a full copy of the report. ~bf

Survey: Business confidence up for 2011

Business owners cautious but optimistic for 2011; employment will likely remain flat.

CONCORD, N.H. – Dec. 1, 2010 – Data from the recently completed RKM/BIA 2011 Business Outlook Survey shows that business owners are cautious but optimistic about the economy going into 2011; however, they expect current employment levels to remain the same.

Sponsored by the Business and Industry Association of New Hampshire and Portsmouth-based RKM Research and Communications, the seventh annual business outlook survey measured business confidence among a stratified random sample of 302 New Hampshire businesses. RKM polled 101 businesses with less than 10 employees and 201 with 10 or more employees, Oct. 14 – Nov. 12.

The survey assessed business confidence using four indexes to predict future outcomes – economic conditions, employment, revenue and capital expenditures – and benchmarked the index scores against survey results from previous years. The 2011 survey shows:

§ While New Hampshire businesses do not expect overall economic conditions to improve significantly, confidence remains steady going into 2011. Forty-seven (47) percent of businesses expect economic conditions to get better in 2011, 29 percent expect them to stay the same and 16 percent expect them to get worse. Last year, 48 percent of businesses expected economic conditions to get better, 31 percent expected them to stay the same and 16 percent expected conditions to worsen.

§ The large majority of businesses expect their number of employees to stay the same in the next 12 months; however, numbers are improved from last year. In 2011, 19 percent of businesses expect the overall number of employees working at their company to increase, while 73 percent expect it to stay the same and 4 percent expect it to decrease. Last year, 13 percent of businesses expected the overall number of employees working at their company to increase, 78 percent expected it to stay the same and 4 percent expected it to decrease.

§ Future revenue expectations have improved from last year. Forty-eight (48) percent of businesses expect their annual revenue to increase in 2011, as compared to 36 percent in 2010. In 2011, 27 percent expect revenue to stay the same and 18 percent expect it to decrease. Last year, 40 percent expected revenue to stay the same and 18 percent expected it to decrease.

§ Expectations for future capital expenditures improved significantly from 2009. The Index of Future Capital Expenditures is 58.4 in 2010, up from 49.5 in 2009. This is the highest this index has been since 2006 (59.5). Thirty (30) percent of businesses expect their capital expenditures to increase in 2011, 57 percent expect them to remain unchanged and only 9 percent expect to spend less on capital investments. Last year, 24 percent of businesses expected capital expenditures to increase, 50 percent expected them to stay the same and 22 percent expected to spend less on capital investments.

Survey respondents were also asked to identify top concerns facing their business in the coming year. Poor economic conditions again topped the list with 37 percent of business owners citing it as their top challenge for 2011. Eight (8) percent of respondents identified the high cost of health insurance as the second ranked business challenge, followed by high business taxes as number three (7 percent of respondents).

Other concerns include the lack of capital, poor weather conditions, high interest rates, too many environmental regulations, government regulation, lack of qualified labor and foreign competition.

According to Jim Roche, president of the Business and Industry Association, the survey results confirm a challenging environment for most businesses. “While officially in ‘recovery,’ the economy remains uncertain. Business owners and managers view 2011 with a strong degree of cautious optimism.”

“Now, more than ever, it is crucial to support business-friendly policies in our state,” continued Roche. “The private sector is on the road to revitalizing New Hampshire’s economy. It is critical to keep New Hampshire’s cost of doing business as low as possible if we are to encourage business investment and job growth.”

Raising Business Capital In Today's Market

noreply@blogger.com (Bill Faulkner) — Mon, 22 Nov 2010 01:25:00 +0000

Business NH Magazine has published several very timely and informative articles of value to small commercial property and business owners. I recommend you subscribe to ensure you get these great articles. In the meantime I will continue to repost the most interesting for the benefit of my clients and readers. Knowledge is power... keep building your power base by feeding yourself with knowledge! ~bf

Raising Capital Not Red Flags

by JOHN BENTAS
Business NH Magazine

Businesses looking for capital investments to help them grow traditionally knock on the doors of venture capitalists, financial institutions and other expert investors. But in a sluggish economy, those doors are answered less and, when they do open, yield less fruit.

That has led companies to seek capital from individuals in the form of stocks, loans and other investments. The challenge is ensuring those doors don't become traps for people unfamiliar with securities law-traps that can lead to hefty fines and fees in order to break free.

No matter the form of the transaction, it is likely that a security is being issued in connection with that capital, and businesses need to ensure they are complying with all securities laws, both federal and state. That can be a particular challenge in cases where capital is being raised without the direct advice and expertise of legal counsel.

The Letter of the Law

So what is a security? The answer is broad and includes common securities like stocks, but can also cover just about any way a person invests in a business to generate revenue or the repayment of that contribution. That could include money someone intends to loan to or invest in a company. The bottom line is if it acts like a security and is an investment in a company, it is a security for the purpose of securities laws.

Securities law kicks in once a company issues a security. Companies should be concerned with three things regarding that transaction: first, the method by which the security is offered; second, to whom it is sold; and third, what the company says (or fails to say) when it is offered.

Most securities are issued privately, using exemptions to the law, or "safe harbors" to prevent their offering from becoming a public offering. That is because securities issued in public offerings usually need to be registered with the Securities and Exchange Commission (SEC) and come with cumbersome filing requirements and expenses most companies can't bear. Complying with available exemptions to avoid the costs and time of a public offering depends in part on how the securities are offered and to whom they are issued.

Broadly speaking, a public offering to invest in a business is just that: An offering made to some wider audience. So an article or notice published in a newspaper, magazine, on television or radio, or on the Internet are modes of public offerings. But beware. Do you want to give your neighbors a chance to invest in your company? That, too, could be considered a public offering.

Making a Private Offering

For companies looking to make private offerings of securities, there are four common exemptions to public offerings under federal law. But before seeking to exempt themselves from the public offering process, companies need to insure they know who their investors are and what laws apply to the different types.

Under securities law, there are two main types of investors: accredited investors and non-accredited investors.

An accredited investor meets one of the following net worth and asset tests:
• A person with a net worth of at least $1 million (excluding the value of their primary residence);
• A person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years. Also, there should be a reasonable expectation of the same income level in the current year;
• A trust with assets of at least $5 million that is not formed to acquire the specific securities offered and whose purchases are directed by a knowledgeable investor.

Non-accredited investors are those who do not meet the net worth and asset tests listed above and are generally considered to be more risky sources of capital.

Once a company has identified the appropriate investors, it can then consider the exemptions their offering falls under. The four common options are SEC Rule 504, Rule 505 and Rule 506 of the safe harbor laws, as well as a "private offering" exemption. Each rule has many nuances, so consulting with an attorney is vital to avoid expensive fees and fines.

The Most Common Path: SEC Rule 506

Companies seeking exemption from cumbersome requirements of a public offering most often use SEC Rule 506. That is because you can raise as much capital as you want without being required to register the securities with the state (although a state may still require the same filings you make with the SEC).
All non-accredited investors, either alone or with a purchaser representative, must be considered sophisticated, meaning they have sufficient knowledge and experience in financial and business matters to enable them to evaluate the merits and risks of the prospective investment. If this standard is not met, more extensive disclosure rules apply.

SEC Rule 504

Rule 504 provides an exemption for the offer and sale of up to $1 million of securities in a 12-month period.

Unlike the other three exemptions, you may use public solicitation or advertise the securities sale.
There are no specific disclosure requirements for this type of offering, but you should provide sufficient information to investors to avoid violating the anti-fraud provisions of the securities laws. This means information provided to investors must be free from false or misleading statements. Similarly, don't exclude information if the omission makes what you provide to investors false or misleading.
However, there are potential hurdles. You may be required to register the securities under applicable state laws, which can be time-consuming and expensive.

SEC Rule 505

Rule 505 provides an exemption for offers and sales of securities totaling up to $5 million in any 12-month period. Under this exemption, you may sell to an unlimited number of "accredited investors" and up to 35 other persons who don't meet the standards of accredited investors or sophisticated non-accredited investors.

Purchasers must buy securities for investment only, and not for resale. You may not use general solicitation or advertising to sell the securities.

It is up to you to decide what information you give to accredited investors, so long as it does not violate the anti-fraud prohibitions. Still, you must give non-accredited investors disclosure documents that generally are the same as those used in public offerings. If you provide information to accredited investors, you must make this information available to the non-accredited investors as well. As under Rule 504, you may be required to register the securities under applicable state laws.

Private Offering Exemption

The private offering exemption excludes from registration "transactions by an issuer not involving any public offering." To qualify for this exemption, the purchasers of the securities must meet three requirements:
• Meet the criteria of a sophisticated investor or be able to bear the investment's economic risk;
• Have access to the type of information normally provided in a public offering;
• Agree not to resell or distribute the securities to the public.
Under this exemption, you can't use any form of public solicitation or general advertising in connection with the offering. The precise limits of this private offering exemption are uncertain. As the number of purchasers increases and their relationship to the company and its management becomes more remote, it is more difficult to show a transaction qualifies for this exemption.
State Securities Laws

If you rely on Rule 504 or Rule 505 of the federal safe harbors, you must also find an applicable exemption from registration under the securities laws of the state from which you are selling as well as the state in which each buyer lives. In NH, some of the most commonly used statutory exemptions include:
• The "limited offering" exemption, which limits the number of purchasers of a securities offering to no more than 10 during any 12 consecutive months and 25 during the issuer's existence;
• Sales to existing holders of the issuer's securities;
• The "pre-incorporation offering" exemption, which, among other things, limits the aggregate number of holders of all of the issuer's securities to no more than 10 people. Sales must be completed within 60 days after the date of incorporation or the formation of the issuer.

In some instances, you can combine the state exemptions. While complying with the exemption rules may seem burdensome, failure to do so is even worse. Companies who offer securities as a private offering and do not meet all exemption rules likely must return the investment to the investor with interest- and that frequently comes at a time when the company can't fund it.

The message is follow the rules or you will likely have to pay up.

John Bentas is part of the Corporate Department at the law firm of McLane, Graf, Raulerson & Middleton, Professional Association. He can be reached at john dot bentas at mclane.com or 603-628-1306. McLane has offices in Concord, Manchester and Portsmouth, as well as Woburn, Massachusetts.

Finding The Right Capital For Your Business

noreply@blogger.com (Bill Faulkner) — Mon, 22 Nov 2010 00:58:00 +0000

Excellent article written by John Hamilton of the NH Community Loan Fund. Food for thought, food for growth, essential tools for your business toolbox. ~bf
Finding the Right Capital Match

Published Tuesday, October 26, 2010 7:00 am

by JOHN HAMILTON

You've survived the recession, but now your business needs capital to keep up with demand. Raising those funds will require developing a careful strategy so you'll be properly equipped before approaching a bank or alternative source of financing.

Before starting, ensure that you do the following:

1. Begin with the end in mind. Be clear on what you need the money to accomplish and when. Are you looking to even out the seasonality in your business cycle, or to introduce a new product to the market? Be sure the terms of repayment match the purpose and cash flow. For example, if you are buying equipment with a 10-year life span, you want to repay the loan over seven years.

Ideally, the need for financing is supported by a business plan. Also, by focusing on the underlying business goal, you will not be lulled into thinking that raising capital is the goal. That mindset can result in a short-lived victory dance and a mismatch that threatens the business when, down the road, the financing structure doesn't meet your business's true needs.

2. Enlist outside advisors with financial expertise. Unless finance is a particular strength of yours, recognize that you "don't know what you don't know." Tap into retired business people who take pleasure in helping other businesses. The best are those who are committed to your success, but who are not afraid to tell you how they truly feel. Even better, form an advisory board that meets regularly so each advisor gets the benefit of hearing the others' questions and concerns and is better able to support you and hold you accountable.

3. Share bad news as if it were good. As you meet financing sources, don't sugarcoat your answers. Instead, provide expansive answers that include the bad news, just as you would if the news was good. It is better to get down to brass tacks and "problem solve" the tough issues than to try to skirt them or hope they never arise. Being up front builds trust. Even if that financier doesn't invest in your venture, he or she will likely provide a strong referral to another source. Those referrals make you stand out and get you closer to your goal.

4. Turn the tables: Interview the investor. Due diligence ought to be a two-way street, because investors are not all created equal. The value of a good investor or lender goes well beyond the money. It includes taking time to understand your business, making referrals to new customers and sharing insights that help resolve your business challenges. It is also important to role play with the investor various potential downside scenarios to discover how helpful and patient they will be. No matter how uncomfortable those conversations are, it is far more difficult when the problems are real and you don't have the hypothetical conversations as a guide.

Approaching Banks

Once you are ready to meet with financing sources, the first goal is to try to find a banker you can bank on. Banks are designed to be the source of least-cost debt, so you will want to discover what portion of your capital needs are bankable.

Begin with a "road show" to solicit proposals from a few banks that meet your criteria. Choose whom to visit based on a decision matrix. Consider if the bank is in good economic health by researching its financial condition. One option is TheStreet.com, that offers a consolidated graph using FDIC factors including liquidity and profitability, among others. Do compare ratings -but don't panic-many banks' ratings are depressed in today's market.

Also consider if the bank is in your "sweet spot" in terms of its focus in the commercial market. You should aim for the middle of its loan size and the industries that it knows well, not the edge of its market. You don't want to fall off your bank's radar based on too much, or not enough, growth. Banks that lose interest in serving your market segment tend to be the most inflexible.

Treat the bank as a relationship, not a commodity to be priced. If you are shopping simply because the bank down the street is offering a rate a half-point better, don't! Relationships matter, and your loyalty will count for something when you most need it. Also, don't think that all banks are the same. As an investor, we see great variability in bank terms and levels of support that go beyond the pricing on the loans they offer.

Understand who will make the decisions on loans. Some banks separate the credit analyst from the front-line lender, while others integrate these functions. Some banks make credit decisions at the regional level; others locally. Which is best for your business?

Look at the banker, not just the bank. Qualities to look for in a banker include someone with whom you can make a personal connection, who is a trained professional, who will take the time to understand your business and advocate for you within the bank, and who has credibility with the bank's decision makers. Call a retired banker: They know whom was hardest to steal customers from. Or call an investor: They see a high volume of deals and can suggest how to start your search.

Given the recent hard times, your business may get turned down by banks for all or a portion of its capital needs. If that happens, reflect on recent conversations and incorporate any "lessons learned." Here is one way to guide your next steps, organized by the investor's risk tolerance and cost of capital, from low to high:

Sub Debt

Business Characteristics: Healthy cash flow, experienced management team and serving established customers. Due diligence focuses on management team and a sensitivity analysis of the projected cash flow.

Reasons Not Bankable: Insufficient collateral, recent losses, sales concentration, business relocation, poor credit or new owner.

Goals: Not a turnaround or restart, but most any other business goal.

Deal Structure: Straight debt, just like a bank, but priced 4 to 7 percent higher to reflect that it is subordinate. This means that in liquidation, the investor will be repaid only after the bank is fully repaid.

Sub Debt Sources: Regional development corporations, community loan funds, Vested for Growth, mezzanine and private investors.

Royalty

Business Characteristics: Gross profit margins of better than 25 percent with a strong management team and growth proposition. This could involve a new acquisition or merger, or an existing company introducing new products or pursuing new markets. Due diligence focus is on the management team and sales pipeline.

Reasons Not Bankable: Same as sub debt, but constitutes a higher risk, requiring returns greater than 11 percent.

Goals: Same as sub debt, plus a desire for long-term, sustainable growth and an openness to having advisors who share ideas as partners, but who do not make decisions. Can be a turnaround or restart.

Deal Structure: A royalty is paid as a percentage of future gross revenues for a negotiated period of time or level of sales. This can be used in conjunction with sub debt to increase the investor's return due to higher risk. Royalty can also be structured without debt so the monthly payment entirely adapts to the performance of the business. You simply have to negotiate when it ends (when the aggregate of payments equals the negotiated multiple of the original investment).

Royalty Sources: Vested for Growth, regional development corporations, angels.

Equity

Business Characteristics: Seasoned management team, gross profit margins of better than 45 percent and a new product or service that is defensible and has a large market opportunity. Due diligence focus is on the management team and the feasibility of the investors getting paid out in an exit event in three to five years.

Reasons Not Bankable: Insufficient cash flow or strategic decision to reinvest revenue rather than to pay investors from cash flow.

Goals: Sale of company is desired in the next three to five years and management is comfortable with having investors as decision-making partners.

Deal Structure: Equity investors own a percentage of the company and realize their return when the company is sold, as a percentage of the net sale proceeds.

Equity Sources: Angels, venture capital, private equity.

Individual sources may differ in how they apply these tools. Also, the capital market is dynamic and ever-shifting. For example, while an investor may never have done equity before, it doesn't mean you can't raise the option of their using royalty financing. Of course, there also may be the option of raising funds from family and friends at more favorable terms. But they too will likely look to these same deal structures for guidance.

John Hamilton is the vice president of economic opportunity for the NH Community Loan Fund and managing director for Vested for Growth, a risk-tolerant source of capital (sub-debt and royalty financing) in Concord. For more information, call 603-856-0729 or visit www.communityloanfund.org or www.vestedforgrowth.com.

Is It Time to Refinance Your Business?

noreply@blogger.com (Bill Faulkner) — Mon, 22 Nov 2010 00:48:00 +0000

Is It Time to Refinance Your Business?

Very informative article from Business NH Magazine that should be mandatory reading for business and commercial property owners. I am sending this to my entire commercial database. ~bf

Published Tuesday, November 2, 2010 7:00 am

by CAROL ROBIDOUX AND ERIKA COHEN

The ads are ubiquitous: With rates in the low fours, there has never been a better time to refinance. There has also never been a more critical time. Between 2010 and 2014 nearly $1.4 trillion in commercial real estate loans nationally will come up for renewal, and about half of them are "underwater," with borrowers owing more than the property is worth, according to a Congressional Oversight Panel report.

Commercial real estate loans must be renegotiated about every five years-a problem for businesses that find themselves underwater and facing this deadline. The U.S. Senate is now considering a bill that could help by extending the U.S. Small Business Administration (SBA) 504 loan program to cover refinancing of small business owner-occupied real estate. That would dramatically reduce a bank's exposure as the SBA guarantees 40 percent of that loan.

In the meantime, NH lenders say they are working with their customers-the last thing they want is to own commercial property-but businesses must bring more equity to the deal and prove they have the cash flow to pay back any loans. However, bankers say that cash flow can be a challenge during these lean times.

"To be honest and realistic, those underwater on commercial real estate will have to bring more equity into the deal," says Jerry Little, president of the NH Bankers Association, referring to bonds, securities and other property owned outright. "I think there is going to be more of those sorts of challenges in the next year or two."

Making a Deal

Berlin-based Northway Bank, which has 18 branches statewide, is a top SBA lender in NH, and its experiences speak to those faced by banks and businesses statewide. "Refinancing options are more challenging because of the economy. If someone is coming in to [refinance] their brick and mortar, they may qualify on paper, but because all banks lend on a percentage of value, the asset has to be appraised by an independent appraiser and values are depressed," says Vic Levesque, Northway's senior vice president of commercial banking.

Lower asset values create a challenge for those looking to refinance not only because their loan-to-value ratio is reduced, but because banks are still struggling too, he says. And it's not just the brick and mortar assets that cause concern.

"Commercial property gets valued on a basis of the income it generates, so if income is lower, the value of the asset is lower," Levesque says. "My general point is the value of underlying collateral is generally lower than it was in the past, and secondarily, the banking industry [also took a hit.] It's a more depressed market overall."

Levesque says the bank is working with customers, but it's sometimes being forced to get more creative. For businesses with one owner, that can mean taking a loan against a residential property with more equity and using it as collateral for the business. He says while that is a valid option and one being exercised, he notes residential values have also fallen.

Louis Guevin Jr., executive vice president of commercial services at Laconia Savings Bank, also a top SBA lender in the state, says in his 41 years in the banking business, these are the worst of times for small businesses. He believes the market is in the beginning of a cycle where commercial real estate loans are coming up for renewal for properties with values that have dropped 15 to 25 percent. Still, he stresses that the bank is working with existing customers, and has lent more than $100 million to NH businesses in the past year.

The good news is where commercial real estate rates were in the 7 to 8 percent range three to five years ago, they are now down to about 4 percent. The bad news is getting those rates requires cash flow, and profits and sales for many businesses are down.

"We're not in the business of shutting someone down because the value of their real estate diminished in the last five years," Guevin says, but "cash flow is king" as that is what pays back the loan. The bank has not changed its lending standards; it instead looks to other types of collateral. For instance, he says, the bank will look to re-amortize other debts from 20 years to 25 or 30 years to increase current cash flow.

"People are always thinking things will be better next year. Problem is, things aren't turning around fast enough," Guevin says.

The federal government realizes that fact. That's why the Senate is taking up the Small Business Jobs Act, which includes a proposal to extend the SBA 504 lending program to refinancing of eligible real estate. While existing SBA lending programs provide funding for refinancing, they only guarantee up to 75 percent for loans over $150,000. Under this proposal, businesses could use the 504 program to refinance long-term fixed-rate loans of up to as much as $5 million that are backed 100 percent by SBA. Banks provide financing for 50 percent of the project, with the SBA and the business owner splitting the rest 40/10 percent.

Rates on SBA 504 loans are currently at prime plus 2.75 percent, says Wit Jones, district director for the NH Small Business Administration in Concord. The interest rates are fixed and change monthly, and were at 4.73 percent as of mid-September.

"With the bank only going in 50 percent of the value, they can give a much more attractive rate than they might otherwise give," Jones says.

However, even that change will not be enough to help businesses that are truly suffering. "I will say I have had a number of calls from small businesses that are looking to refinance their business and it really turns out they can't generate enough cash to back it," Jones says. "There is no program out there for the business trying to tread water hoping the economy will return to them."

Rise in Leasing

Another shift due to the tough economy is an increase in businesses leasing space instead of purchasing, says Jim DeStefano, vice president of sales and marketing with Grubb & Ellis in Bedford. "We're seeing the best leasing prices that we've seen in two decades right now. But I also believe there's a hesitancy among business owners to invest significant amounts of cash," DeStefano says.
While he used to see a 60/40 split in terms of leasing to sales, now he sees closer to 80/20. "For commercial real estate, the third quarter of 2008 was the end of the good times. There are still a lot of companies sitting on space that's vacant because they don't have the employment levels they used to have," he says. His office tracks vacancy rates in the Salem, Manchester and Nashua areas, as well as the Seacoast and Concord. He says office vacancy rates in the second quarter of 2010 were 17.3 percent up from 14 percent in the first quarter of 2007 before the recession. And that, he says, doesn't even tell you how many office tenants are behind in their rent.

"There's a lot of that dark space in the market right now-space that owners are paying on but that aren't productive," DeStefano says.

Looking Local

While two years ago banks with headquarters outside NH topped the list of SBA lenders in the Granite State, Jones says the top three are now community banks. And local bankers say that's good news for businesses looking to refinance their commercial real estate.

"We're a small community bank," says Levesque of Northway Bank. "We live in the community where we lend, and many of our customers we know; we have relationships with them. When they're having difficulty, we try to help as much as we can."

He says rates and options are not markedly different in this economy; what's changed is that everyone is looking for personalized service and attention to detail. "A few years ago, large banks pulled back quickly-they just weren't responding and so their business customers had to look elsewhere, and those are the customers we're gaining," Levesque says.

Guevin says local banks are ready and willing to help-and have a vested interest in doing so. He uses restructuring debt or re-amortization of loans in order to help create cash flow as one example. "[Those are solutions] to a temporary setback that allows a business to regroup after two or three years, but the relationship matters. That's the nice thing about community banks. It's all about local decision-making. They can work with customers," Guevin says.

Those kinds of relationships between bankers and business owners will be vital as more commercial real estate comes to term-and more assistance is needed to help businesses refinance their properties.

Jobs Coming To The New Hampshire Seacoast

noreply@blogger.com (Bill Faulkner) — Sat, 06 Nov 2010 14:29:00 +0000

Growth & Development in New Hampshire… JOBS coming to the seacoast, some of them new, some from Massachusetts… This is very good news for the New Hampshire economy… ~bf

Tyco plans to add facility in Newington

By Dave Choate

dchoate@seacoastonline.com

www.seacoastonline.com

November 06, 2010 2:00 AM

NEWINGTON — Tyco Electronics plans to move one of its manufacturing facilities to Newington, bringing one of the world's largest electronics components manufacturers to town.

On Monday night, the Planning Board will welcome representatives for Tyco as it seeks a site plan amendment for 120 Shattuck Way in the town's industrial district, one that will allow it to construct a 102,400-square-foot single-story manufacturing facility. Town planner Tom Morgan said the development would take place on a currently empty lot in the industrial sector.

"I think it's exactly the type of use the town's (planners) had envisioned when they invested in their industrial corridor," Greg Kirsch of Opechee Construction Corp. in Belmont said.

Kirsch is heading up the project's charge to the Planning Board, and his firm will also construct the building. The creation of the facility was preceded by Tyco selling the property to Kirsch, and now Kirsch is selling it back to Tyco Electronics.

"It's a long story," he said.

It began when Kirsch purchased several parcels of land in Newington owned by Tyco, including 120 Shattuck Way. Reeling from the theft of millions of dollars by former Chief Executive Officer Dennis Kozlowski, Tyco was in the midst of selling off assets and later split into three divisions, including Tyco Electronics.

Kirsch went through an extensive planning review process for the site before securing approval in 2007, which involved moving the historic Louis deRochemont house off the lot in order to construct a 136,140-square-foot industrial building. Unfortunately for Kirsch and Opechee, the economy tanked and while Morgan said he heard from Kirsch about potential tenants and even sent a few his way, nothing was built.

However, Kirsch was approached again by Tyco Electronics, which expressed interest in purchasing the land and building a new facility. The single-story facility will be presented to the board as a scaled-down version

According to Morgan, the presence of prime-designated wetlands off-site to the property may be the most significant hurdle the project faces, given that Kirsch and his crew had addressed several issues during the previous approval.

"The town has made stormwater standards more stringent," Morgan said, adding later that "if the two parties agree on stormwater, I think this will sail through fairly quickly."

The company would bring an undetermined number of employees from its current Lowell, Mass., facility — Morgan said he had heard north of 100 — though Kirsch said he was not sure how many would be brought to the new location. He said he was unsure how many new jobs might be created if the facility is built.

Kirsch also declined to comment on the cost of the building. Because the company's lease on its current facility in Lowell ends in December 2011, Kirsch said the building must be constructed by that time for the plan to be viable.

A proposed walkway will connect the new facility with its sister Tyco Telecommunications campus on the next lot over, he said.

The Planning Board meeting will begin at 6:30 p.m. Monday in the Town Offices.

Seabrook NH Settles Proposed Mall Lawsuit

noreply@blogger.com (Bill Faulkner) — Sat, 06 Nov 2010 12:22:00 +0000

… and it looks like the drama and wait is finally proceeding to the next stage, albeit not without controversy. This is very big news for the burgeoning Seabrook retail corridor on Route 1. ~bf

November 6, 2010

Abutters condemn secrecy, lack of input

By Angeljean ChiaramidaStaff writer

Daily News | www.newburyportnews.com

SEABROOK — Without allowing comments from abutters or holding a public hearing, the Seabrook Planning Board has unanimously approved a deal struck behind closed doors that will allow a once-rejected half-million square-foot shopping center to be built on Route 1 and settle a lawsuit pending in the state's highest court.

The unanimous vote from the five Planning Board members present settled four years of controversy and the town's suit against Ohio-based Developers Diversified Realty. Since 2006, DDR has tried to gain approval of its nearly 500,000-square-foot mall proposed for 47 acres of land just east of the Route 1/107 intersection behind Provident Bank. The proposal includes a Target store as a cornerstone to the mall.

Planning Board Chairman Don Hawkins said the terms of the settlement stipulate Seabrook drop its Supreme Court suit against DDR because of promises within the memorandum of understanding that DDR will improve local roads.

The vote came after the board emerged from an hour-long, closed-door session with its attorney, Walter Mitchell, who briefed members on the final settlement between the town, DDR and the state Department of Transportation that will end the suit. Also present at the non-public meeting were Town Manager Barry Brenner and Selectman Aboul Khan.

Prior to going into executive session, Hawkins told abutters and Route 1 businessmen Arleigh Green, of Seabrook Truck Center, and Michael Kettenbach, of Demoulas Supermarkets Inc., they would not be allowed to comment.

As Green and Kettenbach left the meeting, they condemned the secret atmosphere, insisting the finalized settlement proposal should be aired for a "full vetting," letting residents and area businesses owners along Route 1 ask questions and make comment prior to the board's vote.

Since a negotiated deal calls for considerable road construction along the Route 1/107 corridors, where many businesses are located, both men felt area businesses and the public should have had an opportunity to see and comment on its terms prior to acceptance.

"We don't have a problem with DDR's mall as long as they meet the (traffic) mitigation requirements as it relates to Route 1," Green said as he left the meeting after the board went into non-public session. "Unfortunately, we've all been kept in the dark here. I'm not sure this is legal."

"Where's the public knowledge; where's the public comment?" Kettenbach asked. "This should have been a public process, publicly debated."

After DDR appealed the Planning Board's May 2009 denial of its shopping center to Rockingham County Superior Court, Green and Demoulas filed and were approved as legal interveners siding with the town.

After Superior Court Justice Kenneth McHugh reversed the Planning Board's denial, Kettenbach and Green had been involved in the initial mediation of the New Hampshire Supreme Court case the town filed against DDR in hopes of reversing McHugh's decision.

About a month ago, upon learning of the settlement agreement the Planning Board was about to review, The Daily News made an official Freedom of Information Act request to the Planning Board for a copy of the document. The request was denied. Hawkins said at the time the settlement was "still under negotiation" and exempt from FOIA requirements.

But Thursday night, the finalized memorandum of understanding was brought to a vote after a discussion conducted by the board behind closed doors.

Upon coming out of non-public session, Hawkins briefly outlined the agreement, took no comments, and board member John Kelley offered a pre-written motion for approval. The motion was seconded by Bette Thibodeau and approved by all five members present, which also included Bob Fowler and Selectman Bob Moore.

No questions were allowed by those at the hearing. Copies of the settlement were released to the public only after the board approved it.

Hawkins called it a "win-win" proposition, and every member praised it as a way to end the court battle, allow the shopping center, and improve traffic flow along Route 1 and Route 107, which will be widened with funds provided by the New Hampshire Department of Transportation, DDR and the town.

The settlement must still be reviewed by the state attorney general, who Mitchell said could change wording but not its terms. After that, the Board of Selectmen must approve the settlement and release town funds for the road improvements as stipulated in the settlement, Mitchell said.

Settlement calls for road improvements

Terms set by a memorandum of understanding between the Seabrook Planning Board and Developers Diversified Realty, which is building a 500,000-square-foot mall off Route 1 include:

Funding for the roughly $10 million in road improvements will come from NHDOT, DDR and the town.

Town funds will not impact taxpayers, Hawkins said. The money used will come from $800,000 in extraction funds the developer of Kohl's gave to the town for Route1/107 corridor improvements as a conditions of approval.

Hawkins said if the multi-road improvement projects go above estimates and the town is called upon to contribute money beyond the $800,000, those funds should come from extraction funds from future developers.

The agreement requires NHDOT to manage all construction.

Money pledged by the town and DDR must be transferred to the state prior to construction.

Should construction costs be less than estimated, refunds will be prorated.

Road improvements are not required for DDR's Phase I construction, 149,000 square feet of retail space, consisting mostly of a Target store.

Road improvements must take place if DDR builds Phase II, roughly 500,000 square feet of retail space, including Target.

Given the downturn in the economy, DDR has 18 months to decide if it will build Phase II, at which time the project's approval and conditions expire.

Should DDR sell the land, DDR's responsibility as stipulated by the agreement will be binding upon a new owner.

Road improvements

Two lanes will be added to the Route 107 bridge spanning Interstate 95, bringing it to five lanes, with NHDOT's contribution capped at $4 million, DDR's contribution capped at $2.3 million, and the town contributing $200,000. If additional monies are required, they will come from the town's future extraction funds.

Route 1 southbound will be widened to eliminate the lane drop at the BP Gas Station to Lowe's. NHDOT will contribute up to $782,000, manage the project, appraise, negotiate and acquire the rights-of-way needed for the widening. DDR will contribute a maximum of $127,000 for design of the improvements. The town will contribute $595,000 and is responsible for the cost associated with the right-of-way acquisitions. If more money is required, the town is responsible for an additional $275,000 from future extraction fund payments.

Improvements to Provident Way east and Route 1 north to Spur Road will be funded entirely by DDR at a cost of $3.156 million.

noreply@blogger.com (Bill Faulkner) — Thu, 04 Nov 2010 14:52:00 +0000

Interesting chart of same store sales October 09 to October 10 gives a good indication of specific performance as well as credit risk... ~bf

View larger chart...

Temporary Retail:: Halloween Stores Make Yearly Visit

noreply@blogger.com (Bill Faulkner) — Sun, 31 Oct 2010 15:11:00 +0000

An interview I did the other day with the Nashua Telegraph on the business of temporary holiday stores… bf

Halloween stores make ghostly visits each year

By ASHLEY SMITH

Staff Writer

Nashua Telegraph

They may seem like fly-by-night operations, but temporary Halloween stores have a well-defined business model.

Some start looking for space as early as January, seeking vacant spots in shopping plazas with major retailers and high traffic counts.

“A plaza with a grocery store is ideal, say a Market Basket,” said Bill Faulkner, a Portsmouth-based commercial real estate specialist with the Bean Group.

“They probably wouldn’t want to go to a plaza that has a chiropractic office, a spa and a hair salon.”

Faulkner said the stores usually negotiate a simple cash deal for retail space that includes two months of rent and the utilities. Other times, they offer the property owner a percentage of sales.

The idea is to fly in and out of town as simply as possible, capitalizing on the growing interest in Halloween merchandise, now a $5.8 billion business nationwide.

“It’s classic entrepreneurship – see a need, fill it, make a buck, move on to the next opportunity,” Faulkner said. “It’s kind of like the carnival coming to town.”

Some Halloween stores are independently run by local entrepreneurs who have a relationship with costume distributors, Faulkner said.

Others, like Spirit Halloween, are national chains. Spirit operates some 870 stores nationwide, including a handful in New Hampshire.

After 20 years operating solely as a seasonal business, the company was sold to novelty store Spencer Gifts in 2003.

Now, Spencer Gifts is testing the model on the Christmas season with the launch of temporary toy stores, said Sushma Dwivedi, a spokeswoman for the company.

Faulkner said lease prices for temporary Halloween stores vary widely depending on the size of the operation and how badly property owners want buildings occupied.

With the commercial real estate market in a slump and plenty of vacant retail space, the Halloween stores have the negotiating power now.

New Hampshire Home Sales Show Q3 Decline

noreply@blogger.com (Bill Faulkner) — Sat, 30 Oct 2010 16:05:00 +0000

Not commercial news, but there’s a correlation… The real news is: There is no better time to buy than now, if you're in a position to do so. Prices have declined, inventory is plentiful, sellers' motivation is high and interest rates are extremely low. If you want to buy a home and can afford to do it, do it. If you're an investor, as I've said many times, millionaires are made in times like this. Contact me for a referral of a great Realtor for your area. If you want to buy commercial real estate or a business, contact me and we'll get started on your future now! bf

New Hampshire Home Sales Show Third Quarter Decline

Positive streak compared to 2009 totals is halted

October 30, 2010 2:00 AM

Seacoast Online

After four consecutive quarters of substantial residential home sales increases, New Hampshire saw a decrease in the third quarter of 2010 compared to the same period 2009.

Data released recently by the New Hampshire Association of Realtors showed the number of residential units sold in the third quarter (July to September) 2010 was 17 percent behind sales in 2009's third quarter — from 3,273 in 2009 to 2,714 in 2010.

Home sales in New Hampshire, like many other markets throughout the country, had been slowing for nearly four years before being spurred in part by the homebuyer tax credit in 2009.

Beginning with the third quarter 2009, the state experienced increases of 3 percent (third quarter 2009), 29 percent (fourth quarter 2009), 13 percent (first quarter 2010), and then 21 percent in the second quarter 2010, compared in each case to the same period of the previous year.

Expiration of the tax credit this spring seems to have been the catalyst for the recent decline, and leadership at NHAR believes it will be toward the end of this year and early 2011 that the true course of the market becomes apparent.

"As we've said before, this is a market that is continuing to figure itself out," said NHAR President Monika McGillicuddy, a 25-year veteran of the real estate industry and an agent with Prudential Verani in Londonderry. "It will only be once we're clear of the impact of the tax credit and its expiration that we'll have a sense of where the housing market is trending."

McGillicuddy said cumulative home sales in 2010 remain 3 percent ahead of the same point in 2009, and after a 32 percent drop in July, the decline in August was not as severe, at 12 percent, and September's 6 percent drop is even less dramatic.

"Again, it's very difficult to establish a trend line in this environment, but at least we can say the large single-month drops we saw in the summer do not seem to be holding up," McGillicuddy said.

The September median residential sales price of $217,750 was 1.3 percent ahead of September 2009, and 2010 year to date median price, at $217,000, is 1.4 percent ahead of the same period last year. The third quarter 2010 median price was 1 percent behind that of the third quarter 2009.

The third quarter declines were evident in most local markets as well. With the exception of Belknap County, which showed a 7 percent increase in sales and a 6 percent increase in median price in 2010 compared to 2009, New Hampshire's nine other counties showed third quarter unit sales decreases, and five of the 10 showed median price decreases as well.

McGillicuddy said the relatively low median price is a positive thing as affordability, along with low interest rates and plenty of inventory, increase the opportunity for families to own a home.

Plummer to Speak at Catapult Series

noreply@blogger.com (Bill Faulkner) — Thu, 28 Oct 2010 11:14:00 +0000

Here’s a fantastic opportunity for young business people to hear one of the most accomplished, engaging and charming business people in not only the seacoast or New Hampshire, but all of New England. If you have a chance to attend, do not miss this! bf

Plummer to Speak at Catapult Series

October 28, 2010 2:00 AM

SeacoastOnline.com

PORTSMOUTH — Catapult, the Seacoast's young professionals networking group dedicated to providing its members with opportunities to enhance personal and professional development, will hold its third Business Speaker Series event at 5:30 p.m. Wednesday, Nov. 3, at the 100 Club.

Renee Plummer, vice president of marketing at Two International Group LLC, will serve as the speaker and host. Liberty Mutual is sponsoring the event. Catapult's Business Speaker Series is a new series featuring three high-caliber events, hosted by members of the 100 Club.

Plummer is the final host of the 2010 series. In her role with Two International Group, a commercial real estate development company, Plummer has been a driving force in transforming the former Air Force base into Pease International Tradeport.

"She is incredibly dynamic and has her finger on the pulse of Portsmouth," said Helen Donington, Catapult's chairwoman and co-founder. "Catapult members will walk away from this event with an appreciation for someone who knows how to execute a vision, which is only one of the many reasons why she is so admired in the area."

Each event is limited in attendance to provide an intimate environment promoting personal conversations and interaction between the speaker, moderator and audience. To conclude each BSS event, Catapult asks its signature question: "What can someone working for you do to catapult themselves to the next level?"

For information about Catapult or its speakers series, visit www.catapultseacoast.org.

Sex, Lies and Real Estate

noreply@blogger.com (Bill Faulkner) — Mon, 25 Oct 2010 12:46:00 +0000

This blog was originally posted by Matthew Ferrara, a professional I respect greatly.
I repost it here for your consumption and comment, and encourage you to check Matthew’s website, www.matthewferrara.com for more valuable commentary… bf

Sex, Lies and Real Estate

Start buying all the real estate in sight – before your money won’t be able to buy any real estate for years to come.

Ok, we’ll admit that the “sex” part of our title was just to get your attention. But give us five minutes and it might be worth it.

Because real estate is about to become the best investment for the next decade, maybe more.

Why? Because the government is about to compound two lies that will otherwise undermine the middle class – and the lower classes hoping to become middle class – for a good long time. Those lies are:
1. We’re (almost) suffering from deflation. It’s simply not true. This tall tale is the product of voodoo economics (remember that?) which allows the government to say inflation is low – and falling – by calculating the aggregate inflation rate of a bunch of goods that almost nobody buys at the same time. The Consumer Price Index taken as a whole is meaningless; it’s only when you look at the individual parts that the prices have any meaning: Except that the government usually “subtracts out” the cost trends of food and energy when it reports that prices are “falling” – i.e., deflation. Ask anybody who buys milk, electricity or gasoline if he thinks he’s suffering from deflation.
2. A little inflation is good for the economy. Absolutely wrong. Inflation is bad. Period. It destroys the value of money that’s being saved, making those savings worth less (literally) toward investment in job and wealth producing activities. Put it more simply: Find anyone who lived through the 1970s and early 1980s and ask them what they think about inflation. Yet the Federal Reserve Chairman actually things we need to “add” some inflation to the economy. In other words, he thinks we can get out of a recession by forcing everyone to pay more for goods and services. This is the strategy? The Federal Reserve system was invented in 1913 to protect the purchasing power and stability of the currency, not deliberately undermine it. Of course, the Fed Chairman is only calling for a “little” inflation – 2 % – but that’s actually 22% compounded over the next decade, as Henry Kaufman points out in the Wall Street Journal.

Which brings us to real estate.

The commodities market is already signalling worries about the future value of money. Gold’s recent run up is only one indicator. Meanwhile, consumers who have done the hard word of deleveraging their cash flow in the last three years can’t expect to hold onto that money, because the Fed plans to make 1 in 5 dollars evaporate all by itself. So corporate and consumer money that’s been sitting on the sidelines needs to get to work – today – and that means looking for investments that can actually benefit from future potential inflation.

And that means real estate.

For simple buy-low, sell-high, there’s never been a better point in American history to buy real estate (ok, maybe the purchase of Manhattan for a few pearls, but you get the point). Buying low today offers the chance to sell it high when the next bubble – a printed-money inflation one, not a credit-lending one – inevitably forms. Then there’s rental property: Rental income rises with inflation, another way to help today’s money keep pace with increasing inflation cost curves. Even if you’re not inclined to manage property directly, real estate investment trusts (REITs) offer an arms-length play in the rental income space, especially commercial leasing. Somebody is going to have to lease supermarket space to store bread for the future breadlines, right?

Milton Friedman once said that if the government were put in charge of the desert, within a few short years there’d be a shortage of sand. The government is in charge of the money supply and inflation rate. The shortage it will cause by creating more sand – printing more dollars – will be it’s purchasing power.

Even marginal future gains in real estate is better than letting 1 in 5 of your dollars evaporate in the bank. Inflation is just another attempt by government to get you to spend, rather than save, your money. A bad, surreptitious stimulus plan. So look again at real estate, before your cash becomes not worth holding. Transform it into an asset with the potential to benefit from the inflation that is not just coming: It’s already here.
www.matthewferrara.com

Amesbury Hotel Plan Faces Challenge from Beavers

noreply@blogger.com (Bill Faulkner) — Sat, 23 Oct 2010 16:26:00 +0000

Interesting article from the Newburyport Daily News today... do you get the feeling that oftentimes the tail is wagging the dog? bf

By Lynne HendricksStaff Writer

AMESBURY — The developers hoping to build a new Hampton Inn on the corner of Elm Street and Route 110 are battling a flood of resistance to their planned 90-room hotel.

Their trouble is not from the Planning Board or Conservation Commission, which are currently reviewing the plan. It's not from angry neighbors — at least not the kind that walk on two legs.

It's coming from a family of beavers living next door.

The industrious beavers have done what comes naturally. They built a dam in a streambed, which flooded the area around it, including a portion of the hotel land. They built their den in the middle, and with a stack of laws granting them some protection, they are a proving to be a formidable foe.

The beavers live on land owned by Carriagetown Marketplace LLC, 15 acres that encompasses Stop and Shop and a number of retailers. It's the plan of developers True Homestead Partners to use the parcel of land east of the marketplace for the hotel, a 10,000-square-foot retail complex and parking. But working within the confines of their 2.5 acre site, the beaver-made swamp may make it difficult to accomplish that. Mayor Thatcher Kezer said the town's hands are tied when it comes to the nesting family.

"Unless we determine it's a public health hazard, it has to be the landowners who bring it forward," Kezer said.

It is illegal to tear open or disturb an active beaver dam unless one obtains a permit, which isn't easy to obtain. But while the beaver's mass of bundled sticks and mud can't be destroyed, the law allows landowners some options. Unfortunately for the animals, those options for the most part involve killing them.

There's only one method that provides a win-win for the beaver and developer. Water-level control devices, for instance, make the beaver habitat less desirable, as long as one has a permit. The theory behind the measures is to alter the dam in a way that can't be fixed by the animals, and hence ultimately persuades the critters to move on. But this option can be tricky since beavers are attuned to the sounds of water escaping their dam and by instinct will move quickly to shore up any weaknesses in their home. Other than that, the law does not provide any other means of relocating the animals.

"It's not legal in Massachusetts to just trap them and move them elsewhere," said Marjorie Rines of the Massachusetts Audubon Society. "The only thing you're allowed to do in Massachusetts is to get a permit and kill them."

A ballot question that passed in 2000 restricting the trapping methods formerly used to trap beavers and other fur bearers bars the use of lethal traps with names like the Steel-jaw foothold trap, padded jaw trap, body-gripping (Conibear) trap, snare, or deadfalls. They must be trapped in a cage and then disposed of, and according to the Division of Wildlife and Fisheries, the animals may be trapped without a permit from Nov. 1 through April 15 by a licensed trapper.

Kezer noted that the state law has some inconsistencies, as trappers can't legally kill them with a trap but are allowed to "club or drown" the animals.

"It restricts your ability to mitigate these types of situations," he said.

Kezer said the town has been discussing the situation with the owners of Carriagetown Market Place, and he believes they will act to get rid of the beavers.

"If the beaver dam remains and the water keeps rising, it will affect other property owners," he said.

Though it appears an unlikely avenue in this situation, there is one other option for those grappling with beavers and their handiwork, Rines said. And that's to tolerate them.

"It's a shame to interfere with beavers," Rines said, adding that they live a mostly benign existence alongside humans. "They've really started coming back fairly nicely, and they create fabulous habitat because of their dams. They create wetlands that didn't exist before, and these wetlands can become great blue heron rookeries.

Once hunted widely for their pelts, which caused a depletion of their numbers and sparked the trapping restrictions in 2000, beaver numbers have been coming back to old levels, and for the most part, the troubles they cause can be mitigated, Rines said.

"There are solutions that don't involve killing the beavers," she said.

But the solutions don't involve relocating them.

"Often people want to capture problem animals and release them someplace else," reads guidance on beaver relocation in a fact sheet put out by the Division of Wildlife and Fisheries. "However, moving wildlife is detrimental to both people and wildlife populations and is against the law. This law has been in effect for many years, protecting both people and wildlife."

Beaver Facts

Beavers measure between 32 to 48 inches, with their tails making up 12 to 20 inches of their size. They weigh between 27 to 67 pounds.

They are muscular animals with a massive skull and large incisors. Their broad, flat tails can be used to scull or steer and their large, webbed hind feet aid that process as well. The small and un-webbed front feet are used for carrying and digging. The brown fur is short and thick, with a waterproof underfur.

A single family unit is called a colony and consists of two adults, the young of the year, and the young of the previous year. They have between two and nine kits, or young a year.

They are vegetarians, feeding on any number of plants and trees in the summer, but in the winter they feed on the inner bark of trees, particularly aspen, willow, birch and alder.

In the fall, they collect edible branches and anchor them in the mud at the bottom of the pond near the entrance to the lodge. In the winter, the colony stays inside the lodge, leaving only to gather the cached food from the bottom of the pond.

Beavers are most active at night, so human observation is often limited to evening hours.

http://www.newburyportnews.com/local/x693285983/Hotel-plan-faces-unusual-foe-in-beavers

Peak Resorts Buys NH's Wildcat Mountain Ski Area

noreply@blogger.com (Bill Faulkner) — Fri, 22 Oct 2010 13:35:00 +0000

Peak adds to their already impressive portfolio of New England ski resorts... bf

By Lynne Tuohy
Associated Press Writer / October 21, 2010

CONCORD, N.H.—Missouri-based Peak Resorts announced Thursday it is buying Wildcat Mountain Ski Area and will offer season passes and tickets good at both Wildcat and Attitash Mountain Resort.

Peak Resorts, which also owns Crotched Mountain in Bennington, N.H., and Mount Snow in Vermont, is buying Wildcat from Pat Franchi of Massachusetts, who has owned the ski area since 1986. Peak Resorts bought Attitash in 2007 and has made $5 million worth of improvements to that ski area.

Attitash, in Bartlett, N.H., is about 18 miles from Wildcat in Pinkham Notch. Both mountains are in the Mount Washington Valley, and both offer summer attractions as well. Wildcat has a zip-line ride and Attitash has water slides and an alpine slide.

Wildcat is steeped in ski history. The Wildcat Trail, one of the first ski racing trails in the country, was cleared by the Civilian Conservation Corps in 1933. Lift service to the mountain opened in 1958, with a gondola that was the first of its kind in the country. Wildcat peaks at 4,062 feet.

"We consider Wildcat a pretty classic New England mountain," said Peak Resorts CEO Tim Boyd. "The attraction for us was its closeness to Attitash and ability to offer a unique product for the customer to be able to utilize both with the same season pass or day ticket."

Wildcat is across Route 16 from the base of Mount Washington, and its trails face the legendary Tuckerman Ravine. Boyd said Attitash offers an alternative when weather or ski conditions in the shadow of Mount Washington take a turn for the worse.

"Wildcat can get pretty gnarly with the weather up there, and it's nice to have the default to go to Attitash if you run into those sorry conditions," Boyd said. "There are some great views, but if you're freezing to death it's sometimes hard to enjoy them."

Boyd declined to say what Peak Resorts is paying for Wildcat. The price of the combined season pass has yet to be determined.

Small Business Loans Enacted

noreply@blogger.com (Bill Faulkner) — Fri, 01 Oct 2010 18:30:00 +0000

Interesting conversation on the new small business loans available through the newly passed $30 Billion dollar loan fund... bf

Bean Group uses technology to thrive in real estate market

noreply@blogger.com (Bill Faulkner) — Mon, 13 Sep 2010 01:25:00 +0000

On pace for $1B in sales in '10

By Andrew Leibs

business@seacoastonline.com

September 12, 2010 2:00 AM

PORTSMOUTH — When Michael Bean founded his real estate firm in 2003, he created a new business model: Attract top agents by leveraging technology connecting buyers and sellers.

"Rather than open a 3,000-square-foot office, we invested in talented people and in the Internet," said Bean, president and chief executive officer of the Bean Group in Portsmouth.

The Web was nothing new, but Bean sensed its technology had developed faster than the quality of its content.

"Customers wanted information they couldn't access, and industry insiders didn't want to give them access, so we made it easy for them," Bean said.

The Bean Group's Web site lists more than 120,000 properties. "We've aggregated several MLS listings and display other brokers' listings on our site," Bean said. "We try to give customers one single place where they can search that entire inventory."

In the past 12 months, the site has attracted more than 1.2 million visitors. In 2009, Bean Group sales grew by 34 percent, earning a Real Trends ranking as the nation's 418th fastest growing firm — significant growth for a six-year-old independent seller competing against established national brands.

Bean is on pace to pass $1 billion in total real estate sales by the end of 2010.

"Our growth is not being driven by some major increase in home property value," said Paul Ringuette, sales and marketing vice president for Bean Group.

Bean's insight was that the Internet makes the sales process more efficient without diminishing the agent's role.

"You can shop and check inventory online, but most sellers want an agent to help them manage the process, while most buyers want an agent's expertise on the area they're moving into," Ringuette said. "The Web enables customers to be better educated so when they're ready to buy, they're much further along in the process."

A Web development team called Agent Master built Bean's initial site. Bean later folded the firm into his company as the Bean Group Studio, supporting both the corporate site and those of individual Bean agents. An in-house creative marketing team also helps agents create ads and content to position properties.

In addition to attracting buyers with its vast inventory, the Bean Web site enables agents to track consumer trends, such as the types of homes buyers are looking at, location and price range.

According to Ringuette, Bean's investment in technology has enabled it to build a team of 240 agents with virtually no recruiting.

"Agents are looking for alternative or non-traditional business models and a level of support, including technology, marketing and training," Ringuette said. "It's a basic, common-sense approach to business; people are drawn to it, and the word gets spread."

For Michael Bean, agents are independent contractors and his role is providing them with the best tools.

"I wanted to start with no legacy concepts for what a company does," said Bean, whose real estate background includes experience with Coldwell Banker. "I wanted a company that truly partners with agents, enabling them to help customers find what they want without having to worry about back-end services and traditional agency approaches."

A staff of 16 supports all Bean agents from its Portsmouth headquarters on Mirona Road. The company has nine offices: seven in New Hampshire, two in Vermont. Last month, the Bean Group announced its expansion into Massachusetts.

"It's a natural progression of the business," Bean said. "Many of our agents are licensed in New Hampshire and Massachusetts, so they're able to immediately go in and get some traction."

Bean said adding Massachusetts caps his firm's geographic growth.

"We've made a decision to commit to being the best real estate company in New Hampshire, Maine, Vermont and Massachusetts, and that's our goal: To have a great resource customers can go to, and create a great environment for our agents to work in — but we're limited to those four states."

Asked for his market assessment, Bean said slow growth and a fixed supply has helped. Seacoast homes hold value, he added.

"We're not seeing a lot of foreclosures in the Seacoast or the Lakes Region," Bean said. "I think New Hampshire is fortunate that it didn't grow as quickly as other areas (he cites Las Vegas). Prices are flattening, but not dropping as in other parts of the country, and rates are unbelievable."

Seacoast Market Report

Wall Street Boosts Borrowers as Real Estate Bond Market Returns

Two more Portsmouth restaurants seek valet approval

Newburyport waterfront plans soon to resume

Karp's group expects stalled project to move forward

NewburyportNews.com

By Katie Lovett

New law to impact landlords, owners of restricted property

New law to impact landlords, owners of restricted property

TITLE LV PROCEEDINGS IN SPECIAL CASES

CHAPTER 540 ACTIONS AGAINST TENANTS

Section 540:1-b

Portsmouth eyes shift of parking fees from commercial to residential

Portsmouth officials are beginning to review a draft plan of parking issues called the Downtown Parking Strategies Concept Plan. Five “priority strategies” will get the first look.

People's United has a hankering for commercial real estate lending

Portsmouth Restaurants Seek Approval to Valet Park

Business NH Magazine Sold

New IRS 1099 Requirements for Landlords

Starting in 2011, there is a new tax requirement for landlords. All landlords who receive $600 or more in rent for the year must send a 1099 to all service providers that the landlord paid $600 or more during the year, such as plumbers, carpenters, yard services or repair people.

Portsmouth Restaurant Seeks OK To Expand Patio To City Owned Land

Survey: Business Confidence Up For 2011

Raising Business Capital In Today's Market

Finding The Right Capital For Your Business

Is It Time to Refinance Your Business?

Jobs Coming To The New Hampshire Seacoast

Seabrook NH Settles Proposed Mall Lawsuit

Temporary Retail:: Halloween Stores Make Yearly Visit

New Hampshire Home Sales Show Q3 Decline

Plummer to Speak at Catapult Series

Sex, Lies and Real Estate

Amesbury Hotel Plan Faces Challenge from Beavers

Peak Resorts Buys NH's Wildcat Mountain Ski Area

Small Business Loans Enacted

Bean Group uses technology to thrive in real estate market

TITLE LV
PROCEEDINGS IN SPECIAL CASES

CHAPTER 540
ACTIONS AGAINST TENANTS