Selling Savannah Now, Commercial Real Estate Services

The Future of U.S. Freight: Planes, Trains and Automobiles. And Also Boats, Trucks and Bicycles.

2014-10-06T12:06:00.003-07:00

A fantastic article detailing how the food on your table got there and why size, speed and efficiency is everything.

http://www.citylab.com/work/2014/10/a-complete-guide-to-the-future-of-us-freight-movement/381012/

A. Joseph Marshall
Coldwell Banker Commercial Platinum Partners
Estate and Portfolio Services
912-790-6999

Saw this cartoon

2014-09-24T07:24:00.005-07:00

A. Joseph Marshall
Coldwell Banker Commercial Platinum Partners
Estate and Portfolio Services
912-790-6999

Coming to an ACE Hardware near you?

2014-09-12T16:45:00.001-07:00

Directly from the ICSC blog and Shopping Centers Today.

Publish Date: August 28, 2014

Shoppers at the grocery store are unlikely to be thinking about a wrench, a socket set or any other type of hardware or home-improvement item. If they are, though, they probably have in mind a trip to another store. But Ace Hardware and some grocery stores are teaming up to help save these shoppers a trip — and to enrich their own bottom line in the process. Ace and these supermarket collaborators — independently owned single units and some small chains — are attaching an Ace unit alongside a grocery outlet or setting up an Ace store-within-a-store arrangement in a section of the supermarket.

There are about 70 of these Ace-grocery combos across the U.S. now — hardly a ripple on the surface of the company’s 4,700 units internationally, but Ace takes the concept seriously. Last year the hardware company hired Mike Smith, a former executive at discount-grocery giant Supervalu, as its grocery channel manager. So far 80 percent of these combination units are store-within-a-store arrangements, but most of the newly developed units have side-by-side Ace stores and supermarkets, and that is the direction in which the company would like to go.

Ace has focused on independents and small regionals because management sees the biggest need in the market with those types of retailers, which are trying to compete with much larger players. And these smaller businesses are more nimble than a large corporation and can adopt initiatives like this Ace partnership without much red tape. Their stores tend to be more involved with their localities and are thought of as true neighborhood or small-town grocers — an image that Ace shares, given that the vast majority of its stores are owned locally by franchisees, even though its corporate reach spreads much further. In many cases the owner of the collaborating independent supermarket or small chain is also the franchisee of the attached Ace store.

“People are looking for other ways to drive sales into their grocery stores,” said Curt DeHart, director of business development at Ace. “We felt by co-branding these stores, we could not only drive more traffic into the grocery store, but we can grow this brand and drive traffic into Ace stores as well.”

A. Joseph Marshall
Coldwell Banker Commercial Platinum Partners
Estate and Portfolio Services
912-790-6999

Buying a Multigenerational Home

2014-09-08T10:54:00.003-07:00

I would like to comment here that multigenerational living is not "in" because people are finding it to be rewarding, although some probably do. It is "in" because people are choosing it out of necessity. Millennials are moving back in their parents during and after college. Boomers are living with the parents, and vice versa. "Intentional families," meaning singles and couples of no relation, are choosing to rent homes together. All in record numbers.

Why? Job prospects for Millennials are still not great. I read last week 92,000,000 unemployed Americans are still looking for work. And our senior citizens are losing billions of dollars in potential investment income because of we've chosen ZIRP (zero interest rate policy).

I predict multigenerational living homes to be the most successful new construction builds in the next 5-10 years or so. Anyway, here is the article.

Buying a Multigenerational Home

By Marcie Geffner

RISMEDIA, Monday, September 08, 2014— (MCT)—Suppose you’re buying a home. And suppose, too, that you have an elderly parent or adult child who’d like to live in your home with you. Why not buy a home together as a family?

If that sounds smart to you, you’re not alone.

Multigenerational living is “in.”

In fact, a recent study by the National Association of REALTORS® found that 14 percent of U.S. home purchases last year involved a multigenerational household of adult children, plus parents, grandparents or both.

The multigenerational housing trend isn’t new, but it’s on the rise. According to a Pew Research analysis of U.S. Census Bureau data, the proportion of 25- to 34-year-olds who live in such households has increased significantly since the Great Recession, to the highest level since the 1950s.

Five Things about Buying a House with Relatives

— More families are living with more than one generation of adults under one roof.
— Everyone in the house needs space and privacy.
— Sometimes you have to be creative to carve out private space.
— As always, the home’s location is important.
— Involve everyone in the discussion, including siblings who won’t live in the house.

John Graham, emeritus professor of marketing and international business at the University of California, Irvine, and co-author of “All in the Family: A Practical Guide to Successful Multigenerational Living,” says he isn’t surprised.

“A lot of people say financial problems are causing this (trend), but what’s really happening is the realization that the best way to get along in life is interdependence with the extended family. We’ve had a 50-year experiment with the notion of the nuclear family and it’s sort of a stupid way to live,” Graham says.

Everyone Wants Space, Separation

Multigenerational homebuyers on the hunt for a suitable home need to focus on what their needs are, a list that’s likely to involve space and privacy, says Bradley Marshall, a REALTOR® in Irving/Las Colinas, Texas.

Marshall says one of his recent deals involved a multigenerational family who bought a 3,400-square-foot house with two master bedrooms.

“We found a house with a master downstairs and upstairs and both with an en suite bathroom. It was five bedrooms with a study, so plenty of room,” he says.

Rather than amenities, the home’s layout trumps in such situations, Marshall suggests.

Employing Creativity to Create Space

Karen Straughan, a REALTOR® in Rockwall, Texas, also says multiple bedrooms and bathrooms are crucial, and families will “get real creative” if they can’t find a home with the layout they need.

“People are buying a one-story home and putting in a breezeway, giving mom her separate space, and converting the garage or an outbuilding into her private living quarters,” Straughan says. “If there aren’t that many bedrooms, they say, ‘Can we take this second living area and make it into a bedroom?’ It’s very important that everyone has their own space.”

Place as Vital as Space

Location is important, too, especially if the older generation is still more active than elderly.

“The younger the parent is, the closer to town it seems they want to be,” Straughan says. “Dad can get in the car and go to the post office or run to the grocery store. He still has his freedom and feels like he’s independent.”

Regardless of the home’s location or configuration, multigenerational living arrangements don’t always work out.

Straughan recalled one multigenerational family that sold a five-bedroom home to another multigenerational family.

“They were moving, and mom was getting her own home,” she says. “They were only there a year. I think it was little too close for comfort.”

House-Hunting Tips

If you’re in the market for a home to share with your adult relatives, here are some tips to make the arrangement work for you—and them.

—Open the discussion somewhere other than your home. “A neutral location helps level the hierarchy of the family. The (arrangement) ends up being an exchange of services and assets among adults. It’s not a parent-kid thing,” Graham says.
—Include nonresident adults in the discussion. “Siblings get uptight when it looks like one is getting some advantage in a current living or potential inheritance situation. Once you start mixing assets and families, you’d better get everybody involved or there will be a lot of calls to attorneys,” Graham says.
—Treat your parents or children like adults. “Try to get away from the paternalism,” Graham suggests.
—Consider a new home. Some homebuilders have accommodated the multigenerational housing trend by including a so-called accessory apartment with a new house, Graham says. The apartment is intended to house a relative with a separate entrance and separate kitchen and living space. Older homes are less likely to have this layout.
—Get everyone’s ideas on the table. “You might have conflicts while you’re discussing and deciding things, but as long as it’s a family decision, you won’t have as many family explosions or meltdowns later on,” Graham says.

Find out everyone’s must-haves and won’t-accepts. “What helps is getting everyone on the same page upfront,” Marshall says. “What can you not have? Are you OK with that? What do you really want? Everyone says, no, this won’t work.”

Marcie Geffner is a contributing reporter for Bankrate.com.

©2014 Bankrate.com
Distributed by MCT Information Services

A. Joseph Marshall
Coldwell Banker Commercial Platinum Partners
Estate and Portfolio Services
912-790-6999

Back to it!

2014-09-02T15:08:00.000-07:00

It has been several months since I last wrote a blog and without the encouragement of other bloggers I probably would have not continued. But my friend Vonté advises that social media is here to stay so learn to love it.

Since the last post I've sold six properties (retail, multifamily, land and office) and leased four retail locations; enough to have a decent year and we're only in September.

Last week I attended ICSC Florida at the amazing Gaylord Palms Resort and Convention Center. Made the trip in under four hours in a brand new Jetta (free upgrade, thank you Payless!)

First time to this Gaylord Resort- it is as awesome as their Opryland resort. Had a room looking out into the atrium and overlooking a waterfall. Unfortunately, most of the restaurants here were booked with private events and I did not get to try Old Hickory.

#FLConf

While I don't work in Florida, I had properties in Brunswick, Georgia to promote that could not wait for the Georgia conference. Met with people representing Burger King, Starbucks, Dollar Tree Stores, Dunkin' Brands and many other companies. Came back with a job offer and several opportunities to follow up and win contracts!

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

AASU Q3 Economic Monitor

2014-01-07T09:22:00.000-08:00

Click on each image to view larger.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Mortgage Changes to Know in 2014

2013-12-20T08:19:00.000-08:00

RISMEDIA, Thursday, December 19, 2013— The New Year is almost here, and with it comes a bevy of legal and regulatory changes, especially for the mortgage industry. To help potential homebuyers understand how the changes will affect their mortgage processes, Don Frommeyer, CRMS, President of NAMB (The Association of Mortgage Professionals), outlines some of the regulations set to start in January 2014.

“Since 2009, the housing market has been working to create standards and regulations that minimize the risk of another mortgage industry fiasco,” says Frommeyer. “The ability-to-repay mandate is a perfect example of this and it exemplifies how mortgage professionals are taking extra caution with every customer.”

Upcoming mortgage industry changes include:

- Ability-to-Repay Mandate: The CFPB designed this regulation to set a gold-standard for lending to ensure each and every borrower is a qualified borrower. Lenders will follow a set of guidelines to establish a consumer’s income, assets and obligations before deeming them eligible. The CFPB rules establish a standard for what the government considers a “qualified mortgage.”

- Decrease in FHA Loan Limit: The Federal Housing Administration (FHA) announced that beginning January 1, 2014, mortgages will be limited to $625,000, down from $729,750. Homebuyers looking to obtain a larger loan will have to apply for a jumbo loan, which will most likely come with a higher down payment. “For many areas of the country this change won’t be a huge issue as average home prices fall below the established limit. However, borrowers in metropolitan areas with higher average housing prices may face challenges when applying for mortgages as the 20 percent down payment associated with jumbo loans will be an enormous increase from a traditional loan’s 3.5 percent down payment,” notes Frommeyer.

- Caps on Loan Origination Fees: January 10, 2014 brings a rule for the Qualified Mortgage that points and fees on mortgages cannot exceed 3%.

- Tighter Regulations for Self-Employed: As the rules to create a QM (qualified-mortgage) take effect, people without a W-2 will face difficulty when they apply for loans. It’s more of a task for individuals to prove their debt-to-income ratio without the proper documentation, even if they have a high net-worth and perfect credit. The income is calculated bringing into play the customer write offs to reduce taxable income.

For more information, visit www.namb.org.
If you are in the Savannah area, you can also call Kirsten Ray with Fidelity Bank:
Kirsten Ray
Fidelity Bank
200 Stephenson Ave
Suite 101
Savannah, GA 31405
912-692-8022

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Real Estate Q&A: How the Self-Employed Can Get a Mortgage

2013-12-16T10:42:00.002-08:00

Real Estate Q&A: How the Self-Employed Can Get a Mortgage

By Gary M. Singer

RISMEDIA, Saturday, December 14, 2013— (MCT)—Question: I am self-employed and make a good living. I want to buy a house, but it’s hard to document my income. So I’ve been getting turned down for a mortgage, even though I’m willing to make a large down payment. Any hope for me?

—Trevor

Answer: With banks and the federal government tightening lending requirements, it has become increasingly difficult for people who don’t get regular paychecks to qualify for loans. Although still rare, “stated income” loans are making a comeback. But they require very high credit scores, large down payments and deep cash reserves.

If this is not available, you will have to try to get a loan based on your tax returns. Still, this can be difficult because the self-employed tend to use expenses to offset their net income, resulting in low numbers. That forces them to choose between favorable tax treatment or getting a loan.

If you can’t find a loan from a traditional bank, there are a growing number of private lenders. Some, such as “hard money” lenders, will offer a smaller amount based only on the value of the house, perhaps lending 50 percent of its value. Others also will look at your credit, income and debts and lend larger amounts.

Because these kinds of loans are risky for the lender, be prepared to pay a higher interest rate and higher closing costs. Shopping around is especially important with these loans because the costs and rates vary greatly from one lender to another.

Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar.

©2013 Sun Sentinel (Fort Lauderdale, Fla.)
Distributed by MCT Information Services

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Coastal Empire Economic Index Q2 2013

2013-09-25T05:52:00.000-07:00

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

What homeowners need to know about avoiding foreclosure

2013-08-16T11:23:00.002-07:00

I am reposting this article word for word that I got from Steve Nimmer here at Coldwell Banker Mortgage. (912) 604-3834 NMLS #: 186680.

Even though the recovery is over and people are getting rich in real estate(Flip That House Now! radio ads are playing again) there are plenty of ~~home owners~~ bank borrowers that are still struggling. And for some reason I sense there is a kind of stigma against them now that it is common knowledge that the recession is over.

So, here is Steve's article to help you out.

Since September 2008, the industry has seen some 4.5 million foreclosures completed, according to the June 2013 CoreLogic® National Foreclosure Report. And while those numbers have been coming down, it is still important that borrowers and homeowners understand what they can do to prevent foreclosure.

That means taking action at the first sign of trouble, such as the first time a homeowner makes a late payment or misses a payment altogether.

1. Analyze the cause
Was the payment late because the borrower had an unexpected expense, like a car repair or a medical bill? Or is the problem due to a job loss, disability or serious illness that could affect income for an indefinite period of time? The answers to these questions can help determine the best next steps.

2. Understand the foreclosure timeline
For most mortgages, a payment made one to 14 days late falls within a grace period. Payments 15 to 30 days late incur a late fee, which must be included at the time of payment. After 30 days, missed payments impact the borrower's credit score. Foreclosure procedures usually begin after four missed payments.

3. Optimize cash flow
Regardless of the scenario, it may be helpful for borrowers to revisit their budget and consider trimming extras like eating out, entertainment and other discretionary spending. It may also be necessary to generate additional income through part-time work or a second job.

4. Make a full payment – including late fees
A partial payment is usually credited as a principal reduction, not a regular mortgage payment. It's better to make a full payment, including any late fees, as soon as the money is available.

5. Communicate with their lender
The lender can help determine whether the borrower is eligible for any of several alternatives to foreclosure, such as refinancing or loan modifications. Even if the mortgage amount is more than the home is worth, the lender may be willing to accept a short sale or a deed-in-lieu of foreclosure.

The bottom line
A willingness to step back and assess the financial situation, take positive action to address shortfalls and work with the lender can go a long way toward helping borrowers avoid becoming foreclosure statistics.

Sources:
CoreLogic® National Foreclosure Report, June 2013
Freddie Mac: Alternatives to Foreclosure
7 Steps to Avoid Foreclosure by Tara-Nicholle Nelson, Esq.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

AASU Coastal Empire Economic Monitor Q1

2013-06-18T10:35:00.000-07:00

Dr. Toma has published the 2013 Coastal Empire Economic Monitor Quarter 1 report.

Summary: We are treading water in a sluggish stream that is moving in the right direction. Consumer confidence is weak, but tourism is up and so is housing. (In fact, in many areas of Savannah we are in a seller's market!)

Click on the images for enlargement.

Roubini Gets It If Only Everyone Else Did

2013-05-18T15:04:00.000-07:00

A. Joseph Marshall

Coldwell Banker Commercial

Commercial Real Estate Advisor

Savannah, Ga

912-790-6999

Tampa Luxury Retail Market Report

2013-04-26T13:07:00.000-07:00

This has been your Tampa Luxury Retail Market Report.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Healthcare Real Estate: Looking Beyond The Indicators

2013-04-25T17:12:00.000-07:00

I don't know who is reading this blog in India, but thank you very much! If you've got investors in Pune who in interested in property over here, give me a call.

Healthcare Real Estate: Looking Beyond The Indicators is such a good article that I am posted some of it here. It was published 10 days ago by Wayne Grohl for The Source blog.

With only a few exceptions, the mood was decidedly up at Thursday’s Healthcare Real Estate Conference in Chicago. The investors, brokers, tenants, developers and managers who met at the University Club came to hear about strategies and trends in development, management and capital for medical properties ranging from medical office buildings (MOBs) to large healthcare campuses to retail outpatient facilities.

Superficially, the first indicator from 2012 was a drop in medical facility construction starts. Usually, when a sector sees a drop in national groundbreaking, it's kind of tough to read the tea leaves as anything other than a negative.

That wasn't the diagnosis at the conference.

On a panel including Shawn Janus of Jones Lang LaSalle's Healthcare practice, the drop in starts was likened to a deception associated with long-term factors finally clearing up. "We saw a decrease due to the capital markets still rebounding, and a SCOTUS ruling on ACA, then an election," said Janus. "With all that behind us we're going to see greater activity. On the acute care side, that has dropped off. Community hospital starts has slowed down. But we're going to see high-acuity activity driven into the outpatient environment.

On a side note, my colleague Linda agrees with the conference's tone. This field is growing steadily, but now cautiously. She works extensively in healthcare real estate and sold two hospital sites in the last two years. The third, which was to be a community hospital, was indefinitely delayed.

Acute care: more or less means large hospitals.

High acuity: medical interventions for seriously ill people. Typically conducted on inpatients, that is people who stay over night. But the general trend in medicine and the incentives are to take some higher acuity patients and treat them not in hospitals, but in specialized outpatient settings. One classical example of this trend is the dialysis clinic. There was a time that dialysis for kidney patients was conducted primarily inside a hospital: that has changed in a great many places today.

Outpatient: a patient not hospitalized overnight.

What he's describing is a trend - several trends, in medical payments, technology and facilities management- that will cause an explosion in non-hospital medical facility utilitization for outpatients. Strip mall spaces, office renovations, all manner of off-campus medical facilities are going to form the demand nationally going forward. Consider it a retailization of medicine.

Read the rest of the article by clicking the link at the top of the page.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Why Low Interest Rates Matter to CRE

2013-04-23T15:31:00.001-07:00

Last Friday night I went out for drinks with an investment banker, a financial advisor, an accountant and the owner of a remodeling business.

As the evening relaxed (e.g. Booze!), I mentioned I was going to New York in May and June for meetings regarding distressed assets to drum up some business. The banker asked me, and I'll paraphrase, "Don't you think you'll be wasting your time speaking to those people? Don't you think the worst is behind us and bank owned properties are dwindling?"

And I said, "No, I think that this [2009-present] is just Round One."

And the banker said, "I agree!"

Why did we agree? Well, the systemic causes that lead to the recession are still in place: consumer debt, over-leveraged banks and business, and corruption on Wall Street. And now we're betting that sovereign leverage is the way to go. We have been told that pre-crash normalcy is returning because housing prices are increasing, the stock market is reaching new heights, CRE is back, gold prices are down, etc... And we are told that all this is inherent, indigenous... like creativity without a source.

But there is a source: low interest rates. An interest rate is how much you pay to borrow money. Banks don't make money with annualized interest rates of 3.25% or whatever it is today. But we have low interest rates to encourage people to borrow money to buy things. As an example, Americans are buying cars left and right and European manufacturers are depending on us. Did you know that about 80% of vehicle purchases are financed right now?

When you read in the paper that a million dollar property sold to whoever, chances are they did not pay cash, but borrowed most of the money for the acquisition. The low interest rates for CRE debt means more people will risk an investment.

But what happens when interest rates increase? Suddenly that debt costs more even though you may have "locked it in" and less goes to the principal. People may take less risks and buy less property. Small rate increases aren't a problem. Big rate hikes are.

This article explains that "low interest rates are one of the only things supporting commercial real estate prices." The author concludes that

"Cap rates are close to their historic lows for most property classes. At the same time, other commercial real estate fundamentals are still weak. This apparent disconnect- low cap rates and weak fundamentals- has prompted some observers to question the Federal Reserve's low interest rate policy. The concern is that low rates may be boosting commercial real estate prices excessively."

But on the surface things look great! So let's focus on arguments that the market is nuanced, complex, dynamic, etc...

The banker and I are hedging by betting that our future income will come from the sale of more distressed properties coming to market as the rates increase. And we're both hoping people will have the means to buy. Got an income producing property in sight? Is it a good calculated risk? Jump on it now!

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Commercial Real Estate Beige Book Breakdown

2013-04-18T14:37:00.001-07:00

Ok, this post is excerpts taken directly from Commercial Real Estate Beige Book Breakdown: March 6, 2013 by the National Association of Realtors Commercial Division, which of course was published by the Federal Reserve.

The commercial real estate industry finds good news in the most recent beige book, along with somewhat mixed indicators. March 6, 2013′s Beige Book reports:

Most [Federal Reserve] Districts reported expansion in consumer spending, although retail sales slowed in several Districts. Automobile sales were strong or solid most Districts, and tourism strengthened in a number of Districts. The demand for services was generally positive across Districts, most notably for technology and logistics firms. Transportation services activity was mixed among Districts, although the majority of contacts were optimistic about future activity. Manufacturing modestly improved in most regions, with several Districts reporting strong demand from the auto, food, and residential construction industries. Residential real estate markets strengthened in nearly all Districts and home prices rose amid falling inventories across much of the country.

Commercial real estate activity was mixed or improved slightly in most Districts, and financing for commercial development remained widely available. Overall loan demand was stable or slightly higher across nearly all Districts, and several bankers noted stiff competition for qualified borrowers. Agricultural conditions varied across the country, with some areas continuing to suffer from drought while others reported considerable precipitation and improved soil moisture levels. Districts reporting on energy activity indicated modest expansions in crude oil and natural gas exploration, while mining activity slowed.

Overall commercial real estate conditions were mixed or slightly improved in most Districts. Commercial real estate activity grew modestly in the Philadelphia, Richmond, Atlanta, and St. Louis Districts, and activity in the San Francisco District expanded. Boston and New York reported mixed activity, while the Kansas City and Dallas Districts noted few changes. Although some modest growth was reported in the Chicago District, the level of activity remained weak, and commercial contractors in the Cleveland District noted a slowing in activity, particularly for defense-related projects. Office vacancy rates declined across most of the New York District, and industrial vacancy rates in upstate New York posted their lowest levels in three years. Richmond contacts described the supply of Class A office space as tight, which they attributed to the absence of new construction.

Commercial development and leasing activity increased in the San Francisco Bay and Seattle markets, fueled by sustained growth in the technology sector. Commercial construction improved by varying degrees in the Atlanta, Chicago, St. Louis, Minneapolis, and Kansas City Districts.

Respondents in the Boston District expressed concerns about overbuilding in Boston’s apartment market and office sector, while Philadelphia contacts noted an increase in energy-related projects and repair work resulting from Hurricane Sandy. Cleveland, Atlanta, and Chicago reported high demand for manufacturing space, with some Chicago manufacturers leasing temporary space to accommodate increased demand. Credit for commercial development and transactions was widely available, although Boston noted a large decline in loan demand and contacts in the Cleveland District said financing difficulties continued.

Loan demand was steady or increased across all the Districts that reported. Residential real estate loan demand was strong in the Philadelphia, Cleveland, Richmond, Atlanta and Chicago Districts, mainly driven by refinances due to continued low interest rates. Demand for commercial real estate loans was also strong in the Cleveland, Richmond, and Kansas City Districts. Auto lending increased in the Cleveland and Atlanta Districts, and Philadelphia and Dallas cited growth in energy-related loan demand. San Francisco continued to report a slowdown in venture capital and private equity activity, but contacts noted an increase in the number of private technology companies moving toward an IPO.

Asset quality improved at banks in the Philadelphia, Kansas City and San Francisco Districts. Philadelphia, Richmond, Atlanta and San Francisco lenders reported high competition for qualified borrowers. Borrowing standards were reported to have been loosened in some Districts. Atlanta contacts noted additional loan capacity, but continued to be cautious with loan activity. Cleveland bankers considered cost cutting measures, including layoffs, due to shrinking net interest margins. New York contacts indicated a decrease in loan spreads for all loan categories, particularly residential mortgages, and bankers in the Chicago District said that very few mortgage originations were being kept on their balance sheets and that interest rate swaps were being utilized to hedge against a potential rise in interest rates. Bankers were generally optimistic about future activity in the Philadelphia and Dallas Districts for the near term, but Atlanta bankers expected activity to ease toward the middle of the year.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Mortgage product fundamentals – part 2

2013-04-17T12:28:00.001-07:00

Coldwell Banker Mortgage Advisor Steve Nimmer NMLS # 186680 ph. # 912-604-3834 comes through with part two.

Federal Housing Administration (FHA) and Veterans Affairs (VA) loans are both backed by the government and offer similar benefits, including the potential of being a more affordable option for those who qualify.
FHA loans overview

FHA loans can be very appealing to new homebuyers. The federal government insures mortgages for FHA-approved lenders to reduce their risk of loss if borrowers default on their mortgage payments.
Benefits:

Lower down payment

Lower monthly mortgage insurance fees than with conventional loans

More flexible debt-to-income ratios

More relaxed credit requirements

Competitive interest rates

General eligibility requirements include:

Two years of steady income

Proof of funds for down payment and closing costs

Bankruptcies must have been discharged for at least two years

More flexible debt-to-income ratios than for many other types of loans

VA loans overview

VA loans are available to those who served or are currently serving in the U.S. military. The VA does not lend money for VA loans; it backs loans made by mortgage lenders to veterans who qualify.
Benefits

No money down

No private mortgage insurance (PMI)

Competitive interest rates that may be lower than conventional rates

No prepayment penalties

More flexible debt-to-income ratios than for many other types of loans

Eligibility requirements include:

Certificate of Eligibility from the VA to prove eligibility for a VA loan

The home must be a primary residence

Ability to meet income requirements and must have a good credit record

Buyers should consult a trusted lender early in the home search process for more information and to find out about the types of home loans which may be right for their needs, including fixed rate and adjustable rate mortgages.

Useful information you need to make an educated decision. And if you live in the Savannah, GA MSA and are ready to buy give me a call 912-352-1222.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Pooler Mall Progress

2013-04-16T10:33:00.000-07:00

SEDA has given Ben Carter's Pooler Mall development the go ahead to receive tax breaks. The mall is said to open in 2015 with work beginning later this year. Read more on this update at Savannah Area Mall Development Moving Forward. Here is my previous update on the development: http://sellingsavannahnow.blogspot.com/2012/10/atlanta-developer-to-build-luxury.html

A. Joseph MarshallColdwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

In Memoriam

2013-04-12T06:37:00.000-07:00

In memoriam to my friend and neighbor and the best agent Savannah ever had.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

"Year of the Small Deal"

2013-04-11T09:50:00.000-07:00

Here's an article of interest from April/May Realtor magazine.

The article acclaims the already known fact that 2012, especially the last quarter, brought a bumper crop of CRE deals. It doesn't mention that much of that was due to political fear and a desire to avoid 2013 taxes. It reports that capital markets surged, CMBS lending increased and that cash flow remains king.

2013 hasn't slowed down either, which is fantastic. It shows the motivation to invest is economic more than political. And best of all, Savannah made the cut!

This little infographic shows the top 10 U.S. cities with greatest YOY CRE volume. But don't equate the prosaic interview that jobs = growth = CRE deals, with the cities' numbers.

I can't imagine that Lexington, where I used to live, added so many jobs in 2010-2011 that the newly generated wealth prompted a buying CRE buying spree in 2012. And the Savannah MSA unemployment rate was around 9% in 2011 and decreased only .9% in 2012.

So yes, jobs keep a city alive, but don't equate to dramatic CRE sales volume. Remember that multi-family topped $75 billion in sales last year. I think the numbers reflect pent up demand, sales of REOs, and local and foreign investment.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Mortgage product fundamentals – part 1

2013-04-08T08:10:00.000-07:00

Once again, Coldwell Banker Mortgage Advisor Steve Nimmer NMLS # 186680 ph. # 912-604-3834 comes through with a great article to share.

Useful information you need to make an educated decision. And if you live in the Savannnah, GA MSA and are ready to buy give me a call 912-352-1222.

Conventional Loans

Conventional loans are the most traditional type of financing for a home purchase or refinance. Conventional loans are underwritten by government-backed enterprises, including Fannie Mae and Freddie Mac, and have their own set of guidelines (see Eligibility below).1

Benefits

Individuals with good credit, a steady income and who can afford the down payment on a conventional loan can take advantage of a number of benefits:

competitive interest rates, typically lower than FHA, VA and jumbo loans,

faster mortgage processing in most cases,

avoiding private mortgage insurance if the borrower puts 20% down,

building equity faster.

Eligibility

Borrowers must meet several criteria for conventional loans including demonstrating stable employment and having a maximum debt-to-income ratio of less than 33/45 (a borrower's mortgage payment cannot exceed 33% of their gross monthly income and total debt/obligations cannot exceed 45% of their gross monthly income). They also need good to excellent credit, specifically, FICO scores of 620 or above. Larger down payments are also required for conventional loans between 5%-20% of the home's sale price for the down payment plus additional cash/savings for closing costs.2

Mortgage Types
Fixed Rate Mortgages: A fixed rate mortgage is an option for conservative borrowers, those who want to lock in near historically low rates and homeowners who plan to stay in the home for a long time. With a fixed rate mortgage, interest rates remain static, and the borrowers' principal and interest payment will remain the same for the term of the loan.³ Fixed rate loan terms are generally amortized over 30, 20, or 15 years.

Adjustable Rate Mortgages: Conventional adjustable rate mortgages (ARMs) can be beneficial for borrowers who don't plan to live in the home for a long period of time, or when mortgage interest rates are high or increasing. ARMs begin with lower initial interest rates and monthly payments; however, after an initial fixed period, the interest rate will adjust. (Most ARM rates are tied to the performance of one of three major financial indexes.)³ This type of mortgage is often considered by borrowers ARMs typically offer initial fixed-interest periods of 3, 5, 7, or 10 years.

Sources:
1.Conventional Loan vs. FHA Loan by Karina Carrillo Hernandez
2.Conventional Home Loans Explained by Daniel Duffield
3.Adjustable-rate Mortgages by Realtor.com

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

IRS "Compliance Gaps" Includes Real Estate Investors

2013-03-27T09:32:00.000-07:00

I've said it before, that the government views property owners like John Dillinger viewed banks.

Due to new Medicare laws, real estate investors would do well to qualify as real estate professionals. However, there is an exception for those who would qualify.

Read How Real Estate Investors Can Protect Themselves From the IRS to learn more about it.

And if I were local to Savannah I'd call Stephen Leonard over at Hancock Askew.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

New FHA Mortgage Program Changes: What Buyers Need to Know Before April 1

2013-03-21T07:30:00.001-07:00

Steve Nimmer, Coldwell Banker Mortgage (912-604-3834 NMLS #: 186680), who is a great source of information, sent me the following:

The Federal Housing Administration has announced several changes to FHA mortgage programs that will begin April 1, 2013. These changes will impact customers who are in the market for or have recently qualified for an FHA loan.

The new changes revolve primarily around increasing mortgage insurance premiums. Before going into more detail, it may help to do a quick review of the two types of mortgage insurance required on the majority of FHA-insured loans:

An upfront mortgage insurance premium, or UFMIP, which is paid once at loan closing. FHA allows this premium to be financed into the loan.
A mortgage insurance premium, or MIP, which is paid in equal installments, is part of the mortgage payment.

Increased insurance premiums – and tightened criteria

As noted, the FHA program changes focus on mortgage insurance premium increases, but there are also other factors buyers should be aware of:*

Annual mortgage insurance premiums (MIP) paid by borrowers on most new FHA loans will increase by 10 basis points, or 0.1 percent; for loans of $625,500 or more, there will be an increase of 5 basis points or 0.05 percent.
Upfront mortgage insurance premiums will rise to 1.75 percent of loan size.
Most FHA borrowers will now have to continue paying annual premiums based on the unpaid principal balance for the life of their mortgage loan. (This reverses a policy that automatically cancelled required premium payments after loans reached 78 percent of their original value.)
It will be more difficult for borrowers with FICO scores below 620 and a debt-to-income ratio higher than 43 percent to qualify for the loans. They will not be eligible for processing through the FHA's automated underwriting system and so will have to be processed manually, with lenders documenting compensating factors such as larger down payments – or a higher level of reserves.

Buyers can still take advantage of the current, lower premiums. The new FHA mortgage insurance rates will apply to most loans that have a case number starting April 1, 2013 or later. Be sure buyers are aware of the latest changes and that they have consulted a mortgage advisor about eligibility or the next steps they may wish to take.

*Source: Inman News, January 2013.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

2012 Q4 Coastal Empire Economic Outlook Posted

2013-03-20T10:05:00.003-07:00

Summary: The last quarter of 2012 showed growth, but slower than the previous quarter. Stronger growth projected for 2013. The Coast Empire Economic Monitor is courtesy of AASU and Dr. Michael Toma. Click on each image to enlarge.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Movie Studio to Proposes to Build in Effingham County

2013-03-20T08:14:00.000-07:00

Wow, the first update since January: I have been busy! To summarize this news...

Who: "The Effingham County Industrial Development Authority unanimously approved an agreement Tuesday with Medient Studios Inc. for a $90 million movie studio and entertainment facility..." writes G.G. Rigsby in the Savannah Morning News.

What: The Effingham County IDA approved a Memorandum of Understanding with Medient. The memorandum is a legal document, but not as fully binding as a contract. As I understand it, this deal is creeping toward the finish line, but not yet "a done deal." I don't think any of us has forgotten the Daimler-Chrysler Sprinter van plant drama back in 2002-2003 which was presumed to be a sure thing.

When: WTOC reports that "Medient Studios has plans to open as early as next year."

Where:

Picture courtesy of Effingham County IDA. Click to Enlarge

How much: "The $90 million figure includes $10 million for land, $40 million for equipment and $40 million for buildings. An investment of $90 million and 1,000 jobs are the performance goals called for in the memorandum of understanding. Kumaran said he expects more than 1,200 jobs to be created eventually" writes G.G. Rigsby in the Savannah Morning News.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga