World West Commercial Real Estate

Links for 2009-05-13 [del.icio.us]

Thu, 14 May 2009 00:00:00 PDT

Mortgage Broker Realtor News Tips Daily
I have some great news. In a report from Frank Garay of ThinkBigWorkSmall.com: "According to Sean Donovan, FHA is close to monetizing First Time Homebuyer Tax Credit! HUD will allow FHA approved lenders and HUD approved non-profits, as well as state and local governmental entities to monetize tax credit through short term bridge loans. In short, that tax credit has just become your down payment!" Woo Hoo!

Links for 2009-04-08 [del.icio.us]

Thu, 09 Apr 2009 00:00:00 PDT

NEW FRONTIER DEMANDS NEW WORK ETHICS

Links for 2009-02-24 [del.icio.us]

Wed, 25 Feb 2009 00:00:00 PST

"Agents Falling Short On Disclosure" By Kenneth R. Harney
A lawsuit in Silver Spring is focusing fresh light on a growing problem: Real estate agents are failing to disclose whom they represent in transactions -- even where state laws require them to do so in writing at their first substantive meeting with a potential client.

World West Commercial Real Estate Blog: From Wordpress Back to Blogger

realestate@worldwestinvestments.com (Suzette West, ABR, EBA) — Mon, 15 Dec 2008 22:47:00 +0000

Well, I jumped ship from Wordpress to Blogger. My experience with Wordpress and the limitations I encountered caused me to consider the change and going back to the blog platform I know best...Blogger. Since I was unable to import my existing blog post from the old commercial blog on Wordpress, I have linked it to this post for ease of access in case you are curious about what I wrote previously.

End of Year Market Update 2008

realestate@worldwestinvestments.com (Suzette West, ABR, EBA) — Thu, 18 Dec 2008 18:39:00 +0000

The following is a collection of information gathered from various key sources regarding the state of the economy and the impact it is having on commercial real estate and real estate in general, as well as their predictions for the coming months ahead.

It is hardly a secret. Not only is the American economy in trouble, but so is the global economy. Sparked by the mortgage crisis, we have seen the decline of mortgage-backed securities, which was the engine that drove liquidity in the lending industry. When the crisis hit, it was mostly subprime and alt-a mortgage products. However, in a recent interview, Jaime Peters, a Senior Equity Analyst at Morningstar, explained that the crisis has bled into the prime market.

She cited warnings from banks that there is more deterioration to come, as charge-offs continue to trend higher and that they are noticing upticks on credit card usage for everyday purchases, which she said, is an indication of an increasing number of consumers living off their credit cards. While Peters said that big picture credit trends are mostly at the consumer level at this point, she sees commercial real estate as the “next shoe to drop.” While this may be true, Philip Blumberg, Chairman and CEO of Blumberg Capital Partners, anticipates a very strong buying year in 2009.

As noted by Blumberg in a recent interview, buyers of commercial properties within the last 3 or 4 years are now realizing the following:

1. They overpaid for the properties they purchased.

2. The economy did not produce the double-digit increases they expected.

3. They cannot get refinancing, so sales are going to be the only option.

4. The result of these circumstances is an increase in buying opportunities for those who are sitting in a good financial position.

Nick Burnell, Partner of Rutney Capital, shared in an interview last month that although the market continues to trend in this direction, there is a struggle between unwilling sellers and buyers because people cannot agree on property values causing a lack of transactional flow in commercial sales. Burnell shares Blumbergs’ belief that the coming year will present a growing opportunity for investors who wait and a growing alarm for sellers entering in the coming market as it continues to change. The reason, he explains, are as follows:

1. There is a severe dislocation of the market

2. The forces of supply and demand are in turmoil with very little credit around.

3. Huge uncertainties related to the economy.

4. Fears of recession and the continued deterioration and severe dislocation of the market

The real issue, according to Burnell, is how banks are interacting with each other and how they are now afraid to lend to each other. He cites a disconnect between the bank rate and Libor markets. Banks are increasing loan margins on top of lending reference rates, which he said causes the cost of funds to remain unchanged despite rate cuts. Through all of this volatility, Burnell sees interesting opportunities in the institutional commercial property market where yields have expanded and prices were “exceptionally expensive” for the last few years that suddenly seem to be a better value.

Nouriel Roubini of Roubini Global Economics believes that this is the worst recession in the last fifty years. However, despite the adversities in this economic climate, buyers are now facing a time of unprecedented buying opportunities within the next two years—a sentiment shared by many key institutional players. This is not only the case in the commercial real estate market, but also in the residential market for buyers who can qualify under the new stringent lending requirements, as the Feds continue to lower the prime rate.

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Why Commercial Buyers Benefit from Exclusive Buyer Agecy

realestate@worldwestinvestments.com (Suzette West, ABR, EBA) — Thu, 25 Dec 2008 19:28:00 +0000

This picture says it all!

Happy Holidays!

Green Business Directory: A Site for Professionals to Share the Latest in Green Thinking!

realestate@worldwestinvestments.com (Suzette West, ABR, EBA) — Thu, 01 Jan 2009 01:54:00 +0000

I was very excited today when I came across this directory of professionals who have dedicated themselves to offering sustainable products and services. Here is a description from the web site:

Welcome to greenprofs.com a site for professionals to share the latest in green thinking.
The green business directory on greenprofs.com will help you source green businesses who supply both business and consumers with green products and services.

Avoiding Multifamily Pitfalls: Verifying Tenants before Closing

realestate@worldwestinvestments.com (Suzette West, ABR, EBA) — Thu, 12 Feb 2009 21:29:00 +0000

The due diligence period is an important process when considering the purchase of investment properties, especially multifamily properties. Typically, buyer and seller negotiate a time-period that buyer can use to ascertain whether a piece of property is suitable enough to meet their intended purpose and/or goals. This includes inspecting and verifying leases, property condition, and ascertaining third-party vendor contracts that will transfer with the sale, among other considerations. However…

What happens when something unexpected occurs after the due diligence period ends, for example, when a tenant decides to move out shortly before closing and they sublet their unit to someone else, or worse, someone who ends up being a bad tenant without advising or obtaining permission from the former manager and/or the seller?

The Eviction Process: Going Through the Motions

Once closing has occurred, a new owner will have no other choice but to comply with local landlord-tenant laws when dealing with unauthorized occupants. Under the law, even unauthorized occupants have certain rights, especially if the former property owner or manager accepted even a partial payment from them. It can create an implied tenancy. In any case, unless you are dealing with blatant tresspassing, the law prescribes a certain sequence of events that must take place in order to avoid violating the law.

The whole process can take up to 6 weeks depending on the jurisdiction to obtain a proper eviction or an “Unlawful Detainer”, which includes serving notices, setting court dates, and getting on the sheriffs’ calendar when, and if, the court or commission grants the eviction. For new investors, this may seem like a daunting and unpleasant experience. However, when systematically handled, the process becomes an expected part of doing business as a multifamily investor. A good eviction service and/or a real estate attorney are ideal support systems to have during this time.

A Solution: Know What You are Taking Over before Closing

One way to ensure that tenants on the leases are the actual occupants in the units is to insert a clause in the offer that renders closing subject to verifying the tenants as current occupants. It would also be wise to include remedies within this clause in case buyer discovers the presence of unauthorized occupants during the verification process. This way, buyer and seller have pre-agreed in writing how they will handle the situation upon the discovery of unauthorized residents. Any competent real estate attorney can draft the appropriate language of such a clause, or a real estate broker can have their attorney draft the necessary language at no cost to buyer. Either way, there should be something in writing to address the issue of unauthorized tenants before closing. It is a small measure that will go a long way to reduce the chance of having to deal with an eviction process upon taking possession of an apartment building. However, depending on the experience level of an investor, taking responsibility for dealing with necessary evictions may not even be an issue.

There are some experienced investors who specialize in taking over problem properties along with all related tenant issues. These investors are aware of any problems upfront. Their experience level affords them the ability to accept responsibility for handling evictions and to take swift action in cleaning up and turning these types of properties around. They usually do so at a premium at time of purchase. This type of investor will factor the cost of taking on these problems in his or her final purchase price.

(photo: www.jdavisarchitects.com/)

Commercial Real Estate Activity Continuing To Decline

realestate@worldwestinvestments.com (Suzette West, ABR, EBA) — Sat, 21 Feb 2009 00:47:00 +0000

In a press release issued yesterday by Walt Molony from the National Association of Realtors, the commercial real estate market there is a prediction that commercial markets will be depressed due to, "A sustained lack of credit and the economic slump." Molony cited Chief Economist at the NAR, Lawrence Yun saying that,“'The credit crunch has especially hammered down some components of NAR’s commercial leading indicator,' he said. 'A lack of commercial credit is a serious threat to the overall economy. The Federal Reserve needs to use the Term Asset-Backed Securities Loan Facility (TALF) to provide liquidity and support for commercial mortgage-backed securities.'”

Click below to read the entire press release:

Commercial Real Estate Activity Continuing To Decline by Walt Molony from the National Association of Realtors.

I should note that the tightening of the commercial credit markets opens up opportunity in the form of equity financing. Those with access to equity financing will find unprecedented buying opportunities as cap rates rise and commercial property inventories continue to increase over the next 12 to 24 months.

Economic Crash of 2009: According to one Economist it will be Greater than Great Depression

Weber Thompsons' Terry Thomas Office Building Receives LEED Platinum Certification

realestate@worldwestinvestments.com (Suzette West, ABR, EBA) — Tue, 24 Mar 2009 19:46:00 +0000

Congratulations to the design team at Weber Thompson for achieving LEED Platinum Certification for Commercial Interiors for their Terry Thomas office building located at 225 TERRY AVE N in Seattle! This impressive accomplishment, however, was not their first achievement of the year. On January 29, 2009, the company announced that it had achieved LEED Gold certification for Core and Shell; two great achievements before the end of the first quarter of 2009!

I had the pleasure of seeing the building during a tour organized through the Washington State Chapter of the CCIM Institute last year. Since then, I have learned a lot about the people at Weber Thompson. I have to say that they have demonstrated themselves to be true leaders in their field. They are not only passionate about sustainability, but they also make it apparent how they care for and highly value the people who work there as a part of the team. It is apparent that they are more than just a company, but they also share a sense of family. I believe they are a truly progressive company with an innovative culture, philosophy, and group of people doing great things for the environment and for the clients they serve, past and present.

The last time I spoke with friends there, they said they were happy to give tours of the Terry Thomas building. To contact them for a tour or if you want to send congratulations, click here.

Congratulations and WAY TO GO, Weber Thompson!

Links for 2008-06-15 [del.icio.us]

Mon, 16 Jun 2008 00:00:00 PDT

Make Your Own Ethanol At Home with the Efuel 100 MicroFueler

Links for 2008-06-13 [del.icio.us]

Sat, 14 Jun 2008 00:00:00 PDT

30th Annual “Super Saturday,” June 14th, Evergreen State College, Olympia

Links for 2008-06-11 [del.icio.us]

Thu, 12 Jun 2008 00:00:00 PDT

Classic rock sound with a modern mindset

Links for 2008-06-05 [del.icio.us]

Fri, 06 Jun 2008 00:00:00 PDT

Why Do So Many Americans Have Crummy Internet Speeds?