Comments for Commercial Grove

Comment on Rothstein May Face Eviction by greendiamond

greendiamond — Tue, 01 Dec 2009 21:50:33 +0000

Question: If an attorney as a tenant is found to be in default for an office lease, is this considered a valid reason for disbarment? And if the lease is signed by the law firm, do the partners face exposure to disbarment?

Comment on Foreclosure Supply Vs. Demand by Barry Smith

Barry Smith — Wed, 18 Nov 2009 16:36:12 +0000

We are a loan sale advisor dealing primarily in commercial real estate loans. Our customer is the community and regional banking sector. We get feedback daily from bankers that are dealing with problems. They are not able to sell because of the loss that results in most cases ( interpreted as “illiquid”).
If you think the problem is going to fix itself anytime soon, you should find a copy of the recently issued “Policy Statement on Prudent Commercial Real Estate Loan Workouts” and read it. It was issued on October 30th by the Financial Regulators.
(The financial regulators consist of the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), and the Federal Financial Institutions Examination Council (FFIEC) State Liaison Committee (collectively, the regulators).

We need the market to clear. There will have to be some pain and (unfortunately) more bank failures in order for this to happen.

Barry Smith
President
LoanSaleCorp.com

Comment on Trader Joe’s Coming to FL? by Ali Hobson

Ali Hobson — Tue, 10 Nov 2009 19:09:39 +0000

I have written to Trader Joes’ over so many years now, asking for them to start opening up in Florida, that I must have them screaming. However, I’m afraid that as TJ’s is not a franchise, but a family owned business (as far as I know) they really have no huge necessity to open up any more stores. This places all of us who just swear by them to be at a terrible disadvantage.
Let’s hope they start paying attention to their many fans outside of the western half of the country and start opening up in various parts of Florida. I can think of a few very strategic locations for them:
Tampa, Jacksonville, Orlando, Ft.Meyers, Coral Springs and Pembroke Pines….just for starters!!!
They really have no idea just how well they would do.

Comment on Foreclosure Supply Vs. Demand by chris

chris — Fri, 06 Nov 2009 15:41:25 +0000

The fundamentals aren’t going to improve until the banks start taking back the properties and take the hit. Bring in the new investors at a basis that reflects the current market realities and then we will start seeing leases signed and space removed from the market. If rents are down 20% and cap rates moved up 30% you have lost about 40% of the value of the property. The banks are dreaming if they think they will make up that kind of shortfall in “a year of two”.

Comment on Foreclosure Supply Vs. Demand by mojo atlas

mojo atlas — Thu, 05 Nov 2009 22:08:15 +0000

very on point comments except for ….“extend and pretend” method, extending maturing loans for a year or two hoping for a market rebound. I have heard this refrain for several months now and the only part I disagree with is the reasoning, i.e. a market rebound. Many debt holders are not forcing a liquidation because they cannot afford the hits right now. If a property backing a $5MM loan is only worth $4MM right now (when it orignally appraised at $5.5MM or so), the inability to take the $1MM hit right now is more a factor than some delusion that everything will be ok in a year or two. Being able to bleed the $1MM loss by taking quarterly reserves of $165k over the next 6 quarters is doable in many cases. Many folks can absorb the hit; just need time.

Comment on What To Do With Empty Space? by Ed M

Ed M — Fri, 16 Oct 2009 17:38:37 +0000

Check out this website for a hotel concept that’s more of a deconstructed hotel providing different, local experiences, instead of your typical hotel which provides essentially the same experience to all its guests.
http://www.coolhunting.com/archives/2009/03/pixel_hotel.php
This concept was created in Linz, Austria for the precise purpose of taking advantage of all the empty, unused commercial space that existed throughout the city, and even an underutilized commercial fishing boat, that were then transformed into unique independent hotel rooms scattered throughout the different neighborhoods in the City, but still operated by a centralized management team. Here is the Pixel Hotel – Linz, Austria – website.
http://www.pixelhotel.at/en/home.html
The creators of this concept actually won the Radical Innovation in Hospitality Award at the 2009 HD Boutique Expo held this past September in Miami Beach. See this link
http://www.hdmag.com/hospitalitydesign/content_display/industry-news/e3i2abb9d0f8f4b8fdccd8edbf6007579d7
I actually work with one of the creator’s local partners here in South Florida who is currently scouting the area for unique locations that will work with this concept throughout South Florida. The creators of this concept are also looking at cities around the world that will be hosting large international (yet temporary) events such as the Olympics, where a large number of hotel rooms (more than the existing supply can satisfy)will be in demand for a temporary period of time. Why build a hotel, which by its very nature tends to be a long-term investment, to capitalize on a short-term demand for hotel rooms. This concept can be put together a piece (or pixel) at a time as demand for a place to spend the night increases in different parts of a city. And when demand for that area falls off, you just pick up the pieces and move the room to a more desired location. If anyone would like to discuss using their vacant space for this concept, please feel free to contact me at edmiranda121406@yahoo.com and I will discuss your interest with the pixel hotel team to see if your space may work for this concept.

Comment on What To Do With Empty Space? by Tim

Tim — Wed, 14 Oct 2009 18:15:25 +0000

Has anyone tried opening a store or chain of stores called something like “American Made”, where only goods/products made in America are sold? They might be a little pricier, but I’ll bet they would get a good customer base that understands that buying American goods creates American jobs…

Comment on Getting Closer to the Bottom by Norman

Norman — Tue, 13 Oct 2009 15:43:39 +0000

In DC metro market is just startig to feel the effects of this economy. The acquisition/disposition market is experiencing a sharp down turn in returns, especially the buildings located in the suburbs of DC. With all the money sitting on the sidelines, intervestors are looking for solid purchases, not just a place to park some money like the last 7 years.

I believe the next 6-9 months will be a true tail of the commercial market for the next 2+ years.

Comment on What To Do With Empty Space? by Andrew

Andrew — Tue, 13 Oct 2009 14:22:04 +0000

Very interesting post.

We also took a look at the same article (in a more satirical fashion):

http://netleasenation.blogspot.com/2009/10/vacant-commercial-real-estate-reuse.html

Comment on Getting Closer to the Bottom by Greg in Tampa

Greg in Tampa — Thu, 08 Oct 2009 14:48:26 +0000

How can we be close to the bottom when (and in no particular order):
1) Banks are still closing and credit is still frozen.
2) The banks that are open are playing the extremely dangerous “extend and pretend” game with insolvent properties.
3) A “W” shaped recovery and rising unemployment for the foreseeable future.
4) Strong potential for inflation (if not hyper-inflation).
5) Falling prices and no sales velocity means no one really knows what anything is worth – regardless of product type or location.
6) The potential for 2 million additional home foreclosures in the next few years.
7) Israel bombs Iran – Iran blocks the Straits of Hormuz – oil goes to $200/barrel+.
Are there a few deals happening, yes; but even the distressed asset sales of a year ago now look way over priced. But what’s also frustrating from a broker perspective is that Sovereign Funds and other substantial investors are going directly to the banks or owner to negotiate an offer. I think it is going to be a longer slog back than many think.