Feb

29

The Pointe at Post Falls

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The Pointe at Post Falls has attracted major national retailers. The project has slated over 800,000 square feet of retail to big-box, hotel, theater, restaurants, fast food and inline space. As of the end of February 2008, there are no signed contracts, but negotiations are underway with Wal-Mart, Lowe’s and Sam’s Club. A large hospitality component is also expected in the near future.

The Pointe at Post Falls

Feb

28

Good Time to Buy Commercial Property

Filed Under National Market | Leave a Comment

While the other markets are crying…

The Residential Real Estate collapse… the Credit Crunch … Wall Street swoon…

It’s Still A Buyers Market in Commercial Property

With the relentless drumbeat of negative market news and the current funding credit crunch, you might be thinking now is NOT a good time to be buying commercial properties.

Not so … here is the word on the street…

These market forces have actually made this one of the best times to continue to acquire commercial properties and build your portfolio.

Here are 4 Reasons why . . .We are very active in the market with over 1000 units of multifamily under contract and researching new properties daily. Here’s what we are seeing that is quite new and a pretty large change from conditions 6 – 9 months ago.

1) Uptick in Commercial Foreclosures: For the last couple of years the Commercial Property market has seen nearly as much speculative buying as the Residential side.

In the niche of properties priced at less than $10M – the segment dominated by non-institutional buyers – many people have overpaid for their properties. And the banks went along with them.

Many owners now find them selves over-leveraged and we are seeing an increase in Commercial Property Foreclosures. This is a bargain hunters dream

2) A Return to Rational Prices: The current credit crunch has positive effects. Those same speculative buyers and easy financing are now way gone. With financing MUCH more difficult these days and the speculators out of the picture, asking prices have come down to reasonable levels we have not seen in nearly a year.

3) More Flexible Sellers: Sellers know the lenders are only funding solid deals that are well priced. We are seeing sellers be MUCH more flexible on negotiations both at contract and retrade stages of the purchase.

And with the Speculative Buyers out of the market Sellers are seeing fewer offers as well. They are very hesitant to let your contract go if you are a serious buyer and much more flexible at the bargaining table.

4) Only Solid Profitable Deals Allowed: In fact, lender underwriting right now is so conservative that only solid, four star, profitable deals will get funded. Now is a great time to build your portfolio because, if you can get a property funded in this market, you are going to have a screaming profit machine when the market turns back up again.

Get ‘er done… So as you see the head lines day-after-day touting the bad news in the financial market, remember this…

Right Now is a great time to continue to look for good values in the property markets and if they’re underwritten now in a way that the banks will fund, you’re going to have a great project down the road.

Article Source: Commercial Property 2008 – While Everyone Else is Cryin’ Just Keep Buyin’

Feb

22

Idaho Real Estate Price Disclosure Approved by Panel

Filed Under Government | Leave a Comment

Idaho is a non-disclosure state which can be a major advantage to investing in North Idaho.   Recently a bill requiring residential price disclosure cleared committee and could become law in the near future.  Although this excludes commercial real estate at the time, it opens the door to future legislation and taxes.  It will be interesting to see how this pans out.

For more please read: Panel OKs Real Estate Price Disclosure | Chron.com – Houston Chronicle

Feb

12

Why Investment Real Estate?

Filed Under Local Market, National Market | Leave a Comment

Investing in commercial real estate is attractive for a variety of reasons. Commercial real estate investment offers a number of distinct advantages, several of which are discussed briefly below.

1. Positive Cash Flow Investment in income-producing properties often generates an income stream that can be used to fund different needs, such as retirement.

2. Tax Advantages As a result of deferred taxation, the after-tax return on commercial real estate typically is greater than an alternative investment with a comparable before-tax yield. The cost-recovery deduction normally defers (and saves) taxes, an effect that is magnified by debt financing.

3. Appreciation In addition to the periodic cash flows, the sale (or reversion) cash flow of a property can represent an increase in value.

4. Inflation Hedge Real estate investment typically has been an excellent hedge against inflation.

5. Diversification Commercial real estate offers diversification from other investments such as securities (stocks and bonds) and commodities, which have different risks.

6. Psychological Benefits The fact that real estate is a physical asset (i.e., bricks and mortar) provides a certain amount of psychological security over more nonphysical assets such as securities.

7. Positive Leverage/Principal Reduction In many cases, an investor may obtain financing with a lower interest rate than the overall un-leveraged yield of the property. This will increase the yield to equity, including reduction of the mortgage balance.

Credit: CCIM Institute

Feb

5

Big Box Watch – New Retail Construction Tracker

Filed Under Demographics, Project/Development News | Leave a Comment

Take a look at the following website that tracks new retail big box construction nationwide.

Big Box Watch — tracking new retail construction