The Borders bankruptcy presents an opportunity in the commercial real estate market, John Lyons, CEO at Savills LLC said. More generally, the real estate market has stabilized, with vacancies decreasing and rents firming, he said. (Video 3:54m)
http://www.cnbc.com/id/15840232/?video=1801219205&play=1
Thursday, February 24, 2011
The Commercial Real Estate Comeback
Tracking the progress of pricing in commercial real estate, with Andrew Florance, Costar Group president/CEO. CoStar bought a building in DC for $41M and rencently did a sale lease back for $101M. Nice Job! (Video 5:19 min)
http://www.cnbc.com/id/15840232/?video=1799199903&play=1
http://www.cnbc.com/id/15840232/?video=1799199903&play=1
Buffalo Valley Shopping Center Sells for $2.8M
"A Pennsylvania Limited Partnership acquired the Buffalo Valley Shopping Center in Mifflinburg, PA from Koskap Partners for $2.83 million, or about $38 per square foot.
The shopping center delivered in the 1960s at 299 - 335 E. Chestnut St. It totals 73,542 square feet and was 88 percent leased at the time of the sale."
The shopping center delivered in the 1960s at 299 - 335 E. Chestnut St. It totals 73,542 square feet and was 88 percent leased at the time of the sale."
Monday, February 21, 2011
SBA Coming To The Rescue of Small Maturing CRE Loans
"Small businesses facing maturity of commercial mortgages or balloon payments before Dec. 31, 2012, may be able to refinance their mortgage debt with a 504 loan from the U.S. Small Business Administration under a new, temporary program.
The new refinancing loan is structured like SBA's traditional 504, with borrowers committing at least 10% equity and working with third-party lending institutions and SBA-approved Certified Development Companies in the standard 50%/40% split. A key feature of the new program is that it does not require an expansion of the business in order to qualify.
SBA will begin accepting refinancing applications on Feb. 28. The program, authorized under the Small Business Jobs Act, will be in effect through Sept. 27, 2012.
"The economic downturn of recent years and the declining value of real estate have had a significant, negative impact on many small businesses with mortgages maturing within the next few years," said SBA Administrator Karen Mills. "As a result, even small businesses that are performing well and making their payments on time could face foreclosure because of the difficulties they face in refinancing and restructuring their mortgage debt. This temporary program is another tool SBA can provide to help these small businesses remain viable and protect jobs."
The SBA initially will open the program to businesses with immediate need due to impending balloon payments before Dec. 31, 2012. SBA will revisit the program later and may open it to businesses with balloon payments due after that date or those that can demonstrate strong need in other ways.
"We are making this initial restriction to make sure our funding goes first to small businesses with the most need," said Steve Smits, SBA associate administrator of capital access.
Borrowers will be able to refinance up to 90% of the current appraised property value or 100% of the outstanding mortgage, whichever is lower, plus eligible refinancing costs. Loan proceeds may not be used for other business expenses. Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.
Congress authorized SBA to approve up to $15 billion in loans under this program ($7.5 billion in both fiscal 2011 and 2012). Together with the first mortgage, this temporary program will provide up to $33.8 billion of total project financing. Additional fees charged to the borrower will cover the cost of this refinancing program and as a result no subsidy will be needed. The program is expected to benefit as many as 20,000 businesses.
SBA's traditional 504 loan program is a long-term financing tool, designed to encourage economic development within a community. A 504 loan provides small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.
Typically, a 504 project includes three elements: a loan (or first mortgage) secured with a senior lien from a private-sector lender covering up to 50% of the project cost, a second mortgage secured with a junior lien from an SBA Certified Development Company (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the cost, and a contribution of at least 10% equity from the small business borrower."
The new refinancing loan is structured like SBA's traditional 504, with borrowers committing at least 10% equity and working with third-party lending institutions and SBA-approved Certified Development Companies in the standard 50%/40% split. A key feature of the new program is that it does not require an expansion of the business in order to qualify.
SBA will begin accepting refinancing applications on Feb. 28. The program, authorized under the Small Business Jobs Act, will be in effect through Sept. 27, 2012.
"The economic downturn of recent years and the declining value of real estate have had a significant, negative impact on many small businesses with mortgages maturing within the next few years," said SBA Administrator Karen Mills. "As a result, even small businesses that are performing well and making their payments on time could face foreclosure because of the difficulties they face in refinancing and restructuring their mortgage debt. This temporary program is another tool SBA can provide to help these small businesses remain viable and protect jobs."
The SBA initially will open the program to businesses with immediate need due to impending balloon payments before Dec. 31, 2012. SBA will revisit the program later and may open it to businesses with balloon payments due after that date or those that can demonstrate strong need in other ways.
"We are making this initial restriction to make sure our funding goes first to small businesses with the most need," said Steve Smits, SBA associate administrator of capital access.
Borrowers will be able to refinance up to 90% of the current appraised property value or 100% of the outstanding mortgage, whichever is lower, plus eligible refinancing costs. Loan proceeds may not be used for other business expenses. Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.
Congress authorized SBA to approve up to $15 billion in loans under this program ($7.5 billion in both fiscal 2011 and 2012). Together with the first mortgage, this temporary program will provide up to $33.8 billion of total project financing. Additional fees charged to the borrower will cover the cost of this refinancing program and as a result no subsidy will be needed. The program is expected to benefit as many as 20,000 businesses.
SBA's traditional 504 loan program is a long-term financing tool, designed to encourage economic development within a community. A 504 loan provides small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.
Typically, a 504 project includes three elements: a loan (or first mortgage) secured with a senior lien from a private-sector lender covering up to 50% of the project cost, a second mortgage secured with a junior lien from an SBA Certified Development Company (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the cost, and a contribution of at least 10% equity from the small business borrower."
Saturday, February 19, 2011
Lease Agreement at 91 Dowlin Forge Road in Lionville
"A new lease agreement for 1,271 square feet of office space was completed within The Lionville Professional Center here.
The owner is EWJT Partners. The tenant is Michael and Jeanine Aversa.
91 Dowlin Forge Road is a single story office suite complete with custom fit-out, individually controlled HVAC, a thermal pane operable window system, 9' drop ceiling and shared vaulted entry area containing lobby and bathrooms". The Lionville Professional Center consists of 11 single story buildings located at the corner of Eagleview Boulevard and Dowlin Forge Road close to the entrance of the Eagleview Corporate Center and Route 113."
The owner is EWJT Partners. The tenant is Michael and Jeanine Aversa.
91 Dowlin Forge Road is a single story office suite complete with custom fit-out, individually controlled HVAC, a thermal pane operable window system, 9' drop ceiling and shared vaulted entry area containing lobby and bathrooms". The Lionville Professional Center consists of 11 single story buildings located at the corner of Eagleview Boulevard and Dowlin Forge Road close to the entrance of the Eagleview Corporate Center and Route 113."
Sale of Two Parking Lots in Chinatown
"The sale of an 8,670 SF public parking lot at 1013-1015 Arch Street, Philadelphia, PA was recently completed. The Buyer was 1013-1015 Arch Street Realty, LLC. Sale Price: $3,550,000. The sites will be used for future development.
The second public parking lot containing 7,435 SF is located at 1020-1026 Cherry Street, Philadelphia, PA. The Buyer was 1010-1028 Cherry Street Realty, LLC. Sale Price: $2,700,000.
The Seller in both transactions is the Parkway Corporation."
The second public parking lot containing 7,435 SF is located at 1020-1026 Cherry Street, Philadelphia, PA. The Buyer was 1010-1028 Cherry Street Realty, LLC. Sale Price: $2,700,000.
The Seller in both transactions is the Parkway Corporation."
Sale Arranged of Camden Town Center Pads in Camden, Delaware Totaling $6,032,000
The five ground leased pad sites at Camden Town Center include:
- Applebee's Neighborhood Bar & Grill, at 4110 South DuPont Highway, at the price of $1,257,000, which represents a 7.00 percent capitalization rate;
- Chick-fil-A, at 4044 South DuPont Highway, at the price of $1,240,000, which represents a 6.25 percent capitalization rate;
- Dunkin' Donuts, at 4080 South DuPont Highway, at the price of $930,000, which represents a 6.24 percent capitalization rate;
- Texas Roadhouse, at 4568 South DuPont Highway, at the price of $1,535,000, which represents a 7.52 percent capitalization rate; and
- WSFS Bank, at 4566 South DuPont Highway, at the price of $1,070,000, which represents a 6.62 percent capitalization rate.
- Applebee's Neighborhood Bar & Grill, at 4110 South DuPont Highway, at the price of $1,257,000, which represents a 7.00 percent capitalization rate;
- Chick-fil-A, at 4044 South DuPont Highway, at the price of $1,240,000, which represents a 6.25 percent capitalization rate;
- Dunkin' Donuts, at 4080 South DuPont Highway, at the price of $930,000, which represents a 6.24 percent capitalization rate;
- Texas Roadhouse, at 4568 South DuPont Highway, at the price of $1,535,000, which represents a 7.52 percent capitalization rate; and
- WSFS Bank, at 4566 South DuPont Highway, at the price of $1,070,000, which represents a 6.62 percent capitalization rate.
Subscribe to:
Posts (Atom)
