Triple Net Properties | NNN Properties | Retail Properties | 1031 Exchanges

Walkable Urban Cores – How Downtown can Save America

Scott — Sun, 12 May 2013 12:00:06 +0000

Daily finance had an interesting interview with Jeff Speck, author of Walkable City: How Downtown Can Save America, One Step at a Time. Jeff Speck is an architect and city planner in Washington DC and served on the Mayor’s Institute on City Design. He also served on the Sustainability Task Force of the Department of Homeland Security.

Jeff focuses and explains the four areas that must be addressed to make a city more walkable. The walk must be useful, safe, comfortable and interesting, and how to achieve these qualities.

How do we convince Americans to walk, particularly in places where they don’t have to walk? The first step is to get people to say: Ok, I have cars, but maybe there are circumstance where I choose not to use it.

We’re seeing this play out right now in the old Uptown District here in Westerville, Ohio where city planners are make a valiant attempt to create a more walkable city core. I’ve seen many successful examples throughout America. In Santa Monica, 3rd Street Promenade comes to mind or Old Town in Pasadena.

Take a look at the link for new fresh ideas.

http://www.dailyfinance.com/2013/05/04/four-keys-to-walkability-in-urban-areas/

Columbus Ohio Ranked Second by Gallup for Job Creation Last Year

Scott — Tue, 23 Apr 2013 21:32:20 +0000

Of the top 200 U.S. markets, Columbus ranked second with a score of 30, only behind Houston (33) and followed by Orlando (29), Charlotte (28) and Salt Lake City (28).

The job creation score was created based on a survey of local employees with a question of whether their employer was adding or cutting jobs. 43 percent indicted growth and only 13% cuts.

http://www.bizjournals.com/columbus/morning_call/2013/03/columbus-2nd-for-job-creation-in-2012.html

Columbus and Central Ohio Residential Sales Report – March 2013

Scott — Tue, 23 Apr 2013 16:29:07 +0000

The Columbus and Central Ohio MSA new and resale homes report show that the market remains strong and is getting stronger.

Homes sales for the quarter were up 17.6 percent over first quarter last year and pending sales are up 19.3 percent.

Median price at $135,000 for March was up 4.9 percent over the $128,650 for March 2012. Average price was also up 4.9% to $160,233 for the month of March.

“We’re getting a lot of interest from current homeowners who’ve been paying attention to what’s been happening with housing recently,” added Pedon. “Low interest rates, strong demand and improved sale prices make a compelling argument for selling a home right now. Whether homeowners want to move up or out, they should seriously consider the benefits of the current housing market.”

Unsold inventory is at the lowest level since 2002 with almost 9,000 unsold homes currently on the market. 3,484 new listings were put on the market during March 2013.

http://www.10kresearch.com/sortable/Columbus-OH/2013-03/Entire-MLS.pdf

http://www.10kresearch.com/sortable/Columbus-OH/2013-03/main.htm

Columbus High End Residential Rental Market is Getting Expensive.

Scott — Mon, 22 Apr 2013 14:59:36 +0000

New High end apartments in the vicinity of downtown or the short north are commanding up to $3,000 per month. A wave of swanky apartments are coming online within the next 12 months with two bedroom unit approaching $2,000 per month, and townhouses and penthouses at up to $3,000 per month.

The Wood Co. apartments in the short north start at $1,250 per month for one bedroom units and up to $2,350 for two bedrooms.

At 600 Goodale, rents start at $875 for one bedrooms and $2,995 for two bedroom penthouses.

The 302 units in Highpoint at Columbus Commons start at $1,095 for one bedroom and up $2,765 for two bedroom townhouses.

Downtown’s Annex at River South starts at $925 for one bedroom and two bedroom tounhouses up to $2,225.

It’s said that tenants fall into four categories: wealthy empty nesters who have a retirement home elsewhere, affluent young professionals, the recently divorced, and corporations that keep apartments handy for visiting executives.

http://www.dispatch.com/content/stories/local/2013/04/15/pricey-rents.html

Southern California Home Prices for March 2013

Scott — Mon, 22 Apr 2013 13:54:17 +0000

Median price hits 56 month high, up 23.4 percent from March of last year. Much of that increase however, can be attributed to a big change in product mix as sales in higher priced neighborhoods have shot up and a sharp drop in lower end deals.

A total of 20,581 new and resale houses sold last month. That’s up 29.1 percent from the 15,945 sold in February and up 3.1 percent from March 2012. Sales normally jump 36 percent from February to March. March’s sales were the highest since 2007 with a long term average of 24,254 for the month.

“It’s remarkable how much the housing scene has changed in a year. At this point in 2012 there were still plenty of folks sitting on the market’s sidelines, waiting to be sure the recovery was real. But gradually the psychology shifted as the economy picked up steam and mortgage rates fell to historic lows. We’re seeing the release of a lot of pent-up demand, especially in the middle and higher-priced neighborhoods where activity had been sluggish for years,” said John Walsh, DataQuick president.

“Price measures continue to rise for two simple reasons,” Walsh added. “First, demand for homes has risen at a time when the available supply is unusually low. Prices have had nowhere to go but up in many areas. Second, the gains are especially high right now because of the change in market mix: Sales of lower-cost homes have fallen at the same time activity in the higher price ranges has risen.”

Foreclosures have fallen off of the map, down to 13.9 of the market mix from 31.5 percent a year earlier. We haven’t seen a number that low since September 2007. Similarly, short sales have fallen to 21.5 percent.

What we’re seeing is a market that’s finally in full recovery and I expect even better news as the selling seasons gets underway.

	Sales Volume			Median Price
All homes	Mar-12	Mar-13	%Chng	Mar-12	Mar-13	%Chng
Los Angeles	6,772	6,962	2.80%	$306,000	$380,000	24.20%
Orange	2,856	3,063	7.20%	$400,000	$505,000	26.30%
Riverside	3,756	3,532	-6.00%	$200,000	$245,000	22.50%
San Bernardino	2,512	2,406	-4.20%	$150,000	$190,000	26.70%
San Diego	3,237	3,762	16.20%	$320,500	$380,000	18.60%
Ventura	820	856	4.40%	$350,000	$403,250	15.20%
SoCal	19,953	20,581	3.10%	$280,000	$345,500	23.40%

Westerville, Ohio – Uptown Facade Improvement Grant Money Available

Scott — Thu, 04 Apr 2013 19:22:25 +0000

For the second year, Westerville’s Uptown District will be awarding up to $15,000 in grant money per property for improvements ranging from paint, new windows, awnings to concealing rooftop wiring.

Eight local businesses will be receiving grant dollars from the Westerville Industry and Commerce Corp., acting in behalf of the City of Westerville.

$200,000 is slated to be awarded over the two year period. To be eligible for grants from the program, businesses have to commit their own money to the program. Jason Bechtold, Westerville Economic Development Administrator expects $1,600,000 in private investment over this period.

http://www.thisweeknews.com/content/stories/westerville/news/2013/04/03/uptown-businesses-to-get-facade-help.html

Update on Dublin, Ohio’s Bridge Street Corridor Redevelopment Project.

Scott — Mon, 01 Apr 2013 17:24:36 +0000

The city of Dublin, Ohio has embarked on a grand project with this one so here’s an update on the progress. The project is moving along and the city is offering a quick look at what it could be. http://vimeo.com/61395284

The Bridge Street Corridor run along State Route 161 (Bridge Street) from Sawmill Road through the downtown Dublin Historic District to create a walkable urban core with a riverside park next to the Scioto River, pedestrian bridge over the Scioto, and mixed use development as part of the 800 acres set aside for development.

http://dublinohiousa.gov/state-of-the-city/

http://www.bizjournals.com/columbus/blog/2013/03/slideshow-dublin-provides-bridge.html

The City of Westerville Plans for Uptown District Improvements.

Scott — Mon, 01 Apr 2013 16:43:08 +0000

The City of Westerville is looking at a plan to more effectively utilize the 1,100 parking spaces in the Uptown district.

The plan is to create mid-block alleys and redesign the north – south alleyways. The north – south alleys could take some of the pressure off of State Street which currently gets jammed at certain times of the day and especially during nice weather.

I would personally like to see some way to close State Street for a few hours during events such as 4th Fridays, but since it’s also State Route 3, it’s probably not possible.

For any of you interested in the Uptown Westerville improvement plans, take a look at the recent article in http://www.thisweeknews.com/content/stories/westerville/news/2013/03/19/rear-alleyways-in-the-future.html

Southern California New and Resale Home Sales for February 2013

Scott — Sat, 23 Mar 2013 14:05:12 +0000

DQ News reports that a total of 15,945 new and resale homes sold in February 2013. That was down .7 percent from the 16,058 in January, but up 1 percent from the 15,780 sold in February 2012. It’s typica for January and February’s sales to be about the same.

Median price was down .3 percent to $320,000 from $321,000 in January and up 20.9 percent from February 2012. The median price has fallen slightly since December’s $323,000. The median price has risen year over year for the last 11 months. Some of the increase can be attributed the strengthening higher end market.

The move up markets show major sales gains from a year ago. Homes closed for between $300,000 and $800,000 increased 33.4 percent year over year. $500,000 or more increased 54 percent from the previous year. $800,000 was up 62.7 percent.

Foreclosures continue to fall and are now 15.8 percent of the sales mix from 32.6 percent a year ealier. That’s the lowest since September 2007. Short sales also have fallen to 22 percent of resales last month from 26.9 percent in February 2012.

“Our January and February stats certainly indicate housing remains a big target for investors. But typically those two months don’t offer much insight into how the market will behave the rest of the year. These are sales that closed in January and February, meaning many of the buyers were out home shopping during the holiday season late last year. That’s when many traditional buyers and sellers drop out of the market, leaving a relatively high concentration of very motivated market participants, especially investors,” said John Walsh, DataQuick president.

“March and April will offer a better view of how broader market trends are shaping up this year. One of the real wild cards will be how many more homes go up for sale. More people who’ve long been thinking of selling will be tempted to list their homes at today’s higher prices. Fewer people will be underwater and therefore could at least break even on a sale. Some investors who’ve held for a while will consider cashing in. A meaningful rise in the supply of homes on the market should at least tame price appreciation.”

	Sales Volume			Median Price
All homes	Feb-12	Feb-13	%Chng	Feb-12	Feb-13	%Chng
Los Angeles	5,261	5,481	4.20%	$299,000	$350,000	17.10%
Orange	2,111	2,252	6.70%	$390,000	$477,000	22.30%
Riverside	3,011	2,833	-5.90%	$193,000	$228,000	18.10%
San Bernardino	2,082	1,959	-5.90%	$148,000	$175,000	18.20%
San Diego	2,709	2,779	2.60%	$305,000	$359,000	17.70%
Ventura	606	641	5.80%	$325,000	$389,000	19.70%
SoCal	15,780	15,945	1.00%	$264,750	$320,000	20.90%

1031 Exchanges and Fair Market Rent

Scott — Mon, 25 Feb 2013 15:15:33 +0000

A U.S. Tax Court decision from earlier this year, Adams v. Commissioner, T.C. Memo 2013-7, illustrates the importance of the investor / tax payer receiving a fair market rent for their investment property. In the above case the tax payer exchanged into a replacement property that was rented at slightly below market rents to the tax payer’s son. The IRS challenged this 1031 exchange declaring it a ‘family residence’ because the son was paying below market rent.

In this case the replacement property was in poor condition at the time of the 1031 exchange, and the son, a contractor, personally made substantial repairs at his own expense and continued to live in the property for four years.

The court decided that the rent plus improvements to the property constituted ‘fair market rent’. Be warned though as it could have easily gone the other way and would have in many instances that I personally am aware of.

In Revenue Procedure 2008-16 , notice That the dwelling must be rented “at a fair rental.” Insection 4 ‘Fair Rent’ for 1031 echnage purposes is defined.

1031 Fair Market Rent

Triple Net Retail – Absolute Net Leased – 7 Eleven, Circle K, Turkey Hill Properties Needed

Scott — Thu, 21 Feb 2013 17:09:47 +0000

I continue to need corporate leased, triple net retail c-stores such as 7-11, Circle K, Get Go (Giant Eagle) or Turkey Hill (Kroger). Gas preferred on the triple net retail C-stores due to the accelerated cash recovery on the gas related equipment. Single tenant only. S&P BBB or better. This mean investment grade guarantor on the lease. No franchisees. However, it must be triple net or absolute net. Prefer fee simple but will look at ground leases. Open to just about anywhere in the United States. Prefer rent to sales of less than 3% or gas sales above 90,000 gallons per month.

Commercial Real Estate posted solid gains in 2012 as recovery spreads to more markets.

Scott — Fri, 15 Feb 2013 17:33:45 +0000

According to CoStar News, sales of commercial real estate in the United States reached $64 billion last year, which is the highest since 2004 and increased 22 percent from 2011.

The price gains spread beyond multifamily into industrial, office and retail. Even commercial land showed signs of awakening mostly due to demand for multifamily with a 3.6 percent gain in the last quarter of 2012.

True, there was a big spike in December as sellers rushed to close deals due to the increase in capital gains tax rates for 2013.

Since the market fundamentals of larger class A properties in primary markets recovered first and competition has forced prices up and caps rates down, I expect more attention to move to secondary and tertiary in search of better returns.

Distressed sales were also down to 11.5 percent of total commercial real estate transactions, which is the lowest since late 2008, just as the crash was coming to commercial real estate.

There’s no question now that the recovery is broad based, but we will still have cycles like we have had through recorded history. Given that primary markets and class A type properties recovered first, expect some softening as investors move investment dollars to class B properties in secondary markets.

http://www.costar.com/News/Article/CRE-Sales-Surge-In-2012-As-Pricing-Recovery-Spreads-To-More-Markets/145720

Los Angeles and Southern California Home Sales for January 2013

Scott — Fri, 15 Feb 2013 16:41:16 +0000

DQ News reported solid gains for the first month of 2013 with 16,058 new and resale homes sold in January. This number is down 20.8 percent from December 2012, but up 10.6 percent from a year ago, January 2012. It’s the highest home sales for a January in six years.

The median price at $321,000 also jumped 23.5 percent from a year ago when it was $260,000. The median price dipped a .6 percent from December as it usual does. January was the highest median since August 2008. Plus, the median has increased month over month for the last ten consecutive months.

“This fledgling housing recovery has momentum. Already, price hikes have caused some to question whether it’s sustainable, whether it’s a ‘bubble.’ Let’s not forget, though, that we’re still climbing out of a deep hole from the housing downturn. Regional home sales remain sub-par and prices in many areas are at least 30 to 40 percent below their peaks. That’s not to say we don’t see risks. Sharp price gains can attract speculation, which could lead to unsustainable, short-term gains in certain submarkets. A lot of today’s housing demand is fueled not by spectacular job growth and soaring consumer confidence, but by super-low mortgage rates and unusually high levels of investor and cash purchases. Take away any one of those elements and it will matter,” said John Walsh, DataQuick president.

“For the overall market, price pressures should gradually ease as more homeowners react to rising values. This is the ‘supply response’ many analysts expect. The idea is that many who’ve held out for higher prices will be tempted to stick a for-sale sign in the front yard. Fewer will owe more than their homes are worth, enabling them to sell. Construction is already rising, and we could see lenders clear backlogs of distressed properties faster, adding to the supply.”

Much of the gains have been in the ‘move up” market with an increase of 74 percent in the $500,000 plus range versus one year earlier. Sales of $800,000 plus rose 84.2 percent versus a year ago.

Foreclosure sales were down to 15 percent of total sales, down from a peak of 56.7 percent in February 2009. Short sales were also down to 25.9 percent, doiwn from 27.2 percent a year ago.

http://dqnews.com/Articles/2013/News/California/Southern-CA/RRSCA130213.aspx

	Sales Volume			Median Price
All homes	Jan-12	Jan-13	%Chng	Jan-12	Jan-13	%Chng
Los Angeles	4,997	5,308	6.20%	$289,000	$340,000	17.60%
Orange	1,872	2,431	29.90%	$392,000	$460,000	17.30%
Riverside	2,684	2,858	6.50%	$180,500	$226,000	25.20%
San Bernardino	2,051	2,137	4.20%	$150,000	$177,500	18.30%
San Diego	2,358	2,717	15.20%	$305,000	$350,000	14.80%
Ventura	561	607	8.20%	$322,500	$365,000	13.20%
SoCal	14,523	16,058	10.60%	$260,000	$321,000	23.50%

New Apartment Construction Swamping Market?

Scott — Mon, 28 Jan 2013 14:37:23 +0000

CoStar News reports that new apartment construction at four or five times the national average for other types of commercial construction in certain markets will cause vacancies to increase.

“Apartment construction has been on a tear in certain markets,” CoStar says. “With the inventory growing at more than four or five times the national rate, vacancies will most likely increase.”

CoStar found that apartments currently under construction make up 1.4 percent of the total apartment inventory in the top 54 markets. Apartment developers are now far ahead of the developers of other property types. “New office construction makes up only 0.8 percent of the total inventory,” CoStar says. “New warehouse construction also makes up only 0.8 percent while new retail construction makes up only 0.6 percent.

CoStar wrote that new multifamily construction comprises 1.4 percent of the total in the top 54 markets in the United States and is far ahead of other types of commercial construction. Office is 8 percent, warehouse / distribution is also 8 percent and retail is 6 percent

CoStar poses the question whether multifamily construction is oddly high or every other segment is oddly low.

Columbus and Central Ohio Home Sales recap for 2012

Scott — Thu, 24 Jan 2013 18:17:48 +0000

There were 22,915 homes sales for all of 2012 and that was up 15.5 percent from 2011. These are the best numbers since 2007.

Average sales price was up 7.2 percent to $167,459 for 2012 and December was $158,898, which is up 7.5 percent from December 2011.

Median price was also up 8.7percent to $144,500 for 2012 and December was up 9.2 percent to $136,450 from December 2011

“2012 exceeded our expectations,” said Chris Pedon, President of the Columbus Board of REALTORS®. “Sellers opened their doors, buyers brought their confidence, lenders gave their best rates and REALTORS® worked eight days a week.”

“The inventory of homes for sale in central Ohio is at its lowest point in over a decade (9,252) – 18.8 percent less than December 2011 are missing out on opportunity,” ad “Homeowners who are putting off listing their house because we’re not “in season” says Chris Pedon. “Buyers are out there – and they’re not waiting for summer to buy.”

http://www.10kresearch.com/sortable/Columbus-OH/2012-12/Entire-MLS.pdf

http://www.10kresearch.com/sortable/Columbus-OH/2012-12/main.htm

2013 Detroit NAIAS

Scott — Wed, 23 Jan 2013 23:43:21 +0000

2014 Corvette

I traveled to Detroit for the North American International Auto Show last Friday and Saturday for the 2014 C7 Corvette unveiling. The production version of the Cadillac ELR was also introduced. This is Cadillac’s version of the Chevy Volt with more power and similar all electric range. Third major product introduction for GM was the all new 2014 Silverado and GMC Sierra. In my opinion, the new trucks were a bit of a snooze and don’t look different enough from their predecessors. Powering two of the three discussed above will be the new Gen V ‘small block’ V8. Shown were the 5.3 and 6.2 liter versions.

I did take a bunch of pics, but it got very crowded very quickly. I took most of my pics in the first couple hours of the show because after 11:30 or so it became impossible.

www.photobucket.com/2013NAIAS

Westerville Ohio – Uptown Evolution

Scott — Thu, 17 Jan 2013 16:10:55 +0000

Since this is the community where I actually live I thought I would post an update regarding activity in old uptown Westerville.

The project at 7 & 9 N. State that my clients are working on is progressing nicely. The building was a disaster and has been gutted and rebuilt. The exterior is being restored to its 1874 look, but with Nano walls on the State St. exterior similar to Marcella’s in the Short North. Current plans are to lease 7 N. State to a restaurant user and use 9 N. State for a Groovy Spoon Frozen Yogurt. However, owners are willing to lease both spaces to an appropriate tenant. Interested parties should contact me at 614-905-6614.

This Week Community News reports that Westerville city officials see big room for improvement in the entire Uptown district with a public gathering space, entertainment venue and much improved parking. According to Westerville Senior Planner, Bassem Bitar: “as we look at the evolution of the city, and Uptown having always been the heart of the community, the basic motivating factor is to make sure it continues to be a strong center for the community,”

Westerville has contracted with the consulting firm of MKSK (Scioto Mile and Arena District) to help formulate a plan to much improve the Westerville Uptown District.

http://www.planuptown.com/

http://www.thisweeknews.com/content/stories/westerville/news/2013/01/09/city-hopes-new-plan-will-keep-uptown-strong.html

Los Angeles and Southern California Home Sales for December 2012

Scott — Thu, 17 Jan 2013 15:22:02 +0000

A total of 20,274 new and resale houses and condos sold in December 2012, which is up 5.1 percent from the 19,285 in November 2012 and up 5.3 percent from the 19,247 sold in December 2011. Sales were still 17.2 percent below the December average of 24,488 so there’s still room to grow.

Median price is up almost 20% from a year ago fueled by a big reduction in distressed sales and more activity in higher priced markets. There’s also a record level of cash buyers. December’s median price was $323,000 last month and that’s up .6 percent from November 2011 and 19.6 percent from December 2012. The Southern California media price has risen for 11 consecutive months and year over year for nine consecutive months.

“The housing market had more to offer in 2012 than many anticipated. A lot of markets not only found a price bottom as foreclosures waned but they started to see their first meaningful gains in nearly two years. Buyers on the fence were drawn back into the housing game by amazingly low mortgage rates, a brighter jobs outlook and, in some cases, a renewed sense of urgency,” said John Walsh, DataQuick president.

“Last year should also be remembered as the year the move-up market awoke. If these upward trends hold, which requires a sustained economic recovery, we should eventually see more inventory hit the market. More would-be sellers will be satisfied with what their homes can fetch, and fewer people will owe more than their homes are worth, freeing them up to move. The rise in inventory would at least tame price appreciation.”

Sales Volume			Median Price
All homes	Dec-11	Dec-12	%Chng	Dec-11	Dec-12	%Chng
Los Angeles	6,591	7,198	9.20%	$305,000	$352,000	15.40%
Orange	2,572	3,070	19.40%	$400,000	$470,000	17.50%
Riverside	3,584	3,248	-9.40%	$194,000	$231,000	19.10%
San Bernardino	2,418	2,135	-11.70%	$150,000	$180,000	20.00%
San Diego	3,311	3,757	13.50%	$315,000	$366,000	16.20%
Ventura	771	866	12.30%	$325,000	$370,000	13.80%
SoCal	19,247	20,274	5.30%	$270,000	$323,000	19.60%

Columbus Ohio – Commercial Construction Roundup for 2012

Scott — Thu, 27 Dec 2012 17:52:51 +0000

There’s a lot going on around here aside from the I-70 / I-71 project. IF we have a mild winter as we did last year, it will get these projects moving along toward completion early in 2013 except for the freeway reconstruction. That will take a little bit longer.

Columbus Commons, 600 Goodale, Harrison West, Hubbard plus a number of others are moving right along.

I’ll link to the source, who is Walker Evans with Columbus Underground

http://www.columbusunderground.com/construction-roundup-december-2012

Westerville Named one of America’s Friendliest Towns

Scott — Sat, 22 Dec 2012 15:42:47 +0000

My home town of Westerville Ohio was named the fifth friendliest town in the United States according to Forbes and a Nextdoor.com. Westerville was the only town in Ohio to make the top 25.

Some of this is attributed to the number of park, Westerville Community Center, 4th Friday celebration in the old uptown Westerville, Otterbein University’s activeness in the community. Also a factor is the nearly nonexistence of crime in the community.

“In determining America’s friendliest towns, Nextdoor.com first looked at more than 1,000 towns across the country and narrowed that to 500, based on its own neighborhood engagement index, which considers the number of active website members and the amount of content those members post.”

The list was narrowed further to towns with populations of less than 150,000 and a point-system based on percentage of college graduates, percentage of owner-occupied homes and charitable contributions.

http://www.thisweeknews.com/content/stories/westerville/news/2012/12/19/Westerville-named-Americas-fifth-friendliest-town.html