Tag Archives: investment

Albuquerque CRE Report 11.5.12

Posted on by

Bob - Walt, our weekly talks focused mostly on the Albuquerque metro market, are there other commercial real estate developments going on in the rest of the state, that might be of interest or noteworthy?

Walt - Bob, good morning, the big story in development is happening in Santa Teresa on the southern border of New Mexico.

Union Pacific has a $400 million intermodal facility and they have already spent about $150 million in the project with a scheduled completion date in 2015 and 600 employees will be working at facility when it’s at full capacity.

The facility will be a refueling, crew change and intermodal facility with trucks, rail and air delivering products throughout the country.

This is a big investment in New Mexico by Union Pacific Railroad and it will spur growth in Santa Teresa and surrounding communities.

The project will also allow customers in the region to use Union Pacific’s intermodal ramp to load and unload cargo. This will be a big benefit to many companies throughout the region that need rail access.

Bob - I would imagine that there has been some development of commercial warehousing along with retail and residential projects around Union Pacific’s facility, is that taking place?

Walt - It is, there was strong development at Santa Teresa in the early 2000, but very little has been built since that time and this is causing for a shortage and industrial space.

So the space crunch along with products pouring out of Mexico’s maquiladoras increasing demand for industrial space. Several companies are building or beginning to start the process to build more warehouse space.

Bob your question is right on about residential housing. With new jobs being created, this creates demand for housing. Several developments are starting to come out of the ground and permits are being issued for new housing and the projections are over the next five years 1500 homes are planned in the Santa Teresa area.

So Union Pacific’s intermodal facility, along with strong demand to move product through Santa Teresa from Mexico is making a big impact in southern New Mexico. This project over time will provide thousands of jobs and homes, along with millions of square feet of commercial and industrial space.

Bob - Walt, how can people get a hold of you today to talk about commercial real estate?

Walt - Thanks Bob, give me a call, Walt Arnold with Sperry Van Ness, my direct line is 256-1255, and our website is waltarnold.com. If you’ve got questions regarding commercial real estate for a commercial real estate requirement, let’s talk.

Bob, have a great week and we’ll talk next Monday.

Albuquerque CRE Report 8.13.12

Posted on by

Bob – Walt, is there any momentum at all building in the commercial real estate market?

Walt - The activity level of the commercial market has increased. Lenders are coming back to the market, loans are being refinanced, purchased, and restructured, one looming issue is the mountain of loans coming due over the next few years and as these loans come up for their renewals, borrowers might have difficulty renewing these loans because of the significant drop in property values. Banks might not want to renew these loans or might be unable to renew these loans, due to regulatory constraints.

Bank ArtWe could see continued rounds of properties coming on the market through foreclosure. Some good news is most pundits predict interest rates to remain exceptionally low during the next few years. With these low interest rates, real estate will look more attractive than other investments.

Bob - What do these low interest rates do for property values? Is there a relationship between interest rates and the investment returns on commercial real estate?

Walt - There definitely is, it gets a little complex. These low rates are keeping cap rates at lower levels. Cap rates are a standard measure of return for many investors. If we see a rise in the interest rates the cap rates could also increase. Investors want to maintain their return and if interest rates increase, cap rates should also increase. Cap rates are a little complex with various variables and if you’d like to discuss them in further detail please give me a call.

Bob – Walt do you have anything else and how can people contact you today to talk about commercial real estate?

Walt - Thanks Bob, just to summarize, moving forward this commercial market is improving, although very slight, and there are some sizable downside risks that remain ahead of us. Some of those threats are the Euro crisis, ongoing foreclosure crisis, oil spike pricing issues, that could all take us in a different direction. Even with these looming threats, the commercial real estate market is improving, but very slowly.

As we move forward, hopefully we will start to see more things go right than things that go wrong. If you want to talk about commercial real estate give me a call, Walt Arnold with Sperry Van Ness, my direct line is 256-1255, our website is Walt Arnold.com. If you have any questions regarding commercial real estate, or would like some market information, or just want to bounce a thought, question or idea give me a call at 256-1255. Bob have a great week talk to soon.

Listen To Recorded Show Here

Albuquerque CRE Report for 01.09.12

Posted on by

New Year strategies for commercial properties investors, owners, buyers and tenants

Bob – Happy New Year!  Our first commercial report of 2012, what do you have for us to start off the New Year!

Walt – Happy New Year Bob and I hope you had a great time over the Holidays and the New Year.

I know you’re not a big New Year Resolutions advocate, but I wanted to talk about some New Year strategies for commercial properties investors, owners, buyers and tenants of commercial properties.

Bob - New Years Resolutions are difficult to keep and it is difficult for people to keep them.  But I’ll listen, what ideas do you have?

Walt – I think this is a great time for those involved in commercial properties to make some strategies and take some action to move forward on financial goals, which may include real estate.

Some quotes I remember are, “every journey begins with a single step”, or “if you aim at nothing you are bound to hit it”.  A question to ask this time of year is, “what is my exit strategy for the properties I own”, or “what can I do today to start looking at investing in commercial real estate”?

Those answers might not even come this year, but it’s important to start thinking about them now and develop the steps to move forward in that direction.

Bob – I would think this is not a great time to sell properties, but it appears to be a better time to buy properties.  How far in advance do someone need to start thinking about buying, selling or leasing?

Walt – There are many aspects to consider, for example a business that owns it real estate might say, “I need to raise some cash, but my bank won’t lend me any money”, a sale-leaseback might be a way to raise some cash and put cash back in the business to fund operations.

An investor just starting out might have the question,” how do I start investing in this market with all this opportunity to buy properties?”

A company currently leasing might ask, “I want to buy instead of lease, what do I need to know to get started?”

All of these decisions take time and planning.

Bob – So you’re saying there are a lot of things to consider and it might happen quickly or it could take time to develop a plan to decide what to do and how to go about it?

Walt – These aren’t snap decisions like, I need to lose 20 pounds, which by the way I do, these decisions take time and it helps to have people that can help define the strategies and a game plan to work through the issues and come up with solutions to accomplish these goals.

Bob – Walt, how can people get a hold of you to discuss how to make a strategic plan for 2012 and beyond?

Walt – Thanks Bob, my direct line is 256-1255, website waltarnold.com.  Let’s talk about strategy for 2012 and beyond.  You can connect with me on Facebook or Twitter.

CRE Report 12.19.2011

Posted on by

End of the Year Budgeting for Property Owners

Bob – Walt as we approach the end of 2011 and the Holidays are upon us, what are some things commercial property owners should be considering at the end of the year.

Walt - One thing all investment property owners should consider is establishing a budget for the upcoming year and included in the budget should be the amount of distribution or money that you want to make to yourself.  Creating or updating a budget is forward thinking and helps to put money aside for items that will need to be replaced in the coming year and creates a plan for replacing parts of the property that will fail eventually.

Bob – What if someone rents a single-family house or a Four-plex, should they create a budget?

Walt - With larger properties it is a requirement to track income and expenses against the budget and this helps keep the property manager aware of any categories which have a surplus or shortage against the monthly budget.

Spending the time to create a budget for any size or type of investment property is very beneficial to the success or failure of an investment property.  For a single family rental or a Four-plex owner to spend the time to create a budget will be one of the best exercises they can do to preserve the asset and increase cash flow. Don’t neglect working on a budget for 2012.

Bob - Any other year-end tips for property owners?

Although we have already had some cold weather and more on the way, continue to winterize any water outlets or exposed water sources on the property, check gutters and canales for leaves so they don’t make a leaf dam at the drain creating ponding of water on the roof, and one last idea is to buy snow melt and snow shovels ahead of time because when it snows and you need it, everyone else will also need it and those items will be difficult to find when you need it the most.

Bob - Since there won’t be a Real Estate report next week, any year-end thoughts or New Year predictions today?

Walt - First, I would like to say thanks for talking to me almost every Monday morning this year; I appreciate you having me on the show, and Jen also thanks to you.  Sometimes this time of year is more hectic and stressful than it should be, I hope everyone has a great holiday season and New Year with an over emphasis of grace this Christmas season.

Next year will be a better than this year, a little, as we head on a slow gradual climb out a very tough market and one of the worst recessions in history.  I know that at Sperry Van Ness we are looking forward to 2012.

My number is 256-1255, website waltarnold.com.

Bob, the best to you, your family, the KKOB staff and your listeners. I will talk to you next year.

CRE Report 10.10.11

Posted on by

Columbus Day Investing Advice

Bob – Walt what is going on in the commercial real estate world?

Walt – Good morning Bob!  Happy Columbus Day!  Christopher Columbus was born in a middle class family in Genoa, Italy.  He had a passion for navigation and sailing as a young man and traveled extensively visiting Africa and the Mediterranean.  Columbus spotted land on October 12th, 1492, which became the discovery of the New World.    He also continued to sail to the Americas and eventually made four trips to the Americas ending with his final voyage in 1502.

That is just a little Columbus Day trivia, Bob.   It is interesting to note Columbus’s perseverance in talking to the right people and trying to put together the right deal to help him accomplish his vision.

Which is a lot like real estate investing.  You have to have a plan, you need to be committed to the plan and you have to see it through.  There will be some rough times but if you execute the objectives carefully the rewards could be great.

Bob – Walt, but Columbus had some failures.  He had a hard time selling his plan to Kings, Queens and countries until Spain said yes to him, he had to abandon the Santa Maria when it ran aground, he had a tough time as a governor in the New World and he spent a year in Jamaica after his ships rotted.

Walt – You know your history and yes he did have some failures but he was in the right place at the right time. And that brings me back to commercial real estate.  The discovery of America would certainly have taken place within a short time span from 1492.  It’s all about timing!

With investments in commercial real estate it is so much about timing, and now is the time to consider investing in commercial real estate.  Values are down significantly from the 2007-2008 highs.  There is an opportunity in this market to acquire outstanding values in real estate, but you have to have a plan. It is similar to Columbus, he had a vision for what he wanted to happen and he pursued it with great passion.  Did he have some up and downs, sure he did but he kept his focus and today we celebrate his day, Columbus day.

Bob – Walt hat else do you have for us and how can people get a hold of you today?

Walt – Thanks Bob, call Walt Arnold at 256-1255 or check us out on the web at waltarnold.com.  At Sperry Van Ness we have the experience and resources to help you navigate these difficult Commercial real estate waters to help people find great values in today’s commercial market.  Give us a call and we can set up an appointment to show you how.  Thanks for the time today Bob, have a great week.

Who Needs a Loan Sale Advisor? By: Patrick Blount

Posted on by

Who needs a loan sale advisor? Great question, as my attorney says of loan sales, “it’s not exactly rocket surgery.”  In addition there has never been more capital available for the purchase of distressed debt.  Problem banks with problem loans make the headlines in newspapers every day.  Bankers are inundated with calls from prospective loan buyers or “vultures” as my banker friends call them.

So “who” does need a loan advisor?

Not banks who are unconcerned about creating an arms length transaction;

Not sellers that personally know several hundred qualified buyers;

Not banks with workout departments experienced in file assimilation for due diligence; conversion of paper files to electronic files; development of relevant loan data spreadsheets; and creation of a marketable loan summary

Not sellers with special asset departments prepared to obtain confidentiality statements from scores of curious potential bidders; with sufficient staff to police the actions of those people receiving such confidential information; with the ability to evaluate and understand indicative bids, letters of intent, loan sale agreements, buy back provisions, eleventh hour re-trading and closing documents;

Not banks that have executive staff well versed in dealing with sophisticated loan buyers that have been involved in hundreds of millions, if not billions, of dollars in previous distressed loan purchases;

Not lenders that don’t have to answer to a board of directors regarding lender liability; did we get a “fair” price, much less the “best” price; do we have ongoing liability; who is this company or person that is now out collecting, or trying to collect, on our documents with our bank name plastered all over them;

And certainly NOT banks with a proven, written business plan in place of how they will price loans, market them efficiently, sell them without recourse and maximize their collection efforts.

Come to think of it “who needs a loan sale advisor?”

For More Information on Patrick Blount and Benewolf’s services visit Patrick’s blog here

For more info on Walt Arnold/Sperry Van Ness Visit my website www.waltarnold.com

Also be sure to check me out on Facebook and Twitter

Video CRE Report 3.21.10 – Spring Cleaning Maintenance Tips for Owners

Posted on by

Every Monday Morning Walt Arnold, Managing Director of Sperry Van Ness/Walt Arnold Commercial Brokerage in Albuquerque, NM sits down with 770 KKOB raido host Bob Clark to discuss commercial real estate. I this episode Walt give property owners a maintenance tips to help prevent any costly repairs. Also Walt talks about a few bank owned property listings in the Albuquerque area.