Dennis Kefalinos purchased the 2.2 million square foot Russell Industrial Complex for $1.5 million in 2003, gambling manufacturing or industrial tenants would appear. They haven’t.But seven years later, he has filled 25% of the factory with artists and small businesses who pay $550 a month, heat included, for 1000-square-foot studios / shops. And he didn’t pursue this angle. The tenants came to him, one at a time, at a rate now of one new tenant a week.
via Agent Genius
Charles Dickens began his classic, A Tale of Two Cities with the famous opening “It was the best of times …” That was the tone of the Mortgage Bankers Association’s (MBA) January 2007 assessment of the commercial market which was entitled “The Perfect Calm.” Indeed, everything looked calm and promising to the MBA.
via Seeking Alpha.
The first commercial-mortgage-bond deal of the year is expected to be marketed to investors this week, according to sources familiar with the transaction.
The offer is seen as a sign of investors’ willingness to tolerate risk, despite the deteriorating fundamentals of commercial real estate, as long as a deal is accompanied by adequate protection and conservative underwriting.
via WSJ.com.
As new malls open in cities, the shine wears off of the older malls, patron shuffle over to the shiny and the older may end up closing as lease holders jump ship to newer areas. In other words, it dies. This typically happens in areas of town that are declining or that were overbuilt with retail space.
Commercial real-estate problems may be about to douse the recent rally enjoyed by regional banks
via WSJ.com.
The latest release of the Moody’s/REAL Commercial Property Index showed a notable decline of 2.6% since January, breaking a three month streak of rising prices and continuing to suggest that the nation’s commercial property markets are experiencing a tremendous downturn with prices down some 25.81% on a year-over-year basis and a stunning 41.66% since the peak set in October 2007.
via - Seeking Alpha.
Now the company is notable more for its growing roster of lawsuits, some by lenders and others by subcontractors, all while it files lawsuits of its own against shopping center tenants that allegedly arent paying rent.Economists have warned that the commercial real estate market is the next crisis
via MiamiHerald.com.
[This is a situation many commercial property owners are facing as other businesses struggle to survive -- Tim]
Most businesses lease, putting them at risk of eviction if their landlord defaults. But as Todd and Myrna Dow, of Sisters, learned the hard way, a legal document — called a subordination, non-disturbance and attornment agreement — exists to protect against that very scenario, which has become more common with the down economy.
via The Bulletin.
