Archive for October 2010

NAI Pittsburgh Commercial is Pleased to Announce

The Hiring of Sara Boehm as Administrative Assistant

PITTSBURGH, PA – (October 26, 2010) - NAI Pittsburgh Commercial is pleased to announce that Sara Boehm has been named as Administrative Assistant.

Her responsibilities include: designing marketing materials; updating information on various websites; and assisting brokers in researching property data.

Prior to joining NAI Pittsburgh Commercial, Ms. Boehm worked in Account Service for several local advertising agencies, coordinating projects with team leaders and agency executives.

Bill Leone, Founding Principal at NAI Pittsburgh Commercial, said that Ms. Boehm will be a great asset to the firm and its commitment to providing the highest level of service to its clients. “The entire NAI Pittsburgh Commercial team is pleased that Sara has joined our organization. Sara brings with her a wealth of marketing and project coordination experience which will be of great benefit to our valued clientele. NAI Pittsburgh Commercial’s mission is to provide our clientele with the highest level of results-oriented service; recruiting top level professionals makes this possible. Each member of our staff brings unique attributes to NAI Pittsburgh Commercial.”

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

About NAI Global
NAI Global is one of the leading commercial real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 commercial real estate professionals and 325 offices in over 55 countries, and completes over $45 billion in annual transaction volume. Since 1978, NAI Global clients have built their businesses on the power of NAI’s expanding network. NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. To learn more, visit

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Las Vegas Commercial Real Estate Investments

More and more Vacant Land is quietly slipping under the radar back into foreclosure.  Many parcels that were way over paid for, are finally seeing the real value as banks are just eating these parcels because the developers are walking away.

More and more Commercial Properties are being walked away from because property owners can't afford to maintain them.  Some, have even spent money on attorneys to help them re-negotiate their loans in order to kepp the properties.  But, with lenders finding it easier to falsely promise the owners some relief, these proeprties are quietly being (behind closed doors) foreclosed upon. 

(I see this everyday where an owner is being promised that their payment or interest rate will be lowered by a point by the bank.  Then, a month or two later, the foreclosure department takes the property.  This is sad as it is just a way for the banks to get some money from the owner prior to the trustee sale.)

I have spent countless hours calling owners and trying in vain to get them to at least look at the web site where Money Wise Financial & Legal Services demonstrates how they secure a re-negotiated loan, that I am amzed at the number of owners who DO NOT EVEN go to the website.

There are plenty of bargins in Las Vegas.  There will be more bargains in Las Vegas because I still believe we are NOT at the buttom.  I know this because many of the clients I deal with are stuck sitting on their cash for fear of the market falling further.

So, before that happens,...

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Las Vegas Lawyer Walks Away From Lease

First of all, This Lawyer is NOT the first to do this.

Second, This Lawyer will NOT be the last to walk away from a lease in the next six months.


Because Landlords -- specifically asset managers -- are NOT doing what needs to be done to keep tenants in the buildings that are/were foreclosed upon in the last few years

This Lawyer, fed up with the back and forth about lowering the base rent on their 9,000 SF office, quietly ordered a moving company to pack up and move, leaving the space on September 30th for an equally sized space at half the base rent they were paying.  I asked about any personal guarantee that the asset manager may use to go after This Lawyer?  This Lawyer replied, "I will just keep it in litigation until they go away."

Smart move?

This Lawyer thinks so.  (Also) This Lawyer is (quietly) encouraging others to follow suit.  The asset managers who are receiving a monthly fee for managing properties are the ones creating this mess, because they have made a (false?) promise to re-capitalize the buildings for the owners ("banks").

Will asset managers re-capitalize buildings to pre-recession values?

One word answer: Not!  No, it's Not going to happen.  There is no way a bank -- who was foolish enough to lend the money in the first place -- is going to recoop anywhere near what their initial real estate investment in Las Vegas was.  Prices are so far down -- and they are expected to go fall further.

Las Vegas was the best city to live in during the 1990's thru 2007.  It was growing.  Roads were, sorry, still are being widen, re-paved.  Water supply lines are still being upgraded.  Sewer lines are (still) being replaced with (much) larger ones.  The electric grind, cable lines, cellular towers are still going in.  Their was, at one time, about 12 to 13 schools that were planned to be built prior to the 2008 "Oh, No!  We can't re-sell this CDO for anywhere near the value that we artificaially created!"  Thank you, Wall Street.

Harry Reid really had ...  my bad ..still has so much money coming to Clark County, that even I-15 is still being improved as I write this.  And, this is today and will continue into tommorrow and will continue --  most likely -- right through this over-long recession.  IF!, he is re-elceted.  (Sharon Angle will NOT be able to do any of this if elected.

So, should you walk away from your lease?  I say, if the asset manager makes you jump through hoops to "be qualified" to see if there is a hardship to receive a rent reduction -- Ask, This Lawyer.

For Information about las vegas Commercial Investment Property, contact David Howes at:

NAI Pittsburgh Commercial Announces the Sale of 5523 Walnut Street in Shadyside

PITTSBURGH, PA – (October 18, 2010)

NAI Pittsburgh Commercial is proud to announce the sale of 5523 Walnut Street in Shadyside for $950,000. This three story building with elevator service is located in Shadyside’s upscale retail and neighborhood corridor.

Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial, represented the seller, RKF Inc. The buyer was Penn-Wilkins Assoc.

“The sale of 5523 Walnut Street again shows the strength of the Shadyside market and the entire East End submarket. Our firm entertained at least five offers on this property, which sold in a very short time period,” according to Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial.

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

For additional information on multi-family opportunities, please contact Gregg Broujos (ext. 206) at (412) 321-4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Recent Transactions

SALE Office Building
16,932 SF
Rowan Professional Building
12 East Rowan
Jim Orcutt
Black Commercial, Inc.
an NAI Black company

SALE Office Building
9,000 SF
910 West Boone
Jim Orcutt
Black Commercial, Inc.
an NAI Black company

SALE Industrial Land
Cheney School District
Mitch Swenson
Black Commercial, Inc.
an NAI Black company

Farmer's Market
1420 East Sprague
Mark McLees
Black Commercial, Inc.
an NAI Black company

1,651 SF
COR, Center for Organizational Reform
1102 West 6th Avenue
Kevin Edwards
Black Commercial, Inc.
an NAI Black company

U.S. Government
Schade Towers
528 East Spokane Falls Blvd
1,332 SF
Jeff McGougan
James S. Black III
Black Commercial, Inc.
an NAI Black company

Law Offices of Andrew C. Bohrensen
Fernwell Building
505 West Riverside
1,587 SF
Jon Jeffreys
Black Commercial, Inc.
an NAI Black company

Office Land
51,653 SF
13424 East Mission
Mark McLees
Black Commercial, Inc.
an NAI Black company

Heidi Irvine selected as IREM Foundation Scholarship Recipient

Heidi Irvine selected as an IREM Foundation Scholarship Recipient
"Heidi Irvine, Property Manager at Black Realty Management, Inc., an NAI Black company, has been selected as a recipient of the IREM Foundation's Paul H. Rittle Sr. Scholarship. The scholarship provides tuition assistance for the recipient to attend up to three IREM courses of their choosing. Irvine is an Associate Member of IREM and is pursuing IREM's Accredited Commercial Manager (ACoM) designation. She manages a portfolio of office, medical office, retail and industrial properties for NAI Black. NAI Black has been designated an Accredited Management Organization by IREM."


The subordination provision in a lease is very important. From a tenant's standpoint, if a lease is subordinate to a deed of trust granted by the landlord, the lease is generally terminated upon a subsequent foreclosure of the deed of trust. The buyer at a foreclosure sale might, under certain circumstances, attempt to continue the lease regardless of whether it is subordinate, but if the lease is not a favorable lease (e.g., the lease provides for a rental that is substantially below-marke, or contains other unfavorable provisions), a new owner may instead elect to have the tenant vacate the property after the foreclosure, rather than continuing the lease.

Sometimes the course of action could result in a ratification of a lease. For example, a lender forecloses on property on which there is a lease executed after execution of the deed of trust. The deed of trust is clearly superior to the lease, but if the tenant, after foreclosure, continues to pay rent under the lease and the lender continues to accept such rent, there may be a good argument that the lease has been affirmed and ratified. This could be either good or bad for a particular party. For example, if a lease is deemed ratified, a new owner/landlord might be subjected to certain unwanted obligations and liabilities under the lease.

A lease can be subordinate either by way of its later date of execution (relative to the execution date of the deed of trust) or by way of agreement of the parties. For example, if a lease is executed after a deed of trust is filed, then the lease is subordinate to the deed of trust. Even if the lease is executed before the deed of trust, it may still be subordinate by way of a subordination provision contained in the lease itself or by way of a separate subordination agreement executed contemporaneously therewith or anytime thereafter.

If a lease is subordinate, a tenant could obtain some protection by requesting and receiving a subordination and non-disturbance agreement. An SNDA basically could say that, regardless of whether a foreclosure occurs, the new owner agrees to recognize the tenant as its tenant. Whether a landlord will agree to pursue an SNDA for a particular tenant depends on various factors, including the willingness of the landlord (or mortgage lender) to cooperate and the tenant's bargaining power. It is entirely possible that a landlord may not want to bother its lender for an SNDA if the tenant is leasing a small space or because the landlord does not want to incur any costs because it and the lender have previously agreed on a charge for the lender's granting SNDAs. And, of course, there may be lenders who just won't agree to execute an SNDA unless specifically required by the deed of trust.

It should be noted that, with reference to foreclosures occurring after May 20, 2009, there is a new federal statute ("Protecting Tenants at Foreclosure Act of 2009") that may allow certain bona fide "dwelling or residential real property" tenants (who are current in their lease obligations) to remain in possession for at least 90 days after a notice to vacate is given even if their lease is subordinate to the deed of trust. This new federal law, which contains various exceptions, is scheduled to sunset on December 31, 2012.

Sometimes a deed of trust will contain a provision allowing the lender to unilaterally subordinate the deed of trust to a subsequent lease. A provision of that type grants a lender some flexibility. For example, if the lender desires to foreclose and not cause a termination of a favorable lease, the lender could by separate instrument (or perhaps in the notice of the foreclosure sale and trustee's deed) unilaterally subordinate the deed of trust to the subsequent lease - with the effect of the lender's foreclosing and accepting the property "subject to" a lease. There is some risk associated with a lender taking "subject to" an existing lease. The lender may be bound by lease amendments of which the new owner has no prior notice, including, for example, amendments changing the rental or otherwise modifying other terms of the lease or requiring monetary payments to the tenant. In addition, a new owner could be liable for damages arising out of a prior landlord's conduct. Proper advance planning could reduce, eliminate or at least alert the lender of some of these risks.

- Vincent Marino is a shareholder in Winstead's Houston Office, working in the Real Estate Development & Investments practice.

Freddie and Fannie sitting in a tree, K-I-S-S-I-N-G!

Last week, my brother sent me a link to a news story that announced what several of my clients have been predicting:  "Homes being dumped on the market at the end of 2010; beginning of 2011 so as to allow the banks to liquidate their REO inventory quickly."

I, myself, have resisted going after residential homes/condos for fear that when this does happen, I don't want to be the sucker that purchased a property far above the "dumping" price.

Here is the link so you can see for yourself: 

Now, I am all for Banks getting back to lending.  They seemed to have taken the "Stimulus Money" and ran with it.  As we all know, they are NOT lending -- which was my understanding they were supposed to do.  But, maybe with the banks (specifically FreddieMac and Fannie Mae) unloading the thousands of homes/condos that are filling their inventory at $100,000 less than the foreclosed price, will help jump start the bottom of the housing sales crisis.

As a fellow American, I expect, as you do, instant gratification.  This recession/depression should have been over a long time ago.  Whether your slant is to to blame Republicans or Democrats, neither has done enough to satisfy us instant gratification Americans.

But, unless American workers get back to work, there will NOT be the magnificient recovery we are all anticipating.  Corporate America doesn't want to pay Americans a living wage, foregn countires are underpaying employees so as to undercut the American dream, and American workers who won't work for less are the losers.  By the way, if Americans can NOT earn a living wage, they can NOT buy homes! (FYI.)

So, even dumping these REO properties, who -- other than investors -- can buy a home if the American Buyer doesn't have a good paying job; can't get a loan because the banks have put the brakes on lending, and, essentially, don't qualify because they let their last over-paid for house go back to the bank?

And, unless this cycle is brought to an end, home prices will continue to decline -- even with the "dumping."

Oh!  And with this continued decline in value, commercial real estate will decline in value because right here in Las Vegas, there is so much vacancy in office, industrial and retail, that they can't even give the space away for free -- even if they thought that would improve their properties financial outlook.

For Information about Las Vegas Commercial Real Estate, RE Investments, or Commercial Property, contact David Howes at: