Jeff McGougan and Jon Jeffreys of Black Commercial, Inc. an NAI Black company finalized a build to suit lease transaction with the GSA US Army MEPS (Military Entrance Processing Station) on a 15 year lease for 20,328 useable square feet In Spokane, Washington. Total volume for this transaction was $9,278,715.60.

Unfortunately, for those banks NOT working out current tenant lease issues to the tenant's favor, are now starting to hear the tenants roar!

This came to my attention on Friday.  Several tenants I know about have gone to their landlords (the bank's receivers/asset managers) and have demanded that the foreclosed upon property be SOLD! to them -- and only them, at their terms -- OR, the tenant is walking away from their lease, moving out and damn the re-negotiation problems or even the breaking the lease repercussions!

And, these out of state brokers who promised the bank/receiver that they could market and sell their buildings at the over price listed value, are losing tenants faster than their value can sink.

An attorney I personally know and play golf with has stopped re-negotiating their lease until the tenant who is demanding to acquire the building at his price is satisfied -- first.  (This particular tenant draws the most clients to the property.  If he goes, my friendly attorney is following suit.)

So, how about them Las Vegas tenants that you thought were just going to buckle under and accept -- at face value -- your miserable proposition.  Looks as if having lowered their rents by about twice what was "market at the time" is coming back to bite you in the derriere.

This leaves this particular property's sale -- listed at twice the current value -- up in the air.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Any real estate brokers/agents working on an FDIC property for a Buyer?

Recently, one of my many clients -- who just happen to be sitting on their cash -- struck an interest in a current FDIC Las Vegas Commercial REO'd property. The (pompous -- in my humble opinion) real estate agent -- thru their assistant -- tells me that I have to get my commission from my Buyer.

Okay! My client and I have a mutual understanding that if push came to shove, they would compensate me on an already agreed upon commission struture.

Then, as we are doing our preliminary work on whether or not to make an offer (the property is way too over priced for the current market conditions, but, okay.  I have found that a listing broker who is out of state does really and truly know best (sic).), my client happens to ask: "Doesn't the FDIC pay at least a two percent commission on all properties they are involved in?"

Hmmm....?  Good question.

So, I contact the RE agent (thru the assistant) and ask that question. The response from the Listing agent thru their assistant was that their listing ageement is with a mid-west receeiver, not the FDIC, therefore, there will be NO procurring commission paid by the seller.  I retorted that I was going to verify that by calling the FDIC.  The (pompous) RE agent told me to: Go ahead. (I paraphrased for the sake of shortness.)

The FDIC Offical who is responsible/in charge of this particular Las Vegas based property, said that if the FDIC is involved in a property, in any capacity, anywhere in the US, the FDIC maintains that a procurring broker be compensated at least a two percent commission. Oh!  Really?

After our short discussion in which he was very concerned, he asked if he needed to make any telephone call on my behalf.  I told him that since the numbers for acquiring the property didn't work out for my client, he decided to forgo making an offer.

The FDIC official said, in an  earnest manner, to have my client "make an offer."  I said if my client does make an offer, it will be for less than half the listed price.  He re-iterated, "Have your client make an offer," adding, "...and send a copy to me when you submit and I will see it gets done."

What?  Huh? 

He also said to make sure there is a provision in the offer for a 2% procurring commission.

Since then, my client said this situation was "interesting."  But, he still wants to see where everything falls commercial real estate wise the first of the year.

So, if a procurring commssion is a problem, the FDIC is on your side.

P.S.: I found the area offical thru the FDIC REO web site.

For Information about Las Vegas Commercial, Investment, Resorts, or Gaming Properties, contact David Howes at: david@davidhowes.net

Savory Restaurant
1314 South Grand Blvd
Leased 4,350 SF
Agents: Mark McLees
Chris Bell
James Black.

Farmers Market & Garden
1420 East Sprague
23,375 SF land
Sale Price $324,000
Agent: Mark McLees

103 E Indiana
5,200 SF
Buyers: Law Office of Geoffrey D. Swindler and Gallatin Public Affairs
Sale price $395,000
Agents: Mark McLees
Earl Engle
Kevin Edwards

Source: Changing Gears Presents Reinventing Pittsburgh: Part 1

As December welcomes us with a crisp snowfall that blankets our city streets and rivers, we look forward to a promising new economy for Pittsburgh, where the manufacturing plants and industrial buildings have been reinvented to accommodate emerging healthcare, education and technology corporations.

Our smoky, dust filled skyline of yesteryear, now greets us with the fresh air of change. Changing Gears, a public media project about the future of the industrial Midwest, is spending the next few years looking at ways to reinvent the Midwest economy. Reinventing Pittsburgh is the start of their first week-long series.

Read the full article

The manufacturing hardships experienced in the early 1980’s left the future of the Steel City economy uncertain. Virtually overnight, 150,000 jobs were wiped out, the deindustrialization of the Pittsburgh region began, and the future was unclear.

But today, the economic horizon has made a shift, for the better. The steel industry, which was the muscle of our region in decades past, is a fraction of its former self today, and has evolved from basic industry to service industries in the region. Warehouses and industrial sites are being renovated for new uses, as the homes for corporations in biomedical research, multimedia production, computer gaming development, and even for use as condos, upscale retail, and more.

According to a recent Post-Gazette article article on Pittsburgh neighborhoods, a state tax-incentive for technology start-ups looped Pittsburgh’s Uptown into an innovation zone that includes part of Downtown and the North Side. Development proposals are piling up -- new restaurants in the Consol Energy Center, a residential "portal" project near the Birmingham Bridge, condos in the Fifth Avenue High School, renovation of a Fifth Avenue warehouse into apartments, and more.

“Pittsburgh has changed,” said Raymond Orowetz, P.E., LEED Green Associate of NAI Pittsburgh Commercial. “Whether it’s for the better or not depends on how one has been affected. Regarding the Uptown section of the City in particular, I can’t understand why it’s taken so long. There’s a major university (Duquesne), a major sports venue (the Mellon Arena, most recently replaced by the Consol Energy Center) and a major hospital (Mercy). They’ve been there “forever” and they’re located along the most highly travelled corridor in the city which joins our CBD with our educational/cultural hub coupled with excellent access to public transportation along the entire route. It should be rockin’ just like East Carson Street.”

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.

Source: CNNMoney.com

Pittsburgh has long been known for its winning sports teams and world class museums, but these days, Pittsburgh fares well as a top city becoming a hub for technology start-ups. Although we pale in comparison to heavy weights like Silicon Valley, New York, and Boston, the City of Pittsburgh offers compelling incentives to attract and retain the best talent in our region. First-rate universities and computer science departments, like our local Carnegie Mellon University, have attracted talented students from around the world, seeding technology professionals focused on developing startups that can help boost our local economy.

Pittsburgh has become a place where startups are succeeding, where investors want to live, and students want to stay following graduation. With mega tax breaks and innovative business incubators, the progression of local startups has enabled a cross generational, collaborative entrepreneurial community to develop. Talent retention and improved financial resources for entrepreneurs, are positioning us as a city for success.

“We are not a cookie cutter city,” said John Bilyak, CCIM, Principal & Director of Industrial Brokerage at NAI Pittsburgh Commercial. “With well-preserved neighborhoods, locally owned shops and restaurants, and a first class cultural district, Pittsburgh provides a down home personality within a growing business and technological community. It has become a city of renewal, where generations of people continue to live, work and grow together.”

Earlier this year, Forbes.com ranked Pittsburgh #64 for Best Places for Business and Careers. Pittsburgh’s biggest industries--health care, technology and education--are necessary regardless of the economic outlook.

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.