"Preparing to Jump" Multifamily Executive Article

This was a good article for everyone looking to purchase commercial real estate. There are 3 steps to get you ready:

1-Get Ready. Sounds simple, right? "Buyers need to be current witht he market. Once you decide the market is where you like it, you can't spend all ofyour time getting up to speed. You need people who are in the [deal] flow so they can be seen as credible buyers." - Peter Donovan.

2 - Know your market. Real estate is local. "One of the problems with the way people iew the marketplace is they lump everything inot one big national distress pool, and it's not. Real estate has always been local. The guys who ave been willing to look at the deals in terms of where they are will end up making a lot of money." - Debbie Corson.

3-Think management dollars. Look for underperforming properties where occupancy is at 50% and try to raise it to 90%. "You hae to look for them and be prepared to jump on them when they're there." - Debbie Corson

Are you ready?

Call me so I can help you.

"Repositioning during Hard Times "

This is a good read:

Outlasting the economic recession requires a thoughtful business strategy that includes acting quickly and decisively to adjust staff levels, staying within core competencies, conserving as much cash as possible, avoiding any unnecessary expansions, and communicating frequently with employees, investors, and other stakeholders. According to two land use industry veterans and longtime ULI leaders, implementing such a plan can help real estate companies survive the slump and be better positioned to thrive when the upswing begins.

Peter Rummell, chief executive officer of the Nicklaus Companies in Jacksonville, Florida, and J. Ronald Terwilliger, chairman of Dallas-based Trammell Crow Residential, recently shared their insights regarding company repositioning during a ULI webinar moderated by Gadi Kaufmann, managing director and chief executive officer of RCLCO/Robert Charles Lesser & Co. of Bethesda, Maryland. The webinar was part of an ongoing online series sponsored by ULI on topics related to the economy and the outlook for the industry.

Rummell and Terwilliger, both developers, based their advice on experience gained from weathering recessions during the past three decades, with Rummell applying lessons learned while at the St. Joe Company and Disney, and Terwilliger applying those learned at Trammell Crow Residential. While none of the previous recessions, including the last major real estate recession in 1991–1992, was as severe as the current one, the actions taken then provide a solid framework for battening down in today's environment. Having a clear plan, said Rummell and Terwilliger, is the key to moving a company forward—even slowly—in a down market. Read the summary of the webinar (see Webinar blog link below), or to purchase an archived version of the webinar,

visit http://www.uli.org/Books/.aspx?iframe=http://commerce.uli.org/AM/Ecommerce/ProductDisplay.cfm?Productid=1775

Follow up on the Commercial Real Estate Auction I attended last weekend

There were approximately 50 properties scheduled for the commercial portion of the auction.

This being my first commercial real estate auction, I have to say it was interesting event. The company that held the auction did a very good job in picking a location.

Of all of the properties that went on the auction block, only 1 property had a bidder in the room. It was a little office condo in Fountain Hills. It went for $50,000 (approx. $63/SF) subject to Seller approval. I spoke to the people running the auction to see if would actually sell for that price and they stated no.

So, of the 50 properties that went up for auction, there was 1 bidder and no official sales at the auction event.

I noticed a couple of my clients in the crowd. There thoughts were the same as mine, we just wanted to see how the auction would operate, who would be there to bid and see if anything sold.