Entries by EricNishimoto-RE (89)

Tuesday
Oct262010

Commercial Real Estate Deals Getting Done!

Compared to last year, Buyers are getting off the sidelines and refocusing on acquiring deals.  It just makes sense to buy a property as an Owner User if your intension is to hold on to it for the next 5 to 10 years.  The market has come down significantly since the peak of 2007 and many potential Buyers that were once on the fence to purchase now see more opportunity than ever.  As a stable or growing businesses, it looks like you're in luck as rents have come down significantly and the opportunity to buy as an owner user is tremendous.  The SBA financing market is a driving force to the amount of sales transactions we are seeing today.  

Sellers that have to dispose of their assets will find a challenging market ahead of them.  Until traditional financing comes back to the marketplace, creative financing is the only option.   Unfortunately as a Seller trying to unload a property that has signs of becoming distressed will certainly face competition against some of the toxic bank assets that are now being forced to sell on to the open market with realistic prices. 

I've been tracking some of the banked owned properties for the past year now and those that went into distress about a year ago are now being sold. For some of the Banks that tried the "Pretend and Extend", the reality is that some of the distressed assets have no other option than to be sold at a loss.

See what Lee & Associates LA/North has recently sold and leased on the link below. 



Still On The Fence

Friday
Oct152010

Commerical Real Estate Debt Maturity A Huge Problem

An estimated $1.4 trillion in commercial real estate debt is set to come due between 2010 and 2014. As the maturity dates come closer to being due, lenders are trying to work out extention plans for borrowers, thus "amend and extend".

 

Sunday
Sep262010

Commerical Real Estate Capital Gain Taxes Going UP

This coming January 1, 2011 the capital gains tax reduction signed under President Bush will revert back to the former 20 percent capital gain tax rate prior to 2003.

Thinking about Selling and cashing out. Take advantage now and close before the year-end.

Friday
Jul092010

San Fernando Valley Office & Industrial 2nd Quarter 2010 Market Analysis

Leasing Activity Jumps; Pushes Absorption Into Positive Territory

Q2 2010-LAN Office 7-10

Leasing Momentum Continues and Sales Activity Increases

Q2 2010-LAN Industrial 7-10

Friday
May142010

The Loyal And Wise Commercial Real Estate Investor

There is a difference you know between the loyal and wise investor. I just finished a conversation with an older gentleman, probably in his 80's and owns about 5 industrial properties in the valley.  But before the conversation could develop much further he said, "I work with x#$%^, in fact Eric I can't even give you my middle name without x#$%^ being involved.  He was probably too old to want to do anything in real estate anyways. So I moved on... 

I once heard from a very successful real estate investor in Los Angeles say (Portfolio of an excess of $500 million), "You want to know as many brokers you possibly can."   It's pretty simple; you never know when they will bring you the next bet opportunity FIRST. Should I remind you it's the broker who's on the frontline looking to uncover the property with the right story.  You always hope that when they find an interesting deal, they will immediately think of you first.

The best deals never hit the market and that's a fact! 

There are occasions when you find that one investors who will not do a deal without their own Broker and believe me they are far and few between. And most of the time there is something mentally wrong with them. There is however, a successful investor I know out there (Owns in excess of 50K multi-housing units) who has loyalty to a broker.  He's in a category by himself, and like I said mentally wrong.  But most of the deals that are executed by that one loyal investor would have already been shopped around by everyone else by the time it came to them.  They start to get that reputation. "The guy who's married to so and so". Oh, and please don't remind me of the investor who says his relative has a real estate licenses and wants a piece of the pie. Are you kidding me....

I truly believe loyalty if acted upon correctly is vital to succeed in the business, but any investor looking to grow their portfolio needs to be the wise about it.

Thursday
May062010

San Fernando Valley Buildings Getting New Firerry Look

I recently got a call from a client of mine who reported that there was a fire in his shopping center in North Hills.  Aside from the bizarre entrance into the burnt space through a hole in the wall from the tenant next door (that's how they got in) we also noticed the new skylight remodeling where the fire department battled the blaze and salvaged the rest of the building.

Driving on Corbin in Northridge, I noticed a shopping center with distinct firerry charcoal look on the second floor. 

Over the past weekend, yet another fire in Van Nuys almost decided to take out another building a client of mine had interest in. 

Are the  summer days already here? Did we forget that all this rain gave way to new growth in the mountains and valleys. They will dry up you know.

I think something smells burnt! Is my firerry theory up in smoke or really a scheme businesses underwater can make out good from a bad situation. 

 A close friend of mine in the insurance biz had mentioned to me that there has recently been a string of  large insurance payouts for business owners in similar businesses that went up in smoke. It just so happens they lost all their non-selling inventory and business to a fire.

Vacancy has been on the rise. Recent insurance $/SF has jumped 10 fold due to vacancy. Why, the probability of vandalism is always greater in shopping centers with vacancy. Not to mention all the properties with debt service too great to carry for owners. O ya, I forgot that there are taxes and insurance to pay as well.  Can a landlord afford this kind of price hike on insurance. I suppose on the other hand, if you were a landlord also underwater with a vacant building, a firerry makeover might have crossed your mind at one point. But we all know that's against the law.

Monday
May032010

San Fernando Valley Office & Industrial 1st Quarter 2010 Market Analysis

Improved Visibility Propels Activity, But Retrenching Still Widespread

Q1 2010-LA Office 4-10

Leasing Activity Continues to Rise as Rents Fall Further

Q1 2010-LA Industrial 4-10

Thursday
Apr292010

San Fernando Valley Commercial Real Estate Thinks Out Of The Box

 "It's all about timing and luck".  Being persistent and when you make the next call, you hope to find your nut which is probably going to be disguised as a white elephant.  The question becomes, how are you going to crack it so that makes economic sense to the next investor? 

Industrial buildings in the west valley with 60's construction were built to suite the infrastructure of that era.  As you can imagine, office laboratory build out, development and testing quarters, and unique mezzanine space with double doors that drop off from the second floor and not to mention the clear height that changes from 12' 16' 14' 10.5' 21'.

Functionality is key in bringing in the right tenant to occupy a building.  So how do we take a vacant concrete box erected in the 60's and bring it to functioning standards of today?  "Land value son", that's what I keep hearing.  Or can an investor think outside of the box and reinvent the way to look at these buildings keeping with functionality and return on investment?  How about from the tenant representative angle, can they conjure up some ideal and unique functioning work space for those archaic build outs to tenants from around the world? I'm sure they can.

Industrial Live-Work Spaces (Downtown LA Brewery -http://www.the-brewery.net/),

Time and money always determine all the answers.  With the choices tenants have these days, most are looking for the bread and butter tilt-up 18'+ clear height with dock high loading and plenty of parking. Fresh carpet and new paint seems to always grab the eye of those on looking tenants.  And when tenants look, investors see that too.

Thank goodness for challenging times, it brings the best ideas to the table for the rest to follow.

Thursday
Apr292010

Eric Nishimoto

Eric K. Nishimoto, an associate at Lee & Associates-LA North/Ventura Inc., a full-service commercial real estate company and member of the Lee & Associates group of companies, specializes in investment brokerage throughout the Los Angeles area with a focus in the San Fernando and Conejo valleys. A seasoned sales and marketing professional, Mr. Nishimoto’s real estate expertise includes the pricing, underwriting, leasing and sales of retail, industrial and office properties as well as the development of long-term investment strategies for his clients.

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