From Walt Arnold, SIOR, CCIM - Albuquerque, NM
>>> Click here to listen to the Commercial Real Estate report for 3-29-10 <<<
Bob Clark, News Radio 770 KKOB: Walt we have heard a lot about commercial real estate foreclosures and the coming wave of more foreclosures. Is this a good time to be looking at purchasing commercial real estate?
We are starting to see some properties make substantial discounts in their asking sale prices. We sold an out of state bank owned office condo that started out at $170.00/sf which was already a discounted price and the final price was less than $120.00. So the opportunities are starting to show up and lenders that need to sell their real estate are beginning to look deep discounts in pricing. There will be buying opportunities in this market.
Bob: That leads me to two questions. First is, what can someone do to get ready for these discounts, and the second is what about the property owner that is trying to sell in this market and is not a lender trying to dispose of an asset?
On the first question if someone is serious about going after opportunities they need to talk to a commercial real estate company like Sperry Van Ness and develop a strategy to analyze and acquire some of these banked owned assets. We talk weekly to lenders across the country regarding their assets in the Albuquerque market. But the important thing is to be ready to act.
Regarding an individual trying to sell in this market, if the property is well located, or if it is an income property and has good leases in place, it might not be worth what it was in 2007 and if it still has strong attributes it will hold its value. And if the sale of the property could wait a few years that would probably be the best option at this time.
Bob: What is the financing situation for properties in this market?
Financing is an issue and most buyers are going to have to put up more cash to finance a property. Probably up to 10% to 15% more cash to get into a property, and the bank is going to want more information, but there is money. Although some properties types, for example vacant land and retail will probably get a no.
Bob: Walt how can people reach you?
Thanks Bob, my direct line is (505) 256-1255. Our web site is waltarnold.com. If you need a market analysis, asking rates or comparables, give me a call, or if you want to sit down and discuss a strategy to acquire bank real estate owned property we can do that and it is at no charge to you. Sperry Van Ness is a full service commercial real estate company ready to assist buyers, sellers, tenants and landlords with their real estate needs. Thanks Bob, have a great week.
For more information on bank-owned property investment opportunities, call (505) 256-1255, email me at walt.arnold@svn.com, or leave your comments and questions below!
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