Loveland Commercial, LLC would like to welcome Bank of Commerce Mortgage as a new full service mortgage company in Northern Colorado.
Bank of Commerce Mortgage has leased 4,730 s.f. at 255 E. Monroe in Fort Collins, which is the former longtime home of Realtec Commercial Real Estate Services, Inc. "This was a unique opportunity for a similar functioning business to take over a great office space in a great location in the heart of Fort Collins with very little tenant finish requirements", said Nathan Klein, Partner and Broker for Loveland Commercial, LLC, who represented Bank of Commerce Mortgage in the transaction.
Bank of Commerce Mortgage is a California based private mortgage company with 22 location in 3 states including Colorado, California and Nevada. This location marks BOC's third Colorado location including offices Denver and Boulder.
Showing posts with label Fort Collins. Show all posts
Showing posts with label Fort Collins. Show all posts
Monday, November 19, 2012
Friday, June 29, 2012
Shortage of Affordable Lots Developing
By Molly Armbrister - Northern Colorado Business Report
The housing market is still a long way from full recovery but the inventory of low-priced residential lots is fast running dry in at least one Northern Colorado city: Loveland.
The trend is most pronounced in the inventory of lots with price tags that allow homes to be priced in the low-$200,000s, according to Don Marostica of Loveland Commercial, LLC.
His company typically purchases lots under $20,000 in order to sell its homes at prices between $190,000 and $225,000, Marostica said.
Loveland Commercial has about 60 lots left in its possession, and is building between four and six homes per month. In other words, it'll run out of lots in about a year.
Low-priced lots are also becoming harder to find in Fort Collins, Marostica said, though Greeley still has plenty of lots at that price.
Marostica considers the homes his company builds to be "affordable," but worries that it won't be able to continue doing so for much longer, at least not west of Interstate 25.
"(Selling homes at) $300,000 to $400,000 is not what we do," he said. "But maybe that is the new affordable."
In all of Loveland, 820 lots were permit-ready as of Feb. 17, according to the city's tracking reports.
Another 1,672 lots have been purchased by developers but have not been signed off for infrastructure required for a building permit.
The city's report doesn't include pricing information, but Marostica estimated there were fewer than 200 lots that he considers "affordable" in Loveland.
Demand, of course, has played a role.
The housing market in Loveland has picked up in recent months, with home prices and number of homes sold both on the rise. Existing inventory is shrinking, so new homes are once again becoming a necessity.
At the end of 2011, new construction was up 20 percent in Loveland and the market had experienced a 207-percent increase year-over-year in lot sales, according to Ceri Anderson of The Group Inc.'s Centerra office.
Another developer of affordable homes, Jammie Sabin of Aspen Homes of Colorado, said that his company has just about 20 lots left.
Building economical homes is becoming more and more difficult to do, Sabin said.
Sabin defines an affordable home as one costing $250,000 or less. The average price of a home in Loveland in 2011 was $232,801, according to The Group.
Aspen Homes' affordable development in Loveland is called Enchantment Ridge, Sabin said. Homes there can be found for as little as $168,000.
The increase in the price of lots in Loveland is a result of the market recovering from the recession, Sabin said.
When the recession began and builders were forced to abandon projects, many banks ended up with the properties on their books. Those properties were later sold out of foreclosure at rock-bottom prices, also depressing the prices of other lots that were not in foreclosure.
Now, inventories and foreclosures are headed back down, so prices are bouncing back up.
Nathan Klein of Loveland Commercial echoed some of these sentiments at a recent panel discussion at an event sponsored by CSU's Everitt Real Estate Center.
Klein estimated that within 12 to 18 months, more lots will have to be developed from what is raw land now in order to build speculative homes for those who need a home without delay.
"It's much easier to sell a house than it is to sell a lot," Klein said.
The increase in home sales in Loveland has resulted in more competition for lots, which also contributes to driving up prices. While the number of homes sold is nowhere near the numbers seen in 2004 – when 2,162 homes were sold in Loveland – the number did increase 5 percent in 2011. That increase represents the first uptick in sales since 2005.
Year-to-date as of April, the number of homes sold in the metropolitan statistical area of Loveland and Berthoud was up 12.7 percent compared with the same period a year earlier.
Loveland Commercial, LLC is currently targeting lot listings and evaluating projects for the lots that can be procured for sale.
The trend is most pronounced in the inventory of lots with price tags that allow homes to be priced in the low-$200,000s, according to Don Marostica of Loveland Commercial, LLC.
His company typically purchases lots under $20,000 in order to sell its homes at prices between $190,000 and $225,000, Marostica said.
Loveland Commercial has about 60 lots left in its possession, and is building between four and six homes per month. In other words, it'll run out of lots in about a year.
Low-priced lots are also becoming harder to find in Fort Collins, Marostica said, though Greeley still has plenty of lots at that price.
Marostica considers the homes his company builds to be "affordable," but worries that it won't be able to continue doing so for much longer, at least not west of Interstate 25.
"(Selling homes at) $300,000 to $400,000 is not what we do," he said. "But maybe that is the new affordable."
In all of Loveland, 820 lots were permit-ready as of Feb. 17, according to the city's tracking reports.
The city's report doesn't include pricing information, but Marostica estimated there were fewer than 200 lots that he considers "affordable" in Loveland.
Demand, of course, has played a role.
The housing market in Loveland has picked up in recent months, with home prices and number of homes sold both on the rise. Existing inventory is shrinking, so new homes are once again becoming a necessity.
At the end of 2011, new construction was up 20 percent in Loveland and the market had experienced a 207-percent increase year-over-year in lot sales, according to Ceri Anderson of The Group Inc.'s Centerra office.
Another developer of affordable homes, Jammie Sabin of Aspen Homes of Colorado, said that his company has just about 20 lots left.
Building economical homes is becoming more and more difficult to do, Sabin said.
Sabin defines an affordable home as one costing $250,000 or less. The average price of a home in Loveland in 2011 was $232,801, according to The Group.
Aspen Homes' affordable development in Loveland is called Enchantment Ridge, Sabin said. Homes there can be found for as little as $168,000.
The increase in the price of lots in Loveland is a result of the market recovering from the recession, Sabin said.
When the recession began and builders were forced to abandon projects, many banks ended up with the properties on their books. Those properties were later sold out of foreclosure at rock-bottom prices, also depressing the prices of other lots that were not in foreclosure.
Now, inventories and foreclosures are headed back down, so prices are bouncing back up.
Nathan Klein of Loveland Commercial echoed some of these sentiments at a recent panel discussion at an event sponsored by CSU's Everitt Real Estate Center.
Klein estimated that within 12 to 18 months, more lots will have to be developed from what is raw land now in order to build speculative homes for those who need a home without delay.
"It's much easier to sell a house than it is to sell a lot," Klein said.
The increase in home sales in Loveland has resulted in more competition for lots, which also contributes to driving up prices. While the number of homes sold is nowhere near the numbers seen in 2004 – when 2,162 homes were sold in Loveland – the number did increase 5 percent in 2011. That increase represents the first uptick in sales since 2005.
Year-to-date as of April, the number of homes sold in the metropolitan statistical area of Loveland and Berthoud was up 12.7 percent compared with the same period a year earlier.
Friday, December 2, 2011
Congratulations to Alex Harris
Congratulations to Alex Harris of Nerd Fit for leasing the remaining 1,750 SF of retail space in the Harmony Center located at the busy corner of College Avenue & Harmony Road in Fort Collins. This Property is now 100% occupied. Be sure to check them out at www.nerd-fit.com. Nathan Klein of Loveland Commercial brokered this deal. For more information on brokerage services, contact Loveland Commercial at 970-667-7000 or www.lovelandcommercial.com
Tuesday, July 12, 2011
Commercial Real Estate Market Continues to Recover
CoStar, a leader in commercial real estate news and information, published an article stating positive absorption in the market. Loveland Commercial can also confirm that activity is picking up in our local market. For information on market conditions, or property information, contact Loveland Commercial at 970-667-700 or www.lovelandcommercial.com
Commercial real estate (CRE) fundamentals continued to strengthen in the second quarter of 2011, albeit at a much more moderate pace than the end of last year. The temperate recovery is consistent with global economic trends, which softened in the first half of the year in the face of the Japanese earthquake and the oil-price shock.
While the economy continues to face challenges - including a struggling housing market, anemic job growth, and federal and state fiscal pressures - economic growth is expected to pick up in the second half of the year as energy prices ease and global supply chains are restored. As the economy gathers momentum, the CRE recovery should also accelerate, according to Kevin White, a real estate strategist with CoStar.
Based on initial quarterly findings, office fundamentals continued to improve during the second quarter. Although demand was not as robust as previous quarters, the fact that supply additions hit a 10-year low helped to support the eight-basis-point decline in vacancy.
As was the case during the first quarter, preliminary second quarter absorption came in short of expectations, as continued macroeconomic uncertainty caused enough uneasiness among business owners for them to delay leasing decisions.
"The office market posted its fifth consecutive quarter of positive net absorption while speculative space under construction reached more than 9.8 million square feet," noted Chris Macke, senior real estate strategist for CoStar Group, in analyzing preliminary numbers. "Second quarter net absorption increased to more than 12 million square feet, a more than 39% increase from the previous quarter's net absorption of 8.7 million square feet."
"However, this level remains down from the robust fourth quarter net absorption rate of more than 24.8 million square feet," Macke said.
CoStar economists will broadcast full second quarter property reports later this month on www.costar.com.
CoStar utilizes a census methodology basing its national results on changes to the entire population of office buildings as opposed to the commonly used practice of sampling, which generates estimates of national results based on results for a portion of the larger markets. CoStar's national population of office buildings upon which its results are based includes more than 10 billion square feet of office properties and believes its research methodology presents the most complete picture of property market conditions across the country.
"We remain confident that strong absorption (at par with 2005 levels) awaits in the not-too-distant future," said Adrian Ponsen, a real estate economist with CoStar. "The most recent job numbers show financial activities employment bottoming out, and professional and business services (60% of office-using employment) growing faster than it did on average during 2005-'07. Combined with today's relatively cheap rents, this foreshadows rapid acceleration in office demand growth."
"Macroeconomic concerns (particularly surrounding the U.S. debt limit) may very well continue to weigh on business owner psychology and leasing during the third quarter. But most conditions necessary for an absorption recovery have already fallen into place," Ponsen said.
The recovery continues to push forward, but retailers have throttled back their rate of expansion. Net absorption has slowed to its lowest level since the first quarter of 2010, but weak supply growth has kept vacancies moving in the right direction, according to CoStar economist Ryan McCullough.
"The retail real estate market has now experienced eight quarters of positive net absorption, longer than the office or industrial markets, which have each experienced five consecutive quarters of positive net absorption," Macke said.
"Second quarter net absorption increased to 11.1 million square feet, 700,000 square feet, more than the previous quarter's net absorption of 10.4 million square feet," Macke said. "This however remains well below the robust fourth quarter net absorption rate of more than 26.5 million square feet."
The two-year average net absorption rate is 12.4 million square feet, he noted
"This slowdown should be no more than a temporary slump; an economic uptick in the second half of the year should be enough to stimulate retail sales and encourage retailers to become more aggressive with expansion plans. The construction pipeline is at its lowest level in many years and poses no immediate threat to fundamentals. Expect to see vacancy compression accelerate over the next several quarters," McCullough noted.
The warehouse market continued to gradually improve in the second quarter. As modest demand growth met deliveries that are probably at a low for the cycle, vacancies continued to come in for the fifth consecutive quarter, said CoStar economist Shaw Lupton.
While most industrial indicators have improved markedly in the past year, housing starts remain oppressively low, and the economic events that took a bite out of growth in the first half of the year could continue to hold demand back in the near term, Lupton noted.
"Ultimately, economic expansion will result in a quickening of warehouse absorption. Deliveries are expected to inch up in the near term but should remain low relative to history until warehouse rents grow significantly next year, providing developers with the green light to build," Lupton said.
The CRE Recovery Continues
Second Quarter Fundamentals Strengthen Moderately
July 6, 2011
Commercial real estate (CRE) fundamentals continued to strengthen in the second quarter of 2011, albeit at a much more moderate pace than the end of last year. The temperate recovery is consistent with global economic trends, which softened in the first half of the year in the face of the Japanese earthquake and the oil-price shock.
While the economy continues to face challenges - including a struggling housing market, anemic job growth, and federal and state fiscal pressures - economic growth is expected to pick up in the second half of the year as energy prices ease and global supply chains are restored. As the economy gathers momentum, the CRE recovery should also accelerate, according to Kevin White, a real estate strategist with CoStar.
Office Market Rebounds
Based on initial quarterly findings, office fundamentals continued to improve during the second quarter. Although demand was not as robust as previous quarters, the fact that supply additions hit a 10-year low helped to support the eight-basis-point decline in vacancy.
As was the case during the first quarter, preliminary second quarter absorption came in short of expectations, as continued macroeconomic uncertainty caused enough uneasiness among business owners for them to delay leasing decisions.
"The office market posted its fifth consecutive quarter of positive net absorption while speculative space under construction reached more than 9.8 million square feet," noted Chris Macke, senior real estate strategist for CoStar Group, in analyzing preliminary numbers. "Second quarter net absorption increased to more than 12 million square feet, a more than 39% increase from the previous quarter's net absorption of 8.7 million square feet."
"However, this level remains down from the robust fourth quarter net absorption rate of more than 24.8 million square feet," Macke said.
CoStar economists will broadcast full second quarter property reports later this month on www.costar.com.
CoStar utilizes a census methodology basing its national results on changes to the entire population of office buildings as opposed to the commonly used practice of sampling, which generates estimates of national results based on results for a portion of the larger markets. CoStar's national population of office buildings upon which its results are based includes more than 10 billion square feet of office properties and believes its research methodology presents the most complete picture of property market conditions across the country.
"We remain confident that strong absorption (at par with 2005 levels) awaits in the not-too-distant future," said Adrian Ponsen, a real estate economist with CoStar. "The most recent job numbers show financial activities employment bottoming out, and professional and business services (60% of office-using employment) growing faster than it did on average during 2005-'07. Combined with today's relatively cheap rents, this foreshadows rapid acceleration in office demand growth."
"Macroeconomic concerns (particularly surrounding the U.S. debt limit) may very well continue to weigh on business owner psychology and leasing during the third quarter. But most conditions necessary for an absorption recovery have already fallen into place," Ponsen said.
Retail: 8 Quarters of Positive Absorption
The recovery continues to push forward, but retailers have throttled back their rate of expansion. Net absorption has slowed to its lowest level since the first quarter of 2010, but weak supply growth has kept vacancies moving in the right direction, according to CoStar economist Ryan McCullough.
"The retail real estate market has now experienced eight quarters of positive net absorption, longer than the office or industrial markets, which have each experienced five consecutive quarters of positive net absorption," Macke said.
"Second quarter net absorption increased to 11.1 million square feet, 700,000 square feet, more than the previous quarter's net absorption of 10.4 million square feet," Macke said. "This however remains well below the robust fourth quarter net absorption rate of more than 26.5 million square feet."
The two-year average net absorption rate is 12.4 million square feet, he noted
"This slowdown should be no more than a temporary slump; an economic uptick in the second half of the year should be enough to stimulate retail sales and encourage retailers to become more aggressive with expansion plans. The construction pipeline is at its lowest level in many years and poses no immediate threat to fundamentals. Expect to see vacancy compression accelerate over the next several quarters," McCullough noted.
Industrial Market Held Back Slightly
The warehouse market continued to gradually improve in the second quarter. As modest demand growth met deliveries that are probably at a low for the cycle, vacancies continued to come in for the fifth consecutive quarter, said CoStar economist Shaw Lupton.
While most industrial indicators have improved markedly in the past year, housing starts remain oppressively low, and the economic events that took a bite out of growth in the first half of the year could continue to hold demand back in the near term, Lupton noted.
"Ultimately, economic expansion will result in a quickening of warehouse absorption. Deliveries are expected to inch up in the near term but should remain low relative to history until warehouse rents grow significantly next year, providing developers with the green light to build," Lupton said.
Wednesday, June 29, 2011
CSU offers full tuition to veterans and kids
Loveland Commercial is excited to see the community supporting and attracting veterans to Northern Colorado. Fort Collins rental housing market is already experiencing low levels of vacancy and should continue to see increased demand for housing from the extra stimulus provided by the new program offered to veterans.
CSU offers full tuition to veterans and kids
By NCBR staff
CSU offers full tuition to veterans and kids
By NCBR staff
FORT COLLINS - Colorado State University, partnering with the U.S. Department of Veterans Affairs' Yellow Ribbon GI Education Enhancement Program, is offering free tuition as well as housing and book stipends to military veterans and their children beginning with this fall semester.
CSU is paying 100 percent of veteran undergraduate resident and veteran non-resident undergraduate tuition (a savings of about $6,300 for resident undergrads and $22,000 for non-resident undergrads).
The program also pays all fees (about $620) and provides about $4,300 per semester in housing allowance and $1,000 per year for books.
"Our community, state and nation owe all those who have served in the military a great deal of gratitude and appreciation," said CSU President Tony Frank.
The CSU Yellow Ribbon initiative is a provision of the Post 9-11 GI Bill, which pays public, in-state tuition for veterans or their designated transferees. It is part of the university's commitment to be a top national veteran-friendly campus, Frank added.
CSU is paying 100 percent of veteran undergraduate resident and veteran non-resident undergraduate tuition (a savings of about $6,300 for resident undergrads and $22,000 for non-resident undergrads).
The program also pays all fees (about $620) and provides about $4,300 per semester in housing allowance and $1,000 per year for books.
"Our community, state and nation owe all those who have served in the military a great deal of gratitude and appreciation," said CSU President Tony Frank.
The CSU Yellow Ribbon initiative is a provision of the Post 9-11 GI Bill, which pays public, in-state tuition for veterans or their designated transferees. It is part of the university's commitment to be a top national veteran-friendly campus, Frank added.
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