Tuesday, August 16, 2011
Loveland City Council Will Focus on Downtown Loveland
Key downtown development projects appear on councilors' menu Tuesday
By Tom Hacker, Reporter Herald
Loveland city councilors will be asked, twice, to set the table for downtown revitalization projects.
First, they'll hear a recommendation from planners to expand a taxing district set up for the Lincoln Place project to include a planned five-story, 70,000-square-foot mixed-use building on the southwest corner of Sixth Street and Lincoln Avenue.
Then, they will get a request to remove a development roadblock by buying the contaminated site that housed a dry-cleaning business at Third Street and Lincoln Avenue.
Those two actions, planners say, would unlock the potential for developers to breathe more life into Loveland's downtown district, and ignite further redevelopment in the city's core.
"These two, together, are really key pieces in the downtown redevelopment plan," Loveland senior planner Mike Scholl said.
The Sixth-and-Lincoln project proposed by Fort Collins-based Brinkman Partners would put 72 rental apartments, plus several combined live-work spaces, on the downtown market.
A groundbreaking planned for early next year will depend on some creative financial strategies, including the expansion of an urban renewal authority established eight years ago to generate revenue from the full-block Lincoln Place project.
That will require a "blight" study by city planners to demonstrate the area meets requirements established by state law for the creation of a URA.
"The URA law was specifically designed for just this kind of project," Mayor Cecil Gutierrez said Monday.
Under the URA, a portion of taxes generated by the added value of a project are returned to the developer as an incentive for building -- a so-called tax increment financing tool.
The URA contributions to the developers of Lincoln Place, amounting to about $150,000 annually, expire in two years and could then be directed to Brinkman in time for the project's opening in spring 2013.
Councilors in June asked the planning staff to provide specifics on the proposed URA change for the $12 million Brinkman project that would take shape on the quarter-block occupied by the former Home State Bank branch.
"I saw pretty good support for this at that time," Gutierrez said. "It looks to most of us that it's a project that will move things forward downtown."
Downtown planners also want to add the Leslie the Cleaner to an assemblage of city-owned real estate on Third Street, opening doors for redevelopment of the decaying downtown neighborhood.
"A site like that, if it's not cleaned up, will really put a drag on downtown," senior planner Mike Scholl said.
Costs of purchase, cleanup and demolition of the site will total $555,800, but a $313,000 grant from the Colorado Department of Health and Environment will account for more than half that amount.
"The dry cleaner is really the final piece of the Third Street project that we're looking at," Scholl said. "The $313,000 in grant funds is a huge bonus for us."
Posted by Loveland Commercial
Friday, August 12, 2011
Congratulations to Jessica Lauren Photography
Congratulations to Jessica Moore of Jessica Lauren Photography for leasing 980 SF or prime retail space within The Harmony Center in Fort Collins. The Property, located at 115 E Harmony Road, is at the high traffic intersection of College Avenue & Harmony Road. The deal was brokered by Nathan Klein of Loveland Commercial, LLC.
Monday, August 1, 2011
Agilent site developers want more time
By Tom Hacker
Reporter-Herald
Developers of the ACE technology manufacturing park on Tuesday told city officials they need more time to consummate a deal on the Agilent Technologies Inc. campus that would house it.
And, they said the transaction would depend on the city's "long-term role" in financing the redevelopment of the site.
The request came near the end of a two-hour meeting that brought the city's negotiating team together with representatives from Minneapolis-based developer United Properties and the Colorado Association for Manufacturing and Technology, the agency partnered with NASA on the project.
City Manager Bill Cahill told city councilors that the development partners had asked that an agreement that was set to expire on Aug. 20 be extended to Oct. 1.
"They told us the project has turned out to be more complex than they had originally expected," Cahill said.
The development team last week failed to meet a deadline for a letter of intent spelling out the terms of their purchase offer for the four buildings, totaling 812,000 square feet, and 130 acres of land at Agilent.
But they submitted a four-paragraph letter on Tuesday that announced their intent to buy it.
"We will submit a formal proposal with more detailed terms by Oct. 1, 2011," said the letter signed by United Properties president Frank Dutke.
The letter also says that the deal is "conditioned upon a clarification of the City of Loveland's long-term role in the park and the extent of its financial support for the proposed redevelopment."
The city's obligation to pay operating expenses of the Agilent campus, estimated at about $90,000 monthly, made the request for an extension hard for councilor Hugh McKean to swallow.
"There haven't been any deadlines met at any time in this process by CAMT," McKean said. "You can miss deadlines, but when we`re writing checks for the extra time you need, I have a problem."
Cahill said city negotiators urged the development team "to strive to produce as much as they can by the original date."
The Aerospace Clean Energy Manufacturing and Innovation Park proposes to accommodate as many as 100 companies employing up to 7,000 people working on manufacturing projects based on patents controlled by NASA and the Golden-based National Renewable Energy Laboratory.
Reporter-Herald
Developers of the ACE technology manufacturing park on Tuesday told city officials they need more time to consummate a deal on the Agilent Technologies Inc. campus that would house it.
And, they said the transaction would depend on the city's "long-term role" in financing the redevelopment of the site.
The request came near the end of a two-hour meeting that brought the city's negotiating team together with representatives from Minneapolis-based developer United Properties and the Colorado Association for Manufacturing and Technology, the agency partnered with NASA on the project.
City Manager Bill Cahill told city councilors that the development partners had asked that an agreement that was set to expire on Aug. 20 be extended to Oct. 1.
"They told us the project has turned out to be more complex than they had originally expected," Cahill said.
The development team last week failed to meet a deadline for a letter of intent spelling out the terms of their purchase offer for the four buildings, totaling 812,000 square feet, and 130 acres of land at Agilent.
But they submitted a four-paragraph letter on Tuesday that announced their intent to buy it.
"We will submit a formal proposal with more detailed terms by Oct. 1, 2011," said the letter signed by United Properties president Frank Dutke.
The letter also says that the deal is "conditioned upon a clarification of the City of Loveland's long-term role in the park and the extent of its financial support for the proposed redevelopment."
The city's obligation to pay operating expenses of the Agilent campus, estimated at about $90,000 monthly, made the request for an extension hard for councilor Hugh McKean to swallow.
"There haven't been any deadlines met at any time in this process by CAMT," McKean said. "You can miss deadlines, but when we`re writing checks for the extra time you need, I have a problem."
Cahill said city negotiators urged the development team "to strive to produce as much as they can by the original date."
The Aerospace Clean Energy Manufacturing and Innovation Park proposes to accommodate as many as 100 companies employing up to 7,000 people working on manufacturing projects based on patents controlled by NASA and the Golden-based National Renewable Energy Laboratory.
Monday, July 25, 2011
Recent Industrial Closing by Loveland Commercial, LLC
Also, Nathan Klein recently closed on two industrial condos located at 3940 Carson Avenue in Greeley/Evans, Colorado with Schneider Holdings Company, LLC. The two 1425+ s.f. condos were sold by Advantage Bank.
For more information or to discuss Loveland Commercial's marketing and brokerage services, please contact us at (970) 667-7000 or visit our website at http://www.lovelandcommercial.com/
Monday, July 18, 2011
Construction to begin soon on Windsor interchange | Northern Colorado Business Report
Good news for Highway 392 & I-25 Interchange and the property owners surrounding it!
Construction to begin soon on Windsor interchange Northern Colorado Business Report
Construction to begin soon on Windsor interchange Northern Colorado Business Report
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.
Friday, July 8, 2011
Two more Colorado banks are shut down, 5 total for the year
We expect to see more residential land and other small commercial assets enter the market next year as Signature Bank was taken over by the FDIC. The new bank Points West Community Bank, will likely acquire a number of the troubled and non-performing assets at a lower value than was being carried on Signature Bank's books increasing the probably that values will be closer to market. As five banks have been taken over by the FDIC, we expect banks will continue to feel pressure to sell their commercial assets to get their non-performing asset ratios below 2% of total assets. For information on distressed real estate opporunities in Northern Colorado contact Loveland Commercial at 970-667-7000 or www.lovelandcommercial.com.
Banks Shut in Illinois and Colorado
By The Associated Press
WASHINGTON (AP) — Regulators shut a bank in Illinois and two in Colorado on Friday, raising to 51 the number of bank failures this year.
The Federal Deposit Insurance Corporation seized First Chicago Bank and Trust in Chicago, Colorado Capital Bank in Castle Rock, Colo., and Signature Bank in Windsor, Colo.
Northbrook Bank and Trust, based in Northbrook, Ill., agreed to assume the deposits and most of the assets of First Chicago, which had about $959.3 million in assets and $887.5 million in deposits.
First Citizens Bank and Trust, based in Raleigh, N.C., assumed all the deposits and essentially all the assets of Colorado Capital, which had $717.5 million in assets and $672.8 million in deposits.
Points West Community Bank, based in Julesburg, Colo., agreed to assume Signature Bank’s $64.5 million in deposits and essentially all of its $66.7 million in assets.
Four banks have failed in Colorado this year. First Chicago is the fifth lender to collapse this year in Illinois.
In 2010, regulators seized 157 banks.
Banks Shut in Illinois and Colorado
By The Associated Press
WASHINGTON (AP) — Regulators shut a bank in Illinois and two in Colorado on Friday, raising to 51 the number of bank failures this year.
The Federal Deposit Insurance Corporation seized First Chicago Bank and Trust in Chicago, Colorado Capital Bank in Castle Rock, Colo., and Signature Bank in Windsor, Colo.
Northbrook Bank and Trust, based in Northbrook, Ill., agreed to assume the deposits and most of the assets of First Chicago, which had about $959.3 million in assets and $887.5 million in deposits.
First Citizens Bank and Trust, based in Raleigh, N.C., assumed all the deposits and essentially all the assets of Colorado Capital, which had $717.5 million in assets and $672.8 million in deposits.
Points West Community Bank, based in Julesburg, Colo., agreed to assume Signature Bank’s $64.5 million in deposits and essentially all of its $66.7 million in assets.
Four banks have failed in Colorado this year. First Chicago is the fifth lender to collapse this year in Illinois.
In 2010, regulators seized 157 banks.
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