Socal Multiunit Real Estate

SAM ZELL’S INVESTMENT STRATEGIES

SAM ZELL’S INVESTMENT STRATEGIES

By Jodi Summers

Expectations of a crash in commercial real estate market are “greatly exaggerated,” noted media and real estate magnet Sam Zell recently in Chicago. “Everyone is waiting for the grave dancer to come and exercise his magic potion, but you need two to tango.”

Speaking at the at the first “Invest for Kids” conference in downtown Chicago, Zell noted that owners of office and apartment buildings today have no incentive to sell. By 2011 or 2012 they will likely be able to fill their vacancies, albeit at rates 30% below their peaks, because demand will catch up to supply, he observed.

Optimistically he shared the fact that the U.S. population is growing and with fewer building starts in the past decade, demand for housing will rise.

Then again, Mr. Zell has made some interesting predictions. Financial mogul Sam Zell, owner of the Tribune Co., recently told an Israeli business conference that the U.S. real estate market will be in recovery by spring 2009.

Chicagoan Sam Zell is best known for owning and defaulting such famous media properties as the Los Angeles Times, Chicago Tribune and New York’s Newsday. Media aside, Zell’s fame and $6 billion net worth originate from his mastery of real estate investing principles. This mastery, demonstrated repeatedly over a 40-year career, results from Zell’s acute understanding of real estate market mega-trends and his dedication to turning around troubled properties.

Zell got into real estate investing in the 1960s, during the time he received his bachelor’s (1963) and law degrees (1966) from the University of Michigan. It started when he finagled his way into a property management role with a local landlord. Next, Zell began buying distressed properties, fixing them up and rent them to students. Zell was a hands-on landlord who put a lot of energy into scouting and fixing up locations.

According to About.com, “In 1969, Zell and his partner Robert Lurie formed Equity Properties Management Corp. to centralize Zell’s rapidly diversifying investments in real estate. In the 1970s, Zell expanded beyond his initial interest in residential real estate and began to acquire office space under the aegis of Equity Office Properties Trust, or EOP. Zell structured his business as a series of real estate investment trusts, or REITs, under the Equity umbrella. EOP was one REIT; Equity Residential Properties Trust was another. The REIT structure allowed Zell to radically reduce his corporate income taxes. In addition to exploiting the REIT tax structure, Zell polished his skills as a salesman and convinced an increasing number of investors to entrust their money to him.”

Zell, with Robert H. Lurie went on to found the Equity Group Investments, LLC, which spawned three real estate public companies, including: Equity Residential, the largest apartment owner in the United States; Equity Office Properties, the largest office owner in the country; and Manufactured Home Communities, a mobile home company. In addition, Zell has created a number of public and private companies.

He proceeded to grow his office properties - Equity Properties Management REITs into strong national brand names. This project met with marginal success, as enterprises tended to buy office space based on local differentiators such as price and management, not on national differentiators such as brand name. Zell had to sell some office space for less than what he paid for it, but this did not cost him his whole empire, and he sold this part of his portfolio to Blackstone for $36 billion in 2006, and in 2007, Zell acquired a portfolio of newspapers owned by the Tribune Co., including the Chicago Tribune, Los Angeles Times, Newsday and Baltimore Sun. …an odd time to buy newspaper franchises.

Currently, Zell recently raised $625 million to invest in “credit opportunities.”

“In every market and in every situation there is opportunity,” Zell concluded.

“In my 40 years in real estate, I’ve found there is only one metric that matters — replacement cost.” He noted that the spread between a building’s replacement cost and its economic value is as wide today as it was in 1993 — mainly because the cost of construction has increased.

**

http://www.businessweek.com/the_thread/hotproperty/archives/2005/11/zells_favorite.html

http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=36105&print=1

http://www.socalmultiunitrealestateblog.com/?p=201

http://homebuying.about.com/lw/Business-Finance/Real-estate/Sam-Zell-Real-Estate-Magician.htm

http://en.wikipedia.org/wiki/Sam_Zell

http://www.businessweek.com/the_thread/hotproperty/zell2.jpg

http://reason.com/assets/mc/mwelch/2009_10/SamZell.jpg

http://www.richsamuels.com/nbcmm/zell/images/zellhs.jpg

http://images.businessweek.com/ss/08/07/0731_zell/image/zell.jpg

THE GREENEST GOLF COURSE GETS AUDUBON CERTIFICATION

By Jodi Summers

Who has a great voice, umpteen million dollars, their own golf course and is socially conscious? Justin Timberlake, mega successful solo artist and all around good guy has opened up the nation’s first eco-friendly golf course in Memphis, Tennessee.

Originally called Woodstock Hills, the golf course is said to be the first place golf-enthusiast and former member of ‘NSYNC learned to hit a golf ball. He saved the golf course from becoming a multiunit development project.

“…Last year we found out they were going to auction it off and turn it into a development,” Justin revealed. “So we thought it was such a landmark for the community, we’d scoop it and save it. And we did. We were able to before it was auctioned off.”

A couple of decades and $16 million later, the newly renamed Mirimichi Golf Course is the “greenest” golfing destination in the U.S….

“I’m excited about every aspect of the course,” Justin confessed. “We basically created a whole new course. It’s a completely different track and doesn’t look anything like what it did. It’s exciting. There’s literally a creek around the whole course. We’ve dug 7 new lakes—the construction we’ve done lengthened the course by almost 1000 yards. We’ll have a great first tee program for kids and families. We’ll have a 9-hole executive course, but it’s really to use for the first tee program out there. We’ll have junior tournaments to get more young people into the game. I like the values the game teaches like honesty, patience, focus, and tenacity. Also, it’s close to my house. And my parents had their wedding reception there.”

The Mirimichi Golf Course is the first project in the U.S. to receive the Audubon International’s Classic Sanctuary certification.The course features irrigation systems that maximize the use of rainwater, native landscaping and solar-powered electric golf carts.

“I love my new course Mirimichi,” Justin confessed. “I love it for so many reasons. I feel like we did something great for the community. And we ended up doing something great for the world—a lot of people will pay attention to how eco-friendly this establishment is and I hope it will make some waves.”

When asked about who his idea golf foursome would be, Justin confided,” Bobby Jones because he never took a dollar for the game and always loved the purity of the game. Tiger Woods because he’s without a doubt the best golfer of all time. And has taken every dollar for the game! And my dad because he taught me how to play. He’s my favorite person to play golf with.”

http://www.justintimberlake.com/news/a_quick_9_with_jt_a_golf_qa

http://earth911.com/blog/2009/07/23/justin-timberlake-opens-first-eco-friendly-golf-course/

http://allfunmusik.files.wordpress.com/2007/06/justin_timberlake_01.jpg

http://www.wreg.com/media/photo/2009-07/48038279.jpg

http://ontheredcarpet.typepad.com/.a/6a010536c12963970b0115723cb64c970b-pi

http://media.commercialappeal.com/mca/content/img/photos/2009/07/25/22mirimichi1.jpeg

U.S. RESIDENTS STILL BELIEVE IN THE AMERICAN DREAM

U.S. RESIDENTS STILL BELIEVE IN THE AMERICAN DREAM

by Jodi Summers

Once upon a time, when the world was not a global village, foreigners believed that America was the land of opportunity, with street paved in gold. A recent poll by the Pew Charitable Trusts has concluded that nearly 80% of Americans believe it is still possible to improve their economic standing and remain optimistic that their family’s economic circumstances will improve within their lifetime and across generations.

“If you can’t do it here, where else can you do it?” asks Reda, who emigrated to the U.S. from the former Soviet Union.

The beautiful part of the finding, is that all people living here believe life can be better here. The conclusions hold true across racial lines and even among lower-income, less-educated and unemployed people, according to the national public opinion poll conducted for Pew’s Economic Mobility Project by Greenberg Quinlan Rosner Research and Public Opinion Strategies.

“Although the current economic crisis seems to be deepening each day and many families are feeling the pinch – either through company layoffs, decreasing home values or loss of retirement savings – Americans are taking a longer-term view,” said John E. Morton, managing director of Economic Policy at The Pew Charitable Trusts. “We may be struggling in our daily lives, but Americans are confident in themselves and their ability to get ahead in the future.”

A majority of those polled support a wide range of policies the government could adopt to encourage upward economic mobility, such as making college more affordable, investing in early childhood education, making retirement savings easier or providing job training and financial education. In addition, a majority (71 percent) think it is more important for the country to provide people a fair chance of improving their economic standing than it is to reduce inequality in the United States.

“This poll confirms the long-held American belief that hard work and talent brings a just reward, and our society should aim to provide equality of opportunity, not guarantee equality of outcomes,” noted Morton. “These results convey a clear message to policy makers – the solutions to the economic challenges facing American families should focus on promoting opportunity and upward mobility.”

OUR PRIOERTIES

By a 71 to 21 percent margin, Americans said that personal attributes such as hard work and drive are more important to economic mobility than structural issues such as the state of the economy and one’s economic circumstances growing up. Similarly, respondents said personal attributes, including poor life choices, taking on too much debt and lack of education, are the factors that are most likely to contribute to someone falling down the income ladder.

Looking to the future, more than two-thirds of people (72 percent) believe that their personal economic circumstances will be better in the next ten years than they are today and most parents say their own children will have a higher standard of living than they had (62 percent). Notably, Americans largely define the American Dream as freedom to accomplish anything you want with hard work or having future generations be better off than their parents. “Becoming rich” was one of the lowest ranked definitions of the American Dream.

THE OBAMA FACTOR

African Americans are the most optimistic group about their and their children’s opportunities for economic mobility. Eighty-five percent believe their economic circumstances will be better in 10 years than they are now, compared to 71 percent of whites and 77 percent of Hispanics. When asked whether their children would have an easier or harder time moving up the income ladder, whites are the most pessimistic, with 54 percent saying it will be harder to move up the income ladder, compared to 34 percent of African Americans and 41 percent of Hispanics.

“This research shows that Americans throughout our diverse society have an abiding faith in their ability to get ahead,” said Ianna Kachoris, project manager of Pew’s Economic Mobility Project. “However, our economic analysis has previously reported there are considerable racial gaps in mobility, as well as significant immobility for many Americans at the bottom of the income ladder. People’s perception of their ability to get ahead may not necessarily coincide with reality, and special attention should be paid to improving mobility for all Americans.”

For all the information please go to:

http://www.pewtrusts.org/news_room_detail.aspx?id=50022

http://geology.com/world/the-united-states-of-america-satellite-image.shtml

MALIBU GOES GREEN UNDER PRESSURE

MALIBU GOES GREEN UNDER PRESSURE

By Jodi Summers

Malibu should be ashamed of itself, acting like conservation is not for the wealthy. Santa Monica has been heavily into the green movement for years – aiming to become a net zero city, Our mother city, Los Angeles, is very motivated to become one of the greenest cities. Meantime the gilded village of Malibu is only turning green because of upcoming deadlines for compliance with state-mandated sustainable development standards.

Under pressure by state mandates, Malibu is finally getting around to developing a sustainable development program. This comes more than a year after the City of L.A.’s green building ordinance to reduce the City’s carbon emissions by more than 80,000 tons by 2012. Motivated only by state regulation, Malibu is planning to require larger projects to be LEED certified. Money is green; Malibu will get the hang of it.

Grudgingly, in late summer, Malibu began to comply with mandated standards addressing water use for landscape irrigation. Additionally the fabled city on PCH will comply with other statewide requirements, such as weather-proofing, formaldehyde content in wood products, air conditioning refrigerants, and outside air ventilation, not to mention finally getting collection areas for recyclables. (Hello! If that’s an issue for you guys, just bring in some homeless, and they’ll recycle for you.)

As Malibu has been so late to get on board the green bandwagon, the city is panicking about meeting residential construction standards effective Jan. 1, 2011, benchmarks that are already in place in neighboring Santa Monica, Beverly Hills, West Hollywood and Los Angeles.

The January 2011 requirements call for sediment and runoff protection from construction sites; diversion of at least 50% of construction waste; low or no use of volatile organic compounds such as indoor adhesives, paints and coatings; low formaldehyde indoor finish materials.

Looking further forward, as of July 1, 2011, residential construction projects will be required to be more water efficient – insisting on a 20 percent reduction in indoor water use.

Not to be berated for being totally arrogant and antiquated, Malibu does already have mandates in place for water conservation landscaping – though some city residents are insisting that is not enforced.

“I think our biggest problem is water in Malibu,” planning Commissioner Regan Schaar noted, more than a year after Governor Arnold Schwarzenegger declared a statewide drought. “The issue of people submitting plans [development applications] without any landscaping plans is a way for them to get around the issue. We need to put landscaping plans in place and make sure they’re low water usage.”

Malibu has been an ostrich, hiding its proverbial head in the sand while other local cities have been proactive on conservation measures. Lifestyles of the rich and infamous.

**

http://www.malibutimes.com/articles/2009/06/10/news/news3.txt

http://pleinlesyeux2.ifrance.com/ocean/inside%20out,%20baja%20malibu.jpg

http://www.socalgreenrealestateblog.com/?p=75

http://www.north-cyprus-properties.com/places/malibu-beach/photos/Malibu-Beach-(01).jpg

http://www.triyoga.com/Galleries/images/malibu_point1.jpg

http://www.parks.ca.gov/pages/835/images/malibu_sportfishing_pier_sign.jpg

http://www.beaumondevillas.com/images/cities-malibu.jpg

http://www.imagekandi.com/photo/images/Malibu-Beach-Houses.jpg

http://www.destination360.com/north-america/us/california/images/s/malibu-beaches.jpg

http://www.city-data.com/picfilesv/picv7812.php

http://pics2.city-data.com/city/maps/fr2937.png

REGISTER YOUR CELL PHONE ON THE DO NOT CALL LIST

REGISTER YOUR CELL PHONE ON THE DO NOT CALL LIST

By Jodi Summers

Cell Phone Numbers Go Public this month….meaning cell phone numbers are being released to telemarketing companies and you will start to receive annoying sales calls on your cell phone…and YOU WILL BE CHARGED FOR THESE CALLS.

To prevent this, call the National DO NOT CALL list number from you cell phone. That number is - 888-382-1222.

Registering will block your number for five (5) years.

FYI - You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

WHAT HAPPENS WHEN A TENANT ABANDONS A UNIT?

WHAT HAPPENS WHEN A TENANT ABANDONS A UNIT?

Edited by Jodi Summers

Hey landlords, have you ever had this happen to you –

You decide to visit a tenant whose rent is past due, and while passing by the front window of the unit, you notice that the apartment appears to be vacant.

Do you know what to do? Can you, as the owner, just assume that the tenant abandoned the property, change the locks, and lease out the apartment to the next person?

Yeah right, if only it should be so simple. Being a landlord is just not that easy.

According to the California Association of Realtors legal department:

California law provides a procedure that the owner or the property manager of the rental real property must follow before assuming that the rented property has been vacated. The focus of this legal article is on this procedure for regaining possession of abandoned real property. A copy of the notice that the owner must send to the tenant is included. However, this article does not address the issue of recovery of damages by the owner.

FAQ

Q 1: If a landlord believes the rental property has been abandoned, what is the notice that the landlord must provide to the tenant?

A: The Notice of Belief of Abandonment (“Notice”) goes as follows:

Notice of Belief of Abandonment

To:

______________________________________________________________________

(Name of lessee/tenant)

______________________________________________________________________

(Address of lessee/tenant)

This notice is given pursuant to Section 1951.3 of the Civil Code concerning the real property leased by you at ____________________ (state location of the property by address or other sufficient description). The rent on this property has been due and unpaid for 14 consecutive days and the lessor/landlord believes that you have abandoned the property.

The real property will be deemed abandoned within the meaning of Section 1951.2 of the Civil Code and your lease will terminate on ____________________ (here insert a date not less than 15 days after this notice is served personally or, if mailed, not less than 18 days after this notice is deposited in the mail) unless before such date the undersigned receives at the address indicated below a written notice from you stating

Both of the following:

(1) Your intent not to abandon the real property.

(2) An address at which you may be served by certified mail in any action for unlawful detainer of the real property.

You are required to pay the rent due and unpaid on this real property as required by the lease, and your failure to do so can lead to a court proceeding against you.

Dated: __________________________________________________________

(Signature of lessor/landlord)

___________________________________________________

(Type or print name of lessor/landlord)

___________________________________________________

(Address to which lessee/tenant is to send notice)

(Cal. Civ. Code § 1951.3(d).)

Q 2: Under what circumstances may a landlord give the tenant the Notice in Question 1?

A: The landlord may give the Notice only if two conditions have been met: (1) the rent on the property has been due and unpaid for at least 14 consecutive days and (2) the landlord reasonably believes that the tenant has abandoned the property (Cal. Civ. Code § 1951.3(b)).

Q 3: What if the landlord doesn’t want to wait the 14-day requirement mentioned in Question 2?

A: If a landlord wishes faster action, the landlord may use the unlawful detainer remedy. See California Code of Civil Procedure Sections 1161-1179a. See also, the C.A.R. legal article, Unlawful Detainer: The Eviction Process in California < http://www.car.org/index.php?id=MTg4Ng >

Q 4: What if the landlord believes the property to have been abandoned and there’s been a breach of another covenant under the lease but the rent has been paid?

A: The landlord must use the unlawful detainer remedy if the landlord wants to get the tenant out of the property. See California Code of Civil Procedure Sections 1161- 1179a.  See also, the C.A.R. legal article, Unlawful Detainer: The Eviction Process in California.

Q 5: What is a “reasonable” belief of abandonment?

A: Many residential as well as commercial tenants vacate the premises when behind in the rent without ever notifying the landlord. What some courts look for is whether or not the keys have been turned over to the owner.  If turning over the keys establishes for the landlord a clear showing of abandonment, then the landlord may be able to take possession of the premises without providing the Notice as required by section 1951.3.  Following the procedure of section 1951.3 provides greater certainty to the owner and provides protection against a tenant who later sues the landlord for legal possession of the rental property.

However, if the tenant has not made it clear—has not given over the keys—then the landlord is left guessing about the tenant’s abandonment. One way to get some idea of the tenant’s intention is to view the premises by looking through a window to see if there is anything left behind. For example, if the utilities have been discontinued, there is no refrigerator and no furnishings, abandonment seem clear.

What if some personal possessions have been left behind?

“Since many lessees who abandon real property leave personal property on the premises, the mere fact that the lessor knows that the lessee has done so should not, by itself, be held to establish that the lessor’s belief as to abandonment was unreasonable. Where the personal property left by the lessee appears to be of little value, it would be reasonable for the lessor to conclude in the absence of other evidence that the personal property, as well as the real property, had been abandoned. On the other hand, where the personal property is of substantial value and it appears that the lessee is the owner, these facts would be significant evidence that the lessee had not abandoned the real property.” (11 Cal.L.Rev.Comm. Reports 951 (1973); 12 Cal.L.Rev.Comm. Reports 571 (1974); (Cal. Civ. Code § 1951.3(e)(2).)

Note:  if personal property has been abandoned too, there is another procedure to be followed.  See the C.A.R. legal article, Abandoned Personal Property: Disposition of Items Left Behind After Termination of a Tenancy.

Q 6: What If the property is under a lease that doesn’t terminate for several months, what should be written on the Notice regarding the date of lease termination?

A: Assuming the landlord wishes to terminate the lease and rent it to another tenant, the date of termination of the lease specified in the Notice should be at least 15 days after the Notice is served personally or, if mailed, at least 18 days after the Notice is deposited in the mail (Cal. Civ. Code § 1951.3(b)).

Q 7: How should a landlord or property manager give this Notice to a tenant if the tenant has disappeared?

A: The landlord’s Notice can be personally delivered to the tenant (if possible) or, in the alternative, it can be sent by first-class mail, postage prepaid, to the tenant at his or her last known address (which may be the rental property address).   If there is a reason to believe that the Notice sent to that address will not be received by the tenant (or will not be forwarded to a subsequent address), the landlord may also send he Notice to another address, if any, known to the landlord where the tenant may reasonably be expected to receive the Notice (e.g., a place of employment). (Cal. Civ. Code § 1951.3(c).)

Q 8: Can a landlord still assume that the tenant has abandoned the property if the landlord accepts all or partial payment of the rent due before or after giving the Notice?

A: No. If during the period of time beginning 14 days before the time the Notice was given and ending on the date the lease would have terminated in the Notice, the tenant pays all or a portion of the rent due on the real property, then the landlord cannot assume the property has been abandoned.  (Cal. Civ. Code § 1951.3(e)(4).)

Q 9: What must a tenant do to prove that he or she has not abandoned the property?

A: Assuming the tenant doesn’t receive the Notice and wants to regain possession of the property, the tenant must establish that he or she hasn’t abandoned the property by proving (1) that rent was not due and unpaid for 14 consecutive days when Notice was given, (2) that it was not reasonable for the landlord to believe that he or she had abandoned the property, (3) that, within the permitted time, he or she gave written notice of his or her intent not to abandon the property, or (4) that, during the period specified in section 1951.3 (e) (4), the tenant paid all or any portion of the rent that was due.  (Cal. Civ. Code § 1951.3.)

The burden of proof on these matters is placed on the tenant so that the landlord will be able to proceed to relet the property with reasonable assurance that the abandonment and termination will not later be set aside by a court. (11 Cal.L.Rev.Comm. Reports 951 (1973); 12 Cal.L.Rev.Comm. Reports 571 (1974).)

If the tenant receives the Notice, the tenant must respond in writing prior to the termination date in the Notice that the tenant has not abandoned the property and must provide a current address for the landlord.  In addition, the tenant must pay current all rent that is owed.  (Cal. Civ. Code § 1951.3(d).)

Q 10: Does the law discussed in this legal article pertain to all real property, commercial and residential?

A: Yes.  The law applies to all real property (Cal. Civ. Code § 1951.3(a)).

Q 11: Does the law discussed in this legal article apply to mobilehomes?

A: No.  For abandonment of mobilehomes, see the Mobilehome Residency Law; in particular, see California Civil Code Section 798.61.

Q  12: Where can I obtain additional information?

A: This legal article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.’s legal products and services, please visit C.A.R. at www.car.org Online.

**

Reprinted with permission of the California Association of Realtors. Credit for this piece is to be given to the C.A.R. Legal Department.

http://www.car.org/legal/2007articles/abandoned-rental-real-property

http://uas.osu.edu/slideshow/xml/189?1256748258

http://img66.imageshack.us/img66/2012/sballck7.jpg

http://www.mirrorrange.com/index.php?showimage=8

http://www.laobserved.com/images/XiomaraLara.jpg

THE GREENEST CITIES IN THE WORLD

THE GREENEST CITIES IN THE WORLD
 
Edited by Jodi Summers
 
We like lists, it means a lot of research has been done. Today’s dynamic list is from
Reader’s Digest;  they have come up with a list of world's greenest, most livable cities.
 To compile this list, they have an alyzed data from two top sources covering 141 nations. 
We’ll give you the top 26 greenest cities (as 26 happens to be San Francisco), the rest
 you can find @
http://www.rd.com/your-america-inspiring-people-and-stories/best-places-to-live-green/article45734.html

1. Stockholm, Sweden

2. Oslo, Norway

3. Munich, Germany

4. Paris, France

5. Frankfurt, Germany

6. Stuttgart, Germany

7. Lyon, France

8. Dusseldorf, Germany

9. Nantes, France

10. Copenhagen, Denmark

11. Geneva, Switzerland

12. Zurich, Switzerland

13. Glasgow, United Kingdom

14. Barcelona, Spain

15. New York, United States

16. Brussels, Belgium

17. Hamburg, Germany

18. Hong Kong, PR China

19. Newcastle, United Kingdom

20. Tokyo, Japan

21. Helsinki, Finland

22. Washington, D.C., United States

23. Chicago, United States

24. Vancouver, Canada

25. Dortmund, Germany

26. San Francisco, United States

**

Sources:

http://images.businessweek.com/ss/07/04/0406_liveable_cities/image/7_frankfurt.jpg

http://www.rd.com/your-america-inspiring-people-and-stories/best-places-to-live-green/article45734.html

http://www.primetravels.com/PackageImages/699/Stockholm-Sweden_03-360a032607.jpg

http://highendfood.files.wordpress.com/2009/01/frankfurt_skyline.jpg

http://mamofrizzi.files.wordpress.com/2009/06/tb_copenhagen_denmark.jpg

http://www.bertgulick.com/images/05/copenhagen-denmark.jpg

http://www.iho-ohi.org/wp-content/brussels-belgium.jpg

http://library.thinkquest.org/06aug/01253/Hotspots%20in%20Europe/BrusselsCityImage.jpg

http://wallpapers.free-review.net/63__Shibuya_Tokyo_Japan.htm

http://img61.imageshack.us/img61/3771/eiffeltower2cparis2cfrawo0.jpg

http://www.spa.ucla.edu/up/webfiles/tokyo-shinjuku-45_4.jpg

http://paaia.org/galleries/default-image/san-francisco.jpg

http://www.namss.org/images/AC2008/SanFrancisco.jpg

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

By Jodi Summers

Going, going, gone…with the commercial loan market in such a pathetic state, auctions are the fastest way for banks to unload undesired commercial property assets.

“Sellers are coming to the realization that the price point they had in mind is not a reality. That’s where auctions are so useful in determining value — bringing people together through competitive bidding,“ observed National Auctioneer Association spokesman Chris Longly. “Our membership is seeing more energy and movement this year on the commercial real estate side.“

The National Association of Auctioneers estimates that $58.6 billion in real estate was sold in private live-auction bidding in the U.S. in 2008, up 38.5% from five years ago. Auctions in residential real estate have risen 47.7%, raw land (including agriculture) 36.8%. Commercial real estate is up 31.3%, to $15.5 billion in gross auction sales for 2008. Last year, banks were dealing with residential real estate issues, now, banks are confronting commercial property asset issues.

While the foreclosure moratorium was on in residential, banks were able to reassess their commercial assets. You’ll note that auction activity growing in the 2^nd half of 2009, with major online commercial auction events. In the second half of July, NAI Global offered 75 investment properties in 21 states valued at more than $250 million. The timed online auction will include 58 properties — including the historic State Theatre in South Bend, IN, which still bears bullet holes from the nearby shootout following John Dillinger’s final bank robbery on June 30, 1934 — and 14 other properties. In late July, Sperry Van Ness/Guardian held an auction at the Hyatt Regency in Los Angeles includes more than $100 million in real-estate owned (REO), bank-ordered and developer close-out assets in six Western states.

Among the high profile properties going up for sale is the historic Watergate Hotel made infamous during President Nixon’s wiretapping antics. (http://www.socalofficerealestateblog.com/?p=669). Other noteworthy pieces of real estate hitting the auction market include development sites in the metro Washington, DC area, retail sites in Highland Park, IL, and Spokane, WA, the historic theater redevelopment in South Bend, IN, and an infill site in Flint, MI; an upscale hotel/golf resort in Beecher, WI, and a fully entitled multifamily development tract in Navarre Beach, FL, plus lots of excess and partially developed inventory.

Even the government is getting into it. As you know, the state has been selling off their legacy assets - http://www.santamonicapropertyblog.com/?p=1188, and take a cursory glance @ what the U.S. government might be auctioning off in California, and we find industrial properties in Laguna Nigel, Morro Bay and Red Bluff.

“We’re probably seeing a 30 to 40% increase this year” in office, retail, industrial, multifamily and land auction inquiries, remarked Paul Rogers, senior vice president @ Inland Real Estate Auctions, Inc. “With bank activity in particular, we’re going to be busy for the rest of this year — and probably well into next year.”

This trend echoes the real estate slump of the 1990s and early 2000s, with commercial properties following residential foreclosure auctions after they have been mainstays in the downturn. Companies auctioning properties note that it is an opportunity to sell assets quickly, reduce holding costs, and secure true market value under unpredictable market conditions.

**

Sources:

http://www.costar.com/News/Article.aspx?id=F9243DEB83153259F95525F184C9EEE8&ref=100&iid=140&cid=383F14EEE265B182474DA2442BACBBBF

http://fasrp.sc.egov.usda.gov/fasrp/mainAction.do;jsessionid=804CCE54F02BBCC115D4B0BA22A910FF?pageAction=GetCounties&state=CA&stateName=California

http://www.philly.com/inquirer/world_us/20090720_Watergate_auction_drawing_interest.html

http://www.socalofficerealestateblog.com/?p=669

http://media.commercialappeal.com/mca/content/img/photos/2009/04/16/b17auction.jpeg

http://ethicalforeclosurefortunes.com/wp-content/themes/thesis/rotator/govt_auctions_sm.jpg

http://i.ehow.com/images/GlobalPhoto/Articles/5117276/237446-main_Full.jpg

http://www.unitedcountry.com/picturesx/10086-10099-1576957.jpg

http://www.ritholtz.com/blog/wp-content/uploads/2009/06/foreclosures-may-o9.png

http://www.mccallauctions.com/auctions/photos/1074/p12368596779029.jpg

A GLOSSARY OF GREEN LIVING TERMS

A GLOSSARY OF GREEN LIVING TERMS

A glossary of green living terms. Be green + grow:

· 2000-watt society — The 2000-watt society (2,000-Watt Society) is a vision, originated by the Swiss Federal Institute of Technology in Zürich at the end of 1998, in which each person in the developed world would cut their over-all rate of energy use to an average of no more than 2,000 watts (i.e. 17,520 kilowatt-hours per year of all energy use, not only electrical) by the year 2050, without lowering their standard of living.

· Carbon Diet — A carbon diet refers to reducing the impact on climate change by reducing greenhouse gas (principally CO2) production.

· Carbon Footprint — A carbon footprint is a measure of the impact that human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide gases produced by the burning of fossil fuels for our everyday living.

· Carbon Intensity — The ratio of Carbon Dioxide to energy: a measure of the “greenness” of different fuels.

· Chief Green Officer — A Chief Green Officer (CGO), or Chief Environmental Commitment Officer (CECO), is a corporate officer responsible for implementing and managing the corporation’s commitment to reducing its carbon footprint and protecting the environment.

· Dual-flush toilet — A type of water-conserving toilet that is relatively common in the commercial sphere but is only now becoming available for the home. After each use you have a choice of low flush (using as little as 0.8 gallon) or a more powerful flush (about 1.8 gallons).

· Earthcheck – An adaptable environmental benchmarking tool that measures an organizations environmental output. This is done across a variety of areas, including energy consumption, waste production and resource conservation for the core areas of an organizations operation.

· Ecological Footprint — a measure of human demand on the Earth’s ecosystems. It compares human demand with planet Earth’s ecological capacity to regenerate it. It represents the amount of biologically productive land and sea area needed to regenerate the resources a human population consumes and to absorb and render harmless the corresponding waste, given prevailing technology and resource management practice. Using this assessment, it is possible to estimate how many planet Earths it would take to support humanity if everybody lived a given lifestyle.

· Ecosharing – is an environmental ethic for people to live by: that their own impact on the Earth’s biosphere be limited to no more than their own fair ecoshare.

· Energy Neutral Design - an Energy Neutral Design is a design of any type (Website, Multi-media, Architecture, Art, Music, Entertainment, etc) that has the environment and low energy consumption practices in mind during all stages of planning and production.

· Energy Policy – The manner in which a given entity (often governmental) has decided to address issues of energy development including energy production, distribution and consumption. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques.

· Energy Star (www.energy star.gov) — An energy-efficiency rating system sponsored by the Environmental Protection Agency. A high Energy Star rating means that the product — from small household appliances to entire homes — is designed to minimize its energy consumption. The theory being, using as little energy as possible helps protect the environment, conserves fossil fuels and saves you money on the electric bill.

· Forest Stewardship Council (www.fsc.org) — A third-party certification for wood, wood products and forests. The FSC tracks the wood from its forest of origin all the way through the chain of custody to where the product is sold. If a product is FSC certified, you can count on its having been harvested and produced in a stringently eco-sensitive manner.

· Formaldehyde — A toxin found in many adhesives, such as those in plywood and panel board; it also can be found in paints, caulks and other building materials. The World Health Organization recently upgraded it from a possible carcinogen to a known one. When present in the home, it tends to “off-gas” and pollute the indoor environment.

• Global Warming — The increase in the average measured temperature of the Earth’s near-surface air and oceans since the mid-20th century, and its projected continuation. In media, it is synonymous with the term “climate change.”

· Greenhouse Debt - The measure to which an individual person, incorporated association, business enterprise, government instrumentality or geographic community exceeds its permitted greenhouse footprint and contributes greenhouse gases that contribute to global warming and climate change.

· Leadership in Energy & Environmental Design (www.usgbc.org/leed) — Developed and administered by the U.S. Green Building Council, the LEED rating is the most widely known and accepted green certification program.

· Life Cycle Analysis — The process of tracing a product, material or practice from its origin through its final disposal or reuse, from factory to landfill or recycling plant.

· Linoleum – A natural and eco-sensitive alternative to petrochemical-based vinyl. Linoleum is typically made from the renewable materials jute (used for backing), linseed oil, pine resin and sawdust. Eclipsed by vinyl in the 1960s and ’70s, it’s now experiencing a revival; it comes in both sheets and tiles, in a wide variety of colors.

· Low Carbon Diet — A low carbon diet refers to making lifestyle choices to reduce the greenhouse gas emissions resulting from energy use.[1] More specifically, a low carbon diet refers to making choices about eating that reduce greenhouse gas emissions (GHGe) as a response to estimates that the U.S. food system is responsible for at least 20 percent of U.S. greenhouse gases.

· Low-flow faucets and shower heads – Installing low-flow fixtures is a simple and cheap way to conserve water. If you’re in love with your current faucets and shower heads, you can instead choose to amend them by installing aerators, which slow the flow and disperse water. These simple steps can reduce water use by about 10%.

· Off-gassing – Also known as outgassing, this is the emission of chemicals from building materials, furniture, textiles, bedding or other products in the home. Many of those “new house” smells that we’ve come to enjoy are actually hazardous to our health — they accumulate in the bloodstream and have been linked by some scientists to the increasing rates of asthma and some cancers, particularly in children. The best way to avoid off-gassing is to look for natural products that don’t contain toxins such as formaldehyde.

· Recycled content — Refers to the amount of recycled (reused) material in a given product. There is post-industrial recycled content, which refers to the use of scraps from industrial manufacturing, and post-consumer content, which is the reuse of products that consumers have used and thrown away.

· Solar — Simply put, solar processes harness energy from the sun. The solar panels that most of us associate with solar energy are called photovoltaic panels; they transform the sun’s rays into usable electricity. Solar thermal processes can be used to heat our hot water. Technological advances in recent years have made both photovoltaic and solar thermal systems amazingly effective. And prices are more affordable nowadays, in part because many utility companies and local governments offer rebate programs that lower the initial costs of purchase and installation.

· Water Footprint — an indicator of water use that includes both direct and indirect water use of a consumer or producer. The water footprint of an individual, community or business is defined as the total volume of freshwater that is used to produce the goods and services consumed by the individual or community or produced by the business. Water use is measured in water volume consumed (evaporated) and/or polluted per unit of time. A water footprint can be calculated for any well-defined group of consumers (e.g. an individual, family, village, city, province, state or nation) or producers (e.g. a public organization, private enterprise or economic sector). The water footprint is a geographically explicit indicator, not only showing volumes of water use and pollution, but also the locations.

· Weighted Average Cost of Carbon — A term used in finance to measure a firm’s specific cost of carbon. It expresses how much an organization is expending to either reduce carbon emissions internally (abatement) or offsetting externally (carbon offset). As such, the weighted average cost of carbon is the cost a company incurs to balance its carbon liability (carbon footprint).

· Volatile Organic Compounds — The toxic or noxious chemicals that are found in or released from paints, stains, adhesives and sealants. Whenever possible, look for products labeled as having low, no or zero VOCs.

Please help us add to this list.

Info courtesy of:

http://www.globalgreen.org/gbrc/

http://wikipedia.org

THE GEOGRAPHY OF JOBS

By Jodi Summers

According to this exploding Geography of Jobs map - http://tipstrategies.com/archive/geography-of-jobs/-

Southern California reached its peak in 2^nd quarter 2005, hit parity 3^rd quarter 2007 and then began our great economic slide…

Check it out:

October 2007

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April 2005

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March 2009

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Let’s hope we go green in more ways than one.