Tag Archives: commercial real estate arizona

GPE-40th-Logo

GPE Management Services Now Operates Nationwide

Phoenix-based GPE Management Services has expanded beyond Arizona for the first time, and the company now oversees commercial properties in Georgia, North Carolina, and elsewhere in the southeast United States. The expansion developed through the firm’s partnership with a well-known national institution.

“We were selected by our client to oversee these important assets because of the excellent service we have provided them over years of working together,” said GPE Companies President David M. Genovese. “Even though we are an Arizona-based company, we have the experience, capabilities and connections to handle property throughout the United States.”

For the assets, which include a number of office condos, warehouses and retail centers, GPE Management Services oversees accounting and works with local professionals for on-site management and marketing for sale.

Digital technology allows up-to-the-minute communication regardless of distance and keeps GPE’s Phoenix headquarters up-to-date with news from each property. The firm also requires frequent communication from the local professionals and vendors it partners with.

“We are available 24/7 to handle our clients’ needs,” said Genovese. “We value the client relationship and make decisions regarding the property as if we were a partner with our client.”

GPE Management Services strives to differentiate itself from the competition. “We’re pleased to have been selected to oversee these projects and will continue to reach out and expand services to other states,” said Genovese.

Now celebrating 40 years in business, GPE Commercial Advisors and GPE Management Services are the premier providers of award-winning sales, leasing, property management, consulting and corporate services for the commercial real estate industry. Specializations include office, retail, land, industrial, healthcare and dental properties. GPE Companies remains committed to excellence and serving clients’ and team members’ best interests while achieving profitable transactions. Core values include integrity, respect, innovation, teamwork and quality of life.

To learn how GPE Management Services can assist you with cost-efficient commercial property management, contact us at 480-994-8155.

Lee & Associates - Chad Ackerley

Ackerley Promoted to Associate Broker at Lee & Associates

Lee & Associates Arizona Principals have promoted Chad Ackerley to Associate Broker for the Industrial Division.

Ackerley came to Lee in Sept. 2011 as a runner and worked under the tutelage of Principals Stein Koss and Ken McQueen.

He worked helping his team on site selection, facility needs and build-to-suit opportunities. He also evaluated multifamily projects and land opportunities for developers and investment groups.

Prior to Lee, Ackerley worked at his alma mater, Arizona State University in the Sun Devil Club where he worked to generate donations for Sun Devil athletic facilities and their annual fund which provides scholarships for over 450 ASU athletes.

He also worked in residential and commercial real estate marketing, management and sales throughout the Southwest.

Ackerley is married with two children and lives in Tempe.

To contact Ackerley, call (602) 474-9562 or cackerley@leearizona.com or visit leearizona.com.

San Marquis, AZRE September/October 2011

Multi-Family: San Marquis


SAN MARQUIS

Developer: Mark-Taylor/Kitchell
General contractor: Mark-Taylor Development
Architect: ADG
Location: SWC of Rural and Baseline roads, Tempe
Size: 229,093 SF

The $28M Mark-Taylor/Kitchell venture is a 229-unit luxury apartment community. It will feature 1-, 2- and 3-bedroom units ranging from 654 SF to 1,442 SF. Expected completion is 3Q 2012.

AZRE Magazine, September/October 2011
Seller Carry-Backs & Financing, Commercial Real Estate

Seller Carry-Backs And Creative Financing For Your Commercial Buyer

Commercial Real Estate: About Seller Carry-Backs and Creative Financing

Not everyone can get financing on a commercial building for one reason or another. Maybe the buyer’s credit isn’t where the banks require for their lending programs, or maybe the desired real estate won’t appraise for the published asking price; this is where asking the seller to carry the note becomes a viable purchase strategy.

Sellers who agree to finance all or part of the purchase price receive or create documents, such as a Deed of Trust, that evidence the terms and conditions of the loan. The seller carry-back documents are typically recorded in the public records just like a standard mortgage would be.

Seller carry-backs can be in the form of mortgage, trust deed, land contract or possibly a lease purchase. Most carry-backs are secured by a promissory note.

If there is an existing loan secured to the commercial real estate, alternatively, sellers might let buyers take over the existing loan payments, provided the loan is assumable. If it’s not assumable, the loan will remain in the seller’s name. The difference between the sales price, minus the down payment and the existing loan, is the “assumed” equity the seller would carry as a loan.

Sellers agree to carry part or all of the financing; here are some of the reasons:

  • It’s a soft or depressed real estate market — owner-carried financing will attract a greater pool of buyers.
  • The buyers cannot qualify for a commercial or SBA loan.
  • The seller is facing capital gains on the sale of the property and can defer that portion which is financed.
  • The financing gives the seller a better rate of return than a money market account making the commercial building or land a great investment and income-producing property without the hassle of ownership.
  • Sellers sometimes want a monthly income.
  • The property is non-conforming and lenders won’t touch it.
  • Often sellers can receive a higher sales price in exchange for offering owner financing.

Drawbacks to the carry-backs:

  • The buyer might default on the payments, causing the seller to initiate foreclosure proceedings
  • After foreclosure, making up back payments to the existing lender, if there is an existing loan, paying closings costs and real estate commissions, the seller might not be left with any equity.
  • Sellers who carry back mortgages have tied up cash by securing it to the property.
  • If the buyer files bankruptcy after a period of non-payment, the property could be tied up for months, if not years, in bankruptcy proceedings.

Converting the note to cash

There is a large pool of private investors in the marketplace who regularly buy seller carry-backs. However, they do not pay face value. Investors look at the yield they will receive over the term of the investment, and this yield can be increased if the investor pays less than the outstanding balance due, therefore buying the note at a significant discount.

The discounts vary across the board, but sellers can expect to lose 10 to 30 percent of the unpaid balance, depending on the following:

  • Seasoning: This is how long the seller has been receiving payments on the carry-back financing. A seller who has received timely payments over a 12-month period will receive more cash than a seller holding a brand new mortgage.
  • Interest rate: The higher the interest rate, the lower the discount. A lower interest rate will attract investors who want a higher discount.
  • Mortgage term: Long-term mortgages such as a 30-year mortgage are not as attractive to an investor as a short-term mortgage; therefore, long-term mortgages are typically sold at higher discounts than short-term. Most carry-back mortgages are five- or 10-year balloons.
  • Prepayment penalties and late charges: Carry-back mortgages that contain a prepayment penalty and a late charge are also more attractive to investors, which affect the discount rate.
  • Loan-to-Value Ratio: Lower loan-to-value ratios receive more favorable discounts. Higher ratios are considered greater risk and the discounts are steeper.
Investors also consider the type of security, its appraised value, location, amenities, condition and the credit-worthiness, if known, of the buyers. All of these factors come into play and make a difference when selling the note. Savvy sellers create attractive notes just for this reason.

The investor/buyer may ask the seller of a carry-back mortgage to pick up all costs associated with the sale of the note and mortgage such as: the title insurance policy, escrow fees, document fees, appraisal fees, real estate commissions, courier fees and, of course, the final recording fee.

[stextbox id=”grey”]These tips are provided by Pete Baldwin, designated broker and owner of Platinum Realty Network with offices in Scottsdale and Flagstaff, Ariz. With over 25 years of experience in business and real estate, Pete specializes in country club communities and second home investments, including large commercial portfolios. He also owns an Arizona branch of a family-owned, Montana-based company Baldwin Log Homes – Arizona Territory and has become the area leader in full- custom, handcrafted log homes in Northern Arizona.

To learn more about seller carry-backs and commercial real estate, please visit www.PeteBaldwin.com.[/stextbox]
Frank Lloyd Wright, AZRE Magazine May/June 2011

Del E. Webb: A Pioneer In Arizona's Construction Industry

From high school dropout to New York Yankees owner to renowned construction mogul, Del E. Webb created a company that evolved into one of the largest developers in the state and the U.S., thus earning him the crown as the most influential person in Arizona’s commercial real estate history over the past 100 years.

Born in Fresno, Calif., Webb cut his academic career short in 1915, taking an interest in carpentry and baseball. For nearly 13 years, Webb worked as a carpenter strictly for companies with baseball teams in order to make his living and stay close to his sports passion. In 1927, at the age of 28, Webb moved to Phoenix after contracting typhoid fever. The next year, he began focusing solely on construction.

Del E. Webb, AZRE Magazine May/June 2011His first projects included rebuilding a Sears store, local grocery markets and public sector projects, especially schools. With these jobs, Webb was able to stay afloat during the Great Depression and keep his company moving forward.

After a combined project with The White Miller Construction Company, the Del E. Webb Construction Company was well on its way to being one of the top contractors in Arizona. He became so successful that in 1945 Webb and two other partners purchased the New York Yankees for about $3M. Webb was a co-owner until 1964.

During World War II, Webb was contracted to build air bases and military installations in Arizona and Southern California, but it wasn’t until 1960 that Webb’s construction would truly take the housing industry by storm.

Webb’s Sun City housing project addressed the need for senior communities and prospered well into the 1990s. With a shopping and recreation center, golf course and five house models, Sun City truly put Webb on the real estate map and even landed him on the cover of Time Magazine. Today, Webb’s Sun Cities continue to grow.

In 2001, the Del Webb Corp. was purchased by Pulte Homes, which has since merged with Centex Corp. to become the PulteGroup.

Webb died at age 75 in Rochester, Minn., following surgery for lung cancer, but his legacy lives on. There is the Del E. Webb School of Construction at Arizona State University, the Banner Del E. Webb Medical Center in Sun City, the Del E. Webb Center for the Performing Arts in Wickenburg, and the Del E. Webb Outpatient Center in Prescott Valley, just to name a few.

For more information about Del E. Webb’s PulteGroup, visit pultegroupinc.com.

AZRE Magazine May/June 2011