Posts Tagged ‘Industrial’
Thursday, August 13th, 2009
In terms of commercial property investment, one positive sign is from firms buying properties to use for their own business operations. Called user-buyers, these investors have proven they are able to get money from banks to spend on property acquisitions — a relative rarity nowadays. Those who do not need a
loan already have earmarked their own funds for such a purchase, enabling these user-buyers to acquire a building despite the credit crunch and increasingly wary lenders.
Real Capital Analytics reports that the number of user-buyer transactions in the Philadelphia metro area, for example, rose between June 2008 and June 2009. During that time span, 25 percent of the 40 office and industrial purchases completed in the region were by users. Mike Margolis, president of investment sales at Professional Realty Advisors, states, “Considering users are generally 10 to 15 percent of the market, that’s a substantial increase. “One of the most recent transactions was the acquisition of a 25,200-square-foot building in suburban Phoenixville by a Sheppard Redistribution Inc., affiliate. The purchased property will be used by the firm for their daily operations.
Tags: banks, CRE, credit crunch, Industrial, investment, investors, loan, Real Capital Analytics Inc
Posted in Development, Economics, Financing, Office | No Comments »
Wednesday, July 22nd, 2009
Over the past decade, California’s Inland Empire has been transformed from a little-known region with affordable housing and lots of inexpensive land into an industrial hub – thanks to its proximity to the busy Ports of Los Angeles and Long Beach. With the City of Ontario embarking on The Ontario Plan, 
city fathers are laying the groundwork for increased investment over the next 30 to 40 years. The plan’s goal is to create an all-inclusive community where people and businesses will want to be.
According to Mary Jane Olhasso, economic development director for the City of Ontario, “Although firms are pulling back, they still realize that the region has competitive advantages over our coastal neighbors. In Ontario, both industrial and office lease rates are lower than Los Angeles and Orange County.”
The Inland Empire’s industrial market is in a prime position to recover when the economy improves because the region is notable for its relatively low-cost housing, large workforce and vital location relative to international shipping. With 40 percent of all containerized cargo entering the United States through Southern California ports, the Inland Empire is the logical location for gigantic distribution centers to handle the freight prior to shipping it throughout the United States.
Tags: California, containerized freight, costal neighbors, distribution centers, economic development, housing, Industrial, Inland Empire, Long Beach, Los Angeles, low cost housing, Mary Jane Olhasso, Office, Ontario, Orange County, recession, The Ontario Plan, United States
Posted in Development, Industrial | No Comments »
Wednesday, July 15th, 2009
Economic development organizations are stepping in to help plug the credit hole. We all know what the economy is like today, and it is unlikely that the industrial and commercial real estate markets will soon turn around. As an
economic developer, I see another side of the economy where both communities and businesses are seeking opportunities and looking at alternatives ways to secure capital.
Aside from the federal stimulus incentives, municipal, state governments and educational institutions offer a variety of incentives to encourage businesses to remain in their jurisdictions. Here’s an example:
I am currently working with a printer, a cutting-edge small business with Fortune 500 customers, to preserve more than 100 good-paying jobs in a small municipality. The company’s primary obstacle: borrowing money for new equipment and other capital improvements. The deal requires $1.5 million, all of it collateralized. Because the company was in financial straits, an angel investor recently purchased the company and is investing heavily. Even with this influx of new capital, lenders consider the company a high risk. To make the deal happen, we are using state, county and municipal revolving loan funds to underwrite $750,000 of the project to add to the $750,000 conventional bank loan. The lender has virtually no exposure and has first position on all assets, including building and land that are free and clear of debt.
A key player in putting the deal together is the Illinois Department of Commerce and Economic Opportunity’s Participation Loan Program, one of the few available state incentives until Illinois adopts a capital budget. For more information about the program, contact Stanley Luboff, Capital Programs Manager at stanley.luboff@illinois.gov.
Chris Manheim is our guest blogger. He is the President of Manheim Solutions, Inc., a consulting firm specializing in community, workforce and small business economic development programs.
Tags: bank loan, capital budget, Chris Manheim, commercial real estate, credit, debt free, economic developer, economic development, educational institutions, federal stimulus, financial straits, Fortune 500, Illinois, Illinois Department of Commerce and Economic Opportunity's, Industrial, industrial real estate, Manheim Solutions, municipal, Participation Loan Program, revolving funds, secure capital, Stanley Luboff, state government, underwrite
Posted in Development, Economics, Financing, General, Green, Healthcare, Residential, Student Housing | No Comments »
Monday, June 29th, 2009
The best way to survive a recession is to have a strategic plan firmly in place when the inevitable downturn happens. That’s the opinion of Larry Armstrong, President of Ware Malcomb, an Irvine, CA-based international architectural firm with ongoing projects in the United States, Latin America, Asia and Europe.
In a recent interview for the Alter NOW Podcasts, Armstrong says “There is no question that we learned everything about saving a business and building a business during the 1990s downturn.” In fact, Armstrong’s firm wrote a recession plan several years ago and determined exactly how they would react. “You have to look at what revenue can support what level of staff and all the additional expenses and costs which, over time, become discretionary. You have to look at those and decide what is necessary and what isn’t,” according to Armstrong.
The current environment does not support ego-driven, icon architecture. Rather, there is a move towards thrift, because corporate users want to be seen as economical and functional — not as extravagant. The recession also has impacted Corporate America’s attitude towards green design and LEED-certified buildings. According to Armstrong, “We’re seeing a bit of a retreat – not major – and a vast majority of our projects are still LEED certified”. Still, if the project is industrial, Armstrong is not hearing a desire for LEED certification anymore.
To listen to Larry Armstrong’s full interview on architecture during a recession, click here for the podcast.
Larry Armstrong on Architecture in a Recession:
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Tags: Asia, business, California, Corporate America, corporate users, economical, ego-driven, Entrepreneur of the Year, Europe, expenses, functional, green design, icon architecture, Industrial, international architectural firm, Irvine, Irvine CA, Larry Armstrong, Latin America, LEED certified, LEED certified buildings, recession, recession plan, revenue, strategic plan, United States, Ware Malcomb
Posted in General | No Comments »
Thursday, April 2nd, 2009
Cornerstone’s launch fulfills William A. Alter’s 30-year vision that began when the legendary real estate titan acquired the first of what now comprises 650 acres in central Lake County.
As a mixed-use development pioneer, Bill Alter understood that differing residential products could- and would — flourish, complete with nearby stores. Cornerstone is taking Bill’s vision a step farther by creating an environment where industrial, research-and-development and office and retail jobs will coexist within walking distance of housing, entertainment opportunities and shopping. 
Costing an estimated $750 million, Cornerstone is a significant project which will take early 12 years to complete. It is expected to create hundreds of construction jobs. At completion, we expect that Cornerstone will add more than 9,000 jobs within the project, as well as almost 7,000 supporting jobs throughout Lake County. Currently, our development plans call for 3 million SF to 3.5 million SF of light industrial/office space, 500,000 SF to 600,000 SF of shops and restaurants and 800 homes, mostly townhouses, apartments and condominiums. Located west of Illinois Highway 83, Cornerstone is expected to be annexed into the village of Grayslake.
The Grayslake community is embracing the concept of Cornerstone. At public hearings and planning commission meetings with Village officials, we’ve received consistently positive feedback, with comments such as “Well-balanced land use plan.”, “This is what Grayslake needs – NOW.” and “We need more amenities locally.”
We still face some challenges as we move forward, but I have every confidence that Cornerstone will become the most sought-after destination in central Lake County.
Tags: Bill Alter, central Lake County, condominiums, construction jobs, Cornerstone, entertainment, Grayslake community, homes, housing, Illinois Highway 83, Industrial, land use plan, mixed-use development, Office, office space, real estate, reaserach-and-development, Residential, restaurants, retail jobs, shopping, shops, townhomes, townhouses, village of Grayslake, William A Alter
Posted in Development, Office, Residential | 1 Comment »
Monday, August 18th, 2008
Bill Alter, founder of The Alter Group, passed away peacefully Friday, August 8, in his Winnetka, IL, home of complications from Alzheimer’s at age 78. Named one of the most influential people of the 20th century by National Real Estate Investor magazine, Alter presided over the development of more than $1 billion of space over a half century.
Alter’s Realty Company of America began building homes for post-war, first-time buyers. In 1959, Alter developed the first residential community for middle-income minority buyers, Kingston Green in Markham, IL. With Olympian Jesse Owens as his national spokesman, Alter brought the dream of home ownership to hundreds of families.
Dubbed the “sky broker”, Alter was known throughout his native Chicago for using a twin-engine plane to scout land sites. His son, Michael, who succeeded his father as president in 1995, said “his was a uniquely American story.”
Over the decades, The Alter Group developed millions of square feet of speculative office, industrial, research-and-development, and healthcare space in a variety of business parks. A recipient of the Lifetime Achievement Award from the Urban Land Institute, Bill helped create the now widely copied concept of the professional planned industrial park.
Bill is survived by his wife, Evelyn. He was the father of Michael, Harvey, Jennie, Jonathan, and the late Rhonda Alter. Additionally, he had two step-children, Nicky Bliwas and Tony Winski, as well as 13 grandchildren.
Tags: Alzheimer's, Bill Alter, Chicago, Healthcare, Industrial, Jesse Owens, Kingston Green, minority buyers, Office, post-war, Realty Company of America, research-and-development, Residential, sky broker, The Alter Group
Posted in General | No Comments »
Wednesday, March 19th, 2008
Dear Friends,
Welcome to Alter NOW, our company’s brand new blog. We hope you’ll find it informative as we set out to chronicle the important trends underway in our industry. We hope to keep this free from sales and marketing language and simply use it as a way to start a dialogue with the stakeholders in our firm — our clients, our tenants, our contractors, our communities.
For those who may be unfamiliar with our firm, The Alter Group is 53 years old this year. We started as a residential developer in the south side of Chicago and have since grown to become a national developer of office, industrial, healthcare, hotel and retail facilities in 25 markets around the country — from California to Washington DC.
There are 160 people in 4 offices who keep the company running. I am grateful to all of them. Since brevity is the soul of wit, I will sign off here. I hope you enjoy Alter NOW.
Best wishes,
Tags: Chicago, Healthcare, hotel, Illinois, Industrial, national development, Office, retail
Posted in Development, General | No Comments »