Archive for June, 2010
CoStar reports that commercial property owners are bracing for the financial fall-out from the Gulf oil spill. [read more]
ROANE CO – James Roberson and Townsend Collins, brokers at NAI Knoxville, brokered the sale of 1.72 acres of undeveloped land at the I-40 Midtown exit. The parcel at 1662 Roane State Hwy, Harriman, is being developed for medical use. The sale closed on 5/28/2010 for $375,600.
LOUDON CO – The joint venture, DuPont Tate & Lyle BioProducts, built one of the largest bio-materials processing facilities in the world in Loudon, Tennessee in 2006 and have recently announced a considerable expansion that will add approximately 130 jobs. [Read more] as reported by the Knoxville News Sentinel.
KNOX CO – Local PR firm Moxley Carmichael, represented by Josh Francois & Chip Miller, has leased 5,500 sf at the Miller’s Building in downtown Knoxville. [Read more] on Josh Flory’s blog. To learn more about Moxley Carmichael [click here].
OAK RIDGE – ORNL is eyeing Horizon Center [Marketing Package] as a potential site to build it’s new carbon fiber testing facility. ORNL has developed technology which they believe could be used to produce carbon fiber in a much more cost effective way. The new building will serve as a testing facility to see if the lower-cost production theory is viable. If successful, it could pave the way for the technology to be used in a much broader scale in the commercial sector, specifically, as a substitute for steel. Since components with the same strength made with carbon fiber, weigh only 20% of their steel counterparts, the commercial application in the auto industry might have a profound impact upon more fuel efficient vehicles [read more]. The test facility will be constructed in either Horizon Center or Heritage Center, both of which are in the East Tennessee Technology Park. For more information, please contact: Sam Tate, CCIM, 865-777-3035 or Maribel Koella, SIOR, CCIM, 865-777-3031.
The Wall Street Journal reports on May 25 that the City Center Plaza in Bellevue is under contract for $310,000,000 or $531 per square foot. Contrast this with the 2009 sale of a similar building in Seattle proper, the one time WaMu Center, for $133 per square foot. The difference? WaMu was almost empty while over 96% of the City Center Plaza is net-leased for fourteen years by Microsoft. The purchaser of the City Center Plaza will get about a 6.5% initial return which is not a bad play considering that Microsoft 10-year bond yields 3.4% and a 30-year bond yield is 4.9%. Kim Kundrak, the chief acquisitions officer of Cole Real Estate Investment, the purchaser of City Center Plaza was quoted, “It boils down to the quality of the asset and the quality of the tenant and the fact it’s a very long-term lease.”
Christopher E. Lee of CEL & Associates has a positive outlook for the multifamily market over the next 18 months. While he discusses the technical issues, he concluded by recalling Maslow’s Hiercarchy of Needs (remember Sociology 101?) and suggests that asset classes which meet basic essentials for life are where the opportunities lie for 2010. To subscribe to Christopher’s newsletter, send an email to: newsletter@celassociates with “Subscribe” in the subject line.
Keat Foong, executive editor of Multihousing News Online, discussed the potential impact of the proposed change from Generally Accepted Accounting Practices (GAAP) to International Financial Reporting Standards (IFRS) on valuation of real estate assets. The changeover, proposed by the SEC and scheduled for fiscal years ending on or after December 15, 2014, will require a “Fair Value” for real estate. Changes in value, either losses or increases, will impact the P&L. While it may increase transparency, it will also require real estate be “marked to market” with potentially devastating impact to profitability during down years and severe tax consequences during up years. For the full article and discussion of other impacts [click here].
NAI Knoxville brokers, Roger Denny and Chip Miller have brokered the sale of the former Texaco gas station and convenient store located at the corner of Kingston Pike and Watt Road to Pilot Corporation. The sale included the 3,300 sf c-store plus equipment. The sale closed 6/4/2010 for $710,000. Brad Butcher, Senior Real Estate Manager with Pilot, said,”It was a great opportunity for us to expand into a rapidly growing community which has the potential for long-term growth and continued stability.”
Congratulations to NAI Knoxville broker Steve Goldman, CCIM, and Coldwell Banker Commercial broker Tim Duff! Steve and Tim co-listed Lord Lindsey’s and have now SOLD Lord Lindsay’s. [read more]