Archives for February 2014

This recently updated whitepaper gives you the latest updates on legislation that affect commercial real estate. Read the National Association of REALTORS® position on different legislative issues and the impact they have on the commercial real estate industry.
Sample Issue includes:
►ISSUE: National Flood Insurance Program (NFIP): In 2012, Congress passed the Biggert-Waters Act, which extends the National Flood Insurance Program (NFIP) for five years. Biggert-Waters also phases out subsidized flood insurance rates for many commercial properties but severe implementation problems have threatened to undermine real estate transactions where flood insurance is required to obtain a mortgage. On January 16, 2014, Congress passed the Omnibus Appropriations Bill (H.R. 3547) which prevents FEMA from raising the grandfathered rates through the end of 2014 but not those triggered by the sale of a commercial property that is responsible for the most excessive increases. On January 30, 2014, the Senate passed the “Homeowner Flood Insurance Affordability Act,” (S. 1926), which calls for a 4-year “time out” on rate increases triggered by the sale of property, including commercial sales. The House has yet to take up a companion measure. For more information on flood insurance, see NAR’s “National Flood Insurance Program” issue page here.
NAR Action: NAR successfully worked with Senators Menendez (D-NJ) and Isakson (R-GA) to draft and move the Homeowner Flood Insurance Affordability Bill through the Senate. We helped build a broad coalition of industry groups and sent letters in support, and initiated a Call for Action that achieved an impressive response rate among our membership. We also worked with members of the Banking Subcommittee to hold a hearing on the affordability of NFIP rate changes, and submitted a statement and questions illustrating the hardships they can cause. Now, NAR is working to persuade the House leadership to bring a similar measure to a floor vote, and earlier, signed on to a coalition letter sent to the leadership of the House Financial Services Committee expressing concern over the rate increases.
Read entire position paper.

Bernalillo County commissioners on Tuesday approved a $1 million contribution toward the “Innovate ABQ” project aimed at boosting economic development.

The money was approved 4-0, with Commission Chairwoman Debbie O’Malley absent because of illness.
The proposal was sponsored by Commissioners Lonnie Talbert and Maggie Hart Stebbins.
The University of New Mexico is leading the project. The county’s money would go toward renovating a building at the First Baptist Church site near Downtown into a business incubator – part of a larger economic-development project.
The county’s approval comes with “clawback provisions” and other conditions.
By: Journal and wire reports (Albuquerque Journal)
Click here for source article

Chamisa Hills Country Club could have a new owner by early spring, ending months of uncertainty over the fate of the 40-plus-year-old golf course and related properties.
Rio Rancho businessman Bob Gallagher said he and Jhett Browne, owner of the Farmers Market stores in Albuquerque, signed a purchase agreement Monday night with Chamisa owner Harry Apodaca. Browne would be the majority stockholder, Gallagher said.
Gallagher said Chamisa Hills would come under ownership of The Club at Rio Rancho Inc. and would be renamed The Club at Rio Rancho. It would operate as a semi-private facility.
A message left for Apodaca was not immediately returned Tuesday.
Gallagher declined to disclose the purchase price, but said the financing has been approved. The parties hope to close by May 1. Gallagher said the timing is crucial in order to begin work on the course, which has fallen into disrepair over the years, early in the growing season.
“It’s a complete asset purchase,” he said. “All the tangible property and assets of Chamisa Hills will come under the Club of Rio Rancho.”
He said the buyers hope to negotiate a new rate for recycled water with the city before the current contract with the club expires July 1 and rates shoot up from 47 cents per thousand gallons to $3.28 per thousand gallons. He said he submitted a proposal for reuse rates to City Manager Keith Riesberg early Tuesday morning.
“There are no contingencies in our signed agreement, and there are no contingencies from Mr. Apodaca,” he said. “But we’ve made it very clear to anybody we’ve talked to that we believe economically it is not feasible to own or operate that club if you had that type of rate for the reused water.”
The purchase would include the 240-acre Chamisa Hills site, three 9-hole golf courses, restaurant and lounge, swimming pool and related facilities, and six lighted tennis courts. Gallagher said it is too early to say if the nine holes known as Trevino North will be restored.
“I will tell you we are concerned,” Gallagher said. “There has not been water on that nine holes since last July. Over 200 sprinkler heads have been removed and, in fact, some of the pipes have been removed.”
He added, “We will not do anything to that piece of property that would cause adjacent and contiguous homeowners to lose value on their property.”
He said remaining 18 holes would be revitalized and there are plans to provide a “very upscale, affordable” restaurant experience.
Gallagher said there will be a major effort to increase membership, which has fallen from 600 or so to 148. There are also plans to increase public accessibility, which he said is “part of our proposal to the city in exchange for getting ‘X’ rate for water.”
Announcement of the purchase precedes an expected vote by the Rio Rancho Governing Body tonight on Councilor Tim Crum’s resolution stating the city’s willingness to consider proposals for a special contract rate for recycled water if a buyer comes forward, improves the club and expands access to the public.
The rates were a key issue for prospective buyer Michael Schumacher, who announced intentions to purchase the course last summer. He pulled out of the deal while working toward an agreement for reduced rates, citing “unpalatable” contract amendments, a “difficult seller” and a “less-than-receptive governing body.”
Crum’s resolution is “spot on,” Gallagher said. “I think it says what the overwhelming majority of citizens in Rio Rancho are saying, and that is, ‘We’ve got to find a way someone can own and operate and revitalize the country club in Rio Rancho.’”
Gallagher said he and Browne were introduced by a club member seven or eight weeks ago. They have since discovered both attended Annunciation Catholic School in Albuquerque, were on the same basketball team and played in the same neighborhoods with the same kids.
By: Mike Hartranft (Albuquerque Journal)
Click here for source article.

REALTOR University Speaker Series: 2014 Commercial Market Outlook: Highlights Video

This video contains highlights of Dr. Calvin Schnure’s talk about the commercial market outlook for 2014 and the trends of 2013. He speaks about REITs (Real Estate Investment Trusts) and talks about what they are, how they work and perform, and why they’re important to the commercial real estate industry.
Click here to view source video.
By: Dr Calvin Schnure (National Association of REALTORS)