Archives for December 2017

Developers' Pitch For New Theater, Retail Project For Rio Rancho Moves Forward

December 18, 2017 by CARNM

In Rio Rancho, near the intersection of US 550 and NM 528, lies a property AMREP Southwest Inc. has proposed big plans for, including bringing a new movie theater to the area. And it’s now one step closer to making those plans a reality.

The developers, who are looking to bring a new theater and retail development to the Commerce Center Commercial subdivision at Enchanted Hills, got the green light for economic development incentives from Rio Rancho’s City Council last week.

The council approved a Gross Receipts Investment Policy agreement for a 25-year period up to $4.3 million for the project – with the estimated cost of the land acquisition at $2.5 million and the estimated cost of the public infrastructure improvements at $1.8 million.

If ASW’s project doesn’t fully fund the $4.3 million in the 25 year period, then the company isn’t eligible for reimbursement after that, according to the GRIP agreement.

The plans for the approximately 5.49 acres of land include a theater complex and city-owned parking lot, plus 14 nearby retail outparcels. According to the project’s fiscal analysis, a 45,000-square-foot sporting goods store and 22,500-square-foot office supply retailer are also projected for the space.

“At this time the movie theater is the single tenant committed to the project – the remainder of the establishments shown are based on the expectations of the developer,” the company wrote in the analysis.

ASW’s plan is to work with Premiere Cinema Corp. for a 43,000-square-foot theater. Business First reached out to AMREP Southwest and a representative said there isn’t a contract yet and they declined to comment further.

On Monday, Mayor Greggory Hull told Business First the City Council has done everything it needs to on its part to move the development forward and said the next steps are up to Big Spring, Texas-based Premiere Cinema Corp. and AMREP Southwest to finalize the deal.This would be Premiere’s second Rio Rancho location.

Hull also noted GRIP states ground must be broken by July.

“We believe this is a great fit for an ongoing investment,” said Hull.

AMREP Southwest – a subsidiary of Pennsylvania-based AMREP Corp. – markets itself as the principal developer of Rio Rancho. Ben Perich with Colliers International is the broker for AMREP Southwest on this development.

By: Shelby Perea (ABQ Business First)
Click here to view source article.

Xceligent Shuts Down, Files For Liquidation

December 15, 2017 by CARNM

UK-based DMGT, Xceligent’s owner since 2012, recently reduced the commercial property data provider’s carrying value to zero following earnings disappointments.

Commercial property data provider Xceligent Inc. has ceased operations and filed for Chapter 7 liquidation in US Bankruptcy Court here. The announcement of the shutdown Friday by DMGT, Xceligent’s London-based parent company since 2012, comes two weeks after the Wall Street Journal reported that settlement talks between Xceligent and rival CoStar Group, each of which had filed suit against the other, had broken down.
DMGT announced this past Nov. 30 that Xceligent’s new management team was undertaking a strategic review. This followed a reduction in Xceligent’s carrying value to zero in the face of earnings that fell short of expectations.
Pursuing Xceligent’s “incredibly labor intensive process” of collecting market data one city at a time, “our strategy was to generate revenue in each local market with a view to generating significant revenue once Xceligent had sufficient national coverage in order to offer the brokers an alternative to the incumbent CoStar,” DMGT CFO Paul Collier said on a Nov. 30 earnings call. “This year we expanded into the US’s largest market, New York City, and quite candidly the revenues were disappointing. And that suggests a longer and more challenging path to profitability for Xceligent.”
CoStar and Xceligent had been facing off in court for the past year, with CoStar bringing suit against Xceligent for alleged data theft and Xceligent counter-suing CoStar on antitrust grounds. Both companies had repeatedly denied the other’s allegations over the past several months. A source familiar with the situation tells GlobeSt.com that the court battle was one of a number of factors behind Xceligent’s flagging revenues, but was not the primary cause leading to the decision to liquidate.
DMGT said Friday that a Chapter 7 trustee with expertise in liquidating companies would be appointed to distribute Xceligent’s assets. That trustee will assume full responsibility for all current litigation involving Xceligent, DMGT said, adding that “DMGT holds no liability for any future costs associated with the litigation.”
In a statement, CoStar says it sympathizes “with those negatively impacted by this liquidation. We understand that Xceligent failed as a result of business missteps over two decades, as acknowledged by DMGT in its most recent earnings call, and we commend DMGT for making this difficult business decision. We remain committed to offering the best available data and insight to commercial real estate professionals, and stand by ready to help Xceligents’s former customers.”
By: Paul Bubny (GlobeSt)
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Michael Fardy 2014 National Commercial Awards Recipient

December 15, 2017 by jakobsmith

Congratulations to Michael Fardy, 2014 National Commerical Awards recipient! Michael is being recognized by the National Association of Realtors for his outstanding professional achievements in commercial real estate. For more information on the awards and a full list of recipients, see https://www.realtor.org/commercial/national-commercial-awards.

CRE Stands To Gain From Tax Package: CushWake

December 14, 2017 by CARNM

“Negotiations between the House and Senate will have a significant impact on pass-through entities’ passive investments,” says Revathi Greenwood at Cushman & Wakefield.

Its impact on GDP growth is likely to be modest, but the pending tax-reform package that’s likely to come up for vote next week puts commercial real estate in the winner’s circle, says Cushman & Wakefield in a new report. Some sectors stand to gain more than others as specific provisions of the package take effect. The apartment sector, for instance, is expected to benefit from the planned repeal of the state and local tax deduction as homeownership becomes less appealing.
Furthermore, some of the anticipated benefits for CRE will depend on whether the House or Senate language makes it into the final, reconciled bill. Cushman & Wakefield sees the provisions for pass-through structures, which hold 61% of direct investments in US CRE, aligning more closely with the Senate’s version. In other words, expect to see a 23% deduction limited to 50% of W-2 income, rather than the House bill’s 25% rate on passive income using a 70/30 formula.
“Put simply, the Senate proposal leaves partnership and S corporation investors in real estate out in the cold,” although REITs and publicly traded partnerships are eligible for the full deduction without regard to the 50% wage limitation, according to Cushman & Wakefield’s report. If the Senate language prevails, the firm predicts a shift over time to REITs, along with conversions to corporate structures.
The House and Senate versions also differ in their timeline for the 20% corporate tax rate to take effect (2018 in the House version, 2019 in the Senate version) and treatment of the corporate alternative minimum tax (eliminated by the House, retained by the Senate). Regardless, though, Cushman & Wakefield anticipates a net impact of three to nine basis points on annual GDP growth over the next decade.
Although some proponents have claimed that the tax cuts will lift real, annual GDP growth closer to 3% from the approximately 2% we’ve seen during the current expansion, most of their analyses don’t consider the likely effects of tax reform on a higher-than-expected trajectory for interest rates or the impact of higher levels of debt that deficit-financed tax cuts will entail, according to Cushman & Wakefield.
“While tax reform may have a modest impact on real GDP growth, overall, commercial real estate is a winner, though some subsectors fare better than others,” says Revathi Greenwood, head of Americas research at Cushman & Wakefield. “Negotiations between the House and Senate will have a significant impact on pass-through entities’ passive investments, more so under the House version, which provides substantial benefits for investors.
“Multifamily looks to be a winner—at the expense of single-family residential—especially in states and municipalities with high state and local taxes,” she adds. “The retail and industrial sectors should see modest benefits, while the office sector will see minimal impact.”
By: Paul Bubny (GlobeSt)
Click here to view source article.