CREGR.com CREGR.com is a commercial real estate blog moderated by Chip LaFleur with Callander Commercial's Grand Rapids office. If you would like to contribute or have any inquiries, please contact Chip at (616) 459-8000.
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2130 Enterprise offers numerous benefits to future tenants. This class B office is situated off of 44th St in Kentwood, Michigan, with great proximity to expressways. As flexible as needed, this building offers 13,500 SF (2 levels) and can be demised to any need! Most importantly, rates are among the most aggressive in the county ($2 to $5 a SF)! We have motivated owners here and they are ready to put together a deal! If you are currently thinking about starting a business, moving your existing business, have too much or too little square footage- call and schedule your showing today.
Additional Building Specifics:
- Gross Size: 13,500 SF
- Units: 4
- Total Acres: 0.96
- Sewer/Water: Public/Public
- Heat: Gas/Forced Air
- Parking: Ample
- Estimated NNN’s: $3.00 per SF
 2131 Enterprise Marketing Package
 Kerri Woolverton Insurance for UCC Filings is a product offered by Lighthouse Title, Inc. through one of its underwriters. This product is designed to offer peace of mind to buyers and lenders for the equipment, supplies, furniture, or other assets being purchased or financed. The UCC insurance products resolve problems and are designed to put the lender in the strongest possible position in the face of a workout or insolvency.
The Buyer’s Policy insures that the acquired assets are free of lien, including not only the liens of the seller, but also liens of any intermediate seller of the acquired assets to the seller. The Buyer’s Policy can be used in a sale of assets, a merger, or any similar transaction.
The Lender’s Policy, insures the attachment, perfection, and priority of the secured party’s security interest in personal property collateral. The policy:
- Fills in previously uncovered risks (forgery, fraud, lack of capacity, gap, mis-indexing, incorrect filing rejection)
- Transfers risk from the lender and the lender’s counsel to our Underwriter
- Reduces potential for conflict between lender and lender’s counsel, especially in bankruptcy proceedings
- Decreases reliance on or cost of legal opinion letters and provides an alternative to no-opinion self insurance of the representations of the borrower
The Lender’s Policy also provides full ownership insurance for pledged or acquired equity, effective risk management for factual or legal uncertainty, and significant utility and cost savings in multi-jurisdictional practice.
Lighthouse Title, Inc. provides a full range of title insurance products and services, including title searches, title insurance policies, escrow services, and 1031 Tax Deferred Exchange Services to Banks, Realtors, Attorneys, and Mortgage Companies throughout Michigan and in affiliation with five national underwriters throughout the 50 States.
Kerri Woolverton, our Commercial Closing Officer has over 13 years of title knowledge. She specializes in Commercial Closings and 1031 Tax Deferred Exchanges. Prior to joining Lighthouse Title Group, she was the Lakeshore Assistant Regional Manager for a National Underwriter covering 11 offices in West Michigan. Kerri can be reached at 616-820-7293 or kwoolverton@lighthousegroup.net.
Once you have a Lighthouse experience you will see that we shine above our competitors.
 The effective SBA 504 20-year February debenture rate is is 5.55%. The effective SBA 504 10-year January debenture rate is 4.91%. Ten-year debentures are only sold every other month.
In early February the Obama Administration announced a new proposal to expand the 504 Loan program to temporarily allow straight refinancing of existing debt. A summary of the article with a link is below.
Save the date! The 12th Annual Michigan SBA Lender’s Conference will be held on Tuesday, March 23. See more details below.
Refinance Update
The Obama Administration announced several proposals to help small business gain access to capital early this month. Two of the proposals will directly affect the SBA 504 program: temporary ability to refinance existing debt and an increase to the limits on SBA 504 loan amounts.
The refinance proposal under the SBA 504 program will allow refinancing of small business owner-occupied CRE loans that are maturing in the next few years. Under this new proposal, borrowers with either existing 504 loans or conventional CRE loans could apply for refinancing through the 504 program.
Also part of this proposal includes extending the fee relief until the end of the fiscal year (September 30, 2010).
The president also re-iterated his proposal to permanently increase the limits on some of SBA’s most popular loans. The proposal includes the following increases:
The proposal would increase 504 loans from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million), and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).
EDF is optimistic that all of the proposals will be approved soon. However, at this time they are only proposals. See the link below to read the entire article regarding all SBA proposed changes.
Proposed changes to SBA programs
12th Annual Michigan SBA Lender’s Conference
Mark your calendars now for Tuesday, March 23, 2010 at the Kellogg Center in East Lansing.
The annual Michigan SBA Lender’s Conference will feature leading experts in SBA lending. Workshops include: Advanced Lender Roundtable, SBAExpress, Utilizing the Secondary Market, SBA loan liquidation process and the “Ten Tabs” system, Basics of Servicing SBA Loans, and of course, updates on the SBA 504 Loan Program.
EDF Contacts
Ph. 616-459-4825
Fax 616-458-5736
TF 888-330-1776
Sandy Bloem
Executive Director
sandy@growmichigan.com
Bradd Pierce
Loan Officer
bradd@growmichigan.com
Gary Witkowski
Relationship Manager
gary@growmichigan.com
For Release on February 18, 2010
Contact: John Green, john@locusdevelopment.com
Locus Development announces development plans for the former Spectrum Health Childcare property in East Hills
Brewery Vivant, owned by former New Holland Brewing Company co-founder Jason Spaulding, has signed on as anchor tenant; plans to hire up to 50 people in first year for Belgian & French inspired brewery and 140-seat pub.
The $3-million LEED-certification candidate project is pending approvals, but developers are hopeful for late spring construction start and early fall grand opening.
GRAND RAPIDS, MI – Locus Development announced today its intentions to renovate the former Spectrum Health Childcare Center at 925 Cherry Street in the emerging East Hills neighborhood of Grand Rapids. Locus plans to convert the site into a mixed-use, LEED-certified development with a locally-owned brewery as the lead tenant.
Brewery Vivant, owned by Jason Spaulding, co-founder and former owner of New Holland Brewing Company, intends to open the Belgian- and French-inspired brewery & pub in early fall, pending approval of various development incentives Locus is pursuing.
Spaulding plans to hire 35 people to open the establishment and anticipates having as many as 50 employees within a year.
The one acre parcel located at 925 Cherry Street most recently served as a daycare center for employees of Spectrum Health, and includes three vacant buildings that line the Cherry Street & Lake Drive corridor. Construction of the nearly $3-million, 15,000 SF project could begin as soon as late spring. Brewery Vivant would fill approximately 9,200 SF of space in two of the renovated structures and would aim to open by early fall.
Locus is in discussions with other potential tenants, mainly in the retail sector, to occupy other sections of the multi-building development. Cornerstone Architects and Orion Construction are the lead design and build partners. M Retail is the commercial retail broker.
Locus also announced that future phases of the project could include constructing two new mixed-use buildings and renovating a former residential structure on the property. Local, state and federal authorities are reviewing the site and financial plans to determine the project’s eligibility for various development incentives.
“We’re excited for the chance to create a new destination in the East Hills neighborhood,” says Locus Development partner Andy Winkel. “We feel the proposed concept demonstrates a responsible approach to building upon the existing fabric of the neighborhood,” he adds.
“The area has such a great vibe with forward-thinking businesses like Marie Catrib’s, Green Well, Corez, and Gaia. I cannot imagine a better place to locate the brewery” says Spaulding. “I look forward to adding another layer of depth to an already outstanding neighborhood business district.”
Brewery Vivant combines Spaulding’s passion for great beer and food, environmental sustainability and a community focus. He intends to source ingredients from local farmers for
both the beer and the food served at the pub.
Spaulding chose the name for the brewery after a trip to the French speaking part of southern Belgium. “Vivant” is used there as a term that loosely translates to “living the good life” and is often associated with eating and drinking well.
Brewery Vivant will brew and package Belgian- and French-inspired beer within one of the site’s newly renovated buildings and serve its beer in a 140-seat pub and outdoor seating area adjacent to the production area. Spaulding also intends to sell his beer through in-state and out-of-state beer distributors. The latest progress on the brewery & pub can be followed on Twitter at “breweryvivant” or on Facebook under “Brewery Vivant”.
Site plans and renderings, along with other marketing materials, will be made available after all necessary approvals are granted to the project.
“We are eager to get started,” Winkel notes, “but we don’t want to get ahead of ourselves, so we’re taking an appropriate pace with this project.”
About Locus Development
www.locusdevelopment.com
In a short time Locus Development has made a name for itself as a developer of unique urban developments that inspire downtowns. Other projects include Thirty-Eight, the $26 million liner building project located at 38 Commerce Ave, Hopson Flats and Founders Brewing, among others. Green, former owner of Elevation Group, and Winkel, former president of Kelwin Properties, established Locus Development in April of 2008 after working together on three very successful downtown renewal projects. The company is committed to building better, smarter places to live, work, and play in the city’s urban core. The company’s tagline “Life, People, Places” emphasizes the firm’s belief that the three components must work in harmony to create a truly great environment.
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 Chip LaFleur Great to see some local municipalities taking initiative to get the real estate market moving!
The City of Kentwood has received a $200,000 EPA Brownfield Assessment Grant for Hazardous Substances. The city can complete the following activities on eligible brownfield sites:
- Phase 1 and 2 Assessments
- Environmental Site Assessments (ESAs)
- Asbestos and Lead-based paint surveys
- Baseline Environmental Assessments
- Due Care evaluations/site reuse planning
- Brownfield Redevelopment planning and marketing
A business or property owner can request that the city undertake the assessments and other activities on their behalf.
Eligible sites are:
- Properties that are in the city of Kentwood and are contaminated or suspected of being contaminated by hazardous substances
- Properties that meet the eligibility criteria of the city
- Sites that meet the EPA eligibility requirements
Priority sites are:
- In a targeted area where there is a desire to encourage redevelopment, such as the Division Avenue corridor, and older industrial areas, such as 32nd Street
- Sites with high redevelopment potential
- Sites that present an imminent danger to human health
- Sites that will result in additional capital investment, create jobs, and retain existing jobs
Eligibility Criteria:
- An eligible site must be a suspected brownfield site
- Parties that are potentially liable for the contamination are not eligible to use the funds
- Proposed projects need to demonstrate the potential for capital investment and/or create retain jobs
The City of Grand Rapids, the City of Wyoming and the City of Kentwood have all received EPA Assessment grants, and have guidelines for use that are similar in each community. For more information on Brownfield Redevelopment just give me a call or drop an email to clafleur@ccmichigan.com!
 346 Wealthy 346 Wealthy St. is absolutely perfect for the right user! Possessing the historic interior of most Heritage Hill properties, this opportunity definitely stands out from the rest. There are a total of 6 to 7 offices on the lower floor, totaling around 1,200 SF of useable space that could be demised to achieve just about any interior office design! Not only is the office space priced to lease but also the upstairs portion of this building is 100% occupied with 4 separate residential apartments; the property is cash flowing and a great buy for an owner-occupier at $190,000! The possibilities are endless here; but hurry because downtown office space price this aggressively with such close proximity to the expressway doesn’t last long! Give Greg Mahalick or Chip LaFleur a call today to schedule your showing. 616-459-8000
*Make sure you are also following Greg & Chip on Twitter for real-time industry updates and news:
@GregoryMahalick
@ChipLaFleur
 Chip LaFleur Interesting news through the State of Michigan here: http://www.michigan.gov/. The short version is that between the Michigan Small Business and Technology Development Centers (MI-SBTDC) and the Michigan Credit Union League (MCUL), initially $43 million will be made available through Michigan Credit Unions for eligible small businesses. Here are a few of the highlights that stood out to me:
- The Michigan Credit Union League and its subsidiary CUcorp will coordinate the alignment of Michigan’s 335 credit unions with the MI-SBTDC. A critical element of the program will be the alignment of applications for credit union capital with a technical assistance process administered by the MEDC and MI-SBTDC, which will include training and individual counseling. This assistance will increase the programs success since this type of loan carries higher-than-average credit risk, and credit unions will apply their normal careful underwriting standards for each loan.
- With the initial pledged funds of $43 million, assuming an average loan size of $20,000, credit unions hope to help at least 2,150 small businesses statewide.
- A formal working group to outline the step-by-step process will be immediately formed. The MCUL also will seek to advocate for state and federal legislation that will strengthen and expand access to funding leverage programs like the 21st Century Jobs Fund and the Capital Access Program in order to maximize the availability of capital to the Michigan small-business community.
In a state obviously in great need of lending it is nice to see this potential source of funds open up, especially one specifically directed to small businesses. It will be interesting to see if this affects the ability of small business owners and entrepreneurs to specifically purchase real estate. Take a look at the article to see the details, or give us a call to discuss the programs as I am sure that more information will be forthcoming!
 Greg Mahalick Good afternoon to all! Thanks again for stopping by CREGR.com; as promised above, a local investment opportunity that stands to perform very well!
First and foremost, I will not get specific on address (or business name/names)- this is not a confidential opportunity but out of respect for my client I simply ask that if you would like additional details that you contact me for the full marketing package.
This opportunity in located within Wyoming, MI. Roughly 20,000 SF of office space with a sub-tenant occupying 3,700SF (100% occupied/owner occupies all else) sub-tenant is extremely vested into current space, governmental orientation, 3% annual bumps, with two five year renewal periods remaining.
Current owner possesses very strong business, willing to sign a five year lease back with 2.5% annual bumps, full triple net (including sub-tenant), with land contract terms available!
Purchase Price: $1,075,000.00
CAP Rate: 12%
NOI: $129,000.00
Total SF: 20,000SF
Occupancy: 100%
Marketing Package Includes: Premise address with interior/exterior photos; full sub-tenant summary, full triple net breakdown (semi-annual & annual), rent roll, & business bios. Call or email Greg Mahalick or Chip LaFleur today for your full marketing package and additional details! Office line: (616) 459-8000.
 Wilson Ave and 52nd Street This office development land is located just south of the Grandville, MI Home Depot and Costco at the northeast corner of Wilson Ave and 52nd Street. The properties currently have homes on site, but the value is in the land. Parcels range in size from 0.5 acres up to approx 16 acres total. The properties are currently master planned as Office Service, and allow up to 25% retail on the 1st-floor footprint. The parcels are nicely wooded and will allow for a natural office setting with the convenience of Rivertown Crossings Mall, restaurants, and close highway accessibility for M-6, I-196 and US-131. Wilson Avenue is a heavy traffic corridor with approximately 14632 cars per day, yet is situated close to top-ranked schools and family-friendly neighborhoods.
This is one of the largest growth corridors in the south west Grand Rapids area. It would be an ideal location for a bank, neighborhood pharmacy, medical office, professional service office or other similar uses. If you are looking to re-locate, consolidate, or add a new office/service location, we may have the perfect development site to fit your building needs. For further information, please feel free to call Jeanne LaSargeBono at 616.459.8000 or email at jlasargebono@ccmichigan.com. I will be glad to send a specific property flyer to you!
 Chip LaFleur One of the main inspirations behind starting up our commercial real estate blog nearly a year ago was Joe Stampone’s blog, “A Student of the Real Estate Game.” I had a chance to talk to Joe a few times during the research and construction stages of the project, and his input was invaluable. He is currently pursuing a Masters degree in Real Estate Development at NYU Schack Institute of Real Estate, and he has been able to consistently present articles that are informative, educational, yet still easily digestible.
Mr. Stampone’s blog served as an ideal template for what we wanted to do here in Grand Rapids and gave us an opportunity to learn about some of the requirements of a readable and informative real estate blog. I was very excited, then, to see that CREGR.com was included in the latest post, “10 Commercial Real Estate Blogs to Watch in 2010!” Thank you, Joe – keep up the good work, and I hope we make your list next year!
If you are interested in Commercial Real Estate investment and looking to educate yourself, Joe’s blog is a great place to start. Take five minutes (which will soon turn into ten or twenty) and take a look at the great content. You are sure to learn something!
Of course, this does up the ante just a little bit. I would love to hear from any of our readers – what would you like to see in the upcoming year from us? I’m always open to ideas and suggestions, so please pass the word on. Additionally, if you are connected to Commercial Real Estate, we would love to talk to you! Over the past year we have been privileged to have some excellent contributions from a wide variety of professionals, business people, and entrepreneurs. If your business is located in an historic building, if you are looking to open a new business, really anything that is connected to real estate (and sometimes we are willing to stretch that requirement quite a bit), let me know! You are always welcome to call me in my office, at (616) 459-8000, or drop me an email at clafleur@ccmichigan.com. Looking forward to hearing from you!
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