Commercial Real Estate

Michigan has gone through a challenging time in the past few years but more particularly in 2008. One of the many challenges our clients are facing is maintaining and strengthening the relationship with their current tenants/residents. The disparity that many property owners have felt has forced them to offer benefits, rent structures and discounts, and other incentives to potential users. Callander Commercial works with its clients to ensure that every possible scenario is exhausted in an effort to retain all existing tenants and residents. As a result, the majority of our clients have experienced occupancies of 90% or higher and some close to 100%.

Serious challenges our clients are going to face in 2009 are increased supply and vendor costs.  With the continued recession in the Michigan economy, companies across the board are being forced to operate within margins that are slimmer than ever before. Owners and managers continue to fine-tooth their annual budgets and are continuously looking to save a few dollars. The management staff of Callander Commercial has been managing properties in and around the Grand Rapids/Kalamazoo communities for over 30 years. As a result, we benefit from economies of scale that are not normally available to our clients. We understand the importance of being penny-wise in an effort to make our clients more profitable. Yet we pride ourselves on maintaining a standard of excellence that we have had throughout our company’s history.

In future posts we will discuss specific property types and some of the challenges they bring.  If you have any questions or are interested in property management in Grand Rapids or West Michigan, contact me at (616) 459-8000 or clafleur@ccmichigan.com.

Popular Aveda Salon & Spa on the market for sale.  This is one of the hottest locations in downtown Grand Rapids at the entry to “Medical Hill” right off the I-196 on/off ramp and College Avenue.  The property will be receiving major renovations to the drive-entryway along with an upgraded retaining wall, new landscaping and handicap access ramp for those interested in a great spot for a salon/spa.

It is also a great re-development site with its superior location at the corner of College and I-196 for great visibility and signage potential. Be a part of the new medical development; including Michigan State University Medical School, DeVos Children’s Hospital, Spectrum Health Hospital, and Fred and Lena Meijer Heart Center.  Future land use zoning commercial mixed use.

If you would like more information, please contact Diane at (616) 459-8000.  To view the property information on CPIX.net, please click here.

Monroe Center view of Flat Iron's exterior after renovation

NEWS RELEASE

April 16, 2009

Authentic Mexican restaurant opening this fall in former Herkner space on Monroe Center

GRAND RAPIDS, MICH. – Locus Development, organizers of downtown’s “Thirty-Eight” liner building development, announced the first lease signing at their $4.5 million Flat Iron Building historic rehabilitation project.  Brokered through Prudential Callander Commercial, Cinco de Mayo, an authentic Mexican food restaurant, will occupy the former Herkner Jewelers space at 114 Monroe Center in downtown Grand Rapids.

The restaurant, which is currently working on design concepts for the 2,800 SF space, is scheduled to open for lunch and dinner this fall. Restaurant owners are also currently seeking a liquor license through the Downtown Development Authority, although the emphasis will be on the authentic food.

“Locus Development is thrilled to bring a terrific dining concept to a very unique building in downtown Grand Rapids,” says Locus Development co-owner John Green. “We’re confident that this restaurant will be well-received by the general public.”

The family-owned business that will operate Cinco de Mayo also runs twelve other successful restaurants throughout Michigan, with four more in the build-out phase planned for summer 2009 openings.  Employment numbers are not confirmed at this time; however a local general manager has been selected.

Diane Karns, broker from Callander Commercial and representative for Cinco de Mayo, noted that the terrific location of the Flat Iron Building, along with all the other exciting downtown revitalization efforts, prompted the decision for her client to open a Mexican food restaurant in the heart of the city.

Looking at NW corner of Monroe Center and Ottawa Avenue after renovation

About Flat Iron Building
The $4.5 million, 36,000 SF rehabilitation combines three structures internally into one contiguous building while maintaining the unique historical facades. Construction will begin his summer.

Floors two through four of the nearly 150 year-old buildings will be connected internally at various locations, and will be meticulously rehabilitated to provide nearly 9,000 SF of space on each floor for up to 27,000 SF available to a single user.

The historical rehabilitation will seek LEED certification and will provide energy efficient conveniences so tenants can enjoy the historical charm with modern, efficient amenities.

Cornerstone Architects are architects and Orion Construction is the general contractor.

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 the $26 million Thirty-Eight liner building project at Weston and Commerce, Hopson Flats and Founders Brewing, among others.

Green, former owner of Elevation Group, and Andy 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.

Click here for Listing Information

Located at 1850 28th St., Grand Rapids Michigan – this property is a great investment opportunity.  The building has some space available for lease as well.  This is a great opportunity for a small business owner to make use of the available space in the building and rent the remainder.   The available space has 3 drive thru doors, open shop space, small office.  The rest of the building is rented, with established, long-term tenants.  Near Breton on 28th, on the south-east side of Grand Rapids, this property is visible with great traffic counts.

Take a closer look on CPIX.net by clicking here, if you would like more information please feel free to contact Jeanne LaSargeBono or Chip LaFleur at (616) 459-8000.

Joel Baar

Author: Joel W. Baar
Date: 07/10/2004

The Michigan Legislature recently enacted a new law that reduces the amount of notice landlords must give drug offenders before evicting them. Previously, landlords were required to give 7 days notice. Under the new law set to take effect September 1, 2004, a landlord need only provide 24 hours notice. Most importantly, all a landlord needs in order to commence the eviction process is a police report detailing accusations of use, possession or selling of drugs. A conviction is not required before seeking eviction.

Besides the shortened notice period to vacate a rental unit, a drug-related eviction process is cut from approximately 30 or more days to 15 days. As a result, the new law makes evicting an alleged drug user easier than evicting a tenant for nonpayment of rent.

Landlords can use this new law to streamline the eviction process and also to send a message to their tenants that they are seeking to improve the standard of living for law-abiding tenants. Further, landlords should consider including a provision in their leases stating that any illegal drug activity is a violation of the lease agreement, triggering the right to evict the tenant.

2818 Vineland, Grand Rapids, MI

Without a doubt, one of the most effective means of getting a deal done in today’s economic climate is by making use of seller held financing.  2818 Vineland is a small, 1,920 square foot office building just off of 28th St., west of Kalamazoo Ave.  It’s listed for sale at just $130,000, and the seller is happy to provide the financing via a land contract with extremely reasonable terms.

If you would like to find out more about this property, please click here to access the listing information on CPIX.  If you have further questions or comments, please call Chip LaFleur at (616) 446-4197, or email clafleur@ccmichigan.com.

With more than a century of experience creating opportunities for business success, the Grand Rapids Area Chamber of Commerce is the premier business membership organization in West Michigan. Though we count the area’s largest employers among our more than 2,800 member businesses, more than 80% of our members are small businesses with less than 50 employees. By focusing on Membership, Diversity and Advocacy efforts, the Grand Rapids Area Chamber of Commerce is a community partner that provides value for members, enhances the business climate in the area, and advocates for public policy that supports economic growth and vitality.

What to Expect with Membership

Save money for your business
Receive discounts on office supplies, insurance, credit card processing, payroll processing, phone service and more. Chamber Benefits can be reached at 616.771.0348.
http://www.grandrapids.org/memberservices/savemoney/

Find new customers
Meet potential customers at monthly and annual events, join a leads networking group or explore the advertising and sponsorship opportunities. Event Registration can be reached at 616.771.0303.
http://www.grandrapids.org/memberservices/promote/

Improve your business skills
A variety of personal and professional development seminars and training programs are available through the year. Our programs include confidential discussion groups and mentoring. Business Development Hotline can be reached at 616.771.0330.
http://www.grandrapids.org/memberservices/strengthenyourbusiness/summerschool/

Fight for your business
The Chamber is an active advocate for pro-business and quality of life issues in West Michigan. The Chamber is your voice at all levels of government in West Michigan. Chamber Advocacy can be reached at 616.771.0335.
http://www.grandrapids.org/governmentaffairs/

Expand your network and connections
Networking at monthly and annual events is only one way to make connections. There is a wonderful variety of committees to become involved in which all provide excellent networking opportunities. Networking opportunities 616.771.0348.
http://www.grandrapids.org/memberservices/networkconnect/

Make a contribution to your business community
When you make a contribution to your community, you also make a difference. The Chamber has many programs to honor and assist business people in West Michigan of all walks of life.
http://www.grandrapids.org/diversityinitiatives/

For more information on Membership and joining the Grand Rapids Area Chamber of Commerce, call 616.771.0348.

Chip LaFleur, Prudential Callander Commercial

I recently met with Larry Andreano a Financial Advisor with UBS Financial Services here in Grand Rapids and he outlined a lending program that UBS offers. The program offers either a variable or fixed line of credit that is backed by the investment securities held in one or more accounts at UBS.

This is a very flexible program and the rates are quite attractive. Rates are based on 30 day LIBOR. As an example, as of 4/02/09 the rate for a variable rate line of credit of between $1,000,000 and $2,499,999 was 2.24% – that’s right 2.24%. For the same amount but with the rate fixed for five years the rate was 4.11%.

Lines of credit are available from $100,000 and up. The rates go down the larger the amount of the line. There are no origination fees.

The program works for individuals or even a group of investors. An example that Larry mentioned to show how this program could be used was that a group of physicians could pledge the securities in their individual portfolio’s to support a line of credit large enough to finance the purchase of their office building.

Although this is a fantastic program for financing a real estate transaction it can be used for almost any purpose.

This looks to me to be an attractive alternative to traditional financing and in this market may facilitate a closing that otherwise would not get done. It is especially attractive when compared to the alternative of an investor liquidating their investment portfolio to finance a purchase while their securities are undervalued. If you’d like to discuss this with me give me a call, (616) 459-8000. If you’d like to speak with Larry he can be reached in his office at (616) 732-1228.

Chip LaFleur is a Real Estate Advisor with Callander Commercial Real Estate in Grand Rapids, MI. His unique marketing and information technology background compliment his position with Callander Commercial and strengthens the Grand Rapids office.  Chip can be reached at clafleur@ccmichigan.com or (616) 446-4197.

2905 Lucerne Drive

30,000 SF Office building available for sale or lease. This is a great opportunity for an owner occupied user.  Owners are very motivated and will consider a land contract.  Will consider all offers. Additional details are HERE, or contact Pamela Collins for more information.

Chip LaFleur, Prudential Callander Commercial

Imagine a Where’s Waldo book where “Waldo” is jumping up and down, waving his arms, and shooting miniature flares and blinking a flashlight when the page is opened.  It might not be a very popular book, but it sure would be easy to find Waldo.  Every Realtor in Grand Rapids posts their listings online; it’s a requirement of members of the local Association of Realtors, and every Realtor is a member of the local association.  But each one of those listings becomes a motionless picture on the page, mixed in with thousands of other properties that are available for sale or lease.  Nothing differentiates one from another, and without additional involvement from the listing agent they are essentially static dots on a page.

All of those properties are listed online; and if you really know what you are doing you might be able to find a property that is kind of similar to what you would like to find.  Take a look at the public search page found on the Commercial Alliance of Realtors’ website:

Public Search Screen

There are not a lot of options listed here, and there is some reasoning behind that.  Of course it is every agent’s desire that you contact him or her to help you in your search for a location that works for you and your business.  Our experience can be a great help in identifying a property that suits your needs.  But if you are looking at selling a property, it is obviously your desire that the listing is broadcast and published as extensively as possible.  Additionally and perhaps more importantly, you would want your property to be as searchable as possible.

Realistically, what are the chances of a direct mail piece happening upon an individual that has a current, real interest in your offering?  Statistically speaking, your chances are not great.  We continue to send direct mail pieces, and we attempt to make them as targeted as possible so that we might reach the right person; but the return on that investment is questionable and certainly not verifiable.

If we reverse the equation, though, and provide the potential buyer the means of finding a listed property through the tool they are most comfortable with, our chances of reaching the right entity increase exponentially.  The right tool for the vast majority of individuals is Google.  The trick is getting our listed properties to show up when people do a Google search.  To do that requires a multifaceted approach.

While essentially every real estate agent posts their listings online, very few go beyond that step, and that first step is not nearly enough to make Google take note.  Rather, an in-depth and complete online strategy needs to be implimented.  An agent can and should thoroughly promote their listings online, not just relying on the numerous listing services and information exchanges.  There are several tools available to accomplish that purpose, and there are more emerging every day.  Twitter and LinkedIn are two great choices to begin with, but those need to point the end user somewhere.  A Blog creates an end-point, a location where an agent can direct users and interested parties to their own catalogue, as well as offer insight into the market that is their speciality.

Interestingly, the Grand Rapids Association of Realtors, the residential arm of the local association, has embraced blogging, social media, and sites such as YouTube and Flickr.  Undoubtedly, commercial agents in Grand Rapids will shortly follow suit once they see the advantages and simplicity of including these elements in a marketing strategy.

When these tools and others are utilized properly, available listings can really jump off the page.  The listing agent can say that they are not only present online, but have an online presence.

Chip LaFleur is a Real Estate Advisor with Callander Commercial Real Estate in Grand Rapids, MI. His unique marketing and information technology background compliment his position with Callander Commercial and strengthens the Grand Rapids office.  Chip can be reached at clafleur@ccmichigan.com or (616) 446-4197.