Commercial Real Estate

The answer is yes. Under the United States and Michigan Constitutions, federal, state and local governments, including cities, villages, townships, counties, and certain other public and private bodies, have the power of “eminent domain,” also known as the “power of condemnation.”

This broad power is subject to a few important limitations. First, the government must pay “just compensation” for any property it takes. Just compensation often means the fair market value of the property, which may be based on the highest and most profitable use for which the property is adapted. This is true even if the property is not currently used for that purpose.

In addition, the government may only “take” private property for a public purpose. Until recently, the government had the power to take private property for a private purpose. A landmark 1981 Michigan Supreme Court decision called Poletown permitted the government to take private property, and then turn it over to another private property for purposes of economic development. Recently, the Michigan Supreme Court reversed the Poletown case. The recent ruling is an important victory for property owners who object to the governmental taking of their land, only to see the government transfer the property to another private party to build a private project the government deems economically worthy. The U.S. Supreme Court will be addressing a number of condemnation cases in its new term.

Prior to beginning the condemnation process, the government must provide the property owner with a “good faith” offer in writing. This offer cannot be for less money than the government’s appraised value of the property. If the property owner agrees with the good faith offer, or if an acceptable price can be negotiated, the process would proceed as a normal real estate sales transaction. However, if the parties cannot agree to a sales price, the government has the power to file a lawsuit to take the property, with just compensation being determined through a trial.

Other issues that arise during a condemnation process include costs of relocating, the rights of a tenant who is leasing property that is condemned, issues that are specific to commercial and industrial properties and environmental issues.

Going through a condemnation proceeding can be an emotional experience. The attorneys at Visser & Bolhouse have handled numerous condemnation matters on behalf of individuals whose property has been taken. Some of the better-known matters we have been involved in include the South Beltline project and Millennium Park. We would be pleased to meet with you to discuss any questions or concerns you might have regarding a potential condemnation of your property.

I have heard that selling vacant land is a touch on the difficult side right now, but there are some properties that are getting into a price range that really makes sense.  This property is located just west of I-96 directly off of the new 36th Street exit, and east of Broadmoor.  It’s a 7 1/2 acre parcel, perfect for a church, senior living, or assisted living site.  The Patterson Farm project sits to the north of the property, and another 10 +/- acres could potentially be assembled for use if needed.  The price has just been reduced from $345,000 to $249,000.  It is an incredibly accessible property minutes from shopping, travel (very close to the Gerald R. Ford International Airport), and other amenities.

Sellers are willing to consider a land contract on the condition that they do not take second position to a bank or construction loan.  Any offers will be seriously considered!!

If you would like more information, please contact Chip LaFleur or Chad Razmus via email or at (616) 459-8000.  Additional details can be found on CPIX.net as well.

Add some pizzazz to your listings by featuring real aerial photos in your marketing for your property. Some internet sites can provide good photos, but will never be able to provide some exceptional close-up oblique views that you would be proud of to display in your office or in a marketing flyer on the front cover. As the weather breaks and the sun comes out, now is the perfect time to have some aerial photography completed on your property. From vacant land, small buildings or larger properties, aerial photos are designed to showcase your commercial asset from 1,800 feet above sea level to over 4,000 feet above sea level, giving you multiple angles and close-ups for your reference. These photos include close-up views and zoomed out views showing expressway interchanges, neighboring properties, real traffic, residential housing density, and other features that only aerial photos can provide. Aerial photos in the Grand Rapids commercial real estate market are indispensible in marketing your commercial or residential investment.

Very reasonable rates are offered for your location in Greater Grand Rapids. Call or email Chad Razmus (616) 723-4643 for further details on how to schedule a photo flight.

By Brian Kopp

Echelon Property Management

www.echelonpm.com

syn-er-gy (sinr-je)n.pl. syn-er-gies. 1. The interaction of two or more agents or forces so that their combined effect is greater than the sum of their individual parts. 2. Cooperative interaction among groups, especially among the acquired subsidiaries or merged parts of a corporation, that creates an enhanced combined effect.

-American Heritage Dictionary

Think about the word “synergy” for a moment.  What examples come to mind?  Sports fans will likely relate the word to their sport of choice; mine would be basketball.  It is an indisputable fact that the success of the Chicago Bulls during the 1990′s was due, not to Michael Jordan (though his role was instrumental), but to all the members of the team working together so that “their combined effect was greater than the sum of their individual parts.”  Michael Jordan did not win 6 championship rings by himself.  Basketball is a game of five people versus an equal number.  Alone, Michael Jordan would have fared very poorly.

This is concept is true of every position in any company.  In countless interviews I’ve made this critical point to employees that I’ve hired: There is no position which is more or less important or deserving of respect than any other.  While it is true that there are varying degrees of responsibility, every position is essential to the success of our properties and company.   We all have roles to play that complement one another.

There may be some of you who disagree with this notion.  It may be tempting for some to think your position/area is more important or deserving of respect than others.  I know that I’ve heard comments of this nature over the years from employees.

Try to imagine a property where no one picks up the trash, shows an apartment, or fixes a furnace.  Or, imagine an office where no one pays the bills, sends paychecks, or orders forms.  What is the logical progression of these inactions?

I think it is easy for all of us (myself included) to take one another for granted rather than appreciate our different contributions.  I’d ask each of you to take a moment to reflect upon your role within the company and how your actions/inactions impact your co-workers and residents.  I think you’ll find that your many successes can be attributed, at least in part, to those standing next to you.

Brian Kopp works for Echelon Property Management in the greater Grand Rapids, Michigan area.  He has 14 years of property management experience at the property and corporate levels.  He has a Master’s Degree in Education and was formerly an SPHR from the Society of Human Resource Management.

Echelon Property Management specializes in apartment real estate management.  Its mission is to acquire and manage real estate investments and deliver above average returns to property owners.  For more information about our services, please contact Brian at bkopp@echelonpm.com.

Management Planning – Our team is prepared to analyze the business environment for your newly rehabilitated property and, within that environment, create a complete marketing strategy including recommendations on how to achieve your objectives for the property.

Rent Collection – Select personnel are assigned the responsibility for following through on rent collections. We recognize that collecting rent is our highest priority in day-to-day property management activity. Our database system automatically triggers a list of those accounts that have not paid within the prescribed time. Phone calls are made and, if necessary, letters are sent. The monthly report includes a full record of all funds collected and the status of any outstanding debt.

Lease Negotiations – Callander Commercial Property Management Department can take full responsibility for negotiating all tenant leases and renewals. Market Analysis – In conjunction with our marketing department we will provide an analysis of competitive market rents, changes in demographics and anticipated absorption levels.

Budgeting – Callander will develop and monitor a budget, which includes everything from maintenance to marketing, personnel to operations. As the year unfolds, the Property Manager assigned to your property will keep you apprised of any budget adjustments with an explanation as to why they are recommended.

Regulatory Compliance – Our team is knowledgeable in federal, state, county and local government statutes as well as administrative regulations, ordinances, and fire, health and safety codes. We keep abreast of these issues by regularly attending seminars and subscribing to journals.

Tenant Relations – Our Management team is committed to the firm belief that it is significantly more cost effective to retain an existing tenant than to find a new one. We are attentive to your tenants’ needs and respond to their concerns immediately. Tenant requests are maintained in a log and the Property Manager is responsible for following through to make sure that each tenant knows the result of its service request.

Marketing Program – We will develop a marketing program that will ensure improved and/or continued successful leasing as well as a quick sale, if applicable. A comprehensive program that will include such essential marketing tools as the inclusion of your property in our brochures, advertising, flyers and site signs.

Maintenance – Our Property / Asset Management Department will develop, implement and provide monthly maintenance costs monitoring and any required preventative maintenance programs.

Financial Reporting – We are experienced in the financial reporting required by institutions as well as private investors. We primarily use YARDI as our database. If necessary, we are prepared to use other reporting systems you may require.

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.

There is no property type that demands more hands-on management than MULTI-FAMILY. Residential units require skilled in-house management supported by an experienced on-site staff. The communication between manager and owner requires frequent involvement on a day-to-day basis.  Challenges include the increased cost of vendors and supplies. Our company enjoys some economies of scale due to the many various projects we manage in the Grand Rapids, Kalamazoo, and Battle Creek areas. We understand the importance of finding creative ways to save.

Once widely considered an autonomous property type, INDUSTRIAL markets have recently changed throughout Michigan. Clients with portfolios in outside regions understand the challenges that Michigan has been facing. Our experience in dealing with large-scale industrial complexes to region municipal buildings, best enables us to attract and maintain tenants throughout this highly competitive leasing market. Continued operation of facilities in the most efficient manner possible helps us to preserve and maintain property values.

The management of OFFICE facilities requires unique skills and proven management expertise. Callander Commercial currently represents multiple projects, many of which are multi-tenant complexes comprised of occupants with varying sizes and needs. Recent changes and slowdowns in the economy have presented challenges to office developers and owners looking to attract and retain tenants. Prudential’s management team plays a critical role in recommending and implementing creative leasing strategies.

In RETAIL we understand the importance of maintaining a positive building image. This demands a high level of commitment from management to ensure that the facility is maintained in excellent condition. Retail properties with a high level of sophistication have greater marketability, and bring enhanced opportunity to tenant’s seeking an increase in sales. Since Callander Commercial is locally owned and operated with management offices in both Grand Rapids and Kalamazoo, it is able to service its client’s needs in a timely and efficient manner.