Commercial Real Estate

Medical Mile’s hottest location available for sale! This highly visible location is located at the entrance to “Medical Mile” in downtown Grand Rapids, MI. This existing rehab and/or re-development opportunity can not be passed up with its premier location and recent price reduction! Please give me a call today to schedule your tour!

Go here to view property details: 422 College eBook

Contact Diane Karns for more information, dkarns@ccmichigan.com or call at (616) 459-8000.

852 47th, Wyoming ○ Property Information

Energy efficient office building and call center with easy access to US-131 and 44th Street.  Envelope construction results in significantly lower energy costs, as well as an attractive, professional appearance.  Ample parking and great signage.  Possible seller lease-back available with current tenants, or space could be shared by new owner.  This would be an ideal location for an insurance company or technology company looking to relocate near Grand Rapids or within West Michigan.

Building shows very well, and is currently shared by two tenants.  It is ideal for a call center or could easily be reconfigured for a variety of other uses.  To the south of the building there is a private outdoor break area, as well as patio space between the interior and exterior walls.  Additionally, the building has an expandable presentation room, connected to the kitchen / break room with a movable track wall, essentially allowing the presentation room to double in size if necessary.

To view an eBook click here: 852 47th St. eBook.

Rod Unema

In today’s commercial real estate market, careful planning must be followed in order to complete a successful transaction. One of the critical steps in preparing for a transaction is obtaining a current survey of the property. In my career as a professional land surveyor over the past twenty years, the requirements for a commercial property survey have evolved from a relatively simple and sometimes vague standard to a highly detailed, nationally standardized checklist. The most widely used and recognized survey for commercial property is the “ALTA/ACSM Land Title Survey.” By definition, this is a survey prepared in accordance with the standards and requirements jointly developed and adopted by the American Land Title Association (ALTA) and the American Congress of Surveying and Mapping (ACSM).

The necessity for standardized survey requirements originated as title insurance companies required that in order to insure title to land without exceptions, certain information must be shown on the survey map. In order to meet the title companies’ requirements, surveyors must be furnished with specific information such as deeds of record and recorded easement documents. The two organizations (ALTA and ACSM) formed a joint committee to prepare a list of standards that were agreeable to both sides and provided the property owners with a consistent and quality survey. The first Standard Requirements were published in 1986, and have been updated several times, the most current being the 2005 Standards.

The current published Standards are separated into two sections. The first section lists the minimum requirements and information that must be shown on the survey to be acceptable in both completeness and accuracy. The second section (“Table A”) lists the optional survey responsibilities and specifications. With these optional items, the survey may be “customized” to meet the specific needs of both the buyer and the seller. A few examples of “Table A” items are: flood zone information, existing ground contours, or utilities serving the property. For the complete list of the minimum and optional requirements, go to the ALTA website: http://www.alta.org/industry/ALTA2005_Standards.pdf

Since the majority of commercial or industrial real estate transactions will require this type of survey, a professional surveyor should be contacted and an “ALTA/ACSM Land Title Survey” specifically requested. When ordering the survey, the following information should be furnished to the surveyor: 1) the legal description of the property (from a deed or title commitment), 2) a copy of the title commitment, if available, 3) the optional “Table A” items to be included in the survey, and 4) any specific certification language and/or requirements, as many lenders and national chain businesses have their own requirements in addition to the minimum ALTA standards. Once the surveyor has this information, an accurate estimate of cost and time of completion can be prepared. Every property is unique and the cost and timing of a survey will vary based on the acreage of the property, the existing improvements, the survey requirements, and weather conditions. ALTA surveys can range from less than $1,000.00 in one week’s time to over $50,000 with months to complete.

Once the survey has been ordered, the surveyor can proceed with the necessary research, field work, drafting, and preparation of the certification to complete the survey map. It is then reviewed by the buyer’s and seller’s attorneys, real estate agents, and the title company. During this process, it is common for some revisions, additions, or deletions to be made to the survey prior to the final closing on the property.

My experience over the years has convinced me that the “ALTA/ACSM Land Title Survey” is the right tool for most commercial and industrial property transactions. It is nationally recognized and accepted by lending institutions and title companies. The minimum standard requirements provide a consistent and dependable survey, while the optional “Table A” items allow the survey to be customized to meet the needs of the entities involved in the transaction. Commercial real estate transactions and surveys can be complicated; therefore, it is advantageous to work with a real estate agent or attorney for the details of the survey and title work. When ordering a survey, it is wise to check with two or three local surveyors for cost and timing estimates. It is important, however, to establish a good working relationship with a surveyor who will provide a quality job at a fair price. Standardized requirements and professional relationships will ensure a win-win situation for all parties involved in commercial real estate surveys.

Rod is the Survey Department Manager at Exxel Engineering, Inc. in Grand Rapids, MI. He graduated from Michigan Technological University in 1980 with a degree in Land Surveying, worked in Ketchikan, Alaska from 1980 to 1985, and at Exxel Engineering from 1985 to the present. Rod is a Licensed Surveyor in Alaska and Michigan. He is a member of the Michigan Society of Professional Surveyors, has served on the Ottawa County Remonumentation Committee and Peer Group since 1993, and is an affiliate member of Commercial Alliance or Realtors.

Chip LaFleur

I recently had the opportunity to sit down briefly with Todd Ernst, a real estate broker who is handling the production needs of ACTIVESITE.  Working in Commercial Real Estate brings us into a tremendous variety of buildings, and that is one aspect that I really enjoy; the variety of space, the combination of usability and design, the meeting of efficiency with aesthetics.  ACTIVESITE provides an opportunity to experience different venues as they go through the transition between different uses and developments.  They offer a glimpse at the inner workings of various properties and developments as they transform from one use to another, bringing together local artists, businesses, and development communities.

Throughout the ArtPrize event, ACTIVESITE is hosting a huge variety of different events at their current installment at 40 Monroe Center.  Take a look at their calendar for specifics.

Additionally, ACTIVESITE has been doing a tremendous job of using social media and technology to promote what they do and their upcoming events.  Check out their blog here: http://blog.activesite.org/, you’ll find links to some videos of the collaborators and get a better idea of what they’re putting together.

We’re all looking forward to stopping by their installation, if this is the first you’ve heard of them and what they’re doing, feel free to send me a note (clafleur@ccmichigan.com) or add a comment, I’d love to hear what everyone else thinks about this project!

Got Worms?

The oldest Bait and Tackle Shop in Greater Grand Rapids is available for sale; it sits in an excellent location on 28th St. just east of Wilson Avenue.  Huge traffic counts, and potentially a great place for future development.  Perfect spot for a quick stop-off before hopping on the highway, or if you dare, fishing in the Grand River!  The property is currently listed for $275,000; the building is approximately 2000 sq. ft.  Included in the asking price are the fixtures, inventory, and equipment.  There is a home attached to the store as well, which could be occupied by the owner or rented out for additional income.  Financial information is available with a signed confidentiality form, please feel free to contact clafleur@ccmichigan.com or dkarns@ccmichigan.com for any further information – or just click on the photo above to be taken to CPIX.net for the basic listing information.

The Economic Development Corporation allowed us to reprint a few items from their newsletter; if you have any interest in SBA financing, or just getting financing for commercial property, this is one of the best and most viable methods available.  The EDF has the experience and competence to walk you through the process.

Economic Development Foundation

SBA 504 Loans

Both 10 and 20-year debentures were sold this month.  The effective SBA 504 September 20-year rate remained close to its lowest in many years at 5.14%!  The September 10-year debenture rate came in at 4.25%.

Last month we approved our first refinance project at SBA.  Overall the process went very smooth.  Below we have outlined a few items to help lenders when a potential refinance project comes up.

The second article is from the Office of the Comptroller of the Currency (OCC).  They are hosting a Webinar about SBA Lending and the American Recovery and Reinvestment Act of 2009 (ARRA).  The focus will be on changes made to SBA programs from the ARRA.  We invite all that are interested to follow the link below and sign up.

Please call anyone at our office with questions you may have. If you think you have a potential 504 borrower, please contact EDF in the early stages of the process. This will allow us to correctly structure the deal and go through any eligibility issues that may come up.

Our main office number is 616-459-4825.

Refinance Items

After successfully submitting our first refinance application we would like to suggest a few tips for the lenders who are looking at future SBA 504 refinance projects.

* The debt to be refinanced may not exceed 50% of the new 504 project cost.

* Was the debt used to purchase 504-eligible assets?  For example, to purchase land, building, equipment, or construct a building.

* Is the debt to be refinanced lent to the new SBA 504 borrower?  We cannot include debt from an affiliate.

* Is the existing debt collateralized by the fixed asset?  The 504-eligible fixed asset collateralizing the existing debt must also collateralize the 504 loan (if the asset securing the existing debt is at a different location than the Project Property, then separate appraisal and environmental reports are required).

* Is there a substantial benefit by refinancing the existing debt?  SBA’s definition of a substantial benefit is an annual savings of 10% or more.  We have created a template to use.  Please call us and we can determine if there is a 10% savings.

* Borrower must have been current on the existing debt for not less than 1 year preceding the date of refinancing.

If you do have a SBA 504 prospect that includes a refinance please give our office a call.  We would be happy to walk you through the steps and advise on what documents are needed to obtain SBA approval.

SBA Lending Webinar

The Office of the Comptroller of the Currency will host a live Web and telephone seminar that focuses on changes to SBA Lending Programs resulting from the Recovery Act.  These loan programs represent opportunities for banks to provide long-term financing to small business customers who would not otherwise be able to find the type of financing that allows them to preserve capital for long-term growth.  The event will take place on September 21, 2009 from 2 to 3:30 PM (EST).Participants will have an opportunity to ask panelists questions during the seminar, online, or by telephone.  Panelists include Barry Wides, OCC Deputy Comptroller for Community Affairs; Grady Hedgespeth, Director, Office of Financial Assistance, SBA; and Pat Thomson, President, Grow America Fund, National Development Council.

The cost is $75.  If you are interested in signing up for this Webinar, please follow the link below:

http://www.occ.gov/up_event.htm , or call (800) 775-7654 between 7 a.m. and 5 p.m.

I believe that we’ve made it through the transition to our new host!  I think that we just outgrew out previous hosting service, they were great to work with for this blog, and I still have another hosted there that will probably stay for the time being, but we have gotten to the point that we needed to have access to support staff right away, and can no longer really afford the time lapse between an error (usually my own fault) and a solution.

So we made the move to Hosting.com, formerly HostMySite.com.  I know this isn’t the most real estate related post we have ever posted, but since they did such a good job for me, I wanted to publicly express my appreciation.  Moving any site can be a challenge, especially when it’s live, and some downtime is probably to be expected; but Hosting.com’s help staff was on call throughout the process.  If something went wrong (again usually my fault), they worked with me to get it fixed.  Normally they just took care of it for me, but when warranted they helped me see the problem so I could avoid it in the future.

If you ever have need for hosting services, make sure you at least check them out, they are at www.hosting.com.  I am not an affiliate of their site in any way, nor do I stand to gain by click-throughs or any purchases made through them.  They just do an outstanding job that is much appreciated.

If you see anything here at CREGR.com that isn’t working right, please send me a note at clafleur@ccmichigan.com.  I’m sure a few things will pop up, when I imported the blog data to the new installation it somehow stripped out several of the pictures and graphics, so I had to go through manually and replace them; I’m sure there were some other things that I missed as well, so please feel free to let me know.

Also, I’m always interested in guest-bloggers and contributors, if you feel that you have something of value that you could contribute to our discussion of and around commercial real estate in West Michigan, please let me know!

CREGR.com has been steadily, if gradually, growing in readership since its inception.  If you have been here a few times, thank you for coming back, and I hope that we are able to deliver some valuable content to you.  It is our intention to continue to provide timely, worthwhile information that may help you reach your goals, whether you are trying to build a portfolio, find a perfect location for your business, or work on the sale of an asset.

Whether you have found us through Google, a direct link, or just heard of our site and came here directly, we hope that you found something of value.  If this is your first visit, I hope you return; we try to post at least once or twice a week, as long as we have something worth sharing.

Over the past few weeks, I have noticed a decline in the quality of service of our current website host, so I am in the process of changing over to a more stable platform.  Making a change like that takes time, so I hope you will be willing to put up with our dust over the next week or so, while everything gets worked out and set up.  If everything goes according to plan, I will post an update about the service I receive at our new host; I have used them several times in the past for different projects and they have been great to work with.  The only reason I overlooked them this time was because they did not have an obvious WordPress installation, and I didn’t want to perform a complete install without tech support.

Thank you for your readership, and if there is ever anything that we can help you with, or any topic you would like to see covered here, please feel free to drop us a line, I can always be reached at clafleur@ccmichigan.com.

Thanks for visiting www.cregr.com again, if this is your first time, please take a moment to review the site’s content.  As you will see, we at Callander Commercial Real Estate maintain Grand Rapids only commercial real estate blog.  Created to assist our most valuable asset- the people of Michigan!

Starting a business can be a very difficult and time-consuming process.  Fortunately, with persistence and fortitude, sound professional advice, and utilization of key resources emplaced by the state to assist you- the creation of your very own business could be closer than you think.

First, creation of one of the most vital tools to your small business, a business plan.  Why should you take the time to create a business plan?  There are several reasons, a business plan forces you to take a critical look at the business in its entirety and it will be utilized as an ongoing point of reference and direction throughout the life of the business; most importantly- lenders require one.  Make sure to be thorough; a good business plan can double as a financing proposal to lenders.  What is the general format of a business plan? What exactly does a business plan include? Where do I even start?  For your reference, the following link will display sample business plans- take careful note of the formats: http://www.gvsu.edu/misbtdc/index.cfm?id=7C14D071-0515-5F9C-EB7C26E2ECA70535

Next, you will need to determine how your business will be structured.  There are several different ways to posture a business, each having advantages and disadvantages.  Some examples of business structure are; corporation, limited liability corporation (L.L.C.), sole proprietorship, etc…  The following link will provide a bio for each business structure and elaborate on the pros and cons each possesses; http://www.michiganbusiness.us/index.php?nic=michigan-business-structures

Once the appropriate structure is selected you will want to investigate if any licenses, permits, or other state regulations are needed for the operation of your business.  Please note, Michigan does not have a “general” business license (most of Michigan’s occupations/industries require a state issued license).  You can access the Michigan licensed occupations information at the following link; www.michigan.org/medc/services/license or feel free to start with the Michigan Economic Development Corporation (MEDC), Customer Service Assistance Center at 517-373-9808.

Now, let’s examine possible avenues of financing.  There are several costs that you will incur during the initial launch of your new business; rent, equipment, wages, insurance, etc…  Financing options are limited in today’s market, but make no mistake about it- new businesses are still getting financed.  Such sources of financing are; your own capital, banks, government loan programs, etc.  An example of a government loan program is an SBA (Small Business Administration), which provides financing for small businesses that cannot obtain reasonable financing from traditional sources.  The following link is a good resource for SBA information and also how the American Recovery and Reinvestment Act ties into the former; http://training.sba.gov:8000/recoverybill

Also, on a local level (and where I am going to recommend you start), there is the SBA 504 Program- provided by the Economic Development Foundation.  These programs provide long-term fixed financing for acquisition of capital, equipment, and buildings-funded from the sale of U.S. government guaranteed bonds.  Our local contact in Grand Rapids for further information of the SBA 504 Program is Sandra Bloem (President of the Economic Development Foundation) her contact information is as follows: 1-888-330-1776 or visit their website at www.growmichigan.com or email Sandra at info@growmichigan.com

As mentioned in the beginning, I selected the more universal points of interest to elaborate on per your new business development.  Each new business development will be unique unto itself; therefore a more thorough process is needed than just the aforementioned points.  A great resource is “The Guide to Starting a Small Business” provided by Michigan Small Business & Technology Development Center; http://www.michigan.gov/documents/business/Guide_to_Starting_a_Small_Business_271487_7.pdf (With special attention on the “Business Start-Up Checklist” section)

In closure, I truly hope that this article reached those that it needed to.  Remember Michigan, stay positive, “Be the Light” for others to follow, and never forget- YOU are the fuel for change.  Best wishes to all who visited the blog yesterday and today.

If you have any questions, need additional contacts/information, etc… please do not hesitate to call.

Greg Mahalick

Calland Commercial

616-459-8000

gmahalick@ccmichigan.com

***(Also, please note, this article is only intended to assist you in your efforts and will not include the complete “A to Z” guide as each scenario is unique and will require different tactics.  I touched on the larger more common points of interest in business implementation and then directed you towards such resources as the MEDC (Michigan Economic Development Corporation) and other state and federal organizations for additional information)***