Commercial Real Estate

Diane Karns, CCIM recently represented both the Landlord and Tenant in the leasing of 1,000 sf of office space in Rockford, MI.

Acclaim Private Home Care’s corporate office is located in Kalamazoo, MI and specializes in the highest attainable quality of compassionate health care in a home environment.  Acclaim Private Home Care, Inc. works closely with the person that has the disability, their families, physicians, case managers, and discharge planners to insure a smooth transition to their home.  They felt a need to be in the Rockford market as their business needs were expanding.  Bella Vista Drive offered them exactly what they were looking for in a new office location.

Welcome to Kent County Acclaim Private Home Care!

May’s SBA 504 20-year effective rate is 5.52%.  10-year bonds were also funded this month, and the 10-year bond effective rate was 4.60%.  (Rates may vary slightly based on approval date.)

The first article below congratulates one of our existing customers; DornerWorks, Ltd.  The company was named one of the 50 companies to watch for 2010 at the Michigan Celebrates Small Business Awards!

The second article details the SBA ReadyTalk Session on May 6, 2010, offered by SBA’s Detroit District Office.  Details and directions are in the second article below.

50 Companies to Watch for 2010

We would like to congratulate one of our existing customers, DornerWorks, Ltd., for being named one of the 50 companies to watch for 2010.  The announcement came at the Michigan Celebrates Small Business awards in Lansing on April 29th.  DornerWorks financed a building purchase and renovation in 2007 using an SBA 504 loan with EDF.  This expansion helped create almost 50 jobs!

DornerWorks, Ltd is an engineering consulting firm located in Grand Rapids.  The company was founded in 2000 and provides expertise on embedded systems, for example, airplane flight controls or surgical tools where people’s lives could be affected by a system failure.

DornerWorks, Ltd has seen growth in recent years due to an expansion of their services to the medical markets.

Again, congratulations to DornerWorks, Ltd on being named as one of the 50 companies to watch for 2010!

SBA ReadyTalk Session

The next monthly ReadyTalk session for lenders is scheduled for Thursday, May 6 at 10:00 a.m. and will cover the following topics:

• Recovery Act update
• Lender portal presentation
• Updates on loan activity
• General Q & A

ReadyTalk is a Webinar program utilizing the Internet and a conference call system. To access the system:

From your computer:

1. Logon to www.readytalk.com

2. Login as a participant using the access code 3051501

3. Enter your name, email address, and company name as requested

From your telephone:

1. Dial 866.740.1260

2. Enter the Access Code 3051501 and press #

3. Say hello!

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

You don’t need to win a federal government contract to have the federal government as a client.  Many businesses are realizing the value of partnering with HUBZone, 8(a) and Service-Disabled Veteran-owned certified companies.

The federal government is the largest purchasing organization in the country, procuring over $200 billion in goods and services each year.  Much of this is awarded to small businesses.  However, there is a greater advantage for those businesses that can qualify for HUBZone, 8(a) and service-disabled veteran (SDV) certification to access set-aside programs.

HUBZone certification requires the business be headquartered in a HUBZone (historically underutilized business zone) qualified area, 51% controlled by US citizens and employ 35% of their workforce who reside in such an area.  8(a) certification requires the business to meet the small business standards, be controlled by socially and economically disadvantaged individuals and demonstrate a potential for success.  Service-disabled veteran must be a small business, controlled and no less than 51% owned by veterans.  The certification process is not difficult and the staff at the Michigan Minority Business Enterprise Center can assist you with this.  However, the real work and opportunity begins after you are certified and looking to market your status to the various federal (and local) agencies.  See the tip list below on how to make the most of your certification.

Not able to qualify, don’t give up!  Partnering is a successful path to accessing government contracts. Many certified firms are looking for teaming opportunities to expand their capabilities to win larger contracts.  Creating a partnership requires a high level of trust, cooperation and high level of planning.  The partnership can be for a joint-venture which is commonly used for a specific project or length of time (i.e. servicing a client on a construction project) or a strategic alliance in which the companies remain independent but leans on each other for additional capacity, knowledge and ability.

Winning a federal government contract is not easy, no matter what the books, experts, and spam emails may say.  Just like the private-sector, suppliers must do their homework- research the client to understand their needs, analyze their buying habits, and read, re-read and read again (can we stress this enough!) the request for quotes (RFQ).  Government suppliers must be proficient in federal acquisition regulations (FAR), registrations & certifications (CRR/ORCA), and most importantly where to go for help.  Contact us at the Michigan Minority Business Enterprise Center, 616.776.1724 or visit our website, www.mmbec.com.

Tips:

• Contact your local Minority Business Enterprise Center office to become a client, www.mbda.gov
• Make contact with the agencies that buy your products and services through their Office of Small and Disadvantage Business Utilization
• Attend local sessions on how to market your certification
• Ask the Center to assist you in identifying procurement opportunities and preparing your bid

Valencia Cooper is an Executive Business Consultant at the Michigan Minority Business Enterprise Center.  She works with minority-owned companies to provide them access to markets, access to education and access to capital.  She can be reached at 616.776.1724 or vrcooper@mmbec.com.

A few months ago I wrote an article titled  “Forced Entrepreneurism,” a growing trend in today’s economic climate.  Gone are the days of a 30-year plus factory job and in its stead are individuals who have been knocked off their track 10 years too soon – forced to hit an ever declining job market.  What is one to do?  Many have gone into business for themselves; often pursuing lifelong dreams of owning their own restaurant.

Well, it just so happens that today I am proud to offer just that, an opportunity to own your very own restaurant.  Well-established, profitable, locally involved restaurant seeks new ownership.  Loyal customer following, brand new equipment and furniture, and solid profit margins make this a must see for anyone serious about owning their own business.

Due to the sensitivity of this sale, all interest will be handled case by case and confidentially.  All interested parties will be subject to a confidentiality agreement and credit application prior to disclosure of address and internal data.  If you would like additional information pertaining to this opportunity please give Chip LaFleur or me a call today to begin the process- 616-459-8000.  As always, to our loyal readership, make sure you are following us on Twitter for real time, local industry updates:

@GregoryMahalick & @ChipLaFleur

Thanks for visiting the blog!

Greg Mahalick

2130 Enterprise offers numerous benefits to future tenants.  This class B office is situated off of 44^th 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.

Guest Post by Duke Long, Broker/Owner in Lafayette, IN

So there you are sitting in front of you computer searching around and looking at commercial property.  Thinking well, what am I looking at?  What’s out there? What’s available? What’s the market like?  And they’re asking WHAT for that property down the street?  Simple straight forward questions that any property owner would have. What are some basic questions you should ask yourself if you were thinking of putting your property on the market?

1. How Much Is My Property Really Worth?

Should I have an appraisal done before I put it on the market?  Some of the data that is out there and the numbers and pricing placed on property; is it relevant to the market today?  What is the average market time for my type of property?  Are my taxes in line with similar properties?  Does that affect value?

2. How Does My Property Compare To Similar Properties In My Area?

Of course your property is the prettiest, and the most well-maintained.   You have put a ton of money, time and effort into it.  Be realistic.  Most buyers will look at the data. Period.  A commercial property sale is not usually and emotional transaction.  Is it in an A, B, or C type condition?  What potential improvements can you do to make to the property to make it more marketable?  Don’t be cheap.  Five or ten thousand dollars spent now may mean Sale or No Sale!  Just because you heard that X property went for X number does not create a market for your particular property.

3. Why Am I Selling, Really?

Is it bail out and go to Florida time? Was this carefully planned between you and your financial advisers? Are your expectations realistic about price and time on the market?  How much input and or willingness to stay away from the transaction are you capable of?  How qualified are you to help?  What type of seller are you?  Can you take consultation and or advice?  Which of course leads to…

4. Which Commercial Real Estate Professional Should I Use?

Do they really know their local market?   Talk to them. Ask questions like, “You would price my property at X and why?”  Make them prove it with lots of data.   Check them out online!  You don’t think that matters?  Where did you start your property search, the yellow pages?  Where do you think your potential buyer will come from?  I have been in this business for far more years than I would like to admit.  There are some incredible people in my profession .They posses some incredible knowledge and skill sets. Seek them out.

Duke Long

Broker/Owner whose passion is Commercial Real Estate with focus on Technology, Social Media, and Networking. Lead instigator of CREBARCAMP.

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.

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)***

Posted with permission from BolhouseLaw.com, original article here: http://www.bolhouselaw.com

Author: Jodie L. Roossien

You’ve heard the expression, ‘good fences make good neighbors.’ Obtaining a survey, when buying or selling real estate, makes for even better neighbors. Whether you are buying or selling real estate, residential or commercial, you should always obtain a survey of the property which is the subject of the sale.

A property survey is a sketch or drawing, showing the legal description and the boundary lines of the perimeter of a property. The survey also includes the dimensions of the boundary lines of the perimeter of the property and any pools, fences, or buildings (including barns, sheds, gazebos) on the property.

A licensed surveying/engineering firm can provide you with a survey. Each surveyor or engineer must be certified by the State of Michigan. You do not need to provide anything to the surveyor. They will review the county records to obtain the legal description for your property. The city or county will also have plat map books, showing the location of your property. The typical cost for a survey of residential property, an acre or less in size, is around $300. A survey of a larger piece of residential or commercial property can cost much more. You should ask for an estimate of the cost when you call to schedule the survey.

The typical Buy/Sell Agreement states that it is the Seller’s responsibility to provide the Buyer with a survey; however, it is a negotiable cost meaning you can negotiate whether the Buyer or the Seller will obtain and pay for the survey. The Seller has a legal obligation to provide the Buyer with ‘clear and marketable title.’ This means that if any other parties have a right to use the Seller’s property (i.e. a shared driveway with a neighbor, oil or gas lease interests, a license to hunt on the property, or Consumers Energy’s right to access the property to repair utility lines), the Seller must disclose these rights to the Buyer before the closing. If a neighbor’s fence is located on the Seller’s property, it is the Seller’s obligation to move the fence before the Buyer is obligated to close.

The Buyer should review the survey to ensure that they are buying the property that they think they are buying and to be aware of any interests of other parties. A Buyer should not accept an ‘old’ survey from the Seller. Often, a Seller will offer to provide a Buyer with a copy of a survey they received when they purchased the property, rather than paying for a new survey at the time of sale. Generally, a lender will not accept a survey that is more than six months old. Further, things may have happened since the Seller purchased the property, such as the Seller granting rights to use the property to other parties, fences being moved, etc.

Whether you are the Seller or the Buyer in a real estate transaction for the sale of residential or commercial property, you should obtain and review a new survey. You should be sure that you understand the boundaries of the property and the interests of any other parties. Whether you are the Buyer or Seller in a real estate transaction, it is important to know your boundaries before closing.

Bolhouse, Vander Hulst, Risko, Baar & Lefere is a team of dedicated attorneys, legal assistants and support staff committed to providing all our clients, from the young family in need of a will, to the large corporation in need of tax planning, with the highest quality legal representation in the most cost-effective manner possible.