Commercial Real Estate

Chip LaFleur

This may come as a bit of a surprise to many, but in the coming weeks, my family and I are about to embark on a bit of an adventure into the Great American Southwest.  Some family business necessitates a move to the great state of Texas, fortunately one of the few areas of the country that has been little affected by the current economic climate.  And although the economy is not our main reason for relocation, we are glad to be headed off toward a state that is doing well, at present.

That being said, I do have a few things to say as we head off on our journey.  First of all, I thoroughly believe in everything represented by Callander Commercial.  It has been an incredible place to work, and I am not sure that I will ever experience working with such an incredible group of people, led by such an excellent and intelligent leader in Ellie Callander.  In my  time here, we have lacked nothing in the way of tools, instruction, and support in our efforts to market our listings to the public.  Consistently we were given new tools, better technology, and a wider reach by the company.  This has been the result of constant research into new platforms, tools, and technology.  While the technology changes, the means of digging into it and the resources devoted toward determining what is flashy and what is effective are hallmarks of a successful endeavor.  I am confident that Callander Commercial will continue to be a leader in the tools they provide for their agents and brokers.

Over the past year especially, Michigan has endured some challenging times in commercial real estate, and I do not presume to make predictions about where we are going or how we will get there.  But I do believe that the brand of Grand Rapids has only improved over the past year.  We are seeing development, we are seeing a wonderful culture emerge in many ways here in town, and I think that will continue to grow and prosper.  I will enjoy being able to visit and to observe the changes and improvements as they continue to happen.  Grand Rapids will always be my hometown, and I am proud to be from here.  I think we have a great culture of giving back to the community, and I believe that is the result of some outstanding people taking the lead in doing that.  I hope to see that continue here, and I hope to be able to observe such a quality in people when we settle down in Texas.

Over my time here, and especially over the past year, I have been able to enjoy some new relationships that I did not think existed in the world today.  I have gained friendships through work and through community involvement that I will continue to appreciate and hope to maintain, even if we no longer live in this area.  People are beautiful; their qualities are not hard to find and the diversity that we have started to see growing here in town is a testament to that.  I have learned a great deal about acceptance of diversity over this past year.  It has been a lesson that was long overdue in my life, but one that I am glad to have finally gotten my head around more thoroughly.  Individuals here in Grand Rapids have been instrumental in helping me to overcome personal biases that I did not even realize that I possessed, and they have helped me to leave them where they belong: in the past.  I would not be the person I am today without the influence of some of the great people that I have come to know here in Grand Rapids.  I hope they realize the positive impact they have been able to have on me and others as they get to know them.

Of course, there is always room for improvement.  There are and probably always will be people that continue to promote  intolerance.  There are groups that work to enforce an unquestionable authority system, and that work to quiet any dissent.  While such groups can achieve a temporary success, eventually free people will overcome, and those individuals that were unable to have their ideas questioned will find their ideas lacking in substance.  Any sound idea can withstand criticism; those that believe that criticism of an idea is wrong simply support weak, unsound ideas.  I hope to see the people of Grand Rapids and West Michigan continue the trend that I have observed in moving away from ideas that do not stand up to critical thinking and examination.

The commercial real estate culture here in Grand Rapids has grown in this area specifically, and I hope to see it continue to do so.  While it started slowly, the inertia that the commercial real estate industry in Grand Rapids has been building, especially in area of technology, has been increasing with no indication of slowing down.  I have appreciated being able to be involved in some of the changes that have had a broad effect in the commercial real estate world of Grand Rapids.  I hope to see those changes and adaptations continue to take root, to develop and be refined over time.  Good change is seldom quick, so I hope to see people continue moving in the right direction; I have no doubt that they will.

Greg Mahalick and I have had the great privilege of working with some outstanding clients, and I am working on letting each one know about my plans to relocate.  If you are a client and I have not yet been able to reach you, I apologize and will work to correct that as soon as possible.  I will be leaving you in good hands with Greg and the rest of the team here at Callander Commercial in Grand Rapids.  You can be assured of the best possible service and the widest possible marketing net being cast for your properties.

To Diane Karns, Jeanne LaSargeBono, Pamela Collins, Melissa Saylor, and my listing partner-in-crime Greg Mahalick; it has been an absolute pleasure to work with all of you.  You are a unique group with outstanding qualities, and I have appreciated the privilege of having been able to work with you over the last years.  Thank you for being such wonderful teachers, business partners, and friends!  To my colleagues at Callander Commercial in Kalamazoo, keep up the good work as well!  You  own the market in Kalamazoo; continue providing the level of service that you have excelled at through the years that has brought you to the level you have reached!

To the rest of Grand Rapids and West Michigan – keep an eye on this space!  I am working on some things in Texas, when I have them set up, I will point you in my direction.  In the meantime, thank you for everything; thank you for reading this blog and for your interest.  I wish you the best in everything; this is and will always be my hometown – keep putting it more prominently on the map as you have been.  I look forward to seeing great things come out of this part of the world!

Greg and Chip had a great closing experience a few weeks ago, and even received a great writeup from Client, Debora Jandle, L.M.S.W.  The property was small office building right on the edge of Heritage Hill, and the buyer was a law firm looking for a Grand Rapids location.  Always nice to hear from our clients about the work that we are doing, and we certainly hope to have more to add throughout the rest of 2010!

Congratulations to the sellers and the purchasers of a great location near downtown Grand Rapids!

June’s SBA 504 20-year effective rate is 5.29%.  10-year bonds are funded every other month so the next sale will be in July.  The May SBA 504 10-year bond effective rate was 4.61%.  (Rates may vary slightly based on approval date.)

On Thursday, June 3, our Executive Director had the opportunity to attend a Federal Reserve event in which the guest speaker was Federal Reserve Chairman, Ben Bernanke.  The article below highlights the event.

The second article is a repeat of the newsflash sent out last week.  At this time the SBA loan queue is still in place for projects seeking the reduced fees and additional funds have not been approved yet to extend the Recovery Act program.  It is anticipated that this will be approved by Congress in the next few weeks.

Fed Chief Speaks in Detroit

Thursday, June 3, Federal Reserve Chairman Ben Bernanke spoke to a group at the Federal Reserve Bank of Chicago’s branch in Detroit.  Mr. Bernanke’s speech focused on urging banks to do more for Small Business.

Mr. Bernanke stated that outstanding loans to small businesses declined to $660 billion in the first quarter of 2010, from almost $700 billion two years ago.  He wasn’t clear if this is a result of reduced demand or tightened credit standards.

Mr. Bernanke stated that in 2009 only 40 percent of small businesses that tried to borrower had all their needs satisfied.  As a result, he urged banks to examine loan applicants’ businesses thoroughly and to “avoid mechanical, automatic rejections” based solely on the companies’ industry, location or other negative factors.

Our Executive Director, Sandy Bloem, had the opportunity to attend the event held in Detroit. “I’m encouraged to see that the Federal Government is recognizing that small businesses are the engine that will create the new jobs in our economy, and that the owners are having challenges in getting access to capital.  Now is the time for Congress to continue their support for the SBA programs.”

To read the full article:

Fed Chief Urges Banks to Do More for Small Business

Loan Queue

Once again, funds provided by the American Reinvestment and Recovery Act have been exhausted and SBA has reactivated the loan queue.

As part of the Recovery Act enacted on Feb. 17, 2009, SBA received $730 million to help small businesses, including $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to reduce borrower fees on most 7(a) and 504 loans. The funds for these programs were exhausted on Nov. 23, 2009, and an additional $125 million was provided in December. Those funds were exhausted in late February. An additional $60 million was provided to extend the programs through March. SBA was authorized for an additional $40 million in late March, and an additional $80 million was provided in mid-April to support the programs through May 31.

A bill for extending the fee waivers is currently in front of Congress, however, it has not yet been passed by both the House and the Senate.

Please call EDF for any questions regarding the loan queue.

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

*Due to the confidential nature of this transaction some information will be withheld without a proper confidentiality agreement in place*

Callander Commercial is very proud to present this local family restaurant business opportunity. Recently remodeled and forecasting $415,000 in gross sales for 2010, this is a great opportunity for a first time owner/investor or a seasoned veteran. Very favorable lease terms, solid loyal following, and great proximity to residential housing makes this opportunity very attractive. It is located on a major thoroughfare averaging 30,000 cars daily traffic and has great foot traffic due to some of the businesses located next door.

Restaurant has shown solid growth since 2007 with sales averaging a $40,000 increase for the last 3 years and is on track to do the same in 2010 – around $415,000. Numbers are very healthy with 28% food cost and 25% payroll so far this year. Asking price is 2x what yearly owner benefit amount is projected to be for 2010. Very solid numbers during these difficulty economic times.

Owner operator hours are favorable and current owner is willing to stay on board post closing for employee training, etc. There are still many avenues of additional growth that could be pursued with this restaurant.

*Please note: SERIOUS PROSPECTS ONLY*

Thank You,
Greg Mahalick
Callander Commercial
616-459-8000

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 $235,000; 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.

This is the first time this property has been offered on the market in several years.  This property is extremely well equipped.  The building is 12,000 SF, zoned Industrial and situated on 9+ Acres with a large retention pond in place.  The building has many add-ons, new HVAC, heated floors, AC, rainroom (RV leak testing) and power to 440 available. Currently the front approximately 1/4 of the building is used as retail space, with large windows and easy access, even for larger vehicles or trailers.  Contact Chip LaFleur or Greg Mahalick to schedule a showing!

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.

1143 Electric Avenue, Leighton Twp, MI

Are you looking to reduce your lease rates or overall overhead costs for running your business? This exceptional  (21,270 SF) industrial building is located just east of US-131 off 100th St. and is available for lease at a new lower rate of $3.00 psf.  One of the largest expenses a business will incur is the cost of rent and taxes, and in today’s economic climate many business owners are seeking ways to make a significant reduction in their overhead expenses.  Not only does the property offer a competitive lease rate, but Leighton Township offers some of the lowest property tax rates in the Grand Rapids area.

If you are looking to relocate, consolidate or start a new business, this property located in Leighton Township just south of M-6 and minutes off US – 131 may be ideal for you.  The building offers approximately 2,500 SF office space, 18,770 SF warehouse space, 2 overhead doors, 1 loading dock, sprinkling throughout, 24-32 ft ceiling heights, and a 15 ton crane w/ full length crane way.

Please don’t hesitate to call us at 616-459-8000 and ask for Pamela Collins or Jeanne LaSargeBono, and we would be happy to discuss the advantages of this property and your real estate needs!

First and foremost, I would like to address the Division Avenue Business Association and a special thanks to their President Tommy Brann- without their tiresome work Division Avenue would not be rebounded as significantly as it is.  Please visit their website for further information on membership and business opportunities at http://www.d-a-b-a.org

4044 Division Avenue is truly an amazing “before and after” story- what was once a forgotten vacancy seemed to be transformed overnight into one of Grand Rapids most esteemed custom paint and motorcycle shops- D.C. Customs.  Take a look at some of their creations here: http://dc-customsgr.com

Truly, the fastest closing Chip and I have ever been a part of (offer was signed and closed within 36hrs) D.C. Customs redefines the term haste.  Closed at the end of November and operational within just a couple of months, this business is truly a diamond in the rough and a beacon of light for other aspiring small business owners to follow.  Don’t believe me? Well, check out these before and after photos.

4044 Division Before

4044 Division After

Not yet satisfied, a deserted residential parcel located directly behind the shop (that was included in the sale & scheduled for demolition) is in the process of being built into a custom-bike-themed coffee shop with a lower level tattoo parlor!  Check out the photo below for an update on building progress as of last week!

In closing, if you are looking for a custom paint job (not just limited to bikes) or are in the market for a motorcycle purchase- you have to visit D.C. Customs first!  Stop in and ask for Dave- tell him Greg and Chip sent you.

As always, to our dedicated blog following and those just discovering us, feel free to follow Chip and me on Twitter for real-time industry updates and news:

@GregoryMahalick & @ChipLaFleur

Also, make sure you fan our page on Facebook!

Thanks again for visiting www.cregr.com and if you are conducting business in the Division Ave market place make sure to check out the Division Avenue Business Association ( http://www.d-a-b-a.org )

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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