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!

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.

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

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!

April’s SBA 504 20-year effective rate is 5.77%.  10-year bonds are funded every other month so the next sale will be in May.  The March SBA 504 10-year bond effective rate was 4.60.  (Rates may vary slightly based on approval date.)

The 12^th Annual Michigan SBA Lender’s Conference was held on March 23, 2010.  It included several informative break-out sessions on SBA lending.  The conference also gave EDF the opportunity to honor our 2009 Lender of the Year, Brent Kehrwecker of Byron Bank.  A portion of the press release is below.

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

The last article is another reminder regarding the fee waiver extension through April.  A borrower has until the end of the month to obtain an Authorization that includes the fee waivers.

Lender of the Year

Economic Development Foundation (EDF) is pleased to announce Brent Kehrwecker, Second Vice President, Commercial Banking Loan Officer at Byron Bank, as their “Small Business Administration (SBA) 504 Lender of the Year”.  This award is given annually to a lender that shows leadership and resourcefulness by working closely with small businesses to help them finance fixed assets through the SBA 504 program.

Brent was awarded this honor by partnering with EDF on several SBA 504 loans throughout 2009 that assisted small businesses to create and retain jobs in Michigan.  “We need bankers like Brent that help the State of Michigan back to economic recovery by lending money to businesses that are expanding”, EDF President Sandy Bloem said during the presentation at the Michigan SBA Lenders Conference in Lansing on March 23, 2010.

“Despite obvious challenges in our economy, Byron Bank remains dedicated to supporting the growth of the West Michigan business community, ” said Joel Rahn, Byron Bank’s Executive Vice President, Commercial Banking. “Brent’s work with the SBA 504 program is an excellent example of this. Brent is an important part of our lending team.”

Thank you Brent for being a great advocate of the SBA 504 program and Economic Development Foundation!

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!

Recovery Act Update

New legislation was introduced and passed by the House and the Senate on March 25, 2010 (H.R. 4938) to provide additional funds to cover the fees for both 504 and 7(a)!

Up to $40 million is made available for 504 and 7(a) fee reductions and 90% 7(a) guarantees.  These new funds should enable SBA to continue providing loan authorizations for much of April.  The bill also extends the sunset on 90% 7(a) guarantees to April 30th.

There is also a bill that has been approved by the Senate and is being considered by the House (H.R. 4302) that will provide both the $5 million debenture limit and the ability to refinance existing debt through 504.  Stay tuned!

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.

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.

Chip LaFleur

Great to see some local municipalities taking initiative to get the real estate market moving!

The City of Kentwood has received a $200,000 EPA Brownfield Assessment Grant for Hazardous Substances.  The city can complete the following activities on eligible brownfield sites:

• Phase 1 and 2 Assessments
• Environmental Site Assessments (ESAs)
• Asbestos and Lead-based paint surveys
• Baseline Environmental Assessments
• Due Care evaluations/site reuse planning
• Brownfield Redevelopment planning and marketing

A business or property owner can request that the city undertake the assessments and other activities on their behalf.

Eligible sites are:

• Properties that are in the city of Kentwood and are contaminated or suspected of being contaminated by hazardous substances
• Properties that meet the eligibility criteria of the city
• Sites that meet the EPA eligibility requirements

Priority sites are:

• In a targeted area where there is a desire to encourage redevelopment, such as the Division Avenue corridor,  and older industrial areas, such as 32^nd Street
• Sites with high redevelopment potential
• Sites that present an imminent danger to human health
• Sites that will result in additional capital investment, create jobs, and retain existing jobs

Eligibility Criteria:

• An eligible site must be a suspected brownfield site
• Parties that are potentially liable for the contamination are not eligible to use the funds
• Proposed projects need to demonstrate the potential for capital investment and/or create retain jobs

The City of Grand Rapids, the City of Wyoming and the City of Kentwood have all received EPA Assessment grants, and have guidelines for use that are similar in each community.  For more information on Brownfield Redevelopment just give me a call or drop an email to clafleur@ccmichigan.com!

346 Wealthy

346 Wealthy St. is absolutely perfect for the right user!  Possessing the historic interior of most Heritage Hill properties, this opportunity definitely stands out from the rest.  There are a total of 6 to 7 offices on the lower floor, totaling around 1,200 SF of useable space  that could be demised to achieve just about any interior office design!  Not only is the office space priced to lease but also the upstairs portion of this building is 100% occupied with 4 separate residential apartments; the property is cash flowing and a great buy for an owner-occupier at $190,000! The possibilities are endless here; but hurry because downtown office space price this aggressively with such close proximity to the expressway doesn’t last long! Give Greg Mahalick or Chip LaFleur a call today to schedule your showing.  616-459-8000

*Make sure you are also following Greg & Chip on Twitter for real-time industry updates and news:

@GregoryMahalick

@ChipLaFleur