 BLOWOUT PRICE!
McHenry- Motivated seller has slashed the price on this phenomenal 60,000 SF industrial building on 5.5 acres. 16-22' ceilings, 2 docks, 7 DID's, 12,000 SF multi-tenant office. Fenced outdoor storage. Owner must sell to satisfy bank. Now $1,700,000 ($28.33 psf).
Click photo for specs
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 HOW COULD THEY?
Johnsburg-How could they sell for this cheap? The price dropped AGAIN on this 9,000 SF steel showroom/warehouse on 1.07 acres. 3,600 SF showroom, 5,400 SF clearspan warehouse with 16x14 DID. $349,900 ($38.88).
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 INDUSTRIAL CONDOS
Lake in the Hills-Lowest priced industrial condos in the immediate market. Steel units from 1,902 SF. Must see to believe!
Only $55 psf!
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 BRICK OFFICE ON RT. 14
Crystal Lake-23 unit 2-story building with 70 car paved parking. Some vacancy for user/investor. Ask for rent roll and operating statement. $1,599,000.
Click photo for specs
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 TRANSACTION OF THE MONTH
FORMER ALEXANDER LUMBER McHenry- 5,345 SF showroom plus 21,308 SF warehouse /storage on 2.9 acres. Sold for $440,000. |
Personal Guarantees and the Ideal Loan Workout
By Bruce Kaplan
Prospective borrowers and tenants are often faced with being asked or required to sign a personal guarantee. What this means in general terms is that in order to get the loan or space you want to lease, you need to put y our personal assets on the line and risk losing them if your loan or lease goes into default. Your attorney will nearly always counsel you to not sign personally for anything. But if everyone did what their attorney recommended from a practical perspective, no deal would ever get done. No disrespect meant, of course!
So you agreed to risk everything you own and roll the dice that you will always be able to make the loan or rent payments. Then . . . the unexpected happens. The bottom drops out. The bank or the landlord comes after you with a vengeance. They want blood. All your personal assets are exposed and in jeopardy. Not a good feeling. Bankruptcy may be an option that allows you to save your house. No outcome is pleasant.
But here's an often overlooked pitfall that can blindside you. Let's say you owe the bank $1 million and the value of the collateral is now only $500,000 creating a deficiency of $500, 000. Instead of going after the deficiency the bank graciously says they are going to forgive the deficiency (you don't have to pay it back- how cool is that!) You are off the hook for $500,000. Or so you thought. Enter the IRS.
Although we cannot give tax advice, we have read opinions from tax consultants that say if the indebtedness is forgiven, you may have a taxable event . . . and at ordinary income tax rates! Nothing like kicking a guy when he's down!
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Deloitte LLP's Top 10 Commercial Real Estate Trends For 2012
*re-printed from the December 28, 2011 Oakstone/LAX Morning Minute
Deloitte LLP's commercial real estate outlook for 2012 includes a cryptic subtitle: "A potential pause in recovery momentum." There are, in fact, some market indicators trending downward. However, for ULI members spread across the commercial real estate landscape, the forecast is decidedly more mixed for the coming year, depending on the market sector.
On the positive side, commercial real estate is benefiting from favorable fundamentals and absorption dynamics, with record-low construction activity driving better rent and vacancy trends, particularly in the apartment and lodging sectors. This is attracting greater foreign investment, and overall transaction volumes continue to climb. Meanwhile, there's still a significant amount of unused reserve financial capital on the sidelines, waiting for investment opportunities. So capital availability and improved fundamentals bode well for 2012.
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Investors see commercial real estate as a good bet
*reprinted from latimes.com January 2, 2012
By Roger Vincent, Los Angeles Times
Despite the economy, investors are bullish on the prospects for office buildings, the largest commercial real estate sector, a survey finds. Apartments are viewed as the most favored category.
As 2011 came to a close, some commercial real estate experts found promising signs in often troubled markets.
The office market is gaining interest from investors amid a mixed bag of property-related economic fundamentals such as improvement in employment and business expansions, a recent survey showed.
Commercial real estate continues to offer attractive yields compared with alternative investment vehicles, said respondents to a quarterly poll by consulting firm PricewaterhouseCoopers.
"Despite a sluggish U.S. economic outlook, the majority of surveyed investors view commercial real estate as favorably priced and a good play," said Mitch Roschelle, the U.S. real estate advisory practice leader at PwC, as the firm brands itself.
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Industrial vacancy lowest in 3 years
Copied from ChicagoRealEstateDaily.com
By: Dave Matthews January 09, 2012
(Crain's) - Demand for industrial real estate in the Chicago area surged during the fourth quarter, another sign that the still-fragile local economy is improving.
The vacancy rate for Chicago-area industrial property has fallen below 11% for the first time in three years, according to a report by real estate firm Colliers International. The vacancy rate slipped to 10.6% in the fourth quarter, compared to 11.3% during the third quarter and 11.6% a year earlier, the report says.
Vacancies are at their lowest level since the fourth quarter, 2008, when the rate was at 10.3%.
Demand, as measured by net absorption, jumped to 9.1 million square feet during the fourth quarter, the largest amount in six years. Net absorption is the change in the amount of lease and occupied space, compared with the prior period.
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Suburban offices take another step on long road
Copied from ChicagoRealEstateDaily.com
By: Ryan Ori January 03, 2012
(Crain's) - Suburban office building landlords ended 2011 with eight leases totaling 927,000 square feet, but they still face a long road before the vacancy rate falls to pre-recession levels.
The suburban office vacancy rate, including sublease space, slipped to 24.5% during the fourth quarter, compared to 24.7% during the third quarter and 25.0% during the fourth quarter of 2010, according to statistics from Chicago-based Jones Lang LaSalle Inc.
The slight decline marks the fifth time in the past six quarters that the vacancy rate has fallen, but it isn't likely to foreshadow a shift in the market in favor of landlords over tenants.
"That volume that we saw, with so many big deals, I think that kind of momentum is a year-end blip," says Eric Kunkel, a Jones Lang LaSalle executive vice-president who represents tenants.
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Premier Power Team
9225 S. IL Route 31
Lake in the Hills, IL 60156
847-854-2300 |
25 predictions for 2012 - 2015 (plus five things that won't happen)
Wednesday, January 04, 2012
by Mike Adams, the Health Ranger
Editor of NaturalNews.com
* U.S. debt to be downgraded (this happened in 2011, much to everyone's surprise). (http://www.naturalnews.com/033253_S...)
* Increasingly radicalized weather patterns: 2011 was a year of very radical weather (http://www.onearth.org/article/top-...).
* War on health freedom ramps up, targeting raw milk (the FDA targeted Rawesome Foods in 2011, making it the biggest raw milk raid in history) (http://www.naturalnews.com/033220_R...)
* New attempts made to destroy internet freedoms (SOPA act introduced in 2011, a total internet censorship law). (http://www.naturalnews.com/034407_a...)
These predictions were made nearly two years ago. Of course, many predictions on that list did not come true, and some may yet come true in 2012 (http://www.naturalnews.com/028167_p...).
In 2011, I wrote another round of predictions about 2011 - 2012 (http://www.naturalnews.com/030903_p...). These include:
* New attacks on internet freedom (SOPA act happened in 2011)
* Rapid rises in food prices (now widely reported as happening throughout 2011)
* Acceleration of the economic downfall of America, along with possible debt downgrades (already happened).
* Within a generation, many of the people raised on GMOs and vaccines will discover they are giving birth to mutants or not able to have children at all. (Infertility is already on the rise, and more evidence of this will emerge in the years ahead...)
Continue Reading for 25 new predictions for 2012 - 2015
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Our perpetual optimism is at work now more than any other time during the year. We believe this will be the best out of the last 4 years. Business was up 20-30% in 2011 over 2010, so we are definitely feeling the uptick. Listings aren't exactly "flying off the shelf" but they are no longer just "gathering dust."
We are especially proud to have initiated and maintained our Select Vendor program. Since 2008 we have ben able to donate over $15,000 to the local Food Pantries by compiling a list of service providers (vendors) who do service related to the commercial real estate business (i.e. banks, lawyers, surveyors, environmental companies, insurance agents, etc.). Each vendor donates $200 per year to be on the list. We recommend these vendors during the course of our daily work. The money piles in and the Food Pantries benefit. If you know someone who might like to be on the program, please have them call Bruce or Joe. Our condolences to the Macko family of Cary. Lester Macko, Former Fire Chief passed away last week. He will be missed.
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