Engage- Guaranty Commercial Title Newsletter

Title Industry Discussions & Insights

Issue No. 2

Minneapolis Public Schools has begun construction on their new administration building located at 1250 West Broadway. Mortenson Development Inc. and Legacy Management Corporation broke ground on the 173,000 square foot building in Fall of 2010. Urban Works is the architect on the project which will open in Fall 2012. Guaranty is serving as disubursing agent for the construction.

Chesapeake Companies sold their Triple Net Development at 1265 Elm Creek Boulevard in Maple Grove to a buyer based out of Washington State. Buca di Beppo just renewed their lease at the 8,000 square foot property.

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TITLE INDUSTRY INSIGHTS

Seller Financing

Seller Financing, whether by mortgage or contract for deed, is back. Sellers are offering financing to make their properties more saleable in this difficult debt market and expect to command better prices when they remain on the hook. Some banks are financing sales of their REO properties. Be sure to engage your title insurer, attorney, and accountant in these transactions. Existing debt must be dealt with, contracts for deed must be recorded by law and 1099s must be filed at the time of sale. These are not "do it yourself" transactions.

Landlord Defaults

We are seeing more and more landlord defaults. While title insurers have not generally been involved in leasehold transactions without financing, current conditions may cause you to do a little research when leasing commercial property. Leasing commercial space may be your largest expense besides salaries. Make sure that you are dealing with a landlord who will be there to fulfill its lease obligations. Should your landlord go into default on its loans or is having trouble with mechanic's liens or other litigation, you are in a better position to consider those issues before you sign a lease. Guaranty can provide you with an Ownership & Encumbrances Report (O&E) to help you identify any concerns.

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Please enjoy the second edition of Engage- Guaranty's newsletter that will allow the Guaranty Team to share our insights and observations in the commercial real estate industry. We hope you find the information useful as we all continue to navigate through this challenging cycle in the world of commercial real estate development and finance.

Wendy Ethen has been named a Minnesotan on the Move by Finance and Commerce for her achievements and opportunities to change the role of title services in commercial real estate transactions. Click here for more information and to see other award winners.

Guaranty recently participated in The Minnesota Real Estate Journal's Apartment and Student Housing Summit. Wendy Ethen spoke on a panel with Tammi Diehm and John Nolde of Winthrop and Weinstine addressing critical legal issues in apartment and student housing. Please contact Wendy if you'd like to discuss.

As many of you know, Cindy Nosan, and Renay Leone joined our team in 2010. In March 2011, Guaranty welcomed Diane Jenson to our staff. Diane is one of your first points of contact at Guaranty and can help you get answers quickly. Michelle Kolling's new role as Closing Coordinator also ensures that you get immediate assistance.

GET ANSWERS...

Wendy Ethen, President

612.746.0412

Valerie Doleman, Marketing

612.746.0416

Mary Edgeton, Examiner

612.746.0413

Diane Jenson, Exec. Asst. to Wendy

612.746.0414

Michelle Kolling, Closing Coordinator 612.746.0410

Renay Leone, Counsel

612.746.0418