Statewide Marketing Session for April 2016
Submitted by Louise Norwood
The April Statewide Marketing Session was held on Wednesday, April 27, 2016 at the GMNBR headquarters/training center at 318 South River Road in Bedford. This month’s breakfast sponsor was NAI Norwood Group. NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms. Through this network of 350 offices in 55 countries, NAI Norwood Group is able to leverage their strong local experience around the world. Whether your commercial real estate needs require local expertise, or you need brokerage consulting around the world, the firm is here to help. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development.
Headquartered here in Bedford, New Hampshire with a presence in Portsmouth servicing the seacoast area, NAI Norwood Group has remained a viable leader in the commercial real estate field and has continued to hone its skills in the evolving world of sophisticated clients who demand services in dealing with the complexity of the current global market.
Eric Miltner of Seacoast Business Machines and Merchant Pro Express stated that their family company is in the market for 2,500 s.f. in Manchester and would be willing to sign a three year lease. Eric explained that he is also an agent for credit card machines in the Portsmouth area primarily business to business. He and his firm have the ability to evaluate the monthly fees and provide expert advice for a saving program. They recently completed a full evaluation report for the Derry School District reaping them significant savings.
John Turner of Team Engineering provides due diligence services as well as a menu of other assessments to assist in buying and selling properties. Because of the high volume of business they are experiencing, John needs to identify a new, seasoned engineer to complement their current talented staff. Team has been responsible for the new facility on Route 101 housing “Millennium Running” and the conversion of the Citizens Bank building into apartments. They continually make inroads in the engineering market.
Suzanne Brunelle of Devine, Millimet and Branch practices in Concord, Portsmouth and the Manchester/Bedford area. Suzanne explained that she has been involved as is her firm on pending legislation regarding the transfer tax. Should a property be held in an individual ownership and then transferred to an LLC, a fair market tax needs to be established by means of an appraisal. House Bill 1656 is 50% there and will have significant impact on the real estate transfer tax here in New Hampshire For more information, please contact Suzanne or any of the CIBOR members who are on the Public Policy committee for more detailed information. DMB now has seventy attorneys offering full legal services in Massachusetts, New Hampshire and Maine. Suzanne’s primary focus in the real estate realm i.e. title; zoning and planning and all forms of commercial leasing documentation.
Joe Friedman of Brooks Properties is continually looking up and down I-93 for viable office and industrial type investment properties for retrofit or conversion for the Brooks portfolio. Joe went on to offer information on the product they now have available on Keewaydin Drive; Manor Parkway and Red Roof Lane all in Salem. These properties have quick access to the highway and with the widening of I-93 tenants will find their commute to be carefree. Brooks Properties also have a very large presence in the Methuen marketplace with the availability of significant square footage. Joe reminds membership of their three story office building on Route 111 in Derry which houses an award winning function facility which can be leased for corporate events or any celebration – a stand up cocktail function room and a newly added fountain room and tower room can be rented for any and all occasions. Contact Joe for details.
Karl Norwood of NAI Norwood Group elaborated on the recent sale and subsequent leasing of the buildings at 75 and 85 Faltin Drive in Manchester and the other associated facilities on site. Now owned by Brady Sullivan, the three building portfolio are all independent of each other. Building (1) has been leased up; Building (2) is a flex space from 1,400 s.f. to 16,000 s.f. and Building (3) comprised of 18,800 s.f. has an abundance of power. The street side on South Willow is a retail development play. Karl also offered information on a project he is working on in Sutton, Massachusetts. The park can handle a 91,500 s.f. climate controlled storage facility. Whether it be an outright sale or joint venture, the town can offer tax credits making for a great economic win.
Andre Tremblay of Franklin Savings Bank has lending capability anywhere in New England. He presently has investors who are actively seeking apartment complexes anywhere in New England for a 40 unit and 96 unit facility respectively. Andre then assumed his membership chair position urging any non-members to consider full membership to CIBOR either as a Realtor member or affiliate. He expounded on the virtue of being a great organization and the various perks and benefits one receives by becoming a member. Andre also mentioned that should any of the members would care to write an article for the newsletter it would be most welcomed.
George Brooks of Brooks Properties has been involved with appraising for many years but is now stepping back in the commercial real estate ring leasing and selling properties. George has a great listing on 114 Rockingham Road in Londonderry with two building on site – one being a ranch style home and the other a newly constructed rent producing commercial building. The asset is sited on 3.5 acres with good street frontage only a quarter mile to Exit 5. Asking price is $448,500. This is George’s first marketing session although he is one of the charter members of CIBOR. Now that he is returning to the fold, we will see more of George. Welcome home!
Robert Cruess of TFMoran and MSC Engineering announced that the annual cook-out at 48 Constitution will be held on June 16 and he promises it to be a stellar day with hand scooped ice cream. He expects 150 to 200 people so come one and come all. The focus will be on networking and socializing with friends and soon to be friends at which time the Realtor of the Year and the Affiliate of the Year will be feted. Robert commented that this has been a very busy and productive year adding twenty-one new people. Whole Foods which TF Moran brought to fruition has now opened and the Encore Group is now actively constructing the facilities at the former Macy’s site. Tenancies are still in a state of flux with leases still in the offing.
Steve Jones of Building Envelope Specialists joined us from South Portland, Maine. Steve explained that water intrusion is a big factor in resurrecting a building with either bulk water from the outside or condensation as one of the culprits. Ice damning can also lead to water problems. Their firm worked on a hospital who had major water issues and was able to remediate without shutting the hospital down. As Steve pointed out not all mortars are alike and should the wrong product be used, deterioration is a given. Also, ignoring where the moisture is getting in can lead to real expense. They define the scope of work and draft a course of action repairing or replacing the materials whether it be block or metal cladding.
Deana Theriault of NAI Norwood Group pitched a 3,899 rentable/usable s.f. office building located at Coldstream Park in Bedford being offered for lease at $19.50 psf gross plus utilities. With multiple offices and conference rooms as well as some bullpen, the floor plan lends itself well to a variety of executive office uses. Deana also made us aware of a 2,500 s.f. retail offering at 1134 Hooksett Road in Hooksett with an asking rate of $12.00 psf NNN – other tenancies in the facility are Sherwin Williams and a dance studio.
Jay Lee of NAI Norwood Group is working with an investor with a $300,000 to $500,000 budget looking for a building with tenancies in place. Jay also has a four unit multi family that with some reconfiguration could accommodate up to seven apartments. Located on the corner of Maple and Bridge in Manchester at an asking price of $309,000, this property could also be converted to office. Jay also pitched a listing being handled by Andy Fleisher of the Portsmouth office at 2222 Lafayette Road in Portsmouth. The 4,868 s.f. retail building is 100% leased and is being marketed for sale at a price of $1,385,000. Great price; great location; great parking and ready to go. Nice little investment.
Jeff Lessard of NAI Norwood Group described an attractive office space to lease at 46 Route 101A in Amherst. This 3,778 s.f. professional office building is being marketed at $12.00 psf NNN with 21 parking spaces. With 27,000 VPD, the property offers several diverse opportunities from office to retail. Jeff also made membership aware of one of a kind space at 175 Ammon Drive in Manchester with direct access to the airport runway. A variety of spaces from 300 to 3,000 s.f. is being offered at $14.00 psf gross.
Stu Arnett of ADG of Concord is an excellent resource in the planning and development realm. Stu had several thoughts that he articulated to give membership points to consider in utilizing his services – he is well versed in workforce housing; knows the townships of New Hampshire and their zoning and planning code issues, parking regulations, assist individuals in transition and can be your liaison dealing with the various communities. As there are only five full time personnel, he is actively seeking out more associates with some background in this field. He is presently trying to get a monthly newsletter out to 400 people either in the legal branch and or federal and state officials. Stu will be giving a course on this subject on Friday, May 6 at the offices of Berkshire Hathaway Verani in Londonderry. Two course credits have been approved.
Don Marshall of Marshall Associates covers the entire state of New Hampshire. Don’s focus in business brokerage is to establish the value and find some common ground as to what the business is genuinely worth vs. what the owner thinks it is worth. In his business dealings he has found that the CIBOR organization is most beneficial to hyper charge relationships by becoming involved with one or more of the nine committees. Don encouraged members to participate and get the full benefit of membership.
Chris Pascucci of KW Commercial who represents the Ron Fredette team is getting his feet wet. Welcome, Chris, and hope to see you here as a regular. Chris pitched a 1,000 s.f. unit being marketed at $8.50 psf that he is has listed at the corner of 301 Daniel Webster and Continental at Exit 11 in Merrimack.
Vince Chestnut of Alpha Locksmith is often asked if he retains a key of each property he has rekeyed. Obviously, he does not but does keep the code of the key inscription or the formula if you will should he need to duplicate any. He suggests that new keys be cut if an employee moves on or a property expands or for any reason there is a change in venue as most people don’t keep track of the litany of keys that are passed out.
Nick Palmisano of SBM Inc. supplies business machines for the City of Manchester. He was pleased to report that the City has saved a significant amount of funds by utilizing their services. Additionally, he warned that when leasing copiers anything that has been scanned is still on the hard drive of the equipment. Their company offers services to scrub the scanning device as used copiers often end up in foreign hands or worse. By dealing with their team, they can insure that your business history is kept confidential.
Susan Miltner also of SBM Inc. shared her company’s plans of expanding into the Manchester market. They have been in the office machine business for fifteen years with their mission statement being a vendor who provides upfront evaluation of a company’s needs and requirements while illustrating how they can save money over the long term. Susan also reiterated the concern of data security. Once a machine has been returned to the leasing company, all of the company information is compromised; however, their company can and will erase all trace of company files.
Steve Scheiner of St. Mary’s Bank explained that their lending institution has a portfolio of $100,000,000 of which 70% is real estate based. Further, Steve, whose forte is commercial lending can establish lines of credit; investor lending and SBA funding for owner occupied properties.
Jeff Brown of TD Bank North joined us for the first time from Portsmouth. Welcome, Jeff, we invite you to come on a regular basis and share your wealth of knowledge with our group. Jeff offers tools to close deals as TD has the ability to aggressively shorten approval dates and offer moderate interest rates. They are interested in long term relationships and have the capability as a small business lender to focus on restaurants, dental, medical and a myriad of other business users. As he is the relationship manager, he works with clients assembling the right mix of services. Jeff had a classic case study of a signature deal i.e. The Fred Fuller/Rymes transaction which closed in sixty days. As there were twenty-seven properties involved with very little record keeping, the transaction was a complicated web to say the least and which also took into account financing for trucks and propane tanks. Suzanne Brunelle of Divine, Millimet and Branch handled the legal end. In round numbers, the total loan amount was in the neighborhood of $12,000,000 – a feat accomplished in sixty days!
Chris Melanson of Harrington/Reeves has a user interested in purchasing a building in the 10 to 15,000 s.f. range in Manchester. Please contact Chris with anything you have or coming to the marketplace. Currently they have a listing at 207 Meetinghouse Road for lease comprised of 2,705 s.f. at a rental rate of $12.00 psf NNN.
Rick Mulvee of Tower Realty has a cash buyer who will invest a minimum of $5,000,000 up to $20,000,000 who is willing to purchase environmentally challenged properties or something that has been on the market for years. Their main objective is to purchase with an eye towards the future for eventual disposition of the property. Rick recently had a transaction that went south as a result of due diligence issues i.e. the former 17,600 s.f. Dunn Furniture Building. This unique property has warehousing in the front section with offices to the rear of the building and with a much “hard to find” parking field. Give Rick a call should your client require an historic and viable mill building of substance.
Tim Wege of New Star Properties is the proprietor of this management company that specializes in condominium complexes. Please keep Tim in mind if looking for a quality management team. Tim does not practice brokerage but does have an investor client who is in the market for a multi-family project with a budget of $300,000 up to $600,000. He would be happy to discuss the details and give you the contact name should you have a property listing of this nature.
Christine Burke of Burke Emergency Restoration can combat the effects of fire damage; water issues; smoke problems and even the removal of bat “by-products”! The rest of Christine’s list though is not limited to the following – carpet refreshing; soot from furnace back-ups; tobacco odor; damage to walls; mold; etc. and are available to do any of these processes on a 24/7 basis. Their practice extends from York, Maine area to Northern Massachusetts and everywhere in between. In addition they can provide estimates for review but any testing will be billed. The company sends out a quarterly newsletter with helpful hints for the business and/or home owner. As they need additional labor, Christine is putting the word out that they could use good, qualified help for the coming summer months. Their preference is to hire a good, reputable individual via word of mouth vs. the Craig’s List route.
Marie Bodi of CP Management is a third party management firm represented by highly seasoned managers. The minimum employment and youngest has been practicing for ten years while others have been in the industry for 20, 30 and up to 40 years so with this wealth of experience, they have built many and lasting relationships. Their scope of work is always in the best interest of the client. CP recently took on a medical office condo building which had previously been managed by another group. While securing the property as a client, they discovered that the previous management company had somehow retained a portion of the common land as their asset along with other unprofessional tactics. CP was able to unearth a bad situation and make the asset whole once again.
Nick Aube of Avery Insurance practices in New Hampshire as well as Maine and Massachusetts. We look forward to seeing you again and perhaps bring us some handouts on your practice.
Bill Jean of Fulcrum Associates who is no stranger to NH CIBOR deals with ground up construction as well as tenant improvements. They are busier than ever and would like to hire more personnel but there is a lack of talent in the construction marketplace. As their data base is being continually updated due to constant bidding on projects, they are able to provide a customer with the most current pricing on product and construction costs. He noted that cost increases in the realm of new construction has grown by 10% plus in just one year’s time. Bill pointed out that if need be they can deliver a fit up in short order which was recently demonstrated in an eight week turn around even sending a crew to New Jersey to pick up materials right off the cargo boat in order to move the project forward saving a week doing so.
Heather Rowan of Office Resources made membership aware that these meetings do work having just completed a coordinated move with Deana Theriault through the networking process. Heather not only sells office furnishings but is a space planner and an interior designer providing preliminary budgets to the client. She can walk the user through the vast selection of furnishings which tend to be rather expensive. As the CIBOR affiliate chairperson she strongly values the building of strong relationships. She is actively looking for sponsors for CIBOR after hours. Please mark your calendars for the June 6th Awards evening at the Back Room in Manchester. More details are forthcoming in the newsletter.
Louise Norwood of NAI Norwood Group is working with a nutritional group in need of a minimum of 12,000 up to 15,000 s.f. plus to purchase an industrial building in the Nashua, Merrimack, Hudson or Bedford communities. They have been prequalified. Louise and Chris Norwood are marketing an investment opportunity at 10 Chestnut Drive in Bedford. This 13,690 square foot building is priced at $895,000 with five units also being offered for lease within the project at a rate of $14.75 psf modified gross. In addition Chris and Louise have listed a 2,520 s.f. condominium unit at Pine Tree Place in Bedford both for sale and/or lease – $275,000 and $16.50 psf modified gross respectively.
We had a great meeting with plenty of information exchanged punctuated by some humor and some good networking. Look forward to seeing you at the next Statewide Marketing Session in May which will be sponsored by Robert Cruess of TF Moran.
In striving to keep clarity and conciseness to the article, a mistake or two may slip by. Please keep in mind the writer is absorbing a lot of written word so I respectfully hope your verbal report is as accurate as possible. Many thanks for your patience and understanding.