Statewide Marketing Session for June 2015
By Louise Norwood
The June statewide marketing session was held on Wednesday, June 24, 2015 at the GMNBR conference room at 166 South River Road in Bedford. This month’s breakfast was sponsored by Robert Cruess of TF Moran Engineering. Thank you, Robert, for providing an outstanding breakfast.
Several new faces joined this month’s meeting and we welcome them onboard. Two newcomers will be joining CIBOR on an affiliate basis. A great discussion on 1031 Exchanges was one of the highlighted issues of the day. Read on.
Kim Reagan of R.J. FInlay & Co. informed us that the 166 South River Road (glass building) is currently 100 per cent occupied; however, the 2,500 s.f. suite presently occupied by the Greater Manchester/Nashua Board of Realtors’ will be coming available in September. Kim also wanted to remind the brokers in the room that the Finlay building located at 160 South River Road has had a major remodel to their common areas and has an estimated 20,000 s.f. of space available which can be split in various configurations. Kim pointed out that they would be glad to offer a test fit for your lease client.
Gary Chabot of DRED – State of New Hampshire joined the group and reiterated that tax credits can be offered for businesses locating themselves in the Economic Revitalization Zones. Presently there are 160 such zones throughout the state. In 2014 there were sixteen applicants and up to this point 2015 there are thirty-six applicants. There is $825,000 in the fund ear marked for these credits which essentially reduce the New Hampshire profits tax for business participants. Gary services Hillsborough County; Western Rockingham County and as they are down one employee has taken on the Sullivan County jurisdiction.
Larry Hirsch of Hirsch & Co. announced that he has two cash buyers who are seeking the following. The first requires a minimum of eight acres of land suitable to construct an 80,000 s.f. industrial building for their corporate headquarters anywhere in the Nashua/Manchester area. The second investor needs to close on a 1031 exchange anywhere from 1.5 million to 7 million dollars. This gentleman is seeking properties that are multi-tenanted and is flexible in terms of location. Larry also pitched his listing at 26 Clinton Drive in Hollis “for lease only” comprised of 23,360 s.f. for one unit and a smaller unit comprised of 3,276 s.f. priced from $4.95 to $5.95 psf NNN. In addition Larry has a variety of office space in and around Nashua priced from $11.00 to $17.00 psf. He can provide lease space for tenancies as small as 900 s.f. to 14,000 s.f.
Vince Chestnut of Alpha Locksmith is an expert in the field of installing locks in a skilled manner. He can repair ill installed locks and make the necessary corrections so it cannot be picked even with a credit card. His knowledgeability will guarantee control of your safety and security no matter how complicated the situation may be.
Maureen Heaney of Team Engineering stated that their company deals in building design and can cover all types of building inspections. Their due diligence covers a wide variety of construction including but not limited to pre-engineered buildings. Team will pin point the problem issues and will custom tailor to the needs of their clients. Other categories of inspections which has been very brisk this year are testing buildings for ice damage and evaluating the building integrity. Recently Team rebranded their business plan to incorporate a Team approach to bringing in all significant professionals to offer clients a complete package. Maureen gave high marks to End Pont LLC for assisting in their projects.
Robert Cruess of TF Moran graciously provided the group with a delicious breakfast spread. Thank you. Robert is of the opinion that they have seen the first wave of housing resurgence with developers approaching them for land and subsequent land engineering. Robert and his family once again generously hosted a large contingent of CIBOR members last week at their annual barbeque. It was well attended and as a plus TF Moran received two leads which resulted in being hired for two major projects. He credits CIBOR for successes in being selected for various projects. As for the 1031 exchange discussion, he agreed that if this type of real estate transaction is prohibited by lawmakers a good third of the gain will disappear. This issue will have a great economic impact on real estate and is probably the biggest concerns we in the industry face today. Robert went on to tout the New England Real Estate Journal for publishing “The Project of the Month” articles which TF Moran has taken part in on frequent occasions. Check out the early June edition. TF Moran is a leader in the Civil, Structural & Traffic Engineering field as well as Survey and Landscape Architectural Services. They most recently acquired a firm in Portsmouth which makes them one if not the largest engineering firms in the State of New Hampshire. Again, sincere thanks for once again stepping up to the plate to bring the group a hearty and delicious breakfast.
Jack Mannix of EndPoint, LLC deals with all manner of environmental needs including all types of contamination on ground level or underground including buried storage tanks. Though Jack is not in the real estate profession per se he has an investor/buyer from Southern Massachusetts interested in buying properties for his portfolio. The types of properties that Jack is most interested in receiving referrals on are gas stations, heating oil companies and developers seeking assistance in the environmental realm.
Chris Patey of Masiello Group joined us for the first time along with his wife Laurie. Welcome to you both. Chris pitched a mixed use listing that he has in Manchester. With eight to nine units comprised of retail, apartment, office and storage now 75% occupied at an 8.2% cap, this 8,000 s.f. building is a nice investment priced at $599,000. In addition, Chris has another mixed use property in Goffstown in the form of a 3,400 s.f. immaculate cape style home priced at $247,500 ideal for a home business.
Laurie Patey of Masiello Group discussed her listing located in Epping. The twelve acre site has 20,000 cars per day and is zoned as a combination residential/commercial designation ideally suited for a hotel or supermarket. She estimates that there is most likely 8 to 10 acres of developable land priced at $599,000. In addition, she has two small properties on Route 3 in Bow that are similar to Chris’ Goffstown offerings.
Chris Bernard of Citizens Bank joined us as a guest of the Patey’s. Welcome. Chris is the bank’s portfolio manager and is eager to assist in any real estate transactions that need some expediency. She recently closed a commercial property in just four weeks. Though Chris is headquartered here in New Hampshire, Citizens also operates in the states of Vermont and Massachusetts. Chris also deals in funding fit-up improvements for tenancies at reasonable interest rates.
Rick Mulvee of Tower Realty continues to work with his long time investor who can deal with properties with “hair on them”; substantially empty buildings and environmentally challenged buildings in either New Hampshire, Vermont and Massachusetts from 5 to 20 million dollars. This individual requires a four to seven year escape plan in order to close the deal. Rick also continues to market 150 Dow Street. With a 6% vacancy, Rick has done a fantastic job of keeping the building filled. Currently available with excellent mill yard parking are square footages with a minimum of 3,000 s.f. up to a maximum of 10,000 s.f. In addition Rick just listed a 3,500 s.f. space at 813 Canal Street formerly occupied by a rental store. This clean space is being marketed at $10.00 psf NNN ideally suited for an upscale salon.
Marie Bodi of CP Management represents a third party property management company who services properties from Southern Maine to Rhode Island. Please contact Marie if you have a large apartment complex comprised of at least 150 units in either of the states of Rhode Island, Massachusetts or New Hampshire. If the demographics fit the investor’s criteria, the dollar amount is not that critical as he has excellent funding.
Diane Theriault of Verani Berkshire Hathaway Realty has some good office flex space on Zachary Road in Manchester. With nine hard offices and kitchen, the property is competitively priced at $8.50 psf modified gross. In addition she has a 6,000 s.f. office space for sale at 633 Elm Street in Milford. There is presently one tenant in the building and with 30,000 cars per day, this building is an attractive property for the right user.
Jay Lee also of Verani Berkshire Hathaway Realty has an investor seeking a high yield earning property willing to spend upwards of 10 million dollars. Jay has a great listing at Weirs Beach consisting of one acre of land with four buildings on site. It could be repurposed or redeveloped for retail – asking price is $650,000. Jay thanked Kim Reagan of R.J. Finlay & Co. for hosting a luncheon at the former Indian Head building in Nashua as part of the Nashua Caravan tour. Lastly, Jay has listed a forty-five acre parcel in Chichester suitable for retail or an industrial building. Price is $499,900.
Doreen Austin of Northeast Credit Union wished to let everyone know that they provide a wide array of services including but not limited to 504 SBA acquisitions. Doreen stated that they offer competitive rates and service all of New Hampshire, York County in Maine, Vermont and Massachusetts.
Joe Friedman of Brooks Properties stated that his firm is always in the market to purchase office and industrial properties along the Route 93 corridor. Brooks Properties owns a wide assortment of buildings and sizes with 50,000 s.f. in Salem i.e. 18,000 s.f. on Red Roof Lane in Salem; 30,000 s.f. at 6 Manor Parkway in Salem and a four story building on Keewaydin Drive in Salem – there is a size that fits all or most in their portfolio. As for the Hudson marketplace, they are marketing 50,000 s.f. of flex space at 6 Wentworth Drive. Brooks also has sizable holdings in Methuen, Massachusetts offering up to 80,000 s.f. at 596 Lowell Street in Methuen and up to 88,000 s.f. at 5 Branch Street in Methuen all with excellent lease rates. Also check with Joe for a rare buying opportunity i.e. for an electronics building.
Anne Copp of Remax 1st Choice is aspiring to earn her CCIM designation. She is presently investigating a gas station/auto repair listing and will enlist the services of Jack Mannix to ascertain if there are any environmental issues to contend with. Anne recently received recognition for a transaction she successfully completed which was her first of hopefully many more!
Suzanne Brunelle of Devine, Millimet and Branch is legal counsel in the field of commercial real estate. Their offices are located in both Manchester and Concord. Suzanne handles both low and high end property legal assistance but gave kudos to TF Moran for their assistance in a very complicated transaction she recently handled. She is licensed in the State of New Hampshire and travels between Maine, New Hampshire and Vermont offering full legal service. Though she started her career in Massachusetts she was hired at DMB at a wine bar at “The Bedford Village Inn” by a very high profile Bedford attorney.
Kiersten Gerow of Exchange Authority, LLC facilitates 1031 Exchanges. Not only is Kiersten a qualified intermediary for 1031 exchanges, she is also a licensed attorney. She urges all people associated with the real estate industry to log on to NAR and to their link 1031taxreform.com to sign letters to our Senators and Congressmen urging them to vote down the upcoming legislation that would virtually shut down the practice of Exchanges. We welcome Kiersten and extend a hearty welcome to return to our group.
Timothy Halligan of Exchange Authority, LLC reiterated Kiersten’s comments on the economic issues this shut down would cost. Exchanges are widely utilized in other venues such as race horses and also high profile sports figures all over the United States. The National Association of Real Estate (NAR) has this issue high on their agenda as 1031’s are being attacked by both the House and the Senate. Another problematic issue that is being voted on is – 40 plus year for depreciation. Please take the time to write your Senators and Congressmen via the NAR web site and sign the form letters provided. Tim stated that there has been talk for many years to do away with 1031’s but now they are serious. And if equipment is in need of replacing, there will be a 35% tax levied. This entire issue will affect auto rental companies and any fleet like companies. It is critical to rally around this cause as it will seriously impact our respective businesses. Likewise, this was Timothy’s first visit to the CIBOR marketing session. Welcome and please return.
John Madden is an appraiser with The Stanhope Group located in Portsmouth also joining us for the first time. Welcome and hope you take some valuable information with you. John specializes in net lease transactions. He is currently marketing a four unit with barn in Dover that he has owned for ten years. Asking price is $340,000 – $360,000 range. He plans on utilizing the 1031 Exchange mechanism. John explained that there are four appraisers on staff who can provide market data services for both New Hampshire and Maine.
Bill Jean of Fulcrum Associates, Inc. based in Amherst operates a construction management firm which covers New Hampshire, Maine and Massachusetts from the ground up to completion. They have had brisk activity with their latest projects being a twenty unit condo complex in Hampton; a 210 unit housing complex in Salisbury now leasing the first phase and a 200 bed student housing facility. The company covers a wide spectrum of construction projects. As Fulcrum has formulated a great data base of current costs, they can provide the customer with responsible building figures and skilled construction management. Bill announced that the next CIBOR Quarterly meeting will be held this Friday at the K-W commercial offices covering Energy Efficiency. Four panelists will be on deck – Tony Guinta, Senior Client Manager for Nobis Engineering; Paul Ramsey, Vice President of Engineering of Eversource and Mike Ausere, Vice President of Energy Planning and Economics of Eversource. Breakfast and registration commences at 8:00 a.m.
Louise Norwood of NAI Norwood Group, Inc. is working with a nutritional supplement company who are in need of purchasing a 12 to 17,000 s.f building in and around Nashua/Bedford area for their internet based business with a retail component. Pre-approved buyers. In addition, NAI is marketing a new office listing at Coldstream Park comprised of 1,608 s.f. seven hard offices in a brick façade building right in the heart of South River Road being offered at $19.50 psf modified gross. NAI is also representing a 3,757 s.f. flex office/condo at 3 Bud Way in Nashua for sale at $228,000 or for lease at $5.00 psf NNN.
A great meeting and always informative. We hope to see you all back here for next Statewide Monthly Marketing Session to be held Wednesday, July 22nd, 2015 from 9:00 to 10:15 a.m. Many thanks to Robert Cruess of TF Moran for sponsoring today’s meeting. Wishing everyone a safe and happy Fourth of July.