Davestown

Startup Boom

2010-04-27T07:53:00.001-05:00

Startup Boom

Forget the twentysomethings who dominated the dotcom era: Today, most company founders are between the ages of 55 and 64.

When it is Raining Gold Reach for a Bucket not a Thimble

2010-04-21T08:21:00.000-05:00

21 best money tips ever - Listen to what this wise man has to say (14) - Money Magazine

Every year Warren Buffett shares his wisdom -- for free -- when he posts his shareholder letter at berkshirehathaway.com. Here are five lessons from his 2010 missive:

Fear is your friend.

The past two years were an "ideal period" for value-minded investors. For example, Buffett managed to scoop up bargains ranging from municipal bonds to securities of Goldman Sachs, GE, and others. "When it's raining gold," he writes, "reach for a bucket, not a thimble."

Focus on the (really) long term.

Buffett notes the investments that he and partner Charlie Munger prefer are "businesses whose profit picture for decades to come seems reasonably predictable." Not the next two months or quarters or years, mind you. Decades.

Stick with what you know.

Against the advice of the firm's managers, Buffett pushed Geico -- the home and auto insurer that Berkshire owns -- into the crowded credit card business several years ago. Geico bailed out in 2009, losing about $50 million in all. The moral: If you don't understand that commodity ETF your pal is bragging about, pass on it.

Maintain a cushion.

While firms were fighting for their lives in the credit crisis, Berkshire kept doing deals. Why? Because Buffett keeps about $20 billion in cash on hand. This reserve is earning "a pittance," he says. "But we sleep well." A reserve will help you sleep better too, especially as you near retirement.

The buck stops with you.

Buffett oversees virtually all derivatives contracts on the company's books. "If Berkshire ever gets in trouble, it will be my fault." You need to adopt the same attitude. Whether you go it alone or work with an adviser, understand the level of risk you're assuming. If something goes wrong, you'll suffer the consequences.

10 Cities for Real Estate Steals - US News and World Report

2010-02-25T18:46:00.001-05:00

10 Cities for Real Estate Steals - US News and World Report: "7. Fayetteville, N.C.: The housing market in the military town of Fayetteville, N.C., also successfully avoided wild price swings that devastated other parts of the country. Rather than surging, home prices remained largely flat for most of the previous decade. Today, house prices in Fayetteville remain undervalued when compared with longer-term averages. The area's price-to-income ratio dropped to 1.23 through the third quarter of 2009, which is notably lower than its average ratio of 1.52 for the 15 years ending in 2003. Moody's Economy.com expects home prices in Fayetteville to bottom out in 2010, before moving slightly higher in subsequent years."

Architecture - WSJ.com

2010-02-16T08:27:00.000-05:00

Architecture - WSJ.com

Mr. Ban keeps his practice small so he can focus on quality.

"Sometimes working for the privileged makes me tired because they are very demanding. I'm now working in Italy where there was an earthquake. The orchestra has nowhere to play so I decided to make a temporary concert hall."

Real-Estate Cap Rates Rise - WSJ.com

2010-01-30T12:14:00.000-05:00

Real-Estate Cap Rates Rise - WSJ.com: "Capitalization rates, a calculation real-estate investors use to measure the annual return of income-producing properties, continue to rise. The average cap rate for office properties in central business districts jumped to 8.8% in December from 8.56% in November. The December number was the highest rate for that category since May 2003. Meanwhile, average cap rates for apartment buildings was 7.36% in December, up from 7.09% in November. The cap rate is rental income in the first year of ownership divided by the purchase price."

BofA Profits from CRE

2010-01-13T11:32:00.001-05:00

BofA's Secret of Success: Real-Estate Banking - WSJ.com

Who knew? Certainly not the longsuffering shareholders who saw both their asset values and dividends evaporate last year.

Bank of America is a lead lender on $43 billion in outstanding credit facilities to 53 different real-estate investment trusts, or REITs, more than any other bank, according to SNL Financial Inc.

Hate The REIT, Love The Return - Forbes.com

2010-01-04T22:30:00.000-05:00

Hate The REIT, Love The Return - Forbes.com: "The typical S&P 500 company borrows about a quarter for every dollar in equity. REITs borrow a dollar for each dollar in equity, roughly doubling losses and gains so that a 40% decline becomes a dangerous 80% swoon and leverage in the industry has been growing for years. (Compare that with the typical home buyer's leverage of four dollars for every one dollar down and it's easy to see why foreclosures are epidemic.)"

Many IPOs expected in 2010 - Business - NewsObserver.com

2010-01-02T18:45:00.000-05:00

Many IPOs expected in 2010 - Business - NewsObserver.com

Facebook to lead busy IPO slate.

REITs Savvy at Navigating downturn

2009-11-12T17:40:00.000-05:00

The REIT Gamble Paid Off - Forbes.com

Good article indicating that REITs now have access to debt and should be very well positioned from here forward.

NC State No. 1 Texas No. 2

2009-11-09T13:38:00.000-05:00

Article - TechJournal South - The Southeast's Source for Technology Business News

Site selection magazine picks North Carolina over Texas as the number one business climate in America. Football is another story.

BusinessWeek: Another Rough 12 months in CRE

2009-11-08T22:10:00.000-05:00

Why This Real Estate Bust Is Different - BusinessWeek

Deals that were "priced for perfection" with unrealistic underwriting assumptions coupled with lower cashflow will cause more lenders to fail in 2010.

EMC buys 450,000 SF warehouse

2009-10-27T18:02:00.001-05:00

EMC buys room to grow - Business - News & Observer

Price: $22.6M ($50/SF)
Seller: Crown Realty
Broker: Chris Norvell, Colliers Pinkard
Location: Imperial Center, Durham, NC

Cerberus hits Homerun with Talecris

2009-10-02T07:20:00.001-05:00

Cerberus gets medicine from Talecris IPO - MarketWatch

It is great to see the capital markets open again for NC companies.

Cerebus hit about a 23 bagger with this one.
Investment of $82.5M nets a gain of about $1.8B.

The firm plans to spend about $750M of the $950M in proceeds on "improving manufacturing facilities".

Blank Check to Blind Pool

2009-09-16T15:38:00.001-05:00

Buyout Fund Contemplates a REIT Turn - WSJ.com:

"The move is the latest sign real-estate investors are looking to the public markets for capital at a time banks are reluctant to lend and private capital is scarce. The strategy has paid off for many. Investors have bought more than $15 billion in REIT secondary stock sales so far this year."

Yet Another Tough Forecast for CRE...

2009-09-15T09:28:00.002-05:00

For Commercial Real Estate, Hard Times Have Just Begun - NYTimes.com:

Tough Sledding Still Forecasted for CRE...

"Even though industry lobbyists were able to persuade Congress to extend a loan program aimed at prodding the stalled securitization market back to life, several analysts said it was unlikely to head off a spate of defaults, foreclosures and bankruptcies that could surpass the devastating real estate crash of the early 1990s."

...About $393 billion worth of mortgages are scheduled to mature by the end of next year alone, and an estimated $39 billion more were due to expire this year but have been extended, he said...

...

This Multi-Family Deal Didn't Hold Up

2009-09-10T08:58:00.000-05:00

Buyers of Huge Manhattan Complex Face Default Risk - NYTimes.com

There's an old line I heard regarding Trump. When you owe the bank a million and cannot pay, you have a problem. When you owe the bank a BILLION and cannot pay, the bank has a problem.

Here's a deal that is the poster child for this current financial crisis we are in....

"T]he buyers [of Stuyvesant Town and Peter Cooper Village in Manhattan] are running out of time and money. Jerry and Rob Speyer and their partner, BlackRock Realty, who together paid $5.4 billion ... have nearly exhausted an additional $890 million set aside for apartment renovations, landscaping and interest payments. Rents are down 25 percent from their peak.

Real estate analysts say that the partnership’s money will run out as soon as December and that the owners are at “high risk” of default on $4.4 billion in loans.
...
A recent report from Realpoint, a credit rating agency, estimates that the property has a value today of only $2.13 billion.
...
At Stuyvesant Town, there is a $3 billion first mortgage, or commercial mortgage-backed security, and a $1.4 billion second loan, known as “mezzanine debt” held by SL Green, the government of Singapore and others.

Finally, there is $1.9 billion in equity put up by Tishman Speyer, BlackRock and their investors."

When in Doubt Cut Spending

2009-09-09T17:00:00.001-05:00

Consumers Cut Debt By Record $21.6B In July : NPR

Interesting that economists missed this so badly. They predicted that consumers would drop their demand for revolving credit by $4B. The actual decline was $21.6B. It sure would be nice to see consumers get household debt under control. Unfortunately, the pullback is probably b/c would-be spenders simply have no choice. Most folks scale back spending (and use of consumer credit) when their income and/or confidence is low.

With consumer debt at $2.47 TRILLION we have a long way to go.

Still America has recovered from much worse and we will recover from this.

Will Car Sharing Work in Raleigh?

2009-09-09T09:29:00.003-05:00

zipcar

Somewhere between borrowing a car from a buddy and renting one is the concept of car sharing. Think of renting a car for about $11.25 per hour.

Cool idea. Dude, don't use all my gas. The operators agree that this business model relies on people acting nicely. No smoking please and keep the ketchup off the seats. It remains to be seen if this can turn a profit, but I like it.

I think NCSU should definitely adopt it. Could also be an answer in the Triangle to the failed public rail plan.

Good Advice: Start Like you have a Blank Sheet of Paper

2009-08-26T09:40:00.000-05:00

The best business advice Mattel CEO Bob Eckert ever received - Aug. 26, 2009

An MBA professor might just say, ignore sunk costs. It is tough to do but one of the core tenants of B-school.

BBT Buys Colonial in FDIC Assisted Deal

2009-08-14T21:35:00.002-05:00

Colonial becomes biggest bank failure of 2009 - MarketWatch

This year, 74 banks have failed ... as a lingering recession and surging unemployment leaves the industry nursing heavy loan losses. More than 1,000 banks may fail during the next three to five years, RBC Capital Markets estimated in February....

The FDIC estimated Friday that the Colonial deal will cost its Deposit Insurance Fund about $2.8 billion. The regulator recently imposed a one-time assessment on banks to top the fund up. However, the surge in bank failures has increased concern about the fund, despite the fact that the FDIC can borrow hundreds of billions of dollars from the Treasury Department if it needs to.

BB&T, with more than $150 billion in assets, is seen by some analysts as a beneficiary of bank failures. Many closures have happened in the Southeast of the U.S., where BB&T is a dominant player.

BBT's stock jumped 9.4%

Small Businesses, Big Fraud

2009-08-10T21:15:00.002-05:00

Small Businesses, Big Fraud

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This is the kind of junk that ruins public benefit programs.

Housing starts the long climb back?

2009-08-06T11:39:00.000-05:00

Inventory of Houses Falls in July - WSJ.com

According to some industry estimates, as many as half of those homes aren’t included on multiple-listing services at any given time. Some foreclosed homes aren’t listed because they are being offered as rentals, while others are awaiting repairs or are subject to litigation or other delays.

Some analysts expect a resurgence in foreclosed homes on the market later this year, as lenders pursue legal actions that had been delayed by moratoriums in various states that sought to keep more people in their houses.

Highwoods beats estimates - North Carolina - News & Observer

2009-07-31T19:26:00.001-05:00

Highwoods beats estimates - North Carolina - News & Observer

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Office vacancy at five-year high - Business - News & Observer

2009-07-31T19:22:00.001-05:00

Office vacancy at five-year high - Business - News & Observer

Shared via AddThis

HIW to JV FBI HQ in Charlotte

2009-07-27T19:59:00.000-05:00

Highwoods joint venture lands $45M deal for FBI office - Triangle Business Journal:

Apartments Start the Thawing Process.

2009-07-27T17:43:00.000-05:00

Apartments fetch $39M in buyers' market - Business - News & Observer

The Ashley Park complex, at 10300 Pine Lakes Court, features one- to three-bedroom units and amenities such as a spa, swimming pool, tennis courts, a playground, club house, indoor basketball court, movie screening room, fitness and business centers. It was 98 percent occupied in March, up from 78 percent in March 2005. Average rents have fallen almost 10 percent to about $889 per unit during that period, according to Triangle Apartment Association data.

Score Another for the Nerds!

2009-06-15T13:43:00.000-05:00

Microfinance Gateway>Gates & World Bank Establish Agriculture Finance Support Facility

Bill Gates is giving $20M to the World Bank. He will give away more money than Michael Jordan will ever make.

AIG HQ for $100/SF

2009-06-11T08:01:00.000-05:00

According to Costar, AIG has their HQ under contract to a Korean investment group for about $100/SF.

Tom Hendrickson Formerly Announces Green Development in Apex

2009-06-08T07:12:00.000-05:00

Developer plans sustainable, mixed-use development for Apex :: WRAL.com

Here's WRALs coverage of the announcement of Veridea, a 1,000 acre development planned in Apex
-30,000 employees projected
-10M SF of office space
-3.5M SF for retail
-8,000 residential units
-Hudson Realty Capital are equity investors
-$5.5B to $6B of new property tax base created for Apex

Construction on Hillsborough St...Finally

2009-06-01T06:57:00.000-05:00

Keep Hillsborough Street funky: News: Wake County: Independent Weekly: Raleigh, Durham, Chapel Hill

As the construction begins on the long awaited round abouts on Hillsborough St. Bob Geary weighs in on the funkiest stretch of road in Raleigh.

Gentry Group buys 36 acres near Fort Bragg, plans business park for military contractors - Triangle Business Journal:

2009-05-18T08:43:00.000-05:00

Gentry Group buys 36 acres near Fort Bragg, plans business park for military contractors - Triangle Business Journal:

Fort Bragg will boom in the coming years.

GM Execs Sell it ALL!

2009-05-12T07:40:00.000-05:00

GM Executives Dump Stock as Trading Window Opens - Automotive * US * News * Story - CNBC.com

I think this is interesting that they unloaded it all. Who in the world bought it I wonder.

Entreprenuers Keep it Rolling

2009-04-17T12:21:00.000-05:00

Small business office leasing rises | ajc.com

Good article on the uptick in leases below 10,000SF in Atlanta.

What's this an IPO in the Nuclear Winter?

2009-04-16T12:51:00.000-05:00

Rosetta Stone soars 42 percent in debut - Yahoo! Finance

Nice to see this bullish sign.

Buffett Buys BYD...Chinese Electric Car Co

2009-04-14T07:20:00.001-05:00

Why Warren Buffett is investing in electric car company BYD - Apr. 13, 2009

Great article on BYD, a chinese electric car maker.

Average Lease Size Shrinks Nationally

2009-03-24T08:09:00.000-05:00

Grubb & Ellis :: Market Research :: Weekly Market Insight: "Average Lease Size March 23, 2009"

excerpted:

There are several reasons behind this trend. Tenants signing new leases may have implemented previous staff reductions and are taking the opportunity to right-size their space. A related trend is that tenants may be less optimistic about expanding in the future and so are taking less space now. A third reason could be that smaller, more nimble companies are willing to grab the good deals being offered by landlords while large, publicly traded companies are waiting for the recovery to take hold.
Source: Grubb & Ellis

Words to Live By from Yale's $8B Man

2009-03-19T07:38:00.001-05:00

Yale Alumni Magazine: "the most sensible approach is to come up with specific asset allocation targets that you can implement with low-cost, passively managed index funds and rebalance regularly. You'll end up beating the overwhelming majority of participants in the financial markets."

RREEF Report: Recession Fails to Diminish Demand for Green Real Estate - CoStar Group

2009-03-19T06:58:00.000-05:00

RREEF Report: Recession Fails to Diminish Demand for Green Real Estate - CoStar Group: "In fact, going by the numbers, green building could have one of its best years ever. The large backlog of projects that are registered for LEED certification -- about 18,500 at the start of this month -- makes it extremely unlikely that the growth of certified green buildings will tail off, the study stated."

Investors snap up old flats - Business - News & Observer

2009-03-19T06:55:00.000-05:00

Investors snap up old flats - Business - News & Observer: "The average vacancy rate at apartments built in the past five years jumped to 9.5 percent in January, from 7.7 percent a year earlier, according to Real Data, a Charlotte apartment research firm. Average monthly rent, meanwhile, fell 5.4 percent to $888 per unit.

Apartments that are 16 to 30 years old, however, saw the average climb to just 7.5 from 6 percent. At the same time, rents have dipped just 1.3 percent to $690."

$7M for Pinecrest Pointe Shopping Center

2009-03-19T06:50:00.001-05:00

Midland Atlantic Buys Pinecrest Pointe Shopping Center - CoStar Group

excerpted:

Midland Atlantic Properties acquired the Pinecrest Pointe Shopping Center at 9101 Leesville Road in Raleigh, NC, from a private family trust for $7 million, or approximately $78 per square foot.

Spitzer back in Commercial Real Estate

2009-03-09T12:33:00.000-05:00

Eliot Spitzer’s father buys D.C. office building - The Business Review (Albany):

Spitzer buys building one block from the Mayflower Hotel, were he uh well, you know failed to uphold the high standards he set for himself, etc...

VC says fund R&D not his Competitors

2009-03-05T20:06:00.001-05:00

Blogger: US should fund research, not venture capital - The Boston Globe

Scott makes great points herein. Of course, he is a VC and I always find it interesting that the handful of VCs think there are too many in the business. Seems they prefer competition of the free market for every but themselves.

Still, a good take on the industry.

He also says there are 3 things we need to fix to thaw out the IPO market:
1. Sarbanes-Oxley
2. Increase HB-1 visas (as long as they are not working as VCs I guess)
3. Keep capital gains taxes low

Would You Pay $103,000 for This Arizona Fixer-Upper? - WSJ.com

2009-02-27T09:00:00.000-05:00

Would You Pay $103,000 for This Arizona Fixer-Upper? - WSJ.com

Great article demonstrating the reasons behind the housing debacle.

Note the FEES paid to mortgage brokers were almost more than the value of the shack. Amazing.

When in Doubt, Use a "Ten Cap" | Commercial Real Estate | RCA

2009-02-18T16:45:00.000-05:00

When in Doubt, Use a "Ten Cap" | Commercial Real Estate | RCA

Good article on the state of the market.

Are we headed for a 10-cap market? I don't think the Triangle will get there on average but in certain distress situations, you bet!

Reversion to Sanity, Buffett: Stocks are on Sale Again

2009-02-04T18:28:00.000-05:00

Fortune: Buffett's metric says it's time to buy - Feb. 4, 2009

Good article here quoting the Oracle on his take on US Stocks. He says when the total market value of US Stocks are 70% to 80% of the GNP of the US that it is time to buy. As of Jan 23rd the article estimates this ratio at 75%.

I agree, please point me to some that are not run by incompetent liars....

As Predicted Class Action Filed Against BAC

2009-01-22T19:25:00.000-05:00

Abraham, Fruchter & Twersky, LLP Announces Filing of Class Action Lawsuit Against Bank of America Corporation and Certain of Its Officers and Directors

excerpted:

...the Complaint alleges that the Proxy Statement failed to disclose that Bank America had not conducted adequate due diligence on Merrill Lynch and that, as a result, the Bank America directors lacked a reasonable basis for their recommending that the Company's shareholders vote in favor of the Acquisition.

More Painful Surprises at BAC

2009-01-22T17:47:00.001-05:00

Thain resigns from Bank of America - MarketWatch

Today the stock was pummelled again down to nearly a 20 YEAR LOW as Ken Lewis and John Thain realized that "it was not working out". Thain resigned or was fired, whatever...

These guys are supposed to be season professional businessmen. They struck a quick deal which in hindsight looks like a great deal for Merrill who was about to go down and a sucker bet for Ken Lewis. Where is the due diligence? Were there any reps and warranties? Merrill employees got millions in bonuses just before they report losing millions? Thain asks for a $10M bonus from the BAC board? Thank God they at least denied that. Nice Temple!

I swear these CEOs lose there common horse sense the more they get PAID. Get ready for the shareholder lawsuits. I want my hard earned and mistakenly invested money back from these shizters.

BAC cuts dividend to 1 cent...

2009-01-16T13:04:00.000-05:00

Bank of America posts first loss in 17 years - Yahoo! News

...and thus eliminates the reason many retirees, investors and mutual funds owned the stock in the first place. Once a reliable dividend payer and long term growth stock, the former stalwart is off over 80% from its 52 week high despite taking $45B in TARP money.

The Merrill Lynch takeover cost $19.4M, so you could say the taxpayers covered that one. The exposure to mortgages is still dragging BAC down...

"It is difficult to focus on what is going right at this time," a clearly downbeat Chief Executive Kenneth Lewis said on a conference call.

Dilweg Turns Mold into Gold

2009-01-08T10:04:00.001-05:00

Pantry buys instead of renting - Business - News & Observer

Here's the follow up to an earlier blog about the Merisel building that Dilweg bought twice. First for $3M then again for $1.2M. AD put about $5.5M in renovations according to the N&O then sold it to the Pantry for $8.5M recently.

It sold for $138/SF or 13% below the average office building sale in 2008.

Address: 305 Gregson Drive, Cary

G&E: DC #1, Raleigh #8 Best Place for Commercial Real Estate Investment in 2009

2009-01-05T22:26:00.000-05:00

DC's Best for Commercial Real Estate Investment | NBC Washington

excerpted:

Following Washington, D.C., on the top 10 list are Portland, Ore.; Los Angeles; San Francisco; Austin, Texas; Dallas-Fort Worth; Houston; Raleigh-Durham, N.C.; Boston; and Oakland, Calif. The Texas markets offer strong population growth, while the others offer strong population growth as well as natural barriers to entry.

Even Mighty Toyota is not Recession Proof

2008-12-16T14:11:00.001-05:00

Toyota Kills US-Built Prius | Hybrid Cars

A auto-manufacturing plant is a huge coup for a southern state. It brings jobs, jobs, jobs both directly and in support industries and generally means long-term prosperity to a region.

A Toyota plant is even a bigger win because the product is so highly regarded and enjoys so much brand loyalty. But in this market, nothing is safe. Even with the plant nearing completion, Toyota has decided to put it all on hold.

Mississippi's Prius Plant was put on hold indefinitely. Ouch

BAC Swings Ax Again

2008-12-11T21:34:00.002-05:00

BBC NEWS | Business | Bank of America cuts 30,000 jobs

In another sign of the times... BAC cuts 30,000 jobs.

According to Jack Welch a corporation should cut the bottom 10% of the force periodically. This is about 11% of BACs worldwide force.

It will be interesting to see if this stock can recover at a faster or slower pace than the market.

"Most Admired" 1031 Exchange Accomodator Goes Under

2008-12-04T10:26:00.001-05:00

Another Blow to Faltering 1031 Real Estate Industry - CoStar Group

Further evidence of how "low and no" regulation is rocking the US economy. The 1031 Exchange is widely used as a way to defer taxes on the sale of property. Typically the exhanger sells property and has 45 days to identify a replacement property and 180 days to close on that new property without suffering any tax consequence. The money from the sale of the first property must be held in escrow by an exchange accomodator for the 1031 exchange to be legal. Surprisingly there are NO LICENSING REQUIREMENTS TO BE an exchange accomodator. Your barber is subject to more oversight!

Now many folks risk not only losing there tax deferred treatment but losing the funds from the sales as well.

Wake up America!

exerpted:

LandAmerica Financial Group Inc., Fortune magazine’s number one Most Admired Company in the mortgage services industry in 2007, shut down operations....

DRA Sells Raleigh Multifamily for $17M - CoStar Group

2008-12-04T09:38:00.000-05:00

DRA Sells Raleigh Multifamily for $17M - CoStar Group

exerpted:

DRA Advisors sold the Midtown Crossing apartment complex at 317 Lynn Road in Raleigh, NC, to Eliason 1031 Properties Corp. for $17.75 million, or about $78,000 per unit.

The 120,000-square-foot complex is comprised of 12 buildings and 228 units. It includes a fitness center, swimming pool, business center and car-care facility.

Blake Oakland and Dean Smith of Apartment Realty Advisors represented the seller, while the buyer was self-represented.

Sandreuter Buys Land for Edison Towers

2008-10-31T07:40:00.000-05:00

newsobserver.com | Investors buy downtown site for four-tower building

Edison Land, LLC bought 2.68 acres for $12.1M ($103/sf) across the street from Highwoods new RBC tower.

Deal Summary:
-$3.7M from Oakland Capital in Charlotte
-$5.6M debt from BAC
-$2.8M seller financing from Progress Energy

Lafayette Village ~ North Raleigh, NC

2008-10-16T09:30:00.000-05:00

Lafayette Village ~ North Raleigh, NC

What's this? Debt capital? The crisis has defintely hit NC but here's a sign of the bullishness that still permeats the region.

Paul Bronson and a group of "inexperienced retail developers" have secured a $15.9M loan to build out this $20M project in N Raleigh.

In Jack Hagel's N&O article Bronson talks about being selective on his tenant mix:

"It's kind of like when you have a cashmere jacket and a cheap tie," Bronson says. "It just doesn't look right. I can't have burger smell wafting through my plaza."

This may be the most gutsy development in the Triangle. Going after 73,000SF of boutigue shops with $26/SF space. That's a lot of coffee, chocolate, cafe's and hair-dos. There are tons of cheaper options for retailers not to mention the expectation that recession fears will hurt high-end retailers in 2009.

Great location, great concept, I hope they can overcome the tough timing.

Wall Street explodes in historic one-day surge

2008-10-13T22:10:00.000-05:00

Wall Street explodes in historic one-day surge - Stocks & economy- msnbc.com

exerpted.

Wall Street stormed back from last week's devastating losses Monday, sending the Dow Jones industrials soaring a nearly inconceivable 936 points after major governments' plans to support the global banking system reassured distraught investors. All the major indexes rose more than 11 percent

Tuesday Morning Coming to Knightdale - CoStar Group

2008-10-10T15:44:00.000-05:00

Tuesday Morning Coming to Knightdale - CoStar Group

excerpted...

Tuesday Morning Coming to Knightdale
Retailer Takes 8,450 SF for New Store at Knightdale Crossing

Upscale closeout retailer Tuesday Morning signed a five-year lease to occupy 8,450 square feet at Knightdale Crossing in Knightdale, NC. This will be Tuesday Morning's first store in Knightdale.

The 63,547-square-foot retail center was constructed in 1986 and is anchored by Peak Fitness. It is at the southwest corner of Knightdale Blvd. and N. Smithfield Road in the Northeast Wake County submarket.

Mike Peebles of Peebles Commercial Realty represented the landlord, Income Properties of Raleigh, while Jim Clark of Equity & Investors Management represented the tenant.

BAC: Huge News all Piled Together

2008-10-06T23:21:00.001-05:00

Finally, Relief for Homeowners: BofA Settles Predatory Lending Suit: Tech Ticker, Yahoo! Finance

1. Agrees to $8.6B predatory lending settlement
2. Announces earnings of $0.15 (68% below estimates)
3. Announces 50% cut in dividend
4. Will issue $10B in new common stock

I knew it was too ambitious to expect them to maintain the dividend.

Cramer Predicts the Future

2008-10-06T23:11:00.001-05:00

James J. Cramer on the Future of Wall Street After the Great Nationalization -- New York Magazine

Here's a great article on this bail out business by the Mad Money man Jim Cramer.

He's been calling for an 8300 DJIA and appears to be right.

Buy on the rumor, sell on the news.

Blood in the Streets Dow off 777

2008-09-29T21:51:00.000-05:00

Bloomberg.com: Exclusive

Wachovia is sold to Citigroup in a deal brokered by the FDIC

The Dow drops over 777 points. The largest one day point loss in history as Congress rejects Paulson's 700B bail out plan.

Ironically Campbell's soup was higher.

VA snaps up Mutual Life space

2008-09-26T06:50:00.000-05:00

newsobserver.com | VA snaps up Mutual Life space

Greenfire lands VA.
Good job Arnold.

Keystone, Bozzuto pull trigger on Centennial Campus projects

2008-09-22T19:18:00.000-05:00

Keystone, Bozzuto pull trigger on Centennial Campus projects - Triangle Business Journal:

excerpted:

Keystone Corp. of Durham is close to signing a long-term lease with the university for a 3-acre parcel at the northwest corner of Varsity Drive and Main Campus Drive, where the company plans to build a 70,000-square-foot laboratory building.

The Bozzuto Group of Greenbelt, Md., is close to signing a lease for a 7-acre site on Main Campus Drive for up to 300 apartment units that will be marketed to the general public and not as student housing.

NCSU moving forward with $180M engineering buildings

2008-09-22T19:14:00.001-05:00

NCSU moving forward with $180M engineering buildings - Triangle Business Journal:

excerpted:

When all the dollars are added up, the new NCSU College of Engineering will have been built for a projected $307.5 million.

Martin-Vega has identified the Georgia Institute of Technology, better known as Georgia Tech, as NCSU’s model. The engineering schools at NCSU and Georgia Tech were considered peers in the 1980s. But Georgia Tech over the years has built new facilities and added faculty to the point that it has pulled away from NCSU in national rankings,

The Don of Donations - WSJ.com

2008-09-19T17:59:00.000-05:00

The Don of Donations - WSJ.com

Great WSJ article on some of the most expensive real estate in Raleigh...Carter-Finley Stadium.

"Carter-Finley Stadium in Raleigh, N.C., is a tribute to the earning power of big-time college athletics. Since 2000, the school has added over $100 million in improvements, including a four-story tower with luxury suites and a football-operations center that houses three swimming pools, a weight room and a 3,500-square-foot player lounge."

Okay - So Greed Ain't Good

2008-09-17T20:12:00.000-05:00

FT.com / Columnists / John Gapper - This greed was beyond irresponsible

"Warren Buffett warned in 2003 that derivatives were “financial weapons of mass destruction” and that, while the Federal Reserve system was created in part to prevent financial contagion, “there is no central bank assigned to the job of preventing the dominoes toppling in insurance or derivatives”.

AIG Financial Products arm assessed the risks of insuring CDOs. It ran all the data and decided that, in the worst case, it risked losing $2.4bn on the portfolio.

Well, $24bn of write-downs later – a mere 10 times its maximum estimate – the company has burned through its equity, spread financial chaos to all corners of the earth and humiliated the US Treasury."

BofA's "Deal of a Lifetime"

2008-09-16T07:55:00.001-05:00

newsobserver.com | Bank of America shares dive after Merrill Lynch deal

Bank of America shares are down 20% on the announcement that they will throw a life raft to the sinking USS Merrill Lynch. Just when I thought BAC had survived this credit crisis, they take on more risk.

Waverly Place on Hold

2008-09-16T07:45:00.001-05:00

newsobserver.com | Credit crisis snarls Waverly Place

Todd Zapolski's plan to redevelop Waverly Place in Cary is on hold until the debt starts flowing again.

Wilmington is First in US to go Digital

2008-09-09T06:48:00.000-05:00

newsobserver.com | Wilmington pulls plug on old-fashioned TV

-coastal city volunteers to be test market for national conversion
-rest of US will convert on 2/17/09
-only 8% of 180,000 TV households still use analog and will have to get a digital set
-gov coupons for converter boxes available at www.dtv2009.gov
-TW Cable gains flood of new customers

WSJ: Dell could sell off Winston-Salem plants

2008-09-08T08:44:00.000-05:00

WSJ: Dell could sell off Winston-Salem plants - Triangle Business Journal:

It appears $300M in incentives was not enough to make Dell successful here.

Apartment Sales Approach Record

2008-09-04T12:31:00.000-05:00

newsobserver.com | Investors favor apartments near jobs

Almost $900 million in Triangle apartment transactions have closed this year -- surpassing last year's total by 12 percent and en route to matching the record $1.05 billion set in 2006

Big Ed Lead Forum Deal

2008-09-03T16:33:00.001-05:00

Highwoods CEO led talks in purchase of Forum complex - Triangle Business Journal:

Good summary of the Forum transaction.

Implus Footcare moving to Durham

2008-09-03T10:18:00.000-05:00

newsobserver.com | Implus Footcare moving to Durham

Implus Footcare has signed a 10-year lease for a new 262,940-square-foot headquarters and distribution center at 2001 T.W. Alexander Drive in Durham.

Raleigh council gives Hillsborough developer an extension

2008-09-03T10:14:00.000-05:00

Raleigh council gives Hillsborough developer an extension - Triangle Business Journal:

What's good for Greg is good for David.

Sorry Russell, these guys must have some awesome cred.

Triangle Lands Homeland Security Gigs worth over $22M

2008-09-03T09:10:00.002-05:00

Centers to study U.S. security: RTP, UNC-CH sites hailed as putting area at front of homeland security efforts

It is a collaboration of RTI International, Duke University, UNC-Chapel Hill and the N.C. Military Foundation.

RTI - $7.5M contract studying how social science and policy-making can fight terrorism and improve homeland defense in other ways.

Duke - The new “Solutions” institute will be housed at Duke University, WRAL News was told.

UNC-CH - The Department of Homeland Security grant for that center, which will study natural disasters in coastal areas, is worth at least $2.5 million a year for six years.

"If you look around the country, there are many industrial parks, there are many universities and several research parks, but it's been my experience that no state puts it together as well as North Carolina can," he said. "We wanted the best of the best in these two cases, and we've picked very well. And these aren't short-term commitments."

Triangle apartment community sold to Louisville's NTS for $39M

2008-09-02T08:03:00.000-05:00

Triangle apartment community sold to Louisville's NTS for $39M - Triangle Business Journal:

Highlights:
Property: Courtney Estates, 300 unit garden style apartments
Location: near RTP, I40 and I540 interchange
Buyer: NTS Realty Holdings
Seller: Courtney Estates Holdings, LLC
Price: $39M or $130K per unit
Closing: expected on 26 Oct 08

Note:
Louisville-based NTS owns 12 multifamily properties, seven office buildings and business centers and three retail properties in Indiana, Kentucky, Florida, Georgia, Tennessee, Virginia and North Carolina.

UNC to launch Business Incubator

2008-09-02T07:49:00.001-05:00

UNC approves design for Carolina North's Innovation Center - Triangle Business Journal:

Alexandria will build and operate UNC's 85,000 SF business incubator.

Horizon Realty buys Raleigh student apartments for $21M

2008-09-01T21:55:00.001-05:00

Horizon Realty buys Raleigh student apartments for $21M - Triangle Business Journal:

There are 156 units in the complex. The property also includes a 4,000-square-foot clubhouse.

Reed Cos., a Florida developer of student housing, was the seller for the complex, built in 2003. According to its Web site, that company owns no other apartment properties in the Triangle.

The purchase of Village Green gives Horizon three student-housing apartment complexes in Raleigh. The company also owns sister complexes Centennial Ridge and Centennial Village, with the former located off Tryon Road and the latter at the corner of Gorman Street and Avent Ferry Road.

Downtown Marriott opens in Raleigh

2008-08-28T08:45:00.003-05:00

Downtown Marriott opens in Raleigh : WRAL.com

$75M Hotel will hold grand opening at Raleigh Wide Open event.

The 16-story hotel features 400 rooms, including 20 suites, and more than 15,000 square feet of meeting space, including a 9,000-square-foot Grand Ballroom.

Owner: Atlanta based Noble Investment Group, Mitesh "Mit" Shah, President. WFU Grad.

RDU Terminal 2 to Open Oct 26

2008-08-28T08:41:00.000-05:00

Commercial Real Estate News

$570M terminal to open to the public.

"The 550,000-square-foot first phase of Terminal 2 has been built where the old north concourse of Terminal C used to stand. The section of Terminal C being vacated Oct. 25 will be torn down and rebuilt as the south concourse of Terminal 2. The project is to be completed in 2011."

Airport authority member Rob Teer calls the opening of the terminal a monumental time in the airport's history. Addressing the complexity of the project, Teer says, "What we've done with this terminal is really kind of a miracle."

Lorian Buys Raleigh Office for $2.7M

2008-08-28T07:23:00.001-05:00

Lorian Buys Raleigh Office for $2.7M - CoStar Group

Address: 4109 Wake Forest Rd
Price: $2.75M ($81/SF)
Size: 34,038SF
Built: 1975
Buyer Agent: Charles Rankin of Grubb Properties
Seller Agent: Jason Stowe of Income Properties

AIMCO Deals Durham Apt. Complex for $9.3M - CoStar Group

2008-08-28T07:17:00.000-05:00

AIMCO Deals Durham Apt. Complex for $9.3M - CoStar Group

Summary:
Name: Windsor at South Square
Units: 230 (24 one bedroom apts; 138 two-bedroom apts)
Location: 3300 Shannon Rd., Durham, NC
Size: 205,500 SF on 19 acres
Price: $9.3M or $40,000/unit
Buyer: PRG Real Estate Management
Seller: AIMCO

Americas Capital Partners Flips Sturrip Creek

2008-08-27T10:27:00.000-05:00

newsobserver.com | Durham deal is bit of a surprise

RBC Plaza Lights Up Tonight

2008-08-21T11:49:00.000-05:00

Raleigh Chronicle/Raleigh Downtowner

Tonight at 9pm, Big Ed Fritsch and Scott Custer will flip the switch to illuminate the RBC signs and spire atop Raleigh's tallest building.

Grand Opening is a few weeks away.

Sign the Apocalypse is Upon Us

2008-08-19T16:26:00.004-05:00

The Greater Raleigh Chamber of Commerce recently announced Ben Stein as the keynote speaker for this year's annual meeting. Pretty cool, I thought, I'm in... until I read down and there's an $85 cover charge. Whoa, I dig Big Ben but that seems steep.

Then I look for a little perspective. John Mayer, whose music I have recently developed an affinity for is also in town this month. His show cost $50. By the time you figure in service charges and parking Mayer is still cheaper than Stein.

What are we coming to?

Related Links
Ben's House - The Official Ben Stein Home Page
John Mayer 2008 Summer Tour

Hatem Given Second Extension on L-Building

2008-08-06T14:53:00.002-05:00

The Raleigh City Council voted yesterday to give Raleigh's Downtown Redevelopment Guru Greg Hatem an extension on the L-Building Project. Hatem reports there are several financial backers looking at the deal but no one has committed so far and he needs more time. Citing Greg's positive influence on Raleigh, Mayor Meeker spoke in support of the request. City Manager Russell Allen recommended ending the contract and opening the bidding up to the public.

The L Building was originally conceived as beautifully designed 22 story tower featuring 11,000SF of retail and 110,000Sf of Class A Office wrapped around a 900+ space parking deck. This plan may change now to a smaller office and boutique hotel in order to get it financed.

This is the second such extension Hatem has received. This time the City went further and agreed to waive the development fee required to widen the road as well.

It is nice to see a relationship carry the day in this harsh economic environment. Greg has until November 1st now to line up financing. To me this speaks to just how tough it is for private developers to raise money for real estate development right now. If Greg Hatem can't get a downtown deal funded, who can?

RBC Plaza is 95% Pre-leased

2008-07-29T09:42:00.000-05:00

Law Firm Takes 75,000 SF at RBC Plaza - CoStar Group

This Williams Mullen lease brings the office portion of the RBC Tower to 95% pre-leased.

Nice job, John.

Highlights:
-Virginia based Williams Mullen pre-leased 75,000SF
-address 301 Fayetteville St., Raleigh, NC
-33 stories total
-8 levels of garage
-ground floor is retail
-151 residential condos on top 10 floors (are sold out)
-will be tallest tower in Raleigh (until Sandruetter's buildings pass it)

Westgate Facility Trades for $1.6M

2008-07-24T09:36:00.002-05:00

Westgate Facility Trades for $1.6M - CoStar Group

Address:6241 Westgate Road
Buyer: GKS Holdings
Seller: Metal Partners, LLC
Price: $1.64M ($40 per/SF)
Building: 40,000 SF constructed in 1988
Lot: 7 acres
Sellers Broker: Collier's Pinkard - Hillman Duncan, Brad Corsmeier, Dennis Hurley and Sarah Barnhill

More Apartments and Retail for Cameron Village

2008-07-15T20:36:00.000-05:00

newsobserver.com | Slump doesn't derail Cameron Village plan

Crescent Resources of Jacksonville, FL presents tonight at the Raleigh City Council and Planning Meeting. They are proposing another mixed use project at Cameron Village that is sure to attract attention.

28,000SF
290 Apartments or Condos
site of the old Village Citgo and Balentines Cafeteria.

Damned The Torpedoes: We're Building

2008-06-27T06:52:00.004-05:00

newsobserver.com | Ground broken on Blount Street development

Talk about insulated pockets of real estate. The contrast between our market and the rest of the world may not have been more stark yesterday.

With the stock market diving 358+ points, Bank of America announcing 7,500 lay-offs and oil hitting record highs around $140 per barrel, WE'RE BUILDING!

Two major condo projects are announced one each in Raleigh and Chapel Hill.

LNR kicked off Blount Street Commons in Raleigh despite a market that is "obviously slower than we hoped it would be."

Highlights:
21 acres
6 block area
25 homes some historical to be renovated
495 townhouses, condos and single family residences
110,000SF of retail shops on ground floor beneath the condos
First Phase is 4.7 acres bounded by Blount Peace, Person and Polk
Prices range from $200,000 to $1M+

Ram Realty Services announced 140 West Franklin in Chapel Hill. This is the only condo project they are doing right now in the country.
newsobserver.com | Betting on Condo buyers

Highlights:
140 units
1.7 acre lot at Franklin and Church Streets
26,000SF of retail shoppes on the ground floor

Coincidentally, both developers are based out of Florida.

Banks Flock to Unlock Value with Sale Lease Backs

2008-06-26T10:44:00.001-05:00

Unlocking Value: More Banks Discovering Gold in Sale-Leaseback Deals - CoStar Group:

"'The rationale for banks to consider sale-leaseback transactions of bank-owned property is straightforward,' according to Killian. 'Such a transaction could enable the bank to raise cash to meet strategic and funding needs, convert non-earning, 100%-risk-weighted assets into potentially lower risk-weighted, interest-earning assets, mitigate potential risk of decline in market value of owned real estate, monetize off-balance-sheet value into earnings over the life of the lease, and potentially bolster GAAP (Generally Accepted Accounting Principles) earnings,' Killian said."

We're #2! We're #2!

2008-06-25T16:36:00.002-05:00

Best Cities to Live, Work and Play - Kiplinger.com

Okay, so Houston's got more pro sports teams but NC State had Mario Williams first before the Texan's made him rich. The College sports scene here is much better and of course, Phi Slamma Jamma Raleigh Chapter prevailed 54-52 when it counted way back in 1983.

Office Condos in the Capital City's Center

2008-06-25T16:12:00.004-05:00

newsobserver.com | Prime location with prices to match

Good article on the plans to develop 1330 St Mary's St. and market for $225/SF.

I sold 600 Wade Ave last November 2007 for about $156/SF.

Currently marketing 612 Wade Avenue
for about $159/SF.

Fantastic location, it will be interesting to see if that region will support those prices.

TED Spread signals easing of Credit Squeeze

2008-05-19T09:44:00.001-05:00

According to Bob Bach, Chief Economist for Grubb&Ellis the credit pinch may be showing signs of easing:

Bob's Box
TED Spread

One indicator that the credit squeeze is easing is the TED spread – the difference between interest rates on 3-month Treasury bills (“T”) and the 3-month Eurodollar futures contract (“ED”) as represented by the dollar London interbank offered rate (Libor). Treasuries are risk-free, while Libor is a proxy for the credit risk of corporate borrowers. The recent narrowing suggests that lenders are becoming more willing to take risks. At some point this easing, if it is sustained, should begin to show up in the commercial real estate capital markets.
Source: Federal Reserve, British Bankers' Association

Forbes: Raleigh is #5, Americas Most Recession Proof Cities.

2008-05-08T13:32:00.000-05:00

Raleigh, N.C.
Median home price: +4%

Unemployment: 4.2% (from 3.7%)

Key growth: Professional and business Services, +7.4%; education and health, +6%

Stable home prices and growth across the different sectors of its economy have kept Raleigh strong. In the last 12 months, all industries measured by the U.S. Department of Labor have grown except for the city's small information sector.

Crossroads Corp Park Fetches $59M

2008-05-08T07:35:00.002-05:00

Deal Summary:
Property: Crossroads Corporate Park, Cary, NC
Price: $59M ($151/SF)
Size: 390,500 SF; 133 acres plus 4 development parcels totalling 16 acres
Buyer: MayfieldGentry
Seller: Faison & Associates, LLC
Local Broker: Jimmy Barnes of NAI Carolantic

Notes: The park consists of four low- and mid-rise office buildings along Dillard and Corning roads southwest of Raleigh, and is 97 percent leased to tenants including Capitol Broadband, Jacobs Engineering Group and Wake County Public School System, according to CoStar information.

Source: Co-Star

Raleigh Named #8 Smartest Metro By Bizjournals

2008-04-24T19:55:00.000-05:00

"The Raleigh area is known as the Research Triangle, a sign of its reliance on high technology and education. Duke, the University of North Carolina and North Carolina State are based locally. This is one of eight metros where at least 40 percent of adults hold at least a bachelor's degrees.
Education ladder
(Percentage of adults who stopped at each level)
Earned a graduate and/or professional degree: 13.6%
Earned a bachelor's degree: 27.9%
Earned an associate degree: 9.0%
Went to college, but didn't earn a degree: 18.2%
Graduated from high school: 20.2%
Dropped out of high school: 11.2%
Extremes
At least a bachelor's degree (top two rungs): 41.5%
Didn't go beyond high school (bottom two rungs): 31.4%"

Profiles of 10 smartest metros:

Raleigh-Durham Named Top U.S. Real Estate Market of 2008

2008-04-24T19:47:00.000-05:00

Today's Financial News (TFN) cites our quality Universities, and medical centers and the fact that "Some of the highest-educated, most demanding and discerning individuals (and their families) in the world congregate here, requiring not only homes but offices, restaurants and retail enclaves."

What pushes this region to the number one spot, however, is its unique mix of foreclosures. Though not the nation’s highest (compared to 3.8% in Seattle or 4.9% in Detroit), foreclosures here represent a larger number of available properties at any given moment than in most areas.
Relatively low unemployment, property taxes, and the high overall quality of life in the Raleigh-Durham area, coupled with the lack of localization to the foreclosed properties, reveals these foreclosures to not be indicative of widespread economic distress, but rather of individual failures — and a regional banking system unwilling to carry the losses any longer than necessary.

The Top 5 U.S. Real Estate Markets of 2008

Highwoods is Buying in Raleigh.

2008-04-04T07:42:00.000-05:00

In what has to be a huge signal that the market has swung in favor of buyers, Highwoods bought The Forum. After several years of being a net seller of real estate, HIWs took advantage of softening prices, tougher lending criteria and even the weak US dollar, (by bringing in a German equity partner) and purchased the 635,000SF deal.

newsobserver.com | Highwoods buys into Forum offices

Blackstone Goes Big Again

2008-04-02T09:21:00.003-05:00

The boys at Blackstone have never been accused of going small. Now they have raised the largest real estate "opportunity fund" ever. They are seeking 20% returns with a war chest of $10.9B. Will this help BX's miserable stock performance? Hope so.

Blackstone Closes Oppty. Fund With Record $10.9 Bil. - CoStar Group