Southern California Office Real Estate Blog

4 GREEN BUILDING TRENDS 4U

4 GREEN BUILDING TRENDS 4U

By Jodi Summers

Green building concepts are being embraced with as much wild abandon as kids grasping for the coolest new video game. It started pretty basic – green construction, then evolved into green renovation, and now it’s branching out in all directions. Here are 4 green building trends to watch and invest….

1 - Modular Green Homes – One of the most successful investors in history, Warren Buffett, recently expanded one of his business subsidiaries, Clayton Homes, to produces a line of green modular homes. These 750-square-foot eco homes, dubbed “i-houses,” can be purchased online for less than $75,000. It’s a good bet that if Buffet is invested in it, the area will grow. Our hero is second richest man in the United States with a net worth of $40 billion.

The i-houses are constructed as modules in a factory and then assembled in the field. I-houses are marketed as “affordable luxury in a green, energy-efficient package.”

Beyond Buffett, there are others, such as Zeta Communities and Blu Homes in the green prefabricated market. Modular home construction will be a wise choice for builders going forward because it may allow developers reduce risk, allowing the development of large sites to take place as sales come in rather than building a planned community in larger phases before the units are sold out.

2 – Energy Retrofits – California state measure AB 1103, which requires the tracking of the energy use of all nonresidential buildings for disclosure to prospective buyers and tenants, is a fine example of how critical energy retrofits will be in the future. Much of the country’s real estate is old and wastes energy…eventually these properties will need to be upgraded or replaced. Not to mention, this is a cornerstone of President Obama’s post recession job creation movement.

Energy Star, the government, and local utilities have been offering rebates for property owners on measures like energy audits, insulation and duct sealing. SBI Energy predicts that the U.S. home energy retrofit market will grow about 15 percent per year to $35 billion by 2013, up from $20.7 billion in 2007.

David Leathers, senior vice president of energy services for mechanical contractor Limbach, confides that U.S. commercial building in the U.S. five years or older can likely benefit from a retrofit with payback for most measures taken in less than five years.

3 - Smart Building Materials - Energy-efficient building materials are the frame of green building. Serious Materials recently raised a $60 million third round of venture for the manufacture of energy-saving windows and environmentally friendly substitutes for sheetrock. More good investments - high-efficiency insulation system companies, such as walls with micro-encapsulated phase change materials to stabilize the indoor temperatures in buildings. More…Electrochromic technologies can darken or lighten the tint of a window when in contact with an electrical current, thus managing the amount of sunlight that passes through…Ventilated double-skin facades (already being used in Europe), use inner and outer glass walls with a thin cavity to provide insulation in between for the exterior shell of a building.

4 - More Energy Efficient Energy Codes - The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE ) and the International Energy Conservation Code (IECC) are both developing the latest round of “model codes”— ASHRAE 90.1 and IECC — will likely require a 30 percent increase in energy efficiency.

Congress may soon mandate that all states raise their standards to the newest codes. The American Clean Energy and Security Act passed by the House this year includes a provision that would effectively create a baseline national building energy code by mandating the adoption of a standard set by the Department of Energy, who may very well call on the standards set forth by ASHRAE or IECC.

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http://earth2tech.com/2009/12/23/4-green-building-trends-to-watch-in-2010/

http://www.motherearthnews.com/Green-Homes/Green-Modular-Homes.aspx

http://en.wikipedia.org/wiki/Warren_Buffet

http://www.socalgreenrealestateblog.com/?p=841

http://www.ashrae.org/

http://www.icis.com/blogs/green-chemicals/2009/01/green-building-is-still-recess.html

http://www.newenglandmetalroof.com/construction_directory/green-building.gif

http://www.charlesandhudson.com/archives/eco-friendly-building-materials.jpg

15 NOTEWORTHY CLEAN ENERGY STOCKS

15 NOTEWORTHY CLEAN ENERGY STOCKS

Edited by Jodi Summers

Green Stocks Investing has researched publicly-listed renewable energy stocks including solar power companies, wind energy stocks, geothermal power producers, wave energy, tidal power, green mutual funds, emerging clean energy technology companies, and come up with a list of Top Alternative Energy and Renewable Power stock picks for 2010:

1. ITRI - Itron, Inc. (Itron), provides products and services to utilities for energy and water markets globally, and is a provider of metering, data collection and software.

http://www.itron.com/

2. AMSC - American Superconductor Corporation (AMSC) is an energy technology

solutions company, offering products and services based on programmable power electronic converters and high temperature superconductor (HTS) wires. It serves are the wind energy market and the power transmission and distribution or power grid market. http://www.amsc.com/

3. CSIQ - Canadian Solar Inc. (CSI) designs, develops, manufactures and sells solar cell and module products in China that convert sunlight into electricity. CSIQ mplements solar power development projects, primarily in conjunction with government organizations. http://www.canadian-solar.com/

4. CLNE - Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. CLNE designs, builds, finances and operates fueling stations, and supplies customers with compressed natural gas (CNG) and liquefied natural gas (LNG), and also helps them acquire and finance natural gas vehicles, and access government rebates and incentives. http://www.cleanenergyfuels.com/

5. LON-CWP - Clipper Windpower PLC (Clipper) is engaged in the design, engineering and manufacturing of advanced wind turbines and developing wind energy projects, including engineering, construction, and plant operation. It manufactures the 2.5 megawatts Liberty wind turbine and actively develops wind power generating projects in the Americas and Europe. http://www.clipperwind.com/

6. BOM: 532667 - Suzlon Energy Limited (SEL) is an India-based wind power

company engaged in the manufacture of wind turbine generators (WTGs) of various capacities and its components. http://www.suzlon.com/

7. CVE:WND - Western Wind Energy Corp. (Western Wind) owns two wind energy

electrical generation facilities and is developing wind energy projects in California and Arizona. WND currently owns over 500 wind turbines with 34.5 MW of rated capacity and a further 131MW of expansion power purchase agreements in California and Arizona. http://www.westernwindenergy.com/

8. YGE - Yingli Green Energy Holding Company Limited (Yingli Green Energy) is a vertically integrated photovoltaic (PV) product manufacturer in China. The Company designs, manufactures and sells PV modules and designs, assembles, sells and install PV systems in worldwide markets such as Spain, Germany, the United States and China. http://www.yinglisolar.com

9. TSL - Trina Solar Limited is an integrated solar-power products manufacturer based in China. The Company’s market reach includes Germany, Spain and Italy. http://www.trinasolar.com/

10. ORA - Ormat Technologies, Inc. (Ormat) is engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal recovered energy-based power plants, usually using equipment that it designs and manufactures. http://www.ormat.com/

11. APWR - A-Power Energy Generation Systems, Ltd. (A-Power) is a renewable energy company in China, engaged in providing onsite distributed power generation systems and micro power grids for industrial companies to recapture previously wasted heat and gas from their manufacturing processes to generate electricity.

http://www.apowerenergy.com/

12. AMAT - Applied Materials, Inc. (Applied) provides Nanomanufacturing Technology solutions for the global semiconductor, flat panel display, solar and related industries, with a portfolio of equipment, service and software products. http://www.appliedmaterials.com/

13. JASO - JA Solar Holdings Co., Ltd. (JA Solar) is engaged in the development, production and marketing of photovoltaic (PV) solar cells, which convert sunlight into electricity in China. http://www.jasolar.com/

14. AOS - A. O. Smith Corporation is a manufacturer of water heating equipment and electric motors, serving a diverse mix of residential, commercial and industrial end markets principally in the United States. http://www.aosmith.com

15. OTC: SHCAY (Sharp Corp ADR) - Sharp Corporation is a Japan-based company

engaged in the manufacture and sale of electronic telecommunication devices, electronic machines and components. The Sharp Solar division is a world-leading alternative energy manufacturer. http://sharp-world.com/

http://agreenrealtor.blogspot.com/2010/01/15-clean-energy-technology-groth-stocks.html

GREEN OFFICE AND INDUSTRIAL REITS SHOWING PROMISE

GREEN OFFICE AND INDUSTRIAL REITS SHOWING PROMISE

By Jodi Summers

Office and industrial REITs expect to remain tightly focused for the balance of the year –evaluating the damage to occupancy and rents twisted by current economic conditions.Expect REITs to be greening and negotiating sexier leases mitigate potential damage.

Buildings are responsible for 40% of emissions, and commercial sectors such as industrial and office are greening to cut costs and attract hipper clients.

Taking such savvy acts, coupled with the 2^nd + 3^rd quarter strengthening of the economy have motivated market observers to observe that the publicly traded REIT market at bottom or near bottom.

A recent CBRE Investors report noted that “the bottom of the capital market cycle may be close,” with pricing metrics on U.S. commercial real estate starting to look attractive again to buyers.

“Much of the recent negative press about commercial real estate reflects the experiences of distressed owners,” CBRE noted in their report. “However, from

prospective buyers’ perspectives, many pricing indicators look historically favorable,” based on the current widening spread between aappraised-value cap rates and risk-free 10-year U.S. Treasury bonds.

“Just as REITs led the private markets in 2007 and 2008, it is probable that the recent share-price recovery is an early indicator that a trough in private markets is coming soon.”

Energy saving upgrades such as timed lighting + cooling, white roofs and thin solar films to cover the windows of office buildings are cutting back on cooling costs and increasing user comfort.

CoStar’s office and industrial market report stated that average sale prices, while down significantly from their 2007 peaks, are at or close to their historical averages. Cap rates have expanded sharply during the same period but are also in line with historic averages.

REITs comprise just 10% of the commercial real estate market, but wield significance as a bellwether for future commercial real estate conditions.

**

http://www.costar.com/News/Article.aspx?id=6A1CBF26B572D3A957377280529227C0&ref=100&iid=143&cid=383F14EEE265B182474DA2442BACBBBF

http://www.socalofficerealestateblog.com/?p=405

http://www.socalofficerealestateblog.com/?p=570

http://www.cars2go.us/wp-content/uploads/new-location.JPG

http://www.dezeen.com/wp-content/uploads/2008/08/so_il120.jpg

http://equitygreen.typepad.com/blog/2007/01/green_reits_par.html

http://static.seekingalpha.com/uploads/2009/7/13/405200-124751501706183-The-Stock-Masters.jpg

SAM ZELL’S INVESTMENT STRATEGIES

SAM ZELL’S INVESTMENT STRATEGIES

By Jodi Summers

Expectations of a crash in commercial real estate market are “greatly exaggerated,” noted media and real estate magnet Sam Zell recently in Chicago. “Everyone is waiting for the grave dancer to come and exercise his magic potion, but you need two to tango.”

Speaking at the at the first “Invest for Kids” conference in downtown Chicago, Zell noted that owners of office and apartment buildings today have no incentive to sell. By 2011 or 2012 they will likely be able to fill their vacancies, albeit at rates 30% below their peaks, because demand will catch up to supply, he observed.

Optimistically he shared the fact that the U.S. population is growing and with fewer building starts in the past decade, demand for housing will rise.

Then again, Mr. Zell has made some interesting predictions. Financial mogul Sam Zell, owner of the Tribune Co., recently told an Israeli business conference that the U.S. real estate market will be in recovery by spring 2009.

Chicagoan Sam Zell is best known for owning and defaulting such famous media properties as the Los Angeles Times, Chicago Tribune and New York’s Newsday. Media aside, Zell’s fame and $6 billion net worth originate from his mastery of real estate investing principles. This mastery, demonstrated repeatedly over a 40-year career, results from Zell’s acute understanding of real estate market mega-trends and his dedication to turning around troubled properties.

Zell got into real estate investing in the 1960s, during the time he received his bachelor’s (1963) and law degrees (1966) from the University of Michigan. It started when he finagled his way into a property management role with a local landlord. Next, Zell began buying distressed properties, fixing them up and rent them to students. Zell was a hands-on landlord who put a lot of energy into scouting and fixing up locations.

According to About.com, “In 1969, Zell and his partner Robert Lurie formed Equity Properties Management Corp. to centralize Zell’s rapidly diversifying investments in real estate. In the 1970s, Zell expanded beyond his initial interest in residential real estate and began to acquire office space under the aegis of Equity Office Properties Trust, or EOP. Zell structured his business as a series of real estate investment trusts, or REITs, under the Equity umbrella. EOP was one REIT; Equity Residential Properties Trust was another. The REIT structure allowed Zell to radically reduce his corporate income taxes. In addition to exploiting the REIT tax structure, Zell polished his skills as a salesman and convinced an increasing number of investors to entrust their money to him.”

Zell, with Robert H. Lurie went on to found the Equity Group Investments, LLC, which spawned three real estate public companies, including: Equity Residential, the largest apartment owner in the United States; Equity Office Properties, the largest office owner in the country; and Manufactured Home Communities, a mobile home company. In addition, Zell has created a number of public and private companies.

He proceeded to grow his office properties - Equity Properties Management REITs into strong national brand names. This project met with marginal success, as enterprises tended to buy office space based on local differentiators such as price and management, not on national differentiators such as brand name. Zell had to sell some office space for less than what he paid for it, but this did not cost him his whole empire, and he sold this part of his portfolio to Blackstone for $36 billion in 2006, and in 2007, Zell acquired a portfolio of newspapers owned by the Tribune Co., including the Chicago Tribune, Los Angeles Times, Newsday and Baltimore Sun. …an odd time to buy newspaper franchises.

Currently, Zell recently raised $625 million to invest in “credit opportunities.”

“In every market and in every situation there is opportunity,” Zell concluded.

“In my 40 years in real estate, I’ve found there is only one metric that matters — replacement cost.” He noted that the spread between a building’s replacement cost and its economic value is as wide today as it was in 1993 — mainly because the cost of construction has increased.

**

http://www.businessweek.com/the_thread/hotproperty/archives/2005/11/zells_favorite.html

http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=36105&print=1

http://www.socalmultiunitrealestateblog.com/?p=201

http://homebuying.about.com/lw/Business-Finance/Real-estate/Sam-Zell-Real-Estate-Magician.htm

http://en.wikipedia.org/wiki/Sam_Zell

http://www.businessweek.com/the_thread/hotproperty/zell2.jpg

http://reason.com/assets/mc/mwelch/2009_10/SamZell.jpg

http://www.richsamuels.com/nbcmm/zell/images/zellhs.jpg

http://images.businessweek.com/ss/08/07/0731_zell/image/zell.jpg

LOS ANGELES OFFICE PROPERTY SNAPSHOT – DECEMBER 2009

LOS ANGELES OFFICE PROPERTY SNAPSHOT – DECEMBER 2009

By Jodi Summers

Before we get into the gritty details of the Los Angeles office market, let us share with you the comfortable words of noted media and real estate magnet Sam Zell, expectations of a crash in commercial real estate market are “…Greatly exaggerated… Everyone is waiting for the grave dancer to come and exercise his magic potion, but you need two to tango.”

Zell observed that owners of office and apartment buildings today have no incentive to sell. By 2011 or 2012 they will likely be able to fill their vacancies, albeit at rates 30% below their peaks, because demand will catch up to supply.

Look forward to 2011 or 2012 because the current picture is not so pretty. According to Clarus Market Metrics, in L.A. County between November 2007-November 2009 the number of properties for sale is up 60%, and the demand is virtually nonexistent…two properties have sold.

The Bureau of Economic Analysis has released preliminary estimates of corporate profits in the third quarter of 2009. The LAEDC Economic Forecast notes that total corporate profits were still down by -6.7% compared to 3q2008.  Profits of U.S. financial industries were up by +25.4% over the year.  However, U.S. nonfinancial industries’ profits were down by -12.5%.  Also, net profits from the “rest of the world” decreased by -19.1% over the year, reflecting the global nature of this recession.

Locally, our aerospace industry is confronting its own challenges in 2009-2010. Defense spending is slow, while commercial aircraft production is declining outright as profit-starved airlines reduce orders.

The LAEDC reports that the areas most severely impacted by job losses are: Santa Clarita (which will lose 6,000 jobs), North Gateway and East L.A./Eagle Rock (both expected to lose 5,300 jobs). Sub-areas losing the fewest jobs will be: the San Fernando Valley (down by 1,700).

For the record, Los Angeles County has a diverse economic base (based on the concept of “industry clusters”). Measured by 2007 employment, the leading industries are: 1.) tourism and hospitality with 456,000 workers; 2.) professional and business services with 288,000 workers; 3.) direct international trade with 281,000 workers; 4.) entertainment (motion picture/TV production) with 244,000 workers; and 5.) wholesale trade and logistics with 199,000 workers.

The “new economy” of Los Angeles County is primarily technology driven. This cluster includes bio-medical, digital information technology, and environmental technology, all of which build on the vibrant technological research capabilities of the County. Another key driver is creativity. There is a growing fusion between technology and creativity such as in video games and film production.

“The five Southern California metro areas are struggling in 2009,” concludes Jack Kyser, Founding Economist of the Kyser Center for Economic Research. “Job losses will continue in construction, manufacturing, retailing and leisure and hospitality services.” Measured by percentage declines in non-farm jobs, the Riverside-San Bernardino area and Ventura County are feeling the most pain, and will record employment declines of 6.7 percent and 5.1 percent respectively. Orange County should see employment drop by 4.8 percent, while Los Angeles County should record a decline of 4.1 percent. San Diego County will see a 3.8 percent loss in non-farm jobs.

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http://www.laedc.org/businessscan/charts

http://www.laedc.org/newsroom/releases/2009/072209_MidYearForecast.pdf

http://www.grubb-ellis.com/research/reports.aspx

http://www.laedc.org/eedge/index.html

http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=36105&print=1

http://www.epodunk.com/cgi-bin/genInfo.php?locIndex=10443

http://wpcontent.answers.com/wikipedia/commons/thumb/5/54/Los_Angeles_County_Pubic_Transport.png/400px-Los_Angeles_County_Pubic_Transport.png

http://www.cityyear.org/uploadedImages/CityYear/Local/Los_Angeles/Our_Work/2006.03.05.hollywood.sign.sized%5B1%5D.jpg

Sustainable Industries’ Top 10 Green Building Products of 2009

Sustainable Industries’ Top 10 Green Building Products of 2009

Edited by Jodi Summers

Not to be outdone by other trends, Sustainable Industries magazine has made their choices
for the 2009 Top 10 Green Building Products. These industry-leading green building products
winners were selected by a panel of expert judges and the Sustainable Industries editorial team 
based on their environmental performance, scalability/market impact, innovation,design
aesthetic, value and compatibility with the U.S. Green Building Council’s Leadership in Energy
and Environmental Design (LEED) rating system. 

The 2009 Top 10 Green Building Product winners are:

Acadia Combined Heating and Cooling System

Made by Hallowell International

(www.gotohallowell.com)

The Acadia is not just another heating and cooling system. It maintains 200 percent efficiency even when outdoor temperatures drop well below zero..should global climate change ever affect us that severely. Acadia users can save up to 70 percent of their home heating energy costs.

ec-H20

Made by Tennant Co.

(www.tennantco.com)

Requiring no chemicals, ec-H2O uses tap water to clean most any surface of most any substance. Each machine reduces water usage by 70 to 80 percent, and the potential of 245 million gallons of water each year if it were installed in all new floor-cleaning machines.

InSpire Wall

Made by ATAS International

(www.atas.com)

This simple technology uses the power of the sun to heat outdoor air before sending it indoors, thereby slashing energy use while boosting indoor air quality. Depending on what kind of heating fuel is being replaced, this product can reduce heating costs by up to $5 for each square foot of InSpire Wall installed.

kama EEBS Structural Systems

Made by kama Energy Efficient Building Systems Inc.

(www.kama-eebs.com)

kama EEBS Structural Systems integrate light gauge metal stud framing system with expanded polystyrene insulation in a proprietary design that eliminates thermal bridging and helps to create a tight, energy-efficient building envelope.

PlybooPure Bamboo Plywood

Made by Smith & Fong Co.

(www.plyboo.com)

Because it’s technically a grass, bamboo had not previously been eligible for FSC certification. But in January 2008, after two years of lobbying, Smith & Fong achieved this first that propelled it to recognition on this year’s Top 10 list.

RainTube

Made by GLI Systems Inc.

(www.raintube.com)

This product received more Top 10 nominations than any other product this year. RainTube is a rain gutter filter made of 100 percent post-consumer high-density polyethylene – old milk jugs, in other words. This product is also Cradle to Cradle-certified, meaning that GLI Systems Inc had to develop a Post-Use Recovery Plan that goes out with every product.

Separett Villa

Made by Separett

(www.ecovita.net/villa)

This urine-diverting composting toilet – which is 100 percent PVC fee –uses no water and keeps solids separate from liquids, reducing odor and making it possible to reuse waste and urine for composting and fertilizing. The Separett Villa can be deployed where no plumbing exists, allowing for a greater reach of the technology.

Serious Windows

Made by Serious Materials

(www.seriouswindows.com)

Serious Windows are so efficient they have the potential to allow for the elimination of a building’s heating system, allowing waste heat from building appliances to serve as the main heat source in some applications. The windows have a full-frame R value of at least five and up to 11, which can cut a building’s energy bills by up to 50 percent per month.

Solatube Daylighting Systems

Made by Solatube International

(www.solatube.com)

This patented technology catches direct sunlight and redirects it down an adjustable-length tube, bringing daylight to parts of buildings that would not otherwise have access to natural light. The Vista, Calif.-based company recently launched a product specifically designed for commercial applications, making it ideal for large-roofed warehouses and manufacturing facilities, as well as retail stores and schools – allplaces that have been shown to benefit from increased daylight, as daylight is linked to higher worker productivity, decreased absenteeism and better retail sales.

Your Old Light Fixture

Made by Eleek

(www.eleekinc.com)

Eleek is the only business to make the Top 10 Green Building Products list all four years. Though not a product, Eleek’s lighting restoration service speaks to the important concept of the re-use of existing goods. When Eleek restores a light fixture, every piece of a fixture is taken apart, repaired and restored to its original splendor. Its wiring is updated to comply with modern codes and standards and a new lamp base is installed so it works with energy-efficient lamps such as CFLs and LEDs.

Original article @ http://www.sustainableindustries.com/greenbuilding/49012336.html

SO MANY OFFICE BUILDINGS FOR SALE IN LOS ANGELES

SO MANY OFFICE BUILDINGS FOR SALE IN LOS ANGELES

By Jodi Summers

Some reports are showing that we have as much as 14% unemployment in California, so incase you were wondering, that’s why the office market sucks a big one these days.

Notice that the number of office properties for sale is up 67% - there are now 150 multiunit properties on the market, while sales are down by 50% - yes only two sold in September.

A recent property analysis by Cushman & Wakefield noted that net absorption of office space totaled negative 1.6 million SF in LA County in the 2nd quarter of 2009 and negative 5.6 million SF year-to-date. FYI, this compares to negative 2.9 million SF in all of 2008.

The freaky thing is that despite the job losses, Los Angeles County continues to maintain one of the lowest office vacancy rates in the nation.

On the investment side, recorded office sales volume of $45.1 million in L.A. County in the second quarter, compared with $245 million the previous quarter and $3.7 billion for the year 2008. The average sale price fell to $171 per square foot in the second quarter, versus $220 per square foot in the first quarter of 2009 and $323 in all of 2008.

**

http://www.cityfeet.com/News/NewsArticle.aspx?Id=33884

http://www.clarusresource.com/

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

By Jodi Summers

Going, going, gone…with the commercial loan market in such a pathetic state, auctions are the fastest way for banks to unload undesired commercial property assets.

“Sellers are coming to the realization that the price point they had in mind is not a reality. That’s where auctions are so useful in determining value — bringing people together through competitive bidding,“ observed National Auctioneer Association spokesman Chris Longly. “Our membership is seeing more energy and movement this year on the commercial real estate side.“

The National Association of Auctioneers estimates that $58.6 billion in real estate was sold in private live-auction bidding in the U.S. in 2008, up 38.5% from five years ago. Auctions in residential real estate have risen 47.7%, raw land (including agriculture) 36.8%. Commercial real estate is up 31.3%, to $15.5 billion in gross auction sales for 2008. Last year, banks were dealing with residential real estate issues, now, banks are confronting commercial property asset issues.

While the foreclosure moratorium was on in residential, banks were able to reassess their commercial assets. You’ll note that auction activity growing in the 2^nd half of 2009, with major online commercial auction events. In the second half of July, NAI Global offered 75 investment properties in 21 states valued at more than $250 million. The timed online auction will include 58 properties — including the historic State Theatre in South Bend, IN, which still bears bullet holes from the nearby shootout following John Dillinger’s final bank robbery on June 30, 1934 — and 14 other properties. In late July, Sperry Van Ness/Guardian held an auction at the Hyatt Regency in Los Angeles includes more than $100 million in real-estate owned (REO), bank-ordered and developer close-out assets in six Western states.

Among the high profile properties going up for sale is the historic Watergate Hotel made infamous during President Nixon’s wiretapping antics. (http://www.socalofficerealestateblog.com/?p=669). Other noteworthy pieces of real estate hitting the auction market include development sites in the metro Washington, DC area, retail sites in Highland Park, IL, and Spokane, WA, the historic theater redevelopment in South Bend, IN, and an infill site in Flint, MI; an upscale hotel/golf resort in Beecher, WI, and a fully entitled multifamily development tract in Navarre Beach, FL, plus lots of excess and partially developed inventory.

Even the government is getting into it. As you know, the state has been selling off their legacy assets - http://www.santamonicapropertyblog.com/?p=1188, and take a cursory glance @ what the U.S. government might be auctioning off in California, and we find industrial properties in Laguna Nigel, Morro Bay and Red Bluff.

“We’re probably seeing a 30 to 40% increase this year” in office, retail, industrial, multifamily and land auction inquiries, remarked Paul Rogers, senior vice president @ Inland Real Estate Auctions, Inc. “With bank activity in particular, we’re going to be busy for the rest of this year — and probably well into next year.”

This trend echoes the real estate slump of the 1990s and early 2000s, with commercial properties following residential foreclosure auctions after they have been mainstays in the downturn. Companies auctioning properties note that it is an opportunity to sell assets quickly, reduce holding costs, and secure true market value under unpredictable market conditions.

**

Sources:

http://www.costar.com/News/Article.aspx?id=F9243DEB83153259F95525F184C9EEE8&ref=100&iid=140&cid=383F14EEE265B182474DA2442BACBBBF

http://fasrp.sc.egov.usda.gov/fasrp/mainAction.do;jsessionid=804CCE54F02BBCC115D4B0BA22A910FF?pageAction=GetCounties&state=CA&stateName=California

http://www.philly.com/inquirer/world_us/20090720_Watergate_auction_drawing_interest.html

http://www.socalofficerealestateblog.com/?p=669

http://media.commercialappeal.com/mca/content/img/photos/2009/04/16/b17auction.jpeg

http://ethicalforeclosurefortunes.com/wp-content/themes/thesis/rotator/govt_auctions_sm.jpg

http://i.ehow.com/images/GlobalPhoto/Articles/5117276/237446-main_Full.jpg

http://www.unitedcountry.com/picturesx/10086-10099-1576957.jpg

http://www.ritholtz.com/blog/wp-content/uploads/2009/06/foreclosures-may-o9.png

http://www.mccallauctions.com/auctions/photos/1074/p12368596779029.jpg

LIQUIDATING CORPORATE ASSETS – COMPANIES ARE LOOKING FOR SALE-LEASEBACK TRANSACTION

LIQUIDATING CORPORATE ASSETS – COMPANIES ARE LOOKING FOR SALE-LEASEBACK TRANSACTION

Sale-leaseback transactions are back in vogue. With the tenuous economy, businesses of all types are interested in sale-leasebacks as an avenue to monetize their assets.

In the wake of the lending crisis, banks have sold off their retail branches and office buildings in response to declining capital positions. Locally, Countrywide Home Loans sold the office building at 5220 Las Virgenes Road in Calabasas, CA, to digital technology developer DTS, Inc. for $15.64 million or $182 per square foot. The sale is a partial sale-leaseback; with Countrywide continuing to occupy 59,457 square feet of the 85,948-square-foot building.

CoStar reports that sale-leasebacks were about 2.2% of all closed transactions by dollar volume in third-quarter 2007, totaling about $2.1 billion. During the same quarter last year, those transactions had doubled as a percentage of total sales volume to 4.4%. Notably, third-quarter 2008 was the strongest of the year for sale-leasebacks and among the strongest on record.

“Sale leasebacks are still a bright spot in the real estate market right now,” noted Bruce Westwood-Booth, managing director for Jones Lang LaSalle’s Corporate Capital Markets Group. “Volume was very strong last year and we had another record year in that area. Whether we’re just picking up market share or whether our clients are more interested, it’s hard to say….but pricing has been impacted, so we’re also seeing a rise in cap rates.”

Private investors acquired the industrial buildings at 2255-2267 Agate Court in Simi Valley, CA, from Turbonetics for $5.35 million, or $153 per square foot. The seller, a turbo systems manufacturer, will continue to fully occupy both buildings. The industrial facilities total 34,875 square feet and were constructed in 1985 in the Moorpark/Simi Valley Industrial submarket.

Jay Koster, managing director of Jones Lang LaSalle’s Corporate Capital Markets practice, predicts a significant sharpening of the corporate appetite for sale-leasebacks in 2009. He notes that inquiries from the firm’s corporate clients are up by 300% versus 18 months ago.

“Corporations are looking for capital capacity to operate their businesses and position themselves to take advantage of opportunities that will arise through this market cycle,” Koster noted. We expect that appetite will be matched by heightened demand from investors that recognize inherent value in real estate leased to strong-credit corporations.”

JLL predicted an increase in corporate sale-leasebacks last year — “and that trend will absolutely continue [in 2009] as corporations remain challenged in securing new sources of capital,” added Kenneth Rudy, Jones Lang LaSalle’s president /COO. “Investors are more willing to commit capital to acquire companies’ owned assets tied to long-term, credit leases. We also expect to see more corporate dispositions to come from downsizing in 2009 as corporations mark-to-market the value of surplus real estate inherited in acquisitions at market clearing prices.”

All the dirt @

http://www.costar.com/News/Article.aspx?id=8BF2590E41B392530B05DF90ACC7A547&ref=100&iid=116&cid=383F14EEE265B182474DA2442BACBBBF

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THE LOS ANGELES CLEAN TECH CORRIDOR WILL MAKE L.A. THE LEADER IN GREEN TECHNOLOGY

By Jodi Summers

Mayor Antonio Villaraigosa and the Community Redevelopment Agency (CRA/LA) hope to transform L.A. into ‘the global capital of clean technology.” The goal is to transform the manufacturing corridor east of downtown into the center of green innovation. The mayor and his team are marketing this industrial parcel, dubbed the CleanTech Manufacturing Center, as a green business incubator, the way Silicon Valley hatched technology.

“We will make clean tech as synonymous with LA as motion pictures,” Mayor Villaraigosa boldly declared. “We will make LA the capital of green technology … and transform the city into a laboratory for green development.”

The CleanTech Corridor city planners envision spans 2,236 acres — about 10% railroad-owned — east of Alameda Street, and is accessible by the Metro Gold Line. It begins at a swath of land straddling the L.A. River, near Los Angeles State Historic Park (the former Cornfield), that Councilman Ed Reyes hopes to transform into a neighborhood where bicycles and pedestrians would rule and carbon emissions would be cut by 35%. Then it runs south through the site of a future Department of Water and Power research center into the Artists-in-Residence district, which stretches from Alameda to the river and from 1st Street to south of 7th Street. The vacant CleanTech Manufacturing site at Santa Fe Avenue and 15th Street, just south of the 10 Freeway, forms the corridor’s southern anchor.

“…The City is standing with the world-class academic institutions of Los Angeles and our dynamic business community to stake a claim as a global leader in the clean and green technologies that will drive the 21st century economy,” the mayor pronounced. “From R&D to manufacturing to design, this partnership taps into the creative assets and innovative spirit of our City to foster new industry and spur job growth.”

Of course, there are no local funds to make this conversion happen, so the city of Los Angeles will be calling for private investment and money from state and federal sources,

Last fall, CRA officials and the mayor’s business team began courting clean technology companies — talking up the purchasing power of the city’s public utilities, as well as the array of federal, state and city tax incentives available to business.

More than 100 companies, from solar and electric car manufacturers to a garment recycling business, expressed interest in the CleanTech site, which the city purchased from the state last April for $14 million.

“The Los Angeles Business Council believes that attracting green-tech companies will be a prime economic driver for the region,” said Los Angeles Business Council President Mary Leslie. “We were proud to launch the website CleanTechLA.org at our Sustainability Summit last year and look forward to continuing our partnership with the consortium to build a vibrant green economy in Los Angeles.”

For capitalist development, the Los Angeles Times reports that the most intensive push has been for an Italian rail manufacturer, AnsaldoBreda, which is angling for a $300-million rail car construction contract with the Metropolitan Transportation Authority. If it secures the contract, AnsaldoBreda has promised to build a $70-million manufacturing plant. The contract is controversial because some MTA officials have been unhappy with the company’s performance in meeting rail car contract specifications in the past, but the company has several political insiders in town pushing this deal, said to be Los Angeles County Federation of Labor lobbyist Chris Lehane, and the green building company Shangri-LA Construction, founded by prominent Democratic contributor and Villaraigosa donor Steven Bing.

More altruistically, farther north in the corridor, a DWP research center focusing on renewable energy, climate change and water intended to attract companies that want to work with area universities.

Dubbed CleanTech Los Angeles, the city is seeking to create a research alliance (not unlike the Department of Energy’s Commercial Building Energy Alliances) involving local area educational institutions, with major roles being played by the California Institute of Technology, University of California Los Angeles and the University of Southern California, among others.

“I’ve often said that Los Angeles may have the best collection of intellectual talent of any county in the nation. I believe it’s important to invest our intellectual capital in programs that enhance the quality of life for all of our citizens” noted University of Southern California President Steven Sample. “USC is delighted to partner with our colleagues in higher education, and with our friends from the public sector and from private business, to help make Los Angeles the greenest city in America.”

“Broader recognition of Los Angeles as a global regional center of science and engineering research and clean technology development bodes well for its economic competitiveness in a rapidly changing world,” added Dr. Jean-Lou Chameau, President of the California Institute of Technology.

The cluster of laboratories would be housed in an old transformer warehouse overlooking the river on the DWP’s Main Street site, and the DWP recently secured a private donation that will allow the department to perform a $4.5-million “green retrofit” of the building.

Among the projects planned: development of aerospace technology with Caltech and NASA’s Jet Propulsion Laboratory that would help the DWP better measure snowpack in the Eastern Sierra and dust in the Owens Valley.

In the basement of the DWP building, UCLA would build a wind tunnel testing facility. Meanwhile, USC is exploring the site as a home for a research institute that would study how to make data centers more energy efficient.

“The city really provides a platform to have a lot of technologies tested,” said John X. Chen, the DWP’s executive director of customer service and water conservation. He said the city will be spending billions of dollars trying to reach the mayor’s renewable energy goals. For those reasons, he argued that when competing for grants, “We will be very, very competitive against anybody out there.”

And, you can’t have business without housing nearby. At the northern end of the corridor, the Cornfield/Arroyo Seco specific plan area spans more than 600 acres — from Los Angeles State Historic Park, across the river into Lincoln Heights. It will be one of those picture pretty pedestrian- and cyclist-centered neighborhood

The city would also place special restrictions on developers within a mile of the river, requiring open space and measures to reduce carbon emissions in the neighborhood.

FYI…The L.A. Times notes that the CleanTech corridor is a critical component of the mayor’s “green jobs” agenda as he eyes a probable run for governor in 2010. And it could be a test of his pledge to transform Los Angeles into “the greenest and cleanest big city in the nation,” drawing more than a third of its electrical power from renewable sources by 2020.

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http://www.latimes.com/news/local/la-me-clean-tech28-2009apr28,0,669366,print.story

http://www.ioe.ucla.edu/news/article.asp?parentid=3347

http://www.today.ucla.edu/portal/ut/la-to-become-the-capital-of-green-88893.aspx

http://cleantechlosangeles.org/

http://www.lachamber.com/clientuploads/EWE_committee/RFI_FINAL_9_16_2008.pdf

http://www.zimbio.com/pictures/hoDaoA3nwB-/Mayor+Antonio+Villaraigosa+Votes+Election/jvGcHFcTcLF/Antonio+Villaraigosa