A considerable amount of time here at ALG is spent on the "hunt" as we like to say in our office! It is very common to hear one of our agents say "I am going hunting today be back later!" We hunt for market information for our benefit, the benefit of our clients, we hunt for buyers, we hunt for sellers, and in essence we hunt for opportunities.
During this "hunt" our agents are in constant circulation gathering market information, attending seminars, talking to financial analysts, developers, lenders, local governments and other participants who influence and/or understand the dynamics of our market place. We have compiled the following key items that you the real estate investor should know. Here are some notes extracted from The 2008 Real Estate Investment Outlook conducted by National Real Estate Investor, Marcus & Millichap and Countrywide Commercial Real Estate Finance, Inc. (A Special Research Report):
The president of the Federal Reserve Bank of Atlanta, Dennis Lockhart, believes that the bottom of the housing downturn could arrive during the second half of 2008 or even later.
It is believed by most (6 out of 10) that debt financing will be harder to get over the next 12 months which compares to just 35 percent in 2006.
President of NorthMarq Capital Inc., R. Craig Butchenhart says, "by the beginning of the second quarter 2008, I think the upheaval in the credit markets will work its way out, but stricter underwriting will be here to stay."
Today, loan-to-values have returned to more traditional levels in the 70 percent range while IO provisions have all but disappeared.
Apartments and mixed-use assets are the most attractive to respondents.
There are investment opportunities in office and retail – retail sales are still growing and retail fundamentals are still strong.
For investors with cash and a higher tolerance of risk, value-added properties will present a great opportunity.
- American Star Development under contract to acquire 39 Acres at the Mall of Georgia on Highway 20.
- BrandsMart USA, a 135,000 square feet retail user, is under contract to acquire 30 acres on Highway 20 at the Mall of Georgia.
- Representing Significant Client in acquiring a lifestyle center in Myrtle Beach, South Carolina and in land acquisition in suburbia Wilmington, North Carolina.
- ALG negotiating two large land acquisitions on the GA Hwy-316 corridor.
- ALG's Swanton Davis and David Chalmers representing equity fund interested in acquiring large residential tracts fully entitled from publicly traded and privately held residential developers.
- ALG continues to provide marketing services for automotive sites for new development or disposition of existing dealerships. Recently completed lease for Hennessy's Chamblee to KIA and recently listed 10 acres / 80,000 square feet facility formerly a Ford facility on Highway 29, Tucker, Georgia.
"National demographics are very favorable to the Southeast especially North Carolina and Georgia" states Robert Armstrong who attended The Georgia CCIM Chapter 2008 Economic Forecast Luncheon. (Guest Speaker was Dr. Albert W. Niemi, Jr.) After calling in the handwriting specialist we were able to decipher Robert's key notes:
- Population growth from 2000-2007 in the states of AZ, CO, FL, GA, ID, NC, NV, TX, UT are 50% above the national rate
- Atlanta will continue to generate 100,000 new jobs per year for next ten years. This means 2.5 new people come to SMSA per new job - 250,000 people every year – 2.5 million over ten years – 8 million people in SMSA by 2020 (currently we have 5.5 million).
- Continued growth in all sectors of office, industrial, retail, residential in quadrants of the city.
- Growth will cluster around interstates, mass transit and job centers (Downtown, Buckhead, Perimeter Center, Marta Stations, etc.)
- ALG to open North Carolina Land Group in the New Year with three agents already committed to this start-up.
- Georgia Road Course site selection for a Private Motor Club with two road courses with limited members only – North GA, GA-400, Hwy 985, I-85 Corridor.
- ALG incorporated a database of property listings for our newly improved website www.atlantalandgroup.com. We are currently working on adding video clips to this database.
- Mike Cahalan and Robert Armstrong recently exclusively listed a 22.5 million dollar mixed-use development site on Fulton Street in downtown Atlanta. The site plan has been approved for one million square feet of improvements. This unique property is the largest privately owned tract of land in the Stadium TAD District.
- In spite of current market conditions, Fred Black of ALG closed three convenience store sites in the 4th quarter of 2007 and is scheduled to close four c-store sites in the 1st quarter of 2008.
