A few of our recent transactions include:
SkyMed, Inc- 5,000 SF of office space located at Primera Commons in Lake Mary, FL.
Fisher Hearing Technologies- 2,000 SF of Flex/Warehouse Space located at Sanford Central Park in Sanford, FL
Delany OB/GYN- 1,617 SF of Medical Space located in Woodland Lakes Professional Park in Orlando, FL.
Stockdale, Inc- 2,300 SF of Flex Warehouse space located in Lake Mary Professional Park in Lake Mary, FL
Active Living Chiropratic- 3,713 SF of Retail/Office Space located in Narcoossee Commerce Park at Lake Nona, FL

In addtion, to these sales we have numerous locations currently with outstanding “Letters of Intent” to lease and two sales contracts set to close in the next 60 days.

Commercial real estate transactions can be very lucrative but they are complex in nature and can become entangled with lots of problems. So how does the successful investor create a winning transaction and be protected financially and legally at the same time?

As with so much in life, the answer is having accurate and timely knowledge and reliable information before you take the final steps in acquiring a new investment property.  Here are ten actions you can take to help create a winning transaction and protect yourself at the same time.

1.      Develop a good working relationship with a seasoned and experienced commercial real estate broker who can help you identify an investment property that will meet your goals; who will be a valuable source for current and accurate information about the commercial market; and provide guidance throughout the transaction.

2.      Retain a first rate real estate attorney who will provide proper legal protection in your contract or lease  as well as the closing, and also be a good sounding board and advisor as you move through the process.

After years of planning and disputes, the $1.66 billion Wekiva Parkway appears set to break ground this fall after winning approval today from a key regional transportation board.

MetroPlan Orlando, which sets policy in Orange, Seminole and Osceola counties, voted overwhelmingly in favor of the parkway, despite misgivings that some other important road projects might be postponed as a result.

“There comes a time when all the stars align,” said Orlando Mayor Buddy Dyer just before the 17-2 vote.

The last remaining hurdles appear to be largely formalities: Finalizing a finance plan between the state and the Orlando Orange County Expressway Authority and selling bonds to pay for what would be the most expensive road in Central Florida history.

If all goes as planned, construction could start at the west end of the parkway, near Apopka. Work on the east end, where the toll road links with Interstate 4, might not begin until 2017. The parkway would largely follow S.R. 46 and be complete by 2021.

Transportation officials have talked for years of building the 25-mile-long parkway, which would complete the beltway around greater Orlando.

But support for the parkway began to falter late last year, when the state Department of Transportation announced nearly $300 million worth of road improvements in Central Florida would be delayed by months or years because of a shortfall in gas taxes and other fees.

That led some politicians to argue it might be wiser to postpone the parkway, which would allow the other road work to proceed. Seven projects in Orange and two each in Seminole and Osceola are being bumped.

But FDOT managers argued the road had to be built now because they had gathered enough money. A delay, they said, would result in those funds likely being spent in other areas of the state.

As it stands, the expressway authority will spend about $530 million on portions of the road within Orange County, while FDOT and the agency that operates Florida’s Turnpike would contribute more than $850 million. Another $220 million would come from the expressway authority as it repays money it owes the state.

The parkway, which would be elevated as its crosses the Wekiva River and basin, would link Mount Dora in Lake with Apopka in Orange and Sanford in Seminole.

Even though it completes the loop around Orlando, authority studies suggest the parkway will do little to relieve congestion on I-4.

dltracy@tribune.com or 407-420-5444 Orlando Sentinel January 17, 2012

Eugene A. Moreno, dba D.A. Total Car Care LLC, has leased 2,475 square feet for three years at 8243 Narcoossee Park Drive. NAI Realvest’s Michael Heidrich represented the tenant, and Mark Harkins of Harkins Commrcial, Inc represented the landlord, BMHi LLC.

When the housing market began its downturn in 2008, several planned developments fell by the wayside. But now, developers are reworking previous projects on infill sites to appeal to today’s buyers, something that will help reduce the area’s housing inventory and increase home values.

“The earliest recovery is likely to happen in cities where people want to live,” said Mark Vitner, managing director/senior economist for Wells Fargo Securities LLC .Wells Fargo Securities LLC Latest from The Business Journals Shutterfly secures 5M revolving credit facilityStudy: Holiday season to be ‘fairly solid’Viasystems files to raise million in public offering Follow this company ., who specializes in Florida’s housing market. “There’s a little bit of activity where property values have come down, so developers had to come up with a new business plan to capture that.”

Altamonte Springs-based Essian Construction LLC is one of those developers. The firm resurrected and reworked plans for the Reserve at Alaqua — a 14-acre development within the high-end Alaqua Country Club .Alaqua Country Club Latest from The Business Journals Golf course owners redevelop land with less green space, more homesNot your grandpa’s clubhouseAdding to Alaqua Follow this company .— which nearly four years ago was planned for nine $1 million-plus homes before the housing market tanked.

Now, Essian wants Seminole County approval to develop 44 55-by-130- or 140-foot lots for single-family homes that would be priced from $400,000, said managing member Richard Shassian.

Shassian previously worked with land owner John Ritenour, CEO of Longwood-based Insurance Office of America .Insurance Office of America Latest from The Business Journals Heath RitenourCharlotte Bobcats get some insuranceCharlotte Bobcats get some insurance Follow this company ., who in 2007 began developing the 1-acre lots but shelved plans soon after. The two partnered on this new redevelopment of the land, and Shassian is financing the project on his own.

“The roads were put in, [eight] lots were put in, but then they just sat there without any interest for those type of homes,” Shassian said, adding that many Alaqua residents who have 8,000-square-foot homes now want to downsize. “There are some empty-nesters who don’t want to leave Alaqua. This is for them.”

Shassian said his firm would develop the lots and sell them to homebuyers, custom home builders or a single builder who might want all the lots.

Meanwhile, Harkins Construction Inc. wants to develop 69 single-family home lots on 34 acres near Heathrow. The property is owned by Beckel Landscape Nursery owner Thomas Beckel. The property was listed for sale on commercial real estate website LoopNet .LoopNet Latest from The Business Journals Find interesting, offbeat businesses at BizBuySellCoStar Group buys Atlanta firm for MCoStar Group pays M for Atlanta firm Follow this company .until earlier this month. The listing said the owner is relocating an existing business to Lake County and needs to sell the property.

The planned subdivision, dubbed Pearl Lake Estates, would need approval from the state since it is a large-scale land-use change, said Tina Williamson, Seminole County planning and development division manager. The property is zoned agricultural, and Harkins Construction wants to rezone it to planned unit development.

Representatives from project applicant Dave Schmitt Engineering Inc. .Dave Schmitt Engineering Inc. Latest from The Business Journals Biz DigestBiz DigestWinter Park breaks ground on .1M center Follow this company .didn’t respond by press time, while Harkins Construction’s Mark Harkins declined to comment.

The two projects seem well-timed, since there is a lack of new residential development in the county and plenty of interest due to the high-ranked schools there.

Matt Trask, vice president at custom homebuilder Dave Brewer Inc. .Dave Brewer Inc. Latest from The Business Journals Biz DigestResurrection on tap for Bella Collina?What would jumpstart the homebuilding industry in Central Florida? Follow this company ., said while there is demand for new homes, there’s not a lot of available land so these projects should do well if the builders can buy and build one lot at a time and keep their own risk low.

“This is where we do bulk of our building and there’s not a lot of opportunities because there’s not a lot of land,” Trask said.

Year-to-date, home builders pulled 717 permits for single-family homes this year in Seminole County, up from 653 for the same period last year.

However, pricing could be an issue, since many buyers still want a bargain. A total of 5,020 existing homes sold in Seminole County between January and October this year, but most of them — 19.1 percent — were priced at less than $50,000.

Despite that, buyers are interested in new development, said Jan Fergerson, a Realtor with Exit Real Estate Results in Longwood. “When I have open houses, people are always asking, ‘Isn’t there anything new around here?’ But it’s still a price point thing.”

Both subdivision plans are expected to seek Seminole County Commission approval on Dec. 13.

Anjali Fluker
Senior Staff Writer – Orlando Business Journal

The Wekiva agreement, possibly a month or two from being final, could lead to a groundbreaking next fall on the 25-mile toll road that would complete the beltway around Metro Orlando. Construction would be complete by 2021.

During a meeting of the Orlando-Orange County Expressway Authority, the five-member board agreed to accept Snyder’s retirement effective Dec. 29. He will receive three months’ severance, or nearly $82,000, and could get more than $70,000 annually from a state-backed pension.

He said he does not have another job lined up and intends to spend more time with his family.

“We’ll see what the future holds,” Snyder said.

The state and the authority have struggled for months to come up with a way to finance the long-coveted parkway, which would cut through northwest Orange, south Lake and east Seminole counties.

A breakthrough came during the weekend, when Snyder and Florida Department of Transportation officials decided the Orlando agency would build and own about six miles in Orange and a short stretch in Lake, while the state would be responsible for the remaining 18 to 19 miles.

Key to the arrangement was the authority agreeing to pay nearly $230 million it owes FDOT during the next 12 years. FDOT had been loaning the authority between $8 million and $10 million annually during the past quarter-century for operating and maintaining some tollbooths and portions of toll roads owned by the state.

“It’s a very favorable agreement. It will be tweaked a bit,” said expressway Chairman Walter Ketcham.

FDOT Secretary Ananth Prasad said getting the authority to write a check for as much as $20 million annually through 2024 would allow the state to pay off the bonds it would sell to pay for the road, which is unlikely to attract enough traffic to pay for itself for three decades or more.

The deal is contingent on winning the approval of two transportation-planning organizations in Central Florida. Members of those groups, including MetroPlan of Orlando, want to know what road projects FDOT will be postponing in the region to pay for sections of the parkway that do not carry tolls.

Prasad said his agency is still “kind of reshuffling,” a list but predicted no road projects would be permanently shelved. Rather, he said, some might be delayed by a year or two.

FDOT, at the urging of state legislators, entered into talks with the authority this summer about building the parkway. A deal was supposed to have been reached in August, but talks foundered over which agency would own the road.

Snyder, who was named to the top post of the expressway authority in March 2004, has come under intense criticism from Orange County Mayor Teresa Jacobs, who joined the five-member board in January.

Jacobs had called for Snyder to quit because of the agency’s precarious finances and what she contends was misleading language about the true intent of a 2009 toll increase. She said she had few complaints about the roads that have been built under Snyder’s direction.

“It generally has to do with the financial condition we are in,” said Jacobs, referring to nearly $1 billion worth of variable-rate interest bonds that are swapped weekly and faltering because of the weak economy.

She proposed replacing Snyder for three or four months with deputy Orange County comptroller Jim Moye, who has considerable financial expertise. The board didn’t vote on that and likely will meet again after Thanksgiving to discuss Moye or other possible substitutes.

Last week, Snyder offered to quit on March 7, his 65^th birthday. But he said he moved that up to Dec. 29 because that was the date Jacobs initially suggested and the board appeared to support.

Jacobs maintains that Snyder portrayed a 25-cent toll hike in 2009 as the way to fully pay for the parkway. In reality, a series of future increases would be needed, too.

Last month, Jacobs issued a blistering 164-page report on agency finances and followed that up by calling for Snyder’s resignation. She blamed him for a decision by Moody’s Investor Service to downgrade the agency’s bond rating.

November 14, 2011|By Dan Tracy, Orlando Sentinel

A friend once asked for an explanation for the difference between residential and commercial real estate. The simple answer is… if the buyer plans to live and sleep in the property, it is most likely a residential transaction!

In Florida, as in most states, the definition of a residential transaction is up to four units. It is an important distinction beacuse of the special laws, regulations, and extensive consumer protections provided for the small, presumably, less sophisticated investor. 

The commercial buyer, on the other hand, despite the humbling performance many investors have had in the past few years, is considered to be a more sophisticated investor, able to employ a higher level of analysis, investigation and due diligence than the residential home buyer.

If you are considering choosing a real estate advisor, it is a good idea to first consider the differences between residential and commercial investment real estate. Both disciplines require perseverance, drive and market knowledge. Both have their own subsets. However, and most importantly, there are major differences to consider.

A friend once asked for an explanation for the difference between residential and commercial real estate. The simple answer is… if the buyer plans to live and sleep in the property, it is most likely a residential transaction!

The commercial buyer, on the other hand, despite the humbling performance many investors have had in the past few years, is considered to be a more sophisticated investor, able to employ a higher level of analysis, investigation and due diligence than the residential home buyer.

Commercial transactions come in many forms and may involve buying, selling or leasing, frequently utilizing more complex financing techniques. Broad categories of commercial real estate include office, retail, restaurants, hospitality, medical, governmental, raw land, industrial, manufacturing, distribution, warehousing and multi-family properties in excess of four units. Each of these areas has its own vocabulary and teams of experts that work within the various frameworks.

Leverage is a driving force behind most commercial real estate transactions. Investors set their own goals and a frequent objective is to minimize cash investment and maximize returns. Commercial investors frequently rely on analytical results such as return on investment (ROI), capitalization rate (Cap Rate), net operating income (NOI), and financing options.

In today’s complex market there are many areas of specialization within both commercial and residential real estate. It is probably in your best interest to retain an appropriate specialist for your particular real estate requirement.

There’s an old saying, “Even a blind squirrel can find an acorn now and then.” However, it is a wise person who places their real estate future in the hands of a qualified advisor.

Continue reading on Examiner.com Commerical real estate: Specialist necessary – Orlando Real Estate Headlines | Examiner.comhttp://www.examiner.com/real-estate-headlines-in-orlando/commercial-real-estate-specialist-necessary-1#ixzz1diGe6sbe

Most of us, given the bank account and the opportunity, would prefer to own several income producing properties rather than just one. The magic wand that can help make this happen is called leverage. 

Leverage occurs when the buyer is able to acquire an asset by using his own resources for a portion of the purchase price with the balance contributed by a lender. 

To set up an example, if you had $1,000,000 to invest, rather than purchasing a single million dollar property for cash, you would locate four (4) good properties worth $1,000,000 each. Then you would purchase them putting $250,000 of your cash into each transaction and borrowing the remaining $750,000, typically from a bank or possibly from a private investor.  In real estate, most leverage takes the form of debt.

CCIM Institute’s Introduction to Commercial Investment Real Estate makes the point that “the shrewd use of debt can increase returns on real estate by reducing the initial investment, providing tax benefits from the interest portion of the loan and by paying back the loan at dollars of potentially lower value than at the time of the original debt.” 

The numbers work at all levels. A doctor recently purchased a small building. He used half for his own medical practice and leased half to a tenant to help pay his mortgage. The building cost $600,000; his investment was $150,000. The monthly mortgage payment is about $2,900; his tenant pays $1,900 in rent on a triple net lease. The effective “rent,” therefore, for the doctor’s thriving medical practice, is only $1,000 per month.  He can also deduct the interest from his taxes, and he will receive the benefit of building appreciation at such time as he sells the building. Not bad! 

Since most of the debt underwriting commercial real estate investments comes from banks, it is useful to review the “5 C’s of Credit;” that is, the five key elements required of a borrower to obtain a loan:

1. Character (integrity)
2. Capacity (sufficient cash flow to service the loan)
3. Capital (net worth)
4. Collateral (assets to serve the debt)
5. Conditions (of the borrower and the overall economy)

Make sure your own “C’s” are in order before contacting a financial institution. 

Of course, leverage can have its downside. As we have experienced over the past few years, a general economic downturn can cause a decline in property values which will, in turn, contribute to a decline in rental rates and an increase in vacancies.  Lower rents and vacancies will negatively impact the cash flow of a given project and adversely affect the owner’s ability to make mortgage payments, especially balloon payments when they come due.

The good news for our local economy is that banks have begun to demonstrate an active interest in making new commercial loans.

Continue reading on Examiner.com Leverage: The engine that drives commercial real estate – Orlando Real Estate Headlines | Examiner.com http://www.examiner.com/real-estate-headlines-in-orlando/leverage-the-engine-that-drives-commercial-real-estate#ixzz1diCP0s00

One of the hidden details in commercial leasing is the method in which operating expenses are passed through to tenants.

Tenants need to be aware of exactly what their operating expense responsibilities will be when they negotiate lease terms. All commercial buildings have expenses related to the operation of the building or property. All landlords seek to pass these expenses on to tenants, either directly or indirectly.

There are several types of operating expenses which can include real estate taxes, property insurance, gas, electric, water, accrued maintenance and special fees for reserved parking, or space on a roadside or building sign identifying the various businesses in a building. A significant item is the cost associated with maintaining the building and property, referred to as Common Area Maintenance (CAM).

In the Orlando area, tenants frequently pay their own electricity, gas, water, telephone and internet expenses, although there are many exceptions to this practice.

Three common types of leases are Full Service, Modified Gross and Triple Net (NNN).

Full Service leases are usually used for larger buildings where the landlord is responsible for all expenses except telephone and internet. Rents will be higher, in part, because the landlord will need to recapture operating expenses. As part of cost management, air conditioning is frequently turned off at the end of the business day (5 or 6 p.m.) Tenants requiring evening air conditioning must request special service and pay a premium. Leases usually set up expenses against a base period with overages passed through to the tenants.

Modified Gross leases will typically carry a higher lease rate, but not as high as Full Service because the landlord will have considered all operating expenses when establishing the rent rate. Tenants will be responsible for electric, telephone and internet expenses in addition to rent.

Triple Net (NNN) leases, at face value appear to be a less costly type of lease. However, real estate taxes, CAM and property insurance are passed through to the tenant on a pro-rata basis, frequently in a separate billing.

Calculation of CAM charges can be tricky. Some landlords pass costs through without mark-up; some add an overhead percentage. Some properties have a property manager or property management company that must be accounted for, and some landlords accrue the anticipated costs of new roofs or parking lots in order to avoid an expensive pass-through when the expense is incurred.

One final thought is that tenants should be aware when a building is sold, the property value will be adjusted (usually upwards) which can result in higher real estate taxes on the property and higher pro-rata pass-through expenses to tenants.

We can conclude that commercial leases are complex. Tenants should work with a competent commercial broker and retain a skilled real estate attorney to review their leases.

Your wise old Uncle George once told you that the secret of real estate success was location…location…location. It seemed simple enough and, for sure, all the successful real estate millionaires seemed to have their holdings in just the right places.

But then you began to hear of real estate failures. What went wrong? Didn’t these people know about “location…location…location?”

The answer is that real estate is a lot more complicated than just selecting the best location. Unprecedented credit availability, consumer over-extension, the sagging employment market and poor bank judgments combined to wreak havoc on the residential real estate market.

Given the current state of residential and commercial real estate, this seems like a good opportunity to address some of the key aspects of commercial real estate success.

The key to a successful commercial location very simply depends on what you want to do with it. Hotels, offices, restaurants, warehouses, manufacturing facilities, shopping malls and gas stations all have different criteria for the perfect location.

Let’s say that your piece of the American Dream includes opening your own restaurant. You know where the perfect location is in Your Town, USA, so you contact the owner or the broker for details. It is very possible that your next reaction will be heart palpitations over the price. You will find that everyone, especially the owner, will be aware that the location is perfect, and it will be offered for sale at the highest possible price.

This will be your first entry into the world of real estate trade-offs. Each trade-off can bring you closer or further away from your initial perfect location. Another location nearby to “perfect” might require re-zoning or it might also be priced beyond your budget. You might want to consider leasing in an existing plaza. This can work out well if the location is priced within your pro forma, has good street visibility for your building and/or your sign, good demographics for your restaurant, plenty of parking and good accessibility from the street.

All of these issues are resolvable. They just take time, patience, money and that trait of great American entrepreneurs – perseverance.

Invest in real estate as you pursue the American Dream. It can be a very, very lucrative. But remember, the devil is in the details, so study all the details to be certain the location that seems to be great will be great for you.
Continue reading on Examiner.com The American Dream: Choosing your piece of the American (real estate) pie – Orlando Real Estate Headlines | Examiner.comhttp://www.examiner.com/real-estate-headlines-in-orlando/the-american-dream-choosing-your-piece-of-the-american-real-estate-pie#ixzz1dUocR7Mh