Assets - by Greg Whalen and Bill Wagner

Market Trends

“The sum of the parts...may be greater than the whole”

Rising real-estate values provide a cyclical opportunity for repositioning assets and generating cash. According to the WSJ, March 25, 2015 edition, Sears Holdings Corp just announced that it would split off as many as 300 of their best locations into a separate company by June to raise money.  Hudson’s Bay Co., the Canadian parent company of Saks Fifth Avenue and Lord & Taylor, announced last month a joint venture with U.S. mall operator Simon Property Group to sell and lease back 42 of their department stores with plans to split off the venture into a real estate investment trust (REIT). And Darden Restaurants, the world’s largest full service restaurant company, with brands such as Olive Garden, Long Horn Restaurant and Capital Grille, is exploring options for monetizing its real estate portfolio.

Do those same metrics hold true for the small, individual operator/investor as well? Absolutely.  It’s all about cleaning up the balance sheet. Whether you are a single or multiple property owner, with one or several locations, owner occupied or landlord, keeping an eye on the bottom line is crucial.  Think in terms of a property “check-up”. How healthy are my real estate assets? How often should the portfolio be examined/monitored? The short answer is constantly. Absenteeism on the property front does not make the pocketbook grow fonder. On the other hand, too much tweaking, tinkering and meddling will get you into trouble every time, a clear sign one is chasing the market. An annual in-depth performance review should be mandatory, coupled with an analysis to determine options for unleashing value and cash.

Rather than disposing of a real asset in its entirety, think in terms of its parts. Consider the example of a property comprised of land and a single building with multiple tenants. Options abound: sell the building only and retain the land in the form of a ground lease, sell the ground lease and retain the building, or convert the property to a condominium (include the site as part of the value for each unit or once again, retain the land in the form of a ground lease to the condo association and sell the bricks and mortar only). Liquidating an asset in parts will not always be the best solution, but it deserves equal consideration before making a final decision.

Check with Bill and Greg to help you navigate through these unchartered waters.     

Services

Off-Market Opportunities

The Portsmouth commercial market is replete with property owned for many years by the same family or entity. Whether as an owner or an active investor, often times you may be approached to see if you would be interested in selling your property or purchasing a new one. 

What to do and how best to respond? As this month’s Market Trends article suggests, you need to analyze your situation to see if you would consider selling or buying property, but only if the transaction meets the goals you and your family have established. These circumstances often require off market representation, which means the Whalen Wagner Team will use its expertise and client base to help develop a strategy which will enable you to achieve your goals, within the parameters you establish, by matching buyers and sellers with similar needs.

As a seller, you will want to address the following:

¨ What is the up-side potential of my property?

¨ How does the market perceive my property?

¨ Are there investors looking for my type of property

¨ How do investors evaluate the worth of my property?

¨ What can I do to increase its value?

As an investor you will want to explore the following:

¨ What types of properties meet my objectives?

¨ Are there properties in Portsmouth which meet that criteria?

¨ What is the best way to contact a prospective seller?

¨ Who can I rely upon to represent me in the marketplace?

¨ Are there opportunities in both the private and public sector?

As local service providers with a long track record of success, the Whalen Wagner Team will guide you through the process of making more informed decisions that will minimize cost and maximize value. With the Whalen Wagner Team you get an ally and aide-de-camp for sound advice and real estate stewardship.

Call us today for a creative perspective on how to advance your business plan and real estate objectives.

Greg Whalen

o: 603.637.2019 | c: 603.674.7800

gwhalen@nainorwoodgroup.com

Bill Wagner

o: 603.637.2014 | c: 603.494.7967

bwagner@nainorwoodgroup.com

28 Deer Street Suite 301 | Portsmouth, NH 03801 | 603.431.3001
nainorwoodgroup.com | info@nainorwoodgroup.com

NAI Norwood Group Sells Downtown Portsmouth Real Estate

Portsmouth NH – NAI Norwood Group is pleased to announce the sale 46 Market Street in downtown Portsmouth, New Hampshire. Nancy and Mel Alexander recently sold their 3 story building to Keith Frizzel.

John Mueller, Greg Whalen, and Bill Wagner of NAI Norwood Group teamed up to represent the Alexander’s and to find a buyer. According to the registry of deeds, the building sold for $1,599,000 and was closed on August 28th, less than 90 days after it was listed.

In addition, Mueller and Whalen also teamed up to sell the retail condominium located at 36 Market Street.  Formerly owned by the Paper Patch, the 3,964 two-level structure is the new home for Federal Cigar and the Federal Cigar Bar which opened in August.  Mueller represented the seller while Whalen represented the buyer.

“Retailers and investors are seeing value in expanding their footprints downtown,” noted Mueller, “These recent two projects showcase that growth, as well as the importance of building a team to help navigate the regulatory environment within the City.”

The Mueller, Whalen, Wagner team (MW&W) brings over a combined 75 years’ experience in commercial real estate transactions, a majority of which has involved real estate located in the Seacoast, and downtown Portsmouth in particular. MW&W has the local knowledge you can rely upon, and one of our specialties is the downtown Portsmouth retail market. NOTHING BEATS LOCAL KNOWLEDGE, AND WE HAVE IT!

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

NAI Norwood Group Welcomes Bill Wagner to the Team

Portsmouth NH – NAI Norwood Group is pleased to welcome Bill Wagner to the Portsmouth team. Bill intends to use his expertise to help NAI Norwood Group clients reach their real estate goals, by leveraging his 35+ years of business ownership and consulting experience in real estate development in New Hampshire. Bill has developed a reputation for integrity, reliability, with a desire to accomplish goals for the client by providing professional guidance and advice through a high level of knowledge in the field.

Bill has experience in the real estate development process-from basic issues to the complex ideas and execution of plans, including the permitting process. He has real estate experience as a tenant, property owner, public servant, and has participated in the permitting and building of two office buildings at Pease International Tradeport and various other projects in the Seacoast area.

Bill’s community involvement includes: Past President of Portsmouth Chamber of Commerce, Past President of Seacoast Mental Health Center, Past Member of the Pease Development Authority, and Seven Term City Councilor of the City of Portsmouth (2 terms as Assistant Mayor). Bill is married with 5 children and 11 grandchildren.

We are looking forward to working with Bill as he continues his career by providing the services needed for his clients to succeed.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.