Press Release North Star Self Storage

PRESS RELEASE             Contact: Kelly Henson 431.3001

Sunapee, NH – Joseph Mendola of NAI Norwood Group Bedford announces that High Pine Properties, LLC has purchased North Star Self Storage located at 1000 Route 11, Sunapee, NH.  Joseph Mendola of NAI Norwood Group represented the seller as well as assisted the buyer in this transaction.  Mr. Mendola is also the New England representative for the Argus Self Storage Sales Network, which has the largest number of listings of self storage properties in the US.

High Pine Properties is a part of an organization that has specialized in the self storage business and moving and storage business in the Dartmouth and lakes region for many years. North Star Self Storage is an acquisition that will allow the buyer to service the Greater New London-Sunapee market with the same professional service it has afforded its customers in the Dartmouth region of NH. The buyer plans to update this facility and re brand it with its own brand that has served its customers well over the years.

                                                           

Property consists of 22,480± square foot, 175 unit storage facility with units ranging from 5x6 to 10x30.

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 strong 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 100 Market Street Suite 200, Portsmouth, NH 03801 (603) 431-3001.

Karl Norwood Named Realtor of the Year

PRESS RELEASE Contact: Sarah Carson 668.7000

Karl Norwood Named Realtor of the Year by the
Commercial Investment Board of REALTORS®

Karl Norwood, of NAI Norwood Group in Bedford New Hampshire, has been selected as REALOR® Of The Year from the Commercial Investment Board of REALTORS® (CIBOR).

Karl began his business career early in 1965. Upon leaving college he started a milk delivery business, Norwood's Dairy, which helped establish a solid base of customers that later translated into a client base for his real estate business. In 1968 Karl, along with his wife, Louise Norwood, opened their first residential real estate office and sold the milk business to concentrate exclusively on real estate. The company grew rapidly in the 1970's and 80's, becoming the largest multi- faceted real estate company in the State. In 1982 they sold the residential company to concentrate on the commercial side of the business in addition to land development, home building, property management, and international investments. The company has developed over $100 million in real estate projects ranging from industrial, office parks, and retail. All of these development projects were sensitive to land use, sound planning, and architectural integrity.

In 2008 Karl re-entered the residential business as Real Living/The Norwood Group which continues to grow. “Our NAI Norwood Group specializes in commercial, retail and industrial brokerage including consulting services. I believe our strongest marketing tool is the attitude and willingness of our staff and agents to contribute back to the community. Our reputation is our strongest asset,” stated Karl Norwood.

After making the announcement, CIBOR President Chris Norwood explained that the Board’s judges made their selection after considering the records of numerous of contenders for the prestigious honor. The basis of judgment, he said, was the contribution of the REALTOR® to the betterment of the community and his or her conduct of business reflecting the Code of Ethics of the National Association of REALTORS®.

CIBOR plans to submit the name and record of their REALTOR® Of The Year in the New Hampshire Association of REALTORS® statewide competition for the state REALTOR® Of The Year, where all Board ROTYs are recognized at the state convention in September.

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 strong 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 http://www.nainorwoodgroup.com/. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603)668-7000 or 100 Market Street Suite 200, Portsmouth, NH 03801 (603) 431-3001.

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Jeanne Butler Assists Northeast Credit Union in Finding a New Location

PRESS RELEASE Contact: Sarah Carson 668-7000

Jeanne Butler of NAI Norwood Group Assists
Northeast Credit Union in Finding a New Location

Merrimack, NH – NAI Norwood Group is pleased to announce the lease of 2,400 SF retail space to Northeast Credit Union. Jeanne Butler, of NAI Norwood Group, represented the lessor, G&G Scully LLC, and their 4,800 SF stand alone, shared retail building located at 370 Daniel Webster Highway in Merrimack, NH. This was the old Zoot’s dry cleaning location. Jeanne Butler was able to assist Northeast Credit Union in their transaction with G&G Scully LLC, bringing the lease signing to a successful close and giving Northeast Credit Union a brand new location.

“Northeast Credit Union, with its main office in Portsmouth, wanted to open a branch in the Merrimack, in the Daniel Webster Highway area. Their initial lease term is for 5 years with options. This building was the perfect size for them along with great visibility and strong drive-by traffic. The open floor plan with drive up window made it an easy choice” said Butler. They are planning an exterior ATM also. Scheduled opening in October 2012. An abutting 2,400 SF unit is still available. Please contact Jeanne Butler at NAI Norwood Group 603-668-7000 x 204.

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 strong 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 http://www.nainorwoodgroup.com/. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 100 Market Street Suite 200, Portsmouth, NH 03801 (603) 431-3001.

2011 – The Year Ahead

Welcome to 2011! It took a bit to get here, but I think we are all pleased to be here. It is the year of no elections, the year of positive outlooks, and the Year of The Rabbit. What does it have in store for commercial real estate?

We begin our look ahead by looking back at what we have done this year. One of the key indicators on how much commercial real estate we need is employment. In late 2009 New Hampshire was faced with an unemployment rate of close to 7%, today we are almost a point and a half lower at 5.5% (http://www.bls.gov/; http://www.nh.gov/). In discussions with staffers and employers, job growth, a far better indicator, is slow. While a few New Hampshire firms are growing, most growth is done with a few part timers here, or a full timer there. Signs are positive that there is growth however there can never be enough positive stories and antidotes about large scale hiring.

Residential real estate is a bit of a loose benchmark, but historically the rise and fall of commercial is preceded by residential by 12-24 months. In 2010 New Hampshire saw the number of home sales grow by over 30%, off the trough of 2009. In addition the average home price rose by 5% (Real Living The Norwood Group). If history is an indicator, with a better unemployment outlook and home sales, this should mean that commercial real estate will be on the rise in 2011.

Indicators do not always come via statistics. As mentioned before election year is over! Judging by the 24 hour news cycle the 2012 election may as well be tomorrow. Regardless of who won or lost last November, knowing the outcome of the election means the world to investors and users of commercial real estate. Business decisions are based on certainty and knowing that the lame duck session is over was a big step to positive growth. Closer to home there lurks a problem. The looming budget deficient in Concord is presenting itself as a potential key issue for real estate. Leaving off the speculation on how much the shortfall may be, it is sure enough to say the impact may be widespread. Cuts in services? Increase of real estate taxes? These are the “in your face” variety of possibilities. However, what about softer ones like a change in the fees required by your town for development? What about rulings that affect your taxes that are not passed through legislative review first? (it has happened before with 1031 exchange issues). All in all the political view for commercial real estate is a push, too many clouds to see through in this crystal ball.

The final, and possibly the most important, is the gut feel. This indicator is often right with an equal chance of being wrong! However, in talking with members of our commercial real estate team the feelings are good. More people looking at property, more people discussing moving or growing, this means more business. Key result areas to look at this coming year will be energy improvements to the building envelope, as the energy prices rose 6.6% (http://www.bls.gov/). In addition, land development may come back as investment in infrastructure has created new corridors for growth. Lastly, rate lock downs will remain for the rest of the year. Rate could mean interest, lease or basis, but locking in today’s rates will be important moving forward.

In the end I will not be able to tell you what 2011 has to offer until 2012, but until then be confident but be watchful. While there are forces outside of our control that we must watch to measure the impact, the indicators are positive that we are seeing growth both objectively and subjectively.

To contact NAI Norwood Group visit our website at http://www.nainorwoodgroup.com/ or contact one of our offices: 116 South River Road, Bedford, NH 03110 (603) 668-7000 or 100 Market Street #200, Portsmouth, NH 03801 (603) 431-3001.

Movin’ and Shakin’ – Retail Real Estate in Greater Portsmouth NH

NAI Norwood Group
November, 2010

NAI Norwood Advisor Article

It is no secret that Portsmouth, New Hampshire and its surrounding area is a highly desirable place for residents, businesses, restaurants, retailers, and tourists. This small city with a population of only 20,443 (nh.gov) is said to draw up to 100,000 people per day on the busiest of days. The downtown area of Portsmouth, laden with its historic buildings, brick walkways, historic sites, casual and fine dining restaurants, hotels, bed & breakfasts, busy nightlife, and local retail shops is a haven for high-end businesses, wealthy individuals, and tourists alike. Looking beyond downtown Portsmouth, there are several other areas offering shopping and entertainment for residents, tourists, and the 50,000+ employees working within seven miles of downtown. These areas include the high traffic Lafayette Road, Islington Street, and Woodbury Avenue retail corridors. In effect, this makes the Portsmouth market an extremely sought after area to open a restaurant or retail-related business.

New Hampshire has faired the recent global recession quite well with a current unemployment rate of 5.1% compared to 9% nationally (Public Data - Google). Within NH, Portsmouth has weathered the storm even better with a current unemployment rate around 4.7%, positive job growth, several new construction projects under way, new business openings, and a minimal amount of business closures. This strong local economy has a major impact on the success of the local, regional, and national businesses who choose to locate in this vibrant seacoast community. By combining a strong local economy with heavy tourism and wealthy residents you get a perfect recipe for retail-related businesses. Officially, the recession is over (Huffington Post) and it is important to look back at what 2010 has meant for Portsmouth retail business openings, movements within the market, retail business closings, retail related real estate sales and new / re-development retail projects currently underway.

New Store Openings in 2010: Starting with the best news, there have been a fair amount of retail-related store openings in greater Portsmouth thus far in 2010. Below are some examples:

1. Lowes Home Improvement: Greenland Road in Greenland next to Target
2. Home Goods: Woodbury Ave in Portsmouth next to Shaw’s Supermarket
3. Savers Thrift Store: Woodbury Ave in Newington next to The Fox Run Mall
4. Subway: Lafayette Road in Portsmouth next to Big Lots and Goodwill
5. LaBella Italian Restaurant: Lafayette Road in Portsmouth next to Big Lots and Goodwill
6. Maximum Mattress: Woodbury Ave in Portsmouth next to Dollar Tree
7. Vitamin Shoppe: Woodbury Ave in Portsmouth in front of Shaw’s Supermarket
8. Roundabout Diner: Portsmouth Traffic Circle attached to Best Western in Portsmouth
9. Foobar Restaurant: Congress Street in downtown Portsmouth
10. Chef’s Table Restaurant: State Street in downtown Portsmouth
11. Accents in Glass: State Street in downtown Portsmouth
12. 106 Kitchen and Bar: Penhallow Street in downtown Portsmouth
13. Port City Convenience: Hanover Street in downtown Portsmouth
14. Mombo Restaurant: Strawberry Bank Museum next to Prescott Park in Portsmouth
15. Greenovations Home Improvement Store: Lafayette Road next to Bowl-O-Rama

Store Re-locations in 2010: In addition to the store openings mentioned above, there have also been several lateral moves in the market place as leases expire and businesses expand, contract, or take advantage of an available location that better suits their needs. A few of these moves include:

1. Wireless Zone: Moved from Woodbury Ave to Lafayette Rd. next to the Meat House
2. Bournival KIA: Moved from 2458 Lafayette Rd. to the former Lincoln-Mercury Dealership on Lafayette Rd.
3. Second Time Around: Moved from 29 Congress Street to 19 Congress Street (former GAP Inc.)
4. The Denim Rack: Moved from Bow Street to Congress Street (former GAP Inc.)
5. Adaptations: Moved from the Spaulding Turnpike to Fox Run Road next to Wal-Mart
6. Yarn Basket: Moved from Hanover Street to Deer Street
7. Fast Eddies Dirty Laundry: Moved from Congress Street to Market Street
8. Mojo’s Grill and Tavern: Moved from Islington Street to Brewery Lane (former Brewery Lane Tavern)

Store Closures in 2010: It’s not all good; there have been a few retail stores and restaurants that have shuttered their doors over the past year. Here is a list of business closures:

1. Jumpgate Science Fiction: Closed store located on Lafayette Road in Portsmouth
2. Commonwealth Lacrosse: Closed store located on Lafayette Road in Portsmouth
3. The Frame Shop: Closed store located on Deer Street in Portsmouth
4. The Muddy River: Closed restaurant on Congress Street in Portsmouth
5. A.C. Moore Arts and Crafts: Closed store on Woodbury Ave next to Shaw’s Supermarket in Portsmouth
6. Blockbuster: Closed store on Islington Street next to Hannaford in Portsmouth
7. Outback Steakhouse: Closed restaurant on Woodbury Ave next to the Mall in Newington
8. Gap Clothing: Closed store on Congress Street in Portsmouth
9. Jennifer Convertibles: Closed store on Woodbury Ave next to Dollar Tree in Portsmouth

Retail Related Real Estate Sales in 2010: Overall, there has been a decent amount of movement in the retail-related real estate sales. In 2010, there has been over $15,000,000 in recorded sale transactions in the retail sector. Many of the larger transactions are listed below:

1. 2700 Lafayette Road, Portsmouth: Former Portsmouth Fire Station purchased by an investor at auction
2. 2458 Lafayette Road, Portsmouth: Former KIA Dealership purchased by Salvation Army for a thrift store
3. 750 Lafayette Road, Portsmouth: 4.0 acre retail development parcel sold. Current home of Jeep Dealer
4. 135 Islington Street, Portsmouth: Former Exxon gas station sold
5. 175 High Street, Portsmouth: Downtown, mixed use property sold, four retail units totaling 6,200 SF
6. 121 Congress Street, Portsmouth: Retail condo purchased by new restaurant, Breadward Baking Co.
7. 30 Maplewood Ave, Portsmouth: Office building purchased by developer, 15,000 SF planned retail
8. 233 Vaughan Street, Portsmouth: Industrial building purchased by developer, 10,000 SF planned retail
9. 1725 Woodbury, Portsmouth: Mr. Bubbles Car Wash purchased by an investor
10. 106 Penhallow Street, Portsmouth: Restaurant building purchased for new 106 Kitchen and Bar restaurant
11. 1980 Woodbury Ave, Portsmouth: Sale of Mobil Gas Station to an investor
12. 1400 Lafayette Road, Portsmouth: Sale of 0.33 acre retail property improved with a gas station at auction

New / Re-development Retail Projects underway in 2010: A good sign of recovery and a strong local market is the vast amount of construction activity taking place in the greater Portsmouth market. There are currently several new and re-development projects taking place that will provide around 70,000 SF of space ready for occupancy in 2011. Some of these projects include:

1. 2001 Woodbury Ave, Newington: Re-development of former Tweeter, Etc. property to accommodate 1,000 to 9,300 SF retailers – 2011 delivery
2. 99 Bow Street, Portsmouth: New construction of a 53,000 SF waterfront office building includes plans for 25,000 SF of retail and restaurant space – 2011 delivery
3. 100 Portwalk Place, Portsmouth: New construction of 31 unit luxury apartment building will include 9,500 SF of first floor retail space – 2011 delivery
4. 51 Islington Street, Portsmouth: New construction of a residential condominium project will create around 12,000 SF of retail space – 2011 delivery
5. 2454 Lafayette Road, Portsmouth: Re-development of the 165,000 SF Southgate Shopping Plaza continues with the blasting and leveling of a portion of the property.
6. 800 Lafayette Road, Portsmouth: New construction of a convenience store and gas station.
7. 111 Maplewood Ave, Portsmouth: Re-development of the former Portsmouth Herald building has created 13,500 SF of retail space.
8. 2800 Lafayette Road, Portsmouth: Re-development of the former Wendy’s restaurant to accommodate a new, local seafood restaurant in 2011 is underway.

After taking a close look at the recent retail-related activity in Portsmouth it appears there has hardly been a recession at all. Properties are continuing to sell, vacant spaces continue to lease, new retail / restaurants continue to open, and construction projects are underway. The Portsmouth Chamber of Commerce reports that downtown retailers saw a major improvement in the 2010 summer season over the previous year. An increase in consumer confidence and great weather can definitely be considered to be contributing factors to the mentioned retailer’s successes this past summer season. What will 2011 bring? Time will tell, but a signals tell us that Portsmouth, New Hampshire will continue to thrive maintain its appeal to local, regional, and national retailers and restaurants.

What are you hiding from the assessor?

By Chris Norwood

Google Maps with their encompassing satellite view and their creative street view, became the subject of some controversy this summer, over a warm weather tradition: the pool party. You may be asking what pool parties and maps have to do with commercial real estate, but I assure you there are connections.

Last winter in Greece, CNN had reported that amidst financial slow down, Greek officials had begun to use Google Maps to locate property improvements that had not been reported to the local municipality. Houses, villas and of course pools, were items that had not been reported to the tax officials. Over this summer, it was reported that this trend caught on state side. On Long Island in the town of Riverhead 250 pools were found by town officials that had not been permitted. They used web based mapping and $75,000 of fines were levied. In a lighter hearted, but still unsettling story, Facebook and Google Maps were the tools that London teens used to collaborate to have spontaneous pool parties at pools where home owners were absent.

This has spawned debate over what is and what is not private. Perhaps Orwell was off by 26 years or so but it is honest for us to agree that Big Brother is watching us. Now take some time to think about your assets. Have you made any improvements to the lot over the years that may not have been permitted? Might a few trees met their demise in the back of your lot to improve a view or make way for parking? More maliciously are their items of value (copper in particular) that a savvy thief could spot on the roof top of your investment asset that could be removed?

These are not meant to be scare tactics nor are they meant to spawn a large debate. These tactics are here to stay so just make sure to be aware of the tools that others can use when reviewing your property, and please make sure to dress appropriately when you take a swim in your pool…. you never know who is watching.

Chris Norwood

Executive Vice President

NAI Norwood Group

Increasing Cash Flow in a Declining Lease Market

INCREASING CASH FLOW IN A DECLINING LEASE MARKET

By Brian O'Brien

Times are tough, lease rates are trending downward. It is imperative that commercial property owners look for non-traditional ways to keep your properties performing at their peak maximized value. Here are a few tips to potentially add value without necessarily increasing rents:

Market Review: Re-examine your local market and get ahead of potentially declining market. Find out the most up to date comps in your market area to detect if there is a declining trend. You may want to re-negotiate with existing tenants early then waiting for their current leases to expire. Tenant retention is extremely important in a challenging market. Vacancy is expensive, not only are you potentially losing income stream but you are picking up additional operating expenses, tenant improvement dollars, and leasing commissions. “RETAIN IS THE GAME”.

Investigate a tax abatement: Is your property assessed accurately for the current market conditions? Don’t wait for a municipal Assessor to act to lower your assessed value, probably not going to happen. In most cases the Assessors are not working off current market information and it is important to keep abreast of your real estate taxes on an annual bases. A proper tax abatement specialist may be able to know only get you relief in a current year but may also go back to a previous year and years going forward.

Cost Segregation Depreciation: If you paid approximately $750,000 or more for your property you may realize significant savings and/or rebates through accelerated depreciation tactic called Cost Segregation Depreciation. Cost Seg is a form of depreciation where the components of a building are analyzed and broken down by individual depreciation schedule vs. standard straight-line depreciation method. The theory behind cost seg is that different building components have different life cycles. Carpets, HVAC equipment or moldings may have 7, 15 or shorter life cycles that traditional bricks and mortar. Thus, the property owner may accelerate the depreciation leading to significant rebates and or expense deductions, increasing your depreciation and increasing your after tax bottom line. Firms specializing in cost segregation can advise a property owner if it is feasible to do so.

Building Maintenance and Operating Cost Review: Have you re-bid your vendors lately? Have you explored new ways to operate your building more efficiently? Is your building energy efficient? Are there programs from your utility companies or tax incentives to upgrade your mechanicals to better energy efficient equipment? Now is the time to a conduct a top to bottom review of your building expenses and see if you r leaving anything on the table by not running your property at it’s maximize efficiency.

Financing: Interest rates are at historic lows. It is time to review your financing. You may be able to get a better rate, stretch your current amortization Schedule for better monthly cash flow. Reassessing your current financing for not only your interest rate but additional term and conditions could be another way to maximizing your bottom line.

These are 5 quick points a property owner can take, to ensure they are maximizing cash flow.

Route 125 Corridor – Growth Continues in Epping

As the economy stabilizes, interest in the route 125 Corridor has been rekindled. “Epping will be one of the first areas to start growing again,” according to brokers that represent national businesses and retail tenants. “Market Basket is doing gangbusters, and O’Neil Theaters is close to breaking ground – that will bring a lot of new customers to Epping.” And Exeter Hospital is seeking approvals to open a larger, 10,000 SF primary care facility in Epping.

I’ve been aware of the impact of the completed NH 101 ever since I researched population growth along it. The towns along NH 101 grew at a rate at least 55% faster than the average growth rate for the state, in great part because driving east and west, between I 95 and I 93, was faster and easier than ever before. And the single fastest growing community was Epping. Now that the economy is showing signs of life, major expansion plans are being executed and we will see the differences in the next 18 months. CVS, Exeter Hospital, and O’Neil Theaters, along with other major retail tenants have plans to open soon in Epping.

Once the retail market reaches a certain density, I expect office and service uses to look more closely at Epping as well. The development and utilization of office space typically follows retail growth – it’s easier to hire employees when they can fulfill their shopping and dining requirements close to where they work. For example, since the Rockingham County Courthouse complex is only 2 miles south in Brentwood, it’s only a matter of time until more law firms open offices in Epping. Because of careful planning for growth, the availability of land and a convenient road way network, Epping is on the move again.

John Mueller

Do I Have to Pay NH State Taxes on My 1031 Exchange?

Starting in late 2008 the New Hampshire Department of Revenue Administration began billing certain tax payers in the state a business profits tax on 1031 Exchanges they had conducted in the past, up to five years prior. A 1031 (Ten Thirty One) Exchange is a federal tax law, which allows tax payers to sell one real estate asset and purchase a new asset, and defer any capital gains taxes on the sale. To accomplish this deferment certain steps must be taken, anyone conducting an exchange should seek professional involvement. The goal is to defer all of your state and federal takes so that a tax payer can reinvest their gains back into a new property.

But the State of NH claimed that exchangors would have to pay 8.5% business profits tax on certain types of exchanges, retroactively for five years. NH was to be only one of two states in which local 1031 Exchange law differed with federal law.

Let us fast forward from 2008, when 20 of these DRA billings were reported, to 2010 when the New Hampshire State Congress became involved to clear up the issue for tax payers who may have conducted an exchange from 2004 up until present day.

Senate Bill 483, in March, was one such piece of involvement which said, among other things:

“The department of revenue administration shall recognize any like-kind exchange that qualifies under the provisions of Internal Revenue Code section 1031, United States Department of the Treasury Income Tax Regulations, or pronouncements issued by the Internal Revenue Service relating to likekind exchanges.”

In other words… “if it works for the IRS, it works for the Granite State”. In May an updated version of the Bill has passed the House Ways and Means Committee, which then need to be signed into law by our Governor. The House report on the above bill, passing 18-2 in committee said that the bill should allow tax payers to gain under the business profits tax the same way they are allowed to do under Federal Code.” As of July 9, the bill has been signed by Governor Lynch, clearing up the issue immediately and post dated to when things started.

This issue is not yet resolved but the take away’s are clear: 1) Be aware of all tax implications of any real estate transaction you perform and account for “rule change” risk such as this when making decisions and consult trusted experts… 2) Become involved when there is an issue, bill or ruling that affects your properties.

- Chris Norwood