Should we really sell our State owned buildings and now pay rent?

The listing agent stated that interest is coming in from all around the world!

See the complete article here:

http://www.latimes.com/business/la-fi-state-offices08-2010mar08,0,565757.story

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This is an update on what is going on in our local area as many are not aware that even the local malls are in trouble. General Growth owns both the Glendale Galleria, the Burbank Town Center and also Northridge Fashion Square.

New York City’s Vornado Realty Trust has entered the picture as a possible third suitor for General Growth Properties Inc.

According to The New York Post, Vornado is mulling over a bid for all or part of the Chicago-based bankrupt mall operator, which owns the Glendale Galleria, Burbank Town Center, Fallbrook Center and Northridge Fashion Center.

A potential bid from Vornado, a real estate investment trust with more than 100 million square feet in its office and retail portfolio, including Chicago’s 4.5 million-square-foot Merchandise Mart, comes after General Growth announced a plan last week to split into two companies with Brookfield Asset Management, of Toronto, as a major investor.

General Growth’s reorganization plan was an attempt to fight an unsolicited $10 billion takeover offer from the Simon Property Group Inc., in Indianapolis.

The Post reports that Simon Property Group reconfirmed its interest in purchasing General Growth Properties Inc. March 2 despite General Growth’s announcement that it has reached a $2.6 billion equity deal with Brookfield Asset Management Inc.

If approved by a bankruptcy court judge, the deal announced March 2 by General Growth will allow the company to exit Chapter 11 bankruptcy protection and possibly avoid being taken over.

Under the terms of the agreement, Brookfield Asset Management would take a 30 percent stake in General Growth and give it enough cash to remain in business while it raises $5.8 billion by selling assets and issuing new equity.

For each share of General Growth owned, the company’s shareholders would receive one share of new General Growth common stock with an initial value of $10 per share, plus one share of General Growth Opportunities — a new company that would own certain assets, such as General Growth’s master-planned communities — with an initial value of $5 per share.

In a statement issued March 2, executives with Simon Properties consider the deal between General Growth and Brookfield “inferior and highly conditional.”

Last week, Simon, which owns Del Amo Fashion Center in Torrance among its retail portfolio, offered General Growth $10 billion, including $9 billion in cash. A total of $7 billion would have gone to creditors and $3 billion to shareholders.

General Growth filed for protection under Chapter 11 of the U.S. Bankruptcy Code in April 2009. In December, it won court approval to restructure about $10.25 billion of its debt on 103 of its 200 properties.

Portions were taken from Loopnet on Mar 3, 2010 which appears they got info from the Los Angeles Business from bizjournals - Interest in Glendale Galleria Owner, GG

For more information on Local Real Estate, whether it is Residential, Investment or Commercial property call Kevin Jones today 818-955-SOLD (7653)

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Appraiser Checklist

Help clients understand what to expect during the appraisal process by sharing information on how appraisers reach their property value estimates.
By Barbara Ballinger | April 2009

Here are some of the factors that appraisers Joni L. Herndon of Real Property Analysts/Gulf Coast in Tampa, Fla., and John A. Hillas of Hulbert & Associates Inc. in Modesto, Calif., say they consider when determining value.

Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number.

Closing date. Forget what comparable neighborhood houses sold for a few months back. Appraisers want prices from the most recently closed transactions. “If a sale was more than 45 days ago, even 35, the price may be irrelevant,” Hillas says.

Condition and curb appeal. Appraisers typically find several properties with similar interior and exterior features to determine value. When markets are healthy, blemishes matter less, but when markets soften, problems—a dated kitchen or barren lawn—can reduce prices and deter buyers. “The difference in value is not just the repair costs but the time and hassle to make them. It’s better for sellers to do work in advance,” Hillas says.

Foreclosures. Appraisers technically shouldn’t consider neighborhood foreclosures when valuing a home, since foreclosures don’t meet the Appraisal Institute’s definition of a property reasonably exposed in a competitive market, says Herndon. “But when several neighborhood homes are abandoned, it’s hard not to caution sellers that this is a troubling trend and may affect home values,” she says.

Changing demographics. If a house is in an up-and-coming area, the value can be expected to rise. A location that’s perceived as safe also may help attract the increasing number of single female buyers.

Economic clouds. If there’s an oversupply of comparable homes for sale, or if the local job market is suffering, buyers may be hesitant to invest. Hillas advises setting prices aggressively from the get-go.

Chemistry. It’s hard to account for those times when buyers fall in love with a house, despite a high price, poor condition, or tough economy. “Emotional attachment is a factor that can’t be predicted,” says Herndon. Hillas agrees, “It’s what makes it harder to appraise homes versus commercial buildings, where buyers care more about the bottom line.”

For more information call KEVIN JONES today 818-955-SOLD (7653)

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Here are the statistics for the Residential sales for the first 55 days in Burbank, Ca:

Bedrooms Average Price $ Median Price $
2 or less 464,100 485,000
3 587,100 540,000
4 or more 700,700 550,000

Time on market:
30- 43 days
31-60 9 days
61-90 4 days
91-120 7 days
121-180 3 days
181+ 3 days

Total units sold: 71

Types of Financing:
Conventional 58 sales
Cash 6 sales
FHA 6 sales
Non-Reported 1 sale

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Incredible Burbank Duplex

Two 2 Bedroom Units

$3100 monthly income

Call for more info

KEVIN JONES Realtors 818-955-SOLD (7653)

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Incredible home located in the most desirable area in Glendale!

2 Bedroom plus a Bonus Room

1.5 Baths

Pool

2 Car Garage

almost 10,000 foot lot

Kevin Jones
818-955-SOLD (7653)

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We have investors that are pooled together over $50 Million dollars of “Hard Money”.

All private financed, qualifications are simple:

California Only Properties
60% Maximum Loan to Value
Have take out strategy in place
Balloon in 2-5 years
Close in 10-30 days
Credit does not matter, just no current BK
Non-Owner Occupied properties only
No Pre-Payment penalties

These loans are case by case and are qualified based upon the property.

Single Family, Apartment Buildings, Commercial and Mixed Use are all OK.

Perfect for the short term investor, cleaning up your credit or flipping properties!

To give you an idea, a recent loan we funded was 5 points at 12%.

Each deal is different and the qualifier is primarily the property.

Non Owner Occupied properties only.

For more information: Kevin Jones 818-955-SOLD (7653) or 818-612-1603 Mobile or Text

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Are you Creative?  Are you as an Agent or is your Agent Creative,  Experienced and Knowledgeable enough to put the deal together for you?

As a Buyer do you need creativity in your deal because of the current limitations that are in effect?

How much or what do you know about an AITD, Wrap, Subject To, Owner Financing, etc?

Do you have access to Secondary Lenders? Lenders that can deliver and allow you to close in 10 days all cash.

What about the Proper way to structure a Lease Option?

Approximately 30% of my income last year came from these creative approaches.

If you an Agent, learn more about these techniques to make more money!  

If you need access to Secondary and Hard Money, Call Kevin Jones 818-955-SOLD (7653)

If you are a Buyer and can’t buy through conventional resources, we have other alternatives call Kevin Jones 818-955-SOLD (7653)

If you are a Seller and haven’t been able to sell we can structure deals that will net you more money and get your home sold! Call Kevin Jones 818-955-SOLD (7653)

Everything we do is Professional, Legal, Honest and Ethical.  

We have a trained staff, a Great Real Estate Attorney and the best Escrow Officer to make this a quick, smooth and seamless as possible!

For more information, call Kevin Jones today: 818-955-SOLD (7653) Office or 818-612-1603  Mobile or Text

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Everyday … Actually many times a day I am asked “How’s the Market” … the proper response … that depends …But for the Buyers out there … Buyers still have an incredible opportunity because the tax credit was extended through 2010, currently the interest rates are unbelieveably low! The forecast is that by mid year after the Feds pull out of buying all these FHA loans that the rates will be going up. How much? Nobody knows exactly but the buzz is that it will be at least 1% but more than likely closer to 1.5%! This is because a private or corporate investor has to make a higher profit margin on their investment and rightfully justifytheir possible risk associated with the current economy.

An increase of 1.5% on a $400,000 loan would increase your payments by $ per month and $ on a $1,000,000 loan. Now is a great time to buy while these properties are affordable! If the rates do increase to this amount, the same monthly payment on a $400,000 loan would now only buy you $340,000 or $850,000 loan vs. the million dollar loan. So your buying power will significantly decrease for the same amount of money! To get more information and maximize your buying power, call Kevin Jones today!

As a Seller, this is extremely important because with these same number and the lending institutions getting more strict by the day, you will lose a lot of qualified buyers in your price range when the rates go up! Less buyers mean longer marketing times, less demand which equates to less offers to choose from and the possibility of having to reduce your price even further! If you want the best possibility of getting the most out of your house value, you should call Kevin Jones now and discuss your options!

If you have thought of buying or selling this year, now is the time! Call Kevin Jones today! 818-955-SOLD (7653) to help you maximize your buying and or selling power!

Kevin Jones, Broker DRE #01128892
KEVIN JONES Real Estate & Loans
818-955-SOLD (7653)

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