E-Newz from Asset Prevention, Inc. | 9 Reasons to Buy Investment Property Now

J. Paul Getty famously said, “Buy when everyone else is selling and hold when everyone else is buying.” Many commercial brokers believe that present market conditions provide an unprecedented buying opportunity to lock in significant real estate investment returns. Despite the opinion of some real estate professionals, however, many investors remain on the fence. While each investor must carefully consider their own financial objectives and risk tolerance before jumping back into the market, we’ve listed a few reasons investors should consider in assessing today’s real estate purchase opportunities:

  1. 1031 Exchange Opportunity – Investors with low basis properties may utilize Internal Revenue Code § 1031 to defer tax on the sale of one underperforming asset to acquire one or more discounted replacement properties that may enhance cash flow and provide higher long term investment returns.
  2. Attractive Purchase Prices – Many distressed sellers (and some banks) are selling investment properties at deep discounts and accepting offers that are below current replacement costs. Recent reports indicate that lenders are selling foreclosed properties (often referred to as ‘real estate owned’ or “REO” property) at an average discount of 28% below prices being paid for comparable non-distressed properties in the same market.
  3. Historically Low Financing Costs – The Fed’s stimulus efforts, such as QE2 (“Quantitative Easing 2”), have resulted in historically low interest rates, making the cost of debt service exceptionally attractive. Qualified real estate investors can take advantage of today’s low interest rates to bolster cash flow and lock in better long-term investment returns.
  4. Inflation Hedge – With many economists predicting that inflation will increase at some point in the future, hard assets, like investment real estate, can provide a hedge against the declining value of money in an inflationary environment. Additionally, ownership of leased real estate can provide an investor with increased income as rent rates also tend to rise in inflationary periods.
  5. Yield – Financial institutions are paying very low yields on money market accounts and other conservative investments. In contrast, many investment properties are generating returns in the 7-9% range, providing considerably better yields than many other competing investments.
  6. Less Competition – Foreign ownership of U.S. investment real estate is increasing. Foreign investors see U.S. real estate as a solid investment in a stable economy, and the lower value of the dollar has made U.S. real estate an even more attractive bargain. These two trends will increase demand, which will drive up prices on certain types of investment property. By buying now, investors can stay ahead of the competition.
  7. Desirable Product Classes – Some classes of investment property are experiencing considerably more demand than supply. For example, in the multi-family segment, demand for rentals has increased as foreclosures have mounted and there is little new multi-family construction in the pipeline to meet such increased demand. As a result, multi-family rents are increasing and many experts project this trend to accelerate.
  8. Worst Price Declines are Over – Property values nationally have declined by 30% or more since the market peak in 2006,. Many economists believe we are at an important pivot point where prices will stabilize and begin to increase (albeit at lower appreciation rates than in the past). If investors wait too long, they may find they are facing competing bids and higher prices to close. Buying before demand picks up in the nearly inevitable recovery locks in today’s bargain prices.
  9. Real Estate is Local – Despite national statistics about real estate prices, most investors are aware that real estate is local and supply/demand and investment returns are determined by local market conditions. Many investors are using 1031 exchanges to exchange out of areas that are not projected to perform well and into areas where the local economy is more robust and investment returns are more favorable.

Financial professionals tell their customers it is almost impossible to ‘time the market’ and purchase investments at the very lowest point and later sell these same assets at near market peaks. The concept is fraught with many problems and, as a result, most financial advisors caution customers to not pursue this approach. Despite this advice, investors often wait until it’s too late to purchase and miss opportunities. Don’t be left out.

Read more:  http://www.apiexchange-enewz.com/www/enewz/index.php?id=171&dm=1

Posted by:  Crosbie Real Estate Group

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Denver Post | Inside IKEA: Centennial Store Taking Shape

Inside IKEA: Centennial store taking shape

CENTENNIAL — When the Centennial IKEA store opens July 27, customers will enter the second-largest IKEA store in all of North America, housing the largest IKEA restaurant in the Western Hemisphere.

This week inside the unfinished store, the showroom displays and much of the merchandise are still draped in plastic wrap — room decor such as flat-screen televisions and board games are still in the packaging.

Construction workers and store employees bustle around marking final lines off to-do lists, including finishing the model homes and decorating the display rooms.

The 415,000-square-foot store is massive — only the store near Chicago is larger.

“It’s enormous. It’s humongous. It’s gargantuan,” said Kelly Frieze, store manager for IKEA Centennial.

IKEA Centennial will offer:

  •  over 10,000 items.
  •  three complete model home interiors.
  •  50 different model room settings.
  •  a supervised playground for children.
  •  a 550-seat restaurant.

The restaurant will serve American dishes, as well as Swedish fare such as salmon plates and the meatballs for which IKEA stores are famous.

“Meatballs are very traditionally Swedish,” Frieze said. “We have a very traditional Swedish recipe. We serve it with very traditional potatoes and lingonberries. They just taste great.”

“Great” is a word that the construction contractor also uses to describe the IKEA project.

Marcy Loughran, the marketing and communications manager for Saunders Construction, the company that managed the construction, described “a great owner, great project team, great sub-contractors, and a mild winter” in explaining why the project is ahead of schedule.

The project was originally slated to open in the fall, but everything came together to allow IKEA Centennial to open months early.

When the first customers walk through the doors, they will step into a store with a very non-traditional layout. Whereas in many stores customers can immediately go directly to the section they need, IKEA stores feature what is referred to as the “long natural path” that winds through the entirety of the store.

Frieze explained: “That’s just so that can’t miss any part of the experience of IKEA.”

Looking for retail close to IKEA?  Check out Centennial Promenade right next door!  For more information, contact:

Rich Hobbs at (720) 287-6865 or Rhonda Brown at (720) 287-6866

Fast Casual | 2011 Top 100 Movers and Shakers

Fast Casual’s 2011 Top 100 Movers and Shakers ranks the restaurant-industry segment’s best brands based on innovation, sales and unit growth, marketing successes, and food quality.

This year’s winner smoked the competition, boosting both average-unit volumes and overall sales in 2010.

Download Free Report:  http://www.fastcasual.com/whitepapers/4125/2011-Top-100-Movers-and-Shakers
Posted by:  Crosbie Real Estate Group

New Retail Openings & Property Sales from Crosbie Real Estate Group

7-Eleven coming soon to the Renaissance Uptown Lofts at Colfax & Pearl in Denver, CO.  Broker:  Andy Buettner

Floyd’s 99 Barbershop will open at Washington Point in Northglenn, CO.  Broker:  Rich Otterstetter

Former Circuit City at 5155 S Wadsworth Blvd in Littleton, CO has sold.  Broker:  Rich Hobbs

Goozell Yogurt coming soon to 1200 Washington Ave in Golden, CO.           Broker:  Eli Boymel

Family Dollar opening at Lowry Square at Leetsdale & Quebec in Denver, CO.  Brokers:  Rich Hobbs, Eli Boymel, Manny Cereceres

Bennett Dentistry to open at Clayton Town Center in Denver, Colorado.  Brokers:  Eli Boymel and Manny Cereceres

Kickin Wings opening at Independence Square in Wheat Ridge, CO.  Broker:  Manny Cereceres

Fred Loya Insurance will be joining on at 2120 S Broadway in Denver, CO.  Broker:  Manny Cereceres

Carlos Miguel’s opening in Colorado Springs at Powers Blvd & Briargate Pkwy.  Broker:  Manny Cereceres

Which Wich coming soon to Colfax & Gaylord in Denver, CO.  Broker:  Eli Boymel

 

SOS Staffing Services to open at Ralston Business Park in Arvada, CO.  Broker:  Rich Otterstetter

Big Mama’s Pizza joining Mayfair Plaza at 13th & Krameria in Denver, CO.  Brokers:  Scott Steputis, Andy Buettner, Eli Boymel

Denver Business Journal | High-end apartments, retail planned for old Safeway site in Louisville

LOUISVILLE — An attentive, yet wary, group of neighbors gathered in the shell of the old Safeway on South Boulder Road on Wednesday night to take a first look at plans to bring the vacant grocery store site back to life.

Loftus Development, which signed a contract in April to buy the 5.1-acre site at 707 E. South Boulder Road, showed plans and renderings for a high-end, 195-unit apartment complex…

The $30 million development, which would be designed by the Mulhern Group of Denver, would also feature 10,000 square feet of retail space split between two buildings.

Read more: High-end apartments, retail planned for old Safeway site in Louisville – Boulder Daily Camera http://www.dailycamera.com/louisville-news/ci_18188008?source=most_viewed#ixzz1OEJFnMe1
Posted by:  Crosbie Real Estate Group