tagged w/ troy bohlke
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In today's USA Today...
http://content.usatoday.com/topics/quote/Places,+Geography/Towns,+Cities,+Counties/Phoenix/0bLVdGj3eA2iE/0eYl0jVd3I1Qn/2
"Many international buyers recognize that real estate is an excellent investment and are drawn today by abundant inventory, low interest rates and favorable foreign exchange rates," said Gaylord. Aside from these short-term, but viable reasons, the U.S. offers a climate that suits all tastes and needs and is filled with tourist areas that provide a strong rental market. The U.S. is a secure and politically stable country, which means a transparent and straight-forward buying process, superior building standards and a high quality and standard of living, and it is easily accessible from anywhere in the world. Also, English is the official language international buyers readily understand.
According to Patrick LaVoie with The Westward Fund, "A U.S. real estate purchase is one of the most exciting investment opportunities available today, for both national and international investors. The focus of investors is always on the bottom line. The unprecedented buying opportunities that currently exist, combined with careful property selection, provide investors an opportunity for outstanding returns, particularly in the Sunbelt States."
In a survey of 200 members of the Association of Foreign Real Estate Investors (AFIRE) conducted in October 2008, 53% said the U.S. continues to provide the most stable and secure real estate investment environment, and with 37 % of the vote, the U.S. was ranked as the country providing the best opportunity for capital appreciation. Respondents overwhelmingly pointed to the U.S. as the primary target for their real estate investment dollars and said that an average of 45% of their portfolio is invested in the U.S.
Foreigners are good for business
According to the 2009 NAR Profile of International Home Buying Activity, 12.5% of U.S. realtors have seen an increase in foreign clients within the past year and 23 percent reported having at least one foreign client during the year. "People are looking to diversify their investments. Buying power has increased tremendously," says Rick Wohlfarth of Wohlfarth & Associates, one of New York's leading boutique real estate brokerage firms. Wohlfarth travels regularly to Brazil to link buyers to properties ranging in price from $5 million to $15 million. Foreign buyers make up about 20% of his sales.
The most popular type of property purchased by international buyers is single family homes, accounting for 69% of all purchases. Condominiums make up 18%. Townhomes and commercial properties account for smaller shares of international purchases, 9% and 4%, respectively.
In terms of motivation, according to NAR's Profile, 34% of international buyers purchased a U.S. residential property for a vacation home, while slightly more than 18% planned to use the property strictly for investment (rental) purposes. Nearly 25% of all foreign buyers purchased a U.S. property for both vacation and investment purposes.
Canadian snowbirds flock to USA for more than just fun in the sun!
Canadian buyers accounted for 18% of all international real estate purchases in the U.S. Nearly 60% of the properties purchased are in Florida and Arizona.
"The double-whammy of falling U.S. real estate prices and a rising Loonie has created a once-in-a-lifetime bargain for Canadians looking for property in the U.S. Sunbelt States," says Bank of Montreal Chief Economist Sherry Cooper. She goes on to say, "I love the Canadian dollar at parity. We are truly richer, as the money we earn and the money we invest is worth more." (The U.S./Canadian exchange rate on October 23, 2009 was 1.0654.)
Mark Dziedzic, a former financial planner from Toronto, who now lives in Arizona says, "When (the Canadian dollar) hit $1.10, it really created a real buzz for Canadians, not only those looking to buy second homes but we're also seeing it from buying purely from an investment standpoint." Sixty percent of Canadians purchased a U.S. property as a vacation destination; 12% bought as an investment; and about 16% purchased a home for both vacation and investment purposes.
"The time is ripe, especially for private equity, to capitalize on the real estate opportunities at hand," states Patrick LaVoie, with Phoenix-based The Westward Fund. "Foreign investment has an undeniable presence in the U.S. real estate market, especially here in Arizona. Opportunities are abundant. Now is the time to buy and our Canadian friends clearly recognize this."
Only time will tell, but when it comes to foreigners investing in U.S. real estate, the focus is on one word only: Opportunity.In today's USA Today...... more
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BusinessWire - For a long time now, newswires and headlines have screamed, "Foreclosures Soar" and "Millions Lose Their Homes". Despite the continued doom and gloom, however, the Sunbelt, especially Arizona, is seeing definite signs of promise.
"Although we're likely to see the economy worsen with more foreclosures, there is inherent and tangible value in today's market. Some Phoenix area residential properties are already selling at or below replacement costs so these assets won't take much more of a hit. Real Estate doesn't go to zero," states E. Patrick LaVoie with The Westward Fund. LaVoie stated earlier this year that the Sunbelt States, although hit hardest by the recession, were the most likely to recover first.
"Despite the irrational rise in the equity markets, the recession is certainly not over, especially when contemplating the impending credit crisis, 5-year ARM maturities and the commercial catastrophe that is imminent. However, we must not allow the negativity to overshadow the positive facts that exist in specific markets," continued LaVoie.
"While some of the markets that had the highest saturation of foreclosures over the past few years have seen declining rates, new markets like Provo, Utah, and Boise, Idaho, have seen large increases," states James J. Saccacio, CEO of RealtyTrac. "As unemployment rates increase in different parts of the country, it's very likely that we'll see similar patterns develop elsewhere." In April of 2009, the nation's adjusted rate of unemployment rose four-tenths of a percent from the preceding month, to 8.9 percent, while unemployment in the Sunbelt State of Arizona remained relatively unchanged at 7.7, consistently below the national average.
SOURCE: Niche Focus Group
Niche Focus Group Troy Bohlke, CEO, 602-463-3124 troy@nichefocusgroup.comBusinessWire - For a long time now, newswires and headlines have screamed,... more
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Troy Bohlke (CEO Niche Focus Group) takes us on a walkabout of the companies new office in Phoenix upscale "City North". http://www.nichefocusgroup.comTroy Bohlke (CEO Niche Focus Group) takes us on a walkabout of the companies new... more
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Clint Bolick
likes to call CityNorth "a ghost town."
Bolick, attorney for the Goldwater Institute and opponent of the economic-development agreement between Phoenix and the new development, has considered it a bad idea from the start.
But a look beyond the shops and restaurants at the project at 56th Street and Loop 101 in Phoenix shows plenty of activity.
Hundreds call it home
Hundreds of people spend much of their lives here, living, working and even playing.
All 99 residences along High Street are leased.
The 320,000 square feet of available office space is more than 20 percent occupied, with an additional 7 percent leased but not yet announced.
That's a total of almost 89,000 square feet that is full or will be soon.
The people who handle office leasing at the site say they have proposals out to tenants who would take up 103,000 square feet, and initial contacts made with businesses that would take up an additional 235,000 square feet.
The effort comes at a time when office occupancy in the Phoenix market is declining, not increasing.
Good deals are there to be had for office tenants at CityNorth, but a spokeswoman for Related Urban Development, which manages High Street, says they are not giving the space away.
"We're trying to keep our lease rates up, consistent with other new buildings," said Najla Kayyem, vice president of marketing for Related.
Plenty of deals
Deals fluctuate based upon term, size, use and creditworthiness of tenants, Kayyem said.
These items are all taken into account in determining concessions. Kayyem said the final amounts are competitive for the market.
The largest tenant so far is Capital Processing Network, a credit-card processing company serving small and midsize businesses. It has 56 employees in 18,136 square feet.
The price had little to do with Chief Executive Jeff Stephan's decision to lease the space, he said.
What he liked is the easy access to the office for clients, employees and potential employees; the new construction with upgraded communications hardware; the great views of mountains to the north and east; and an office space that is bright, with floor-to-ceiling windows, and cheerful.
CityNorth has edge
Jerry Roberts, executive vice president and office specialist for CBRE, is working on CityNorth leases. He says the process has gone well in a market that has lost tenants overall.
Compared to other new office buildings along Loop 101, CityNorth has an edge because of its amenities, including easy access to shopping and restaurants, he said.
"Even in this down cycle, we have always had deals to work on," he said.
Who's moving
Roberts pointed out that the market lost 900,000 square feet worth of tenants in the third quarter this year, while CityNorth has added almost 100,000 square feet.
The leases are all a minimum of five years, Kayyem says.
Troy Bohlke of Niche Focus Group, a business-development company, said it all worked out for him.
"We were meeting regularly at Press Coffee, and we talked about getting an office here, but we thought it would be out of reach," he said.
But a friend who lives at the site spoke with a leasing agent and found out the costs would not be too high.
Niche moved in two weeks ago.Clint Bolick
likes to call CityNorth "a ghost town."
Bolick, attorney... more
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