Monthly Archives: July 2013

Sarasota Main Street restaurant sells for $365,000

Main Street restaurant sells for $365,000

By Michael Braga, Herald-Tribune / Monday, July 29, 2013

Lao Empire Inc., a Sarasota company managed by Lam Lum, sold a 1,120-square-foot restaurant at 1535 Main street in Sarasota to a company managed by Linda C. Firkins and William Saba, for $365,000.

For complete article, and others, CLICK HERE <———-===============

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Buying Outside of CA Is Trending

Buying Outside of CA Is Trending

CRE at NAI with Sean Dreznin

CRE at NAI with Sean Dreznin

By Carrie Rossenfeld | Orange County

An increasing number of multifamily property owners are seeing the value in selling their California-based properties and purchasing assets in other states. Brian Heller, senior advisor with Sperry Van Ness (Rich Investment Real Estate Partners), which is headquartered locally, tells GlobeSt.com that owners, particularly those in the Greater Los Angeles area who would normally be sellers, aren’t considering putting their properties on the block because they wouldn’t be able to find another in the area with which to replace it that would yield worthwhile returns.

“[Owners] aren’t motivated to sell because the current return landscape locally has been driven to 3% to 5% cap rates for class-A and -B properties,” says Heller. “It’s difficult to find a viable leg up when cap rates are so low.”

Rising interest rates are also working to lower the leveraged returns, making it even more challenging to justify the low cap rates in Los Angeles, says Heller. “A common theme I’m hearing from all my buyers is that properties in Los Angeles have gotten too expensive, and the returns do not make sense. They would rather sit on cash than pay for what they believe to be overpriced properties in L.A.”

As the market tightens, becoming more of a seller’s market with low inventory and lack of yield-generating assets, many of Heller’s clients are beginning to look out of state even if they aren’t in a 1031 exchange. “Over the past year, but even more so in the last three months, I’ve seen a dramatic increase among those who are selling their properties in Los Angeles and choosing to locate their 1031 exchange property out of state,” says Heller. “As a result, my team and I have been catering to clients’ requests to move money out of state to diversify their portfolio, but mostly to seek higher yields/returns.”

Out of state, it’s still possible to achieve returns in the 7% to 10% cap range, with even higher cash-on-cash returns, depending on leverage, Heller adds. “Even with the addition of management fees to one’s expenses, for a deal out of state that they could potentially manage if the property were owned locally, we are seeing that the immediate returns are still much higher. Because the client is getting much higher returns, they can justify management fees by offsetting them with lower expenses they are seeing out of state, along with the higher cash flows the building is generating.”

Another motivator for purchasing out of state is that buyers don’t want to get trapped in five years when they need to refinance. “So even if the numbers look good now, they have to keep an open mind to the future and what it holds,” says Heller. “If interest rates rise faster than rents can increase, which is very likely, when they go to refinance, the returns will no longer be favorable.”

In addition, buying at these levels becomes risky with cap-rate compression. “Moving forward, returns will need to be generated by rent increases,” says Heller. “If rents don’t increase, property values could go down if interest rates continue to rise.”

The most popular regions for investors to buy after selling their California-based properties are in the Sunbelt region: Texas (Austin, Dallas, San Antonio, Houston), Arizona (Phoenix/Scottsdale, Tucson), North Carolina, South Carolina, Georgia (Atlanta), New Mexico and Tennessee (Nashville). In fact, Heller says Phoenix and Las Vegas have begun to cool down in the last six months, while Texas is rising to the top.

Heller says he doesn’t believe this trend will negatively impact sellers here “because of the fact that most of the people buying here are new money. Our regular clients are finding the market so aggressively priced that almost every deal has new blood in the market. The regular names have gotten less active locally and are willing to look in areas where they weren’t before. The newer blood is looking to get that first property into their portfolio—they usually don’t have investors to report to.”

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8-Unit Historic Apartment Building in Highly Desired Sarasota Area ** For Sale

8-Unit Historic Apartment Building in Highly Desired Area ** For Sale

CONFIDENTIAL ** DO NOT DISTURB TENANTS ** Do not speak to anyone on property

CONFIDENTIAL ** DO NOT DISTURB TENANTS ** Do not speak to anyone on property

NAI Investment Services Group & Sean Dreznin are proud to present a jewel of a property for sale.

8 units

Downtown Sarasota location

A rare offering in the highly desired Sarasota Commercial Real Estate market

Reasonable pricing offering a 6 to 7% Cap Rate

Owners are flexible in pricing and terms, within reason

Contact Sean Dreznin at kelevra717@gmail.com or 941-961-8199 to register and find out more information.

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** Sarasota 110+ units ** For Sale ** UPDATE

** Sarasota 110+ units ** For Sale **
These appear to have gone to auction. — No word on a completed transaction as of Dec 1, 2013.

North Washington Apartments For Sale
19th Street, Sarasota, FL 34234

43B36BCE-8592-4890-B7DD-D5C4F278B942

NAI Tampa Bay - Sean Dreznin

NAI Manasota – Sean Dreznin

Price:$3,850,000
No. Units:119
Building Size:74,880 SF
Price/Unit:$32,352.94
Property Type:Multifamily
Property Sub-type:Garden/Low-Rise
Property Use Type:Investment
Cap Rate:8.51%
Gross Rent Multiplier:4.77
Year Built:1970
Lot Size:6.13 AC

Highlights
90 Percent of the Property was Renovated in 2012
Concrete Block Construction Repainted in 2012 and New Roofs on 40% of the Buildings
All Two-Bedroom and Three-Bedroom Floor Plans
Economies of Scale Due to Close Proximity of Parcels
Easy Access to Bradenton and St. Petersburg
Within Four Miles of University of South Florida’s Sarasota Campus and Sarasota-Bradenton International Airport

Description
North Washington Apartments is a 119 unit multifamily community located in Sarasota, Florida which is in Sarasota County. The community is made up of ten various parcels located within a two mile radius between 19th Street and 36th Street. The various properties consist of forty-six, one-story buildings. The buildings are comprised of 117 two-bedroom/one-bathroom units with 624 rentable square feet, 1 three-bedroom/one-bathroom unit with 936 rentable square feet and 1 three-bedroom/two-bathroom unit with 936 rentable square feet. Amenities include an on-site laundry facility and a vending machine located at 19th street. Pest control is included in the rent. Residents are responsible for their own water, sewer and trash as well as cable, telephone and electric. The property was substantially renovated in 2012. The interiors of 90 percent of the units were upgraded with new ceramic tile flooring, new cabinetry, new vanities in the bathrooms, new interior paint and new individual air-conditioning units. The exterior of all of the buildings were repainted and the roofs on 40 percent of the buildings were replaced. Also, new water heater enclosures were added for all of the units.

Contact NAI Tampa Bay and Sean Dreznin — sdr@naitampabay.com to discuss, make offer or gather additional data.

NAI Tampa Bay
Sean Dreznin
941-961-8199

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Southwest Florida Coast Apartment Market Updates – 7/2013

Representative apartment photo - Not specific to a complex or geographic area

Representative apartment photo – Not specific to a complex or geographic area

Rental Rates – Summer, 2013
Unit Type ** Low ** High ** Avg
One Bedroom ** $495 ** $2,070 ** $773
2 Bdrm/2 Bath ** $570 ** $2,805 ** $956

Sale Activity
Completed Sales – Sixty Days
# Properties ** # Units
2 ** 276

Completed Sales – Year-To-Year
Period Change
2011/2012 ** 2012/2013 ** Number ** Percent
Completed Sales* 20 ** 19 ** -1 ** -5%

* Sales reported are among properties 50 units and larger.
2011/2012 = (20 Jul 2011 – 19 Jul 2012)
2012/2013 = (20 Jul 2012 – 19 Jul 2013)

New Construction
Properties Under Construction 10
Units Under Construction 1928
Construction Starts, Last 30 days 0
Construction Completions, Last 30 days 0

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NNN ** 8% Cap Rate ** Zaxby’s Real Chicken ** North Carolina location ** 20 year lease

NNN ** 8% Cap Rate ** Zaxby’s Real Chicken ** North Carolina location ** 20 year lease

Representative photo - not actual location

Representative photo – not actual location

About Zaxby’s
Zaxby’s founders Zach McLeroy and Tony Townley looked around their community and saw plenty of fast food or sit-down dining options, but felt something was missing.
They decided to provide the freshest chicken fingers and Buffalo wings in town. That hatched a simple idea to create a fun atmosphere where food quality is of the utmost importance. In 1990, they opened the first Zaxby’s in Statesboro, Ga. The concept, one of the early ″quick-casual″ restaurants, proved successful.

McLeroy and Townley opened four more restaurants, and in 1994, they began to franchise the brand. The food and service was so popular, the Athens, Ga.-based chain has boomed to more than 395 units in 10 Southeastern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee and Virginia) and continues to grow.

Built 2013 (under construction)

Base Lease Term – 20 years

Rent increases – 2% annually

Lease Type – NNN

Contact Sean Dreznin at 941-961-8199 or sdreznin@naimanasota.com for a confidentiality agreement and registration.

* Please note, no co-brokerage is currently offered on this presentation.

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Grocery Anchored Shopping Center in Clearwater, FL available For Sale

Grocery Anchored Shopping Center in Clearwater, FL available For Sale

Contact Sean Dreznin for confidentiality agreement.

sdreznin@naimanasota.com

Not actual Plaza - representative photo

Not actual Plaza – representative photo

Publix is anchor tenant.

Offered at 6.25% Cap Rate approx.

No Co-brokerage offered on this presentation.

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