Rod's Notes

Rod's Notes For Wednesday 9/26/12


Rod Noles Property Management, Inc.

 

Rods Radio Show Notes
September 26th 2012
 

Go to:  www.rodnolespropertymanagement.com and click on radio notes and sign up to have them emailed each week. If you know of someone looking for rental space, apartments, homes, retail, office or industrial send them to www.rodnolespropertymanagement.
 
You can participate in the show by calling 318-442-8255 (talk) between 8:05 and 8:55 on Wednesday morning.  Do not attempt to call Saturday this is our encore performance (fancy way to say taped).
 
Interesting Properties for Sale:
 
Burlington Coat Factory: Building with lease in place to Burlington Coat Factory $4,250,000 sales price, 62,163 square feet, with 9.5% Cap Rate (Cap Rate is I = R/V so $4,250,000 x 9.5% = annual net operating income of $403,750 / 62,163 = $6.50 psf). New Orleans Company SRSA has it listed but I can sell it. http://www.lacdb.com/listing/28285843
Provine Building:
Located at Provine and Ansley $3,300,000 includes leases in place and nearly 40,000 sf building Jim Redfearin has the listing.
 
4 Seasons Bowling Alley:
 
44,045 sf of building and 4.48 acres of land for $1,900,000 / 44,045 sf = $43.14 Bobby Smith in NAI Latter & Blum office in Baton Rouge has it listed.
 
Town Talk Property:
 
Property located between levee and Second Street reduced to $975,000 nearly 1,000 feet of frontage on Second Street two buildings with total of nearly 80,000 sf.
 
Every Deal has a Tale / Tail:
 
Attachment has past two weeks of listings, under contract, closings, and price adjustments at Noles-Frye Realty Inc. which gives you snap shot of 25% of activity in local MLS. Best single page of real estate data in the market place. For example you will see it here first that 3130 Jackson Street the former Alexander / Bolton Insurance building is under contract. (Priscilla Perry and I have both sides of this pending transaction)
 
ESM Partnership David Martin and Jonathan Martin (P O Box 1110, Alex., LA 71309) to Roy O Martin Lumber Co., LLC (2189 Memorial Dr., Alex., LA 71301) - Tract in Sec 40, T4NR1E, et al, $782,918.84. Could be what is termed “arm’s length” transaction but probably not.
 
Examples of Very Good Commercial Real Estate Loans:
 
1106 Main St., LLC (1715 England Dr., Alex, LA 71303) to Red River Bank (1412 Centre Court, Alex., LA 71301) - 1.3827 acres in Sec 37, T5NR3E (1260 Hwy. 115, Deville, LA 71328), $758,933.90. This is long term financing for Dollar General in Deville.
 
Plaza 28, LLC Jerome Karam (3704 North Blvd., Suite 1, Alex., LA 71301) to Red River Bank (1412 Centre Court, Alex., LA 71301) - Lots 3 & 4, Plaza 28 (6501 Coliseum Blvd., Alex., LA 71303), $950,000.00. This is most likely long term financing for the former Century Tel property on highway 28 West.
 
New Restaurant:
 
Family Affair restaurant opening at 7518 B Coliseum Blvd. received notice of grand opening October 12th. Hopefully owners will call in and tell us more
 
John F & Mona C Jones to Heart of LA FCU (P O Box 4030, Pineville, LA 71361) - Part of Lot 5, Breezy Heights Subd., $100,000.00. Parcel is adjacent to Credit Union located at corner of Edgewood and Greer road
 
People not Properties:
 
Matt Ritchie was installed last week as President elect for Louisiana Realtors Association for 2013. Who was last LRA President from Central La. Board?
 
Sandy Ray director at Hope House called and ask me not to spring their news prior press conference next week. Often caller will ask me a question where I do not know the answer. No credit given for things I know but cannot tell.
 
HK Stanley and Tom Ryder both very active in our local real estate industry passed away this past week. Tom Ryder was a banker at Red River bank at one time he had his own mortgage company, great guy. HK Stanley is a role model of perseverance, self-starter, and a dreamer. We first met when he optioned land that Sundrop Fuels has under contract at Rapides Station surrounding Cowboy Town for Jena Choctaw future casino 1997.
 
Tip for The Week:
 
Don’t miss quarterly luncheons for CLEDA (Central Louisiana Economic Development Alliance) Jay Moon President and CEO Mississippi Manufacturers Association and Chairman on International Economic Development Council made a great presentation on manufacturing in America and beyond. Some of his bullet points included the following:

  1. 40,000 number of plants closed in America between 2000 and 2009
  2. 32% of all manufacturing jobs lost between 2002-2009
  3. 1941 was the last time USA had fewer than 12 million workers in manufacturing
  4. 56 years old is average age of American welder
  5. Discussed what he termed as “Onshoring” jobs moving back to America

 
Take away for me is that Union Tank Car, and Sundrop Fuel deals are very rare captures for any community but especially smaller markets. 
 
(+3.75)  Rod’s Economic Indicator Perfect Score is 5.
 
When top rating of 5 appears week after week I will share with our audience, that “Green Shots” is here and recovery is in full swing. 
 
Legal Recorder Data:
 
Five business days from time period of September 17th through September 21st  
 
(1)Total of 40 closed deals for the week has positive score
(2) At least one new home sale for the week has positive score
(3) At least one subdivision lot sale for the week garners positive score
(4) Number of lender sales in market place is less than 5% of the total market sales for the week.   
 
(+1.25) Total Weekly Volume:
 
$6,312,886 with 45 transactions largest sale timber deal with ROM at $780,000. This activity rates a positive score for the week.
 
(+1.25) Lot Sales:
 
To rank positive score need one sale market gave us 6 lot sales for the week. V&V are under construction with last 25 lots in Bocage and are sold out in West Pointe. Tennyson Oaks has 14 lots with land for 10 more. If building should pick up Alexandria Community could have lot shortage in 24 months. 
 
Jason N Bardwell (3930 Staples Road, Pineville, LA 71360) to Garet M Voohries (6133 Hwy. 107, Pineville, LA 71360) - Lot 7, Pine Oak Subd., $16,000.00
 
Scott T Fowler (6505 Moody Oaks Lane, Alex., LA 71301) to Randall B & Paula D Tarver (P O Box 5432, Alex., LA 71301) - Lot 15, The Lake District, Phase 1 (4701 Lilley Court, Alex., LA 71303), $164,000.00
 
Price Right Properties, LLC (4400 Hwy. 28 East, Pineville, LA 71360) to Bernard's American Homes Sales, Inc. (4400 Hwy. 28 E, Pineville, LA 71360) - Lot 18, Buckeye Ridge Subd., Phase II, $27,900.00
 
Price Right Properties, LLC (4400 Hwy. 28 East, Pineville, LA 71360) to Jaad Builders, LLC (4400 Hwy. 28 E, Pineville, LA 71360) - Lot 8, Buckeye Ridge Subd., Phase II, $27,900.00
 
DONK, LLC (1580 Hwy. 115, Deville, LA 71328) to TSW Properties, LLC (P O Box 3805, Pineville, LA 71360) - 1 acre in Sec 38, T4NR2E (631 Booner Miller Road, Deville, LA 71328), $25,000.00
 
B & B Office Holdings, LLC (P O Box 2167, Prairieville, LA 70769) to Three B Construction, LLC (P O Box 2167, Prairieville, LA 70769) - Lot 15, Shadow Creek Ranch Subd., Phase I, $36,000.00

(-1.25) New Home Sales:
 
Looking for one new home sale for positive score and market gave us zero
 
(+1.25) Lender Sales as Percent of Total Sales:

 
Rates positive score if lender sales are below 5% of total sales, this week market gave us 3 sales with total volume of $224,900 / $6,312,886 = 3.56% rates positive score for the week.
 
LPP Mtg., Ltd. (7195 Dallas Parkway, Plano, TX 75024) to 3H Investments, LLC (2109 North MacArthur Dr., Alex., LA 71303) - 1.01 acre tract known as 967 Palmer Chapel Road, Pineville, LA 71360, $35,000.00
 
The Evangeline Bank (3700 Jackson St., Alex., LA 71303) to Ratcliff Development, LLC (P O Box 7522, Alex., LA 71306) - Part of Lots 4 & 5, Blk 9-C, Forest Hill Townsite, et al, $75,000.00
 
Federal Home Loan Mtg. Corp. to Christopher R Gotreaux, et al (1410 Donahue Ferry Road, Pineville, LA 71360) - Tract running 68.72' on Donahue Ferry Road, Pineville, LA, et al, $114,900.00

Interest Rates:
 
30 year rate was 3.52% this week is 3.46%, the 15 year rate was 2.93% this week it is 2.84%, the 5/1 ARM was 2.95% now 2.93%.
 
Numbers of Interest:
 
8.2% of American households do not have a bank account up from 7.7% in 2009
 
3.9% average revenue decline over last year for American Cities
 
Email from Rick Haase President for Latter & Blum:
 
This is good information when talking to Buyers, Sellers and new home Builders about the state of the housing market.
 
USA Today Article
 
The housing market's rebound is gaining strength as foreclosure sales slow and more people who are not in financial trouble put their homes on the market. New signs are adding to recent evidence of housing's upward momentum:

  • Existing-home sales in August were the strongest since May 2010. They rose 7.8% last month to a seasonally adjusted annual rate of 4.82 million, the National Association of Realtors reported Wednesday.
  • August housing starts, including houses and apartment buildings, rose 2.3% from July to a seasonally adjusted annual rate of 750,000, the Commerce Department said Wednesday. Single-family home starts rose 5.5%, reaching their best annual rate since April 2010. The pace of newly issued building permits fell 1%, down from a four-year high in July.
  • Homebuilders are getting ebullient. On Tuesday, the National Association of Home Builders reported that builders' confidence is the highest since 2006. The NAHB's list of 99 improving local markets now includes hard-hit areas such as Jacksonville and Tucson.

Housing prices have fallen so sharply that the ratio of home prices to incomes is now near the average from 1985 to 2000, said Stan Humphries, chief economist at real-estate web site Zillow.com. Factor in interest rates, and house payments are 16% easier for today's average buyer than they were for a decade and a half before the bubble, he said. “Prices have gotten so low, and affordability so high, that buyers have come off the fence,'' Humphries said.
 
Wednesday's data show that the supply of homes added to the market is rising, even as foreclosure sales slow, meaning regular buyers and sellers are gaining confidence, Moody's Analytics economist Celia Chen said. Demand is growing even faster than new supply, putting pressure on prices, she said.
 
The national median existing-home price was $187,400 in August, up 9.5% from a year ago, the Realtors said. The increase was the biggest since January 2006. Stable prices are bringing out buyers who hesitated while values were falling, said Stephen Paul, executive vice president of Mid-Atlantic Builders in Rockville, Md. His summer sales tripled this year, to 15 units from five last year.
 
Low down payment mortgages backed by the Federal Housing Administration are filling gaps remaining in private financing markets, he said. "We had our best summer in seven years,'' Paul said. "If I'm selling in July and August, when markets are in hibernation, people are looking to buy in a serious way.''
 
The NAHB survey shows builders are more positive about the early 2013 market than they are about conditions now, association president Jerry Howard said. "Confidence and customer traffic -- the precursors to capital spending -- are very good,'' he said. Housing starts will reach almost 1.1 million next year, up from 780,000 this year, enough to boost overall economic growth by 0.8%, Chen said. Barclays economist Michael Gapen said a 1.5 million-unit market would be healthy. "We're about halfway back,'' Gapen said.
 
Rick
 
Richard C. Haase,
President
LATTER & BLUM, INC.
430 Notre Dame Street
New Orleans, Louisiana  USA 70130-3610
(504) 569-9361 Office Direct
(504) 251-3757 Cell
 
Robert Kinberger Stats
 
Indices

 

Last

Last Week

YTD return %

DJIA

13596.93

13539.86

11.29%

NASDAQ

3175.96

3155.83

21.91%

S&P 500

1460.26

1459.99

16.11%

MSCI EAFE

1545.77

1531.29

9.43%

Russell 2000

851.51

856.12

14.93%

 
Consumer Money Rates

 

Last

1-year ago

Prime Rate

3.25

3.25

Fed Funds

0.16

0.10

30-year mortgage

3.51

4.13

 
Currencies

 

Last

1-year ago

Dollars per British Pound

1.619

1.572

Dollars per Euro

1.294

1.368

Japanese Yen per Dollar

78.310

76.500

Canadian Dollars per Dollar

0.978

0.993

Mexican Peso per Dollar

12.913

13.198

 
Commodities

 

Last

1-year ago

Crude Oil

91.87

86.89

Gold

1768.70

1803.13


Bond Rates

 

Last

1-month ago

2-year treasury

0.26

0.26

10-year treasury

1.77

1.67

10-year municipal (TEY)

3.18

3.11

 
 
4 Seasons Bowling Alley Floor Plans
 Go to www.rodnolespropertymanagement.com and click on the RADIO SHOW tab...open the notes titled Radio Show Notes Sept.26th 2012
and scroll to the bottom. You may also email Priscilla and she will be happy to send those over to you! pperry@noles-frye.com
 

Family Affair Grand Opening
 
Southern Eating for the New South
 
GRAND OPENING
OCTOBER 12th FRIDAY 11am
7518B Coliseum Blvd. Alexandria, LA71303
318.442.3955 familyaffairsouth.com
 
Family Affair welcomes you to the future of food, family and Philanthropy and we don’t forget the Fun… Come celebrate the exciting New South dining experience with us and welcome to the FAMILY! 
 
 
 

 
 

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