LWR Commercial Real Estate
News
WILLIS A. SMITH AWARDED BOOKER HIGH SCHOOL CONTRACT
Dec 21st
The School Board of Sarasota County has selected a construction management team for the rebuild of Booker High School. Willis A. Smith Construction, Inc. will be performing the Preconstruction services as a prelude to the actual construction. The new components of the high school are currently being addressed in the design phase by the architecture team consisting of: Harvard Jolly, Fawley Bryant and Jack Meredith (Creative Aesthetics). The preliminary total budget for the project is $45 million. The preconstruction phase will take approximately 10 to 11 months.
Commercial Value Drops Beginning to Slow
Dec 16th
The value of commercial real estate is still falling, but across the country, the pace has slowed compared to earlier in the year, according to Integra Realty Resources.
The New York-based company has completed more than 25,000 commercial valuation assignments in 2009, and its fourth quarter index shows that the office, industrial, and multifamily sectors lost only 3 percent of their value in the past three months. The lodging and retail sectors recorded a 5 percent drop.
Integra says that while not ideal, these rates of decline show a leveling off that sets the stage for a slow recovery.
“Commercial real estate is stabilizing quicker than some pundits believe,” said Jeffrey Rogers, president and COO of Integra Realty Resources. “Deterioration in values over the past three months has been markedly less then the past 12 months. The rate of decline is expected to slow even further and some sectors are expected to stabilize in the next six months.”
Rogers says he expects the value of commercial real estate to continue to decline an estimated 5 percent nationally through the first half of next year, but that rate is well below the 11-17 percent depreciation experience across asset classes in 2009.
The Integra survey shows that while conditions are improving, commercial real estate continues to be recessionary. A large percentage of Integra’s assignments are classified as distressed assets, with the Western (67 percent of assignments) and Southern (62 percent of assignments) regions struggling the most. The Eastern
and Central regions are faring a bit better, with 35 percent and 47 percent of assignments considered distressed assets.
“The office sector is showing the strongest glimmers of hope, and our research also shows the multifamily sector is moving toward stabilization,” Rogers said. “Lodging and retail will suffer worse in the coming months.”
Integra’s findings also illuminated the best and worst performing sectors in the country in regards to value change in the past 12 months. Nationally, the regions with the lowest rates of devaluation in the past 12 months include: Central multifamily (-7 percent), Central industrial (-9 percent), Southern industrial (-10 percent), Southern multifamily (-11 percent), and Central office (-11 percent).
According to Integra, the regions with the highest rates of devaluation include: Eastern lodging (-20 percent), Western lodging (-19 percent), Western retail (-19 percent), Western office (-18 percent), and Eastern office (-17 percent).
Despite the end-of-year slow down in depreciation, Mark Dotzour, chief economist at the Texas A&M Real Estate Center says recovery for the commercial real estate sector is a good 12 to 24 months away.
The Fort Worth Business Press reported that during a recent presentation at a local meeting of the Society of Commercial Realtors, Dotzour said a lack of valuation comparables is part of the reason investors aren’t scooping of low-priced deals.
Not surprisingly, Federal Reserve data shows that there has been no increase in the number of new commercial real estate loans in 2009, compared to 2008.
According to Dotzour, many large institutional banks aren’t eager to make loans because loans require comparable market analysis, or comps, and that could mean banks would have to recognize losses in their real estate portfolios, the paper said.
Dotzour contends that the buying flood gates will unleash as soon as there are enough commercial real estate transactions to produce market value comps that reflect today’s rock-bottom prices.
FROM DSNEWS.COM
Florida PSC approves Manatee biomass project
Dec 15th
MANATEE — The Florida Public Service Commission OK’d Tuesday a renewable energy contract for a $185 million biomass project to be built in Manatee, officials said.
The project, to be built by Florida Biomass Energy, will help diversify the way Progress Energy generates power and will insulate its customers from fluctuations in fossil fuel costs, according to the PSC.
The Bradenton company will burn waste wood and specially grown vegetation to generate up to 60 megawatts of electricity, the PSC said. Construction is slated to begin in the second quarter of next year and will produce at least 150 construction jobs and 25 full-time jobs at a complex set on 35 acres near Port Manatee, officials said.
Medical research firm debuts in Lakewood Ranch
Dec 15th
By JENNIFER RICH / http://www.bradenton.com/business/story/1915027.html
jrich@bradenton.com
LAKEWOOD RANCH — Another player in the medical research industry has moved to Manatee County.
Trod Medical US LLC, with headquarters in Paris, France, has opened an office/warehouse facility on Lakewood Ranch Boulevard at State Road 64 East.
The company is now manufacturing a Food and Drug Administration-approved surgical device in Europe used to treat soft tissues involving the prostate, liver and kidney. It uses radio frequency technology to heat diseased tissue and halt its growth.
The device, which will be marketed to hospitals, outpatient centers and private clinics for use on prostate cancer patients, is expected to be launched in July, said Manfred Sablowski, vice president and chief operating officer, and at least five to seven people will be hired at that time for the Manatee facility.
Sablowski said the company applied for FDA approval at the beginning of 2008 for its patented Encage device and received approval in October, a key factor allowing the company to enter the U.S. market and open a U.S. facility.
A third-party reviewer in Germany was used for the pre-approval of the device before submitting the FDA application.
“There was a lot of bureaucracy,” said Sablowski. “You better make sure the information in your 800-page document is correct; if there is one wrong word, you are in trouble.”
The United States is the largest market for the device because of its population, he said.
In February or March, the first patients in the U.S. will receive the new treatment, Sablowski said. The company is in negotiations with Moffitt Cancer Centers to use the center for training on the product and procedures for the treatment.
Treatments now being used for prostate cancer all have negative consequences, Sablowski said.
“Our focus was to eliminate those negative side effects,” he said.
Dr. Andre Faure, chief executive officer for Trod Medical and founder of the company, is the inventor of Encage. He developed the device and procedure in 2005 and decided he wanted to introduce it to the U.S. market. He recruited Sablowski and Brook Peterson, who both have extensive experience in the medical technology field that includes working with Pfizer. They also had their own consulting firms.
Trod Medical is a great addition to the group of medical research facilities already in Manatee County, said Eric Basinger, executive director of the Economic Development Council.
“Manatee County is cultivating a cluster of medical equipment designers and manufacturers, and Trod’s entry from its European base is an exciting chapter in that story,” he said. “Trod’s arrival is further evidence of Manatee County’s appeal to European businesses wanting to expand into the U.S. market.”
$100k+ Jobs from the Fed Pretty Common
Dec 15th
Dennis Cauchon | USA TODAY via YellowBrix
December 11, 2009
The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.
Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months — and that’s before overtime pay and bonuses are counted.
Federal workers are enjoying an extraordinary boom time — in pay and hiring — during a recession that has cost 7.3 million jobs in the private sector.
The highest-paid federal employees are doing best of all on salary increases. Defense Department civilian employees earning $150,000 or more increased from 1,868 in December 2007 to 10,100 in June 2009, the most recent figure available.
When the recession started, the Transportation Department had only one person earning a salary of $170,000 or more. Eighteen months later, 1,690 employees had salaries above $170,000.
The trend to six-figure salaries is occurring throughout the federal government, in agencies big and small, high-tech and low-tech. The primary cause: substantial pay raises and new salary rules.
“There’s no way to justify this to the American people. It’s ridiculous,” says Rep. Jason Chaffetz, R-Utah, a first-term lawmaker who is on the House’s federal workforce subcommittee.
Jessica Klement, government affairs director for the Federal Managers Association, says the federal workforce is highly paid because the government employs skilled people such as scientists, physicians and lawyers. She says federal employees make 26% less than private workers for comparable jobs.
USA TODAY analyzed the Office of Personnel Management’s database that tracks salaries of more than 2 million federal workers. Excluded from OPM’s data: the White House, Congress, the Postal Service, intelligence agencies and uniformed military personnel.
The growth in six-figure salaries has pushed the average federal worker’s pay to $71,206, compared with $40,331 in the private sector.
Key reasons for the boom in six-figure salaries:
- Pay hikes. Then-president Bush recommended — and Congress approved — across-the-board raises of 3% in January 2008 and 3.9% in January 2009. President Obama has recommended 2% pay raises in January 2010, the smallest since 1975. Most federal workers also get longevity pay hikes — called steps — that average 1.5% per year.
- New pay system. Congress created a new National Security Personnel System for the Defense Department to reward merit, in addition to the across-the-board increases. The merit raises, which started in January 2008, were larger than expected and rewarded high-ranking employees. In October, Congress voted to end the new pay scale by 2012.
- Pay caps eased. Many top civil servants are prohibited from making more than an agency’s leader. But if Congress lifts the boss’ salary, others get raises, too. When the Federal Aviation Administration chief’s salary rose, nearly 1,700 employees’ had their salaries lifted above $170,000, too.
Manatee’s top businesses get worthy salute
Dec 11th
Friday, Dec 11, 2009Posted on Fri, Dec. 11, 2009
JENNIFER RICH
jrich@bradenton.com
jrich@bradenton.com
MANATEE — Even in a daunting economy there are business superstars that light up the economy with their innovations and entrepreneurship.
Those superstars were recognized Thursday before hundreds of their peers at the Excellence in Industry awards luncheon at the Polo Grill in Lakewood Ranch.
The five award-winning Manatee County businesses were singled out for workplace environments, innovations and initiatives, creativity, and expansion and growth by the Economic Development Council of Manatee County.
Employees play Bingo and enjoy potluck lunches at Vanguard Advanced Pharmacy Systems, earning the company the Workforce Award for fostering an excellent workplace environment.
Vanguard General Manager Jim Vett and the company’s three-woman spirit committee, which organizes employee activity, accepted the award. The company provides medications to the residents of assisted-living facilities, as well as services and systems to help them meet state regulations.
“We have always valued how important it is that our employees give us our competitive edge,” Vett said. So the spirit committee comes up with creative ways to keep employees connected and involved, he said. Even though the company has had to institute a 4 percent pay cut, employees still participated in events that donated $3,000 to local charities.
The Export Excellence award was given to RefTec International Systems Inc., a manufacturer of specialized products for the heating and air-conditioning service industry. The 13-year-old company was recognized for its 20 percent increase in export growth and corresponding job growth. Its products are sold to more than 100 countries and can be found in every major U.S. city.
Sleek Audio, a company that has developed a patented system that allows individuals to find their own audio fingerprint, received the Innovation Award. Founded in 2006, Sleek Audio has developed acoustically tunable earphones that allow the listener to tune the low and high frequencies directly on the earphone for the right sound for each individual’s sonic preference.
“After my father had been in the hearing aid business for 30 years, we decided to do something different that was fun,” said Jason Krywko.
“We had no idea we would be competing with people like Bose and Panasonic.”
The Entrepreneurship Award went to MyUS.com for the company’s creativity in finding a need in the marketplace and filling it by providing consumers with a private U.S. mailing address, giving merchants access to an international customer base.
“We have 30,000 customers and have hired five to 10 people in the past month,” said Robert Chodock, marketing officer with MyUS.com, who said owner Eric Baird couldn’t attend the luncheon because there were 50,000 boxes in the company’s warehouse waiting to be shipped.
Dentsply Raintree Essix, a compilation of two separate company acquisitions in 2005, received the Business Expansion Award. The company manufactures injection molding, extrusion and thermoforming of dental and orthodontic products for global distribution.
Human Resources Director Melissa Bowen accepted the award, saying she “has a hard time keeping up with all the hiring,” including 10 people in the past few years.
“There are exciting things on our horizon,” she said.
After a video presentation profiling several Manatee manufacturers, produced by two State College of Florida students, outgoing EDC chair Bob Turner, publisher of the Bradenton Herald, said the EDC had gotten stronger over the past six months with Nancy Engel agreeing to stay on after stepping down as EDC executive director and Eric Basinger taking over her former role.
© 2009 Bradenton.com and wire service sources. All Rights Reserved. http://www.bradenton.com
PITTSBURGH PIRATES STREET PARTY LAKEWOOD RANCH WELCOMES BASEBALL PLAYERS
Dec 10th
Pittsburgh Pirates finalize purchase of Florida State League team and will relocate club to Bradenton
FOR IMMEDIATE RELEASE:
December 10, 2009
LWR Communities will welcome the Pittsburgh Pirates’ new Florida State League team to Manatee County with a street party on Main Street in Lakewood Ranch at 6 p.m. Tuesday, Dec. 15. The Pirates organization will publicly announce the name and logo of the new Minor League franchise team on Main Street. To celebrate the announcement, Lakewood Ranch is throwing a party for the team. Major and minor league players will be on Main Street to sign autographs and greet the community.
The event will also be a homecoming for Lakewood Ranch High School graduate Lastings Milledge, who now plays for the major league Pirates team! Milledge is a Pittsburgh Pirates outfielder who graduated from Lakewood Ranch High School in 2003 after leading his team to the state 5A title his senior year. Baseball players from Lakewood Ranch High and others from the school will welcome the former graduate and his teammates to Manatee County in full fanfare!
Pirates President Frank Coonelly will introduce the players and Schroeder-Manatee Ranch CEO Rex Jensen will make a special announcement about the new Bradenton-based minor league team. Season tickets for spring training and the FSL season will also be on sale.
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Lakewood Ranch is the 8,500-acre award winning Master-Planned Community in Sarasota and Manatee counties on the West Coast of Florida. Visit www.lakewoodranch.com.
For More Information Contact:
Candice McElyea
Public Relations & Promotions Manager
Lakewood Ranch/SMR
941-757-1546 office
941-232-9046 cell
TARP Gets Extension, but Narrower Focus
Dec 10th
Treasury Secretary Timothy Geithner has decided to tack on another nine months to the government’s controversial $700 billion bailout program. In a letter Wednesday to the heads of the Senate and House, Geithner said he is formally extending the Troubled Asset Relief Program (TARP), which was set to expire at the end of this year, through October 3, 2010. The Treasury secretary assured lawmakers, though, that any new commitments made next year would be limited to housing, small business lending, and the securitization market.
Bloomberg Commercial Real Estate Videos
Dec 9th
Jaime Woodwell, vice president of commercial real estate research for the Mortgage Bankers Association, talks with Bloomberg’s Carol Massar and Matt Miller about the commercial real estate market. Delinquencies on commercial mortgage-backed securities rose to a record in the third quarter as unemployment rose and landlords struggled to retain tenants.
Bloomberg’s Greg Miles reports on the outlook for GE Capital’s exposure to the commercial real estate market. The best part of the video is at the end where there is an indication that GE believes that writing down loans and carrying them to maturity are mutually exclusive!
Pat Neal Development at Full Speed in Lakewood Ranch
Dec 9th
B
Neal Communities Lakewood Ranch
y RICHARD DYMOND
rdymond@bradenton.com
LAKEWOOD RANCH — A 795-unit Lakewood Ranch residential subdivision that had been in slowdown construction mode for 15 months is now moving at full speed.
In a holding pattern due to a sluggish economy since it broke ground on Aug. 7, 2008, Central Park at Lakewood Ranch is expected to have models by July, developer Pat Neal said Wednesday.
The 300-acre site, which is offering lower-priced homes, is situated between 44th Avenue on the north and Malachite Drive on the south, north of State Road 70 and off Lakewood Ranch Boulevard.
Neal said he ramped up the operation recently because he sees a window of opportunity to sell lower-priced homes.
Central Park will offer a two-bedroom, 1,028-square-foot home with a double garage, energy efficient appliances and a “through view” from the front door to the back yard in the low $100,000s, Neal said.
Neal has sold 56 cottages starting at $129,000 at Forest Creek in Parrish and 49 in River Sound on Morgan Johnson Road.
Central Park won’t have any cottages, however, Neal said.
“This is a cyclical business, and people can get their best buy at this time of the cycle when prices are low so we are rushing hard to get this on the market,” Neal said.
Neal said he wasn’t sure if other builders would follow him.
“I would say I am good with timing and good with building toward the market,” Neal said.
Two earth-moving crews were on the 300-acre site Wednesday along with two pipe crews installing water, sewer and stormwater lines.
A utility company was installing switch cabinets and road crews were building curbs.
Power has been supplied to the subdivision’s one lift station.
“We have 85 percent of the earth-work done,” said Chris Reese, vice president of land development for Neal. “Water and sewer are 60 to 66 percent completed.”
Neal, who is Manatee County’s most prolific home builder with 7,600 since 1969, said he relied on sales figures this year to make his decision.
In September, October and November of this year Neal sold 30, 24 and 24 homes, respectively.
For the same three months in 2008 he sold six, four and six homes, respectively, he said.
So far this year, Neal has been able to put roughly 249 buyers into new homes.
In 2008, his sales were 141. In 2007, he sold 118, his lowest total since 1991, he said.
“The market has returned in a number of respects,” Neal said. “Prices are low. The interest rate for consumers of primary homes is at 4 7/8, the lowest in 40 years.
“Most economic indicators are pointing upward except employment,” Neal said.
Although Manatee County has a lot of homes in inventory, most of it is at higher prices, Neal said.
The keystone of Central Park may be a huge park similar to the parks found in small hometown America in the 1940s, said Leisa Weintraub, vice president of marketing for Neal Communities.
The 10-acre park will have a softball field, two tennis courts, two dog parks, a large play area for children, a splash park, a picnic pavilion and a butterfly garden.
Central Park is close to several schools, including Gullett Elementary and Lakewood Ranch High, which is about one mile to the south.
More Central Park information is at nealcommunities.com.
