New Industrial Listing in Bullitt Co - 3601 Coral Ridge Rd

3601 Coral Ridge Rd

Newly Listed Industrial Property in Bullitt County

I have a new listing in Bullitt County close to I-65 in Brooks, KY.    Details follow -

Approximately 2 acres zoned Light Industrial on Coral Ridge Rd approximately 1/2 mile from I-65.   Property has a small approximately 3,300 square foot office structure and a small approximately 5,000 square foot warehouse structure. 

Property available for sale. Priced at $350,000.

If you know of someone who might have an interest, please give me a call!  

Thanks so much everyone and have a great day!

David

David W. McCoy

Associate Broker

Commonwealth Commercial Real Estate

10444 Bluegrass Pkwy

Louisville, KY  40299

ofc: (502) 379-6005

cel: (502) 905-5274

e-mail: DMcCoy@ccre.biz

disclaimer:  Information presented is based upon sources deemed to be reliable although Commonwealth Commercial Real Estate, its brokers, agents and employees cannot warrant this information.  Offerings on this property are subject to change or withdrawal at any time without notice.   Confirmation of this information is the responsibility of the purchaser in the inspection process.

Could it be that the Recession is Over?

Earlier this week, I told some buddies that it has been so long since I saw a crane, I wasn't sure I could recognize one.   One responded, "What's a crane?"  The other told him, "It's a bird with long legs that lives near marshes."

We've been burned before thinking that the Great Recession was over.   Technically, I guess from its true economic definition, the recession has been over for nearly 3 years but this has been a recession without a recovery, so far.  

Perhaps, in Louisville at least, the recovery we have been waiting for is finally here.   We have had several indicators -

• Town Center retail center - known by most as the home of Tinseltown sold in late 2011 for close to twice as much as its purchase price just a few years before
• Cabela's, a large outdoor retailer, announced plans to build a new store by Lowes and Costco at Brownsboro Crossing. 
• Central Station retail center, close to Churchill Downs recently sold to an out of state investor
• River Ridge, in Jeffersonville, Indiana, has a new 1,000,000 SF warehouse being built by a so far undisclosed company
• Bullitt County has another still undisclosed company presently looking for land to build another 1,000,000 SF warehouse.
• The new North Hurstboure Parkway Class A Office building built by Faulkner, the only spec Class A Office building I can think of for the last several years, is nearly completely leased after only being officially open for a few weeks.

In addition, there are less concrete indicators -

• We have been getting inquiries from businesses that are suppliers to some of our larger employers, saying that they need more space to gear up for new contracts and increased activity.
• Whereas last year I would sometimes ask friends to call my phone to be sure that it was working, now our phones are ringing again.
• Several companies are now at least looking at new space.  Much of this is taking advantage of better lease rates while they are still down and long term leases are expiring.   Still, there is more activity than there has been in quite a while. 

As I mentioned in the outset, we have been burned before, so I won't be buying a new car right away.   Still, things are looking more positive than they have in quite a while.   

Hope you have a great day!

BTW - If you need some Real Estate help, give me a call!   I specialize in commercial real estate and work with Buyers, Sellers, Landlords, Tenants and Investors.  I handle Office, Industrial, Land, Retail and Investment properties.  Heck I can even set you up with help for residential properties. 

ALSO - I am sure that my managing broker would appreciate me clarifying that the views expressed here are my own and do not necessarily reflect those of Commonwealth Commercial Real Estate, its brokers, agents, or employees, other than me, of course.    Should you like to make a comment or offer another point of view, you may feel free to do so in the comments or you may contact me directly.   You should not feel free however to make any comments which are inappropriate or offensive.   Should I see any such comments, I will exercise my right to delete them.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: (502) 379-6005
cel: (502) 905-5274
e-mail: DMcCoy@ccre.biz

The Fairness Issue

In President Obama's State of the Union Address, the President called for fairness. How could any of us oppose fairness? To do so would seem almost anti-American. My question to Mr. Obama is, "who gets to decide what is fair?"

Several years ago, my first wife and I had dinner with 2 other couples. One of the couples ordered very expensive dinners with appetizers, desserts, drinks before dinner and fairly expensive wine. We on the other hand had no alchohol, no appetizers, no dessert and modest entrees. When the check came, the other two couples decided that we should all split the check evenly. Our bill was more than $100 more than it would have been. Was that fair?

At one point or another, I would bet that you have been in a similar situation.   Certainly, I think that we need to consider the fairest way to divide expenses BUT there is also the issue about whether or not it is fair to have certain expenses in the first place.   It is pretty easy to be generous when you are spending someone else's money.  We should be wary of those who would run up expenses for which they know they will not be personally responsible.  It is equally unfair to spend way beyond the budget and then cry foul because those who have to pay it object when you demand a payment way beyond what was expected .

If you think that the issue of fairness only applies to the wealthy, you should think again.  Consider energy costs.   Right now, the United States has large reserves of oil and gas, which our government will not allow us to mine.    Instead we are reliant on imported oil and gas.    Is it fair to expect our citizens to pay more for fuel? Is it fair to send these jobs to other countries when we have millions out of work here?

My point is that one should be careful claiming a superior moral position on fairness.  We should be wary of anyone making policy which by definition creates a preference of one group at the expense of another.

Just my opinion.  Have a great day.

BTW - If you would like an opinion on real estate, I provide opinions on that as well.   I specialize in Commercial Real Estate and help Buyers, Sellers, Landlords, Tenants and Investors.   I handle Office, Industrial, Land, Retail and Investment properties.   Heck, I can even set you up with someone to help with residential real estate.   Give me a call.  I would love to help.

ALSO - I am sure that my managing broker would appreciate me clarifying that the opinions expressed here are my own and do not necessarily represent those of Commonwealth Commercial Real Estate, its brokers, agents, or employees (other than me, of course.)   If you would like to offer a different point of view, or even a supporting point of view, you may feel free to make a comment.  You should not however feel free to make inappropriate or offensive remarks.   Should I see any such remarks, I will exercise my right to delete them.

Thanks for reading!

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: (502) 379-6005
cel: (502) 905-5274
e-mail: DMcCoy@ccre.biz

Bowling Green Field Trip

Yesterday, I took a field trip to Bowling Green, KY, about 2 hours down the road.    Bowling Green is much closer to Nashville than to Louisville and is one of the only areas in Kentucky that has continued to grow during the recession.     I am told that while Bowling Green also had housing prices decline and foreclosures increase, it did not suffer the loss of jobs common to most of the rest of the country.   This leaves a healthy market of people who really cannot afford to buy a house but who would like to rent.

My field trip was to work with a client interested in finding rental properties.    My client had found a house about 2000 square feet for sale at about $35,000.     The house was built around 1960 and was situated in a low income area of town.      It had been through the foreclosure process and was owned by Fannie Mae.   

Stop there.   Before going any further, Let me warn you, not to get too excited about finding a 2000 square foot home for $35,000.   Here is why -

• All of the carpet needs to be replaced.  
• The main floor may have rotted away and was replaced with decking strips instead of plywood, so that there was no solid barrier between the house and the crawl space. 
• Water runs under the house.  
• Although the shingles look fairly new, the roof appears to sag and it would appear that the attic either is not properly ventilated or the shingles were installed incorrectly because the shingles were popping up.  
• The gas lines were not installed correctly.  
• The water heater wasn't vented correctly.  
• The kitchen really needs to be completely reconfigured to work correctly because the only outlet for the stove would block almost all of the cabinets.  
• The house does not have central heat or A/C.  There is a furnace of some sort sitting in the middle of a family / living room that doesn't appear to be safe.  
• The vinyl siding had moss or perhaps mildew on it and had several spot where it was cracked or had holes in it.  
• The gutter on one side of the house had apparently been crushed when a tree had fallen on it.  
• The upstairs bathroom is leaking into the downstairs bathroom.   
• All of the windows need to be replaced. 
• A deck on the back of the house has a roof that is leaking and needs to be taken down.   
• Previous owners or tenants had run panelling over existing windows.    
• The ceilings all appear to be old asbestos tile.  
• The utility room may have asbestos floor tile.   

So, welcome to the world of low income housing.    These were just the items that we were able to see in our short visit.  This does not even include any possible electrical or plumbing issues which would not be possible to detect with the water and power off.  

In evaluating a property like this, THE MOST IMPORTANT CONSIDERATION is how much rent can you expect to get for this property.  We were told that the average home in this area would rent for between $500 and $600 per month.   So the questions becomes, how much would it take just to make this place livable?   Then the follow-up question is, would a rent of $500 to $600 per month be enough to justify your investment?

There were a number of things that I would have to do to this property if I was going to live in it. However, those are not necessarily the same concerns of your potential tenant pool.     But if the budget cannot even cover the necessities, there is no reason to spend any time or money on this project.  

In this particular case, although the property was inexpensive, we estimated that it would take $20,000 to $30,000 in additional expenses just to make the property livable.   With those additional expenses, the annual debt service would be about $3800.    Then you would have insurance and taxes and other maintenance expenses for the property.   With an expected rent of about $6000 per year, you would likely be making less than $2000 per year on this property.   

Thanks for reading.  Hope you have a great day.

BTW - If you know someone needing assistance with real estate, have them give me a call.  I specialize in Commercial Real Estate and work with Buyers, Sellers, Landlord, Tenants and Investors.  I handle Office, Industrial, Land, Retail and Investment properties.  Heck, I can even set you up with some help on residential real estate, if you need it. 


ALSO - I am sure that my managing broker would appreciate me clarifying that the opinions expressed here are my own and do not necessarily represent those of Commonwealth Commercial Real Estate, its brokers, agents or employees (other than me, of course.)    Should you wish to offer an opinion, feel free to call me or to put one here in the comments sections.   You should not feel free however to post anything inappropriate or objectionable.   Should I see any such comments, i will exercise my right to delete them.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299

Ofc: (502) 379-6005
Cel: (502) 905-5274
e-mail: DMcCoy@ccre.biz

Upcoming Foreclosures in Louisville

Today, I spent some time reviewing the newspaper ads for upcoming foreclosures scheduled for auction.   You can typically find these in the Courier Journal on Wednesdays in the Metro / Classified Section under the Heading of Commissioners Sale / Master Commissioner. 

Since the meltdown of the housing markets about 4 or 5 years ago, you have no doubt heard about the vast number of foreclosures across the country.   Recently, the news has reported that these are beginning to subside.  But we are not out of the woods just yet.  

Today's ad listed about 168 properties scheduled to be sold at auction on February 21, 2012 at the Old Jail Building at 514 W Liberty Street in downtown Louisville.   If you review these listings, you can get some idea of the properties.  Usually I am first looking to see if anything Commercial appears to be on the list.   Then I am often looking to see if there are any high priced items on the list.   And usually then I am just looking to see if there is anything that looks interesting.  

The newspaper lists the address of the property, the amount to be raised and the amount of the deposit necessary to place on the property if you have the winning bid.    If something piques my interest, I usually then do some research on various sites on-line to see what other information I might find.   Sometimes, this is a simple Google search.  Sometimes, I check to see if the property is currently listed by a real estate broker.    I might want to check the zoning or whether the taxes are paid.   

Today's ads list river front property on Beachland Beach Rd with the amount to be raised at $1,373,998.   Another river front property is listed at Transylvania Beach Rd with the amount to be raised at $702,872.   And an Anchorage property on Little Hills Lane has $726,646 to be raised.    These initially caught my eye because of the large amounts, which may signal a Commercial property.  These however are all residential properties.   

If you are curious about these sales and cannot attend the auction, usually 2 or 3 days following the auction, the Commission will post the auction results on their website.    

I don't look at the listings every week.  I know that these are difficult times for those people involved and take no pleasure in their misery.  However, I do find that this information is interesting.   It provides a snapshot of part of the real estate market which I think provides insight useful to understanding the local real estate market as a whole. 

Have a great day, everybody!

By the way, if you need some help with real estate, give me a call.   I specialize in Commercial Real Estate and work with Buyers, Sellers, Landlord, Tenants and Investors.   I handle Office, Industrial, Land, Retail and Investment properties.  Heck, I can even set you up with some help on residential real estate, if you need it.   Anyway, give me a call or leave a comment.  I would love to help

BTW - The opinions in these pieces are my own and do not necessarily reflect the opinions of Commonwealth Commercial Real Estate, its brokers, agents or employees (other than me, of course.)   If you have a different opinion, you are free to express it in the comment section.   What you are not free to do, however, is to post comments which are inappropriate or objectionable.   Should I see any such comments, I will exercise my right to delete them.

David

David W. McCoy'
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: (502) 379-6005
cel: (502) 905-5274