County Foreclosure on Broadway Office Real Estate

As I often do on Wednesdays, I was looking through the County Foreclosures listed in today's paper.  In today's list, I saw 500 West Broadway, which is a downtown Office Real Estate Property.  You may remember it as the Bank of Louisville building on Broadway.   I think this building is maybe 11 stories tall.   The Commission's list of County Foreclosures,  lists the amount to be raised at $3,370,265.28.   

This building is an older building which has had very low vacancy for some time.    So, in some respects this is not a big surprise.   

The auction date is set for June 18 and anything can happen between now and then.  So far, it does not appear that the court has done its appraisal for the auction, although that is usually done within a couple of weeks of the auction date.  

If you think that you might like to have an 11 story office building on Broadway, you can try to buy this property at auction.  The auction date is June 18 and it is in the Old Jail building located at 514 W Liberty at 10:00 AM.      You will need to bring with you a cashiers check (or certified check) for $10,000 for the deposit if you are the successful bidder.   (side note: If you bring a cashier's check, you should have this check made out to yourself so that if you are NOT the successful bidder, you can redeposit the funds into your account.  If you ARE the successful bidder, you can endorse it over to the Commissioners)   

CAUTION - Before bidding, you need to know the court's appraised value of the building.   Kentucky State law allows a right of redemption for properties sold at foreclosure auction, if they sell for less than 2/3 of the court appraised value of the property.   If you happen to buy a property at foreclosure auction for less than that, the previous owner can redeem the property within one year by repaying you the amount you paid.  

You just never know what you might find at a foreclosure sale.

Have a great day!

David

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

ofc: 502-379-6005
e-mail: DMcCoy@ccre.biz

Let me know if you need any help with Real Estate.  I am a licensed Real Estate Broker in Kentucky and Indiana and specialize in Commercial Real Estate and International Properties.   I handle Office, Industrial, Commercial Land, Investment, Multifamily and Retail properties.  I work with Buyers, Sellers, Landlords, Tenants and Investors.   I also work with international clients and speak enough Spanish to get myself into trouble.   Heck I can even set you up with residential help if you need it.   I'd love the opportunity to help.   

The information provided in this post comes from sources I deem to be reliable but I cannot warrant this information.   Any opinions I present are mine alone and do not necessarily represent the opinions of Commonwealth Commercial Real Estate, its brokers, agents, or employees other than myself, of course.  

Commercial Land - Market Activity and Analysis

As luck would have it, I have several Commercial Land listings again.  Recently I have shared some analysis of the Commercial Land - market activity with some of my land clients.  So I thought I would share it here as well.  

 

In general, there was sort of a bump of activity last year (2012) and there were signs of interest  with a number of calls in the first quarter 2013 on land but it seems that things have quieted down a little as we enter into the summer.  

Looking back at Commercial Land sales, I found that KCREA (Kentucky Commercial Real Estate Association – our Commercial Information Exchange) reported 23 sales of commercial land larger than 5 acres for the 12 month period beginning 4/1/2012.    So about 2 sales per month.   Interestingly, 8 of those 23 were foreclosure sales, auctions or bank sales.   In April of 2013, there were 253 commercial land properties larger than 5 acres which were listed for sale on KCREA.  So there is presently about an 11 year supply of land on the market.

It is no longer news that commercial land in general depreciated about 40% since 2008.  What this tells us is that with roughly a third of the commercial land sales being distressed sales, and an 11 year supply of land at current consumption rate, we can see this downward pressure on prices is still with us.  

On the positive side, the metro market area’s Industrial occupancy is very high and we are beginning to see a shortage of Industrial space.   This has led to some Industrial spec projects for the first time in quite a while.  If this demand continues and if financial institutions begin to loosen their credit somewhat and allow more of these projects, we should expect to see the demand for commercial land to increase in tandem with this activity.  

Of course, land is not a homogenous product.   Location, size, zoning, traffic, roads, visibility, availability of utilities are all factors in addition to price as projects come available.   Each of these will ultimately be a factor in the demand for a particular parcel when new projects are being considered.  

Let me know if you have any questions. 

 

I hope you have a great day!

 

Side note - I am a licensed real estate broker in Kentucky and Indiana and I specialize in Commercial Real Estate.  I handle Office, Industrial, Retail, Commercial Land, Investment and International Properties.   I work with Sellers, Buyers, Landlords, Tenants, and Investors.   Heck I can even set you up with a Residential specialist if you need help.   If you need any help with real estate, give me a call or send me an e-mail.  I would love to help.   

 

David

 

David W. McCoy

Associate Broker

Commonwealth Commercial Real Estate

10444 Bluegrass Parkway

Louisville, KY  40299

 

office: (502) 379-6005

Cell: (502) 905-5274

e-mail: DMcCoy@ccre.biz