The USDA plans to close 259 of their US offices, facilities and labs. The Los Angeles County office will be closed and re-opened inside one of my client’s food processing facility, which is a poultry slaughterhouse.
Over $8 billion in commercial mortgages due to mature in June 2010
Please open the following commercial loan market report to better understand the dollar amount and percentages of loans coming due this year.
22 Acre Site Sells in Vernon
TriMas Corp. sells a 22-acre site at 5215 S. Boyle Ave. in Vernon to AMB Property Corp. Originally developed from the 1940s through the 1960s to support Norris Industries defense operations, 5215 S. Boyle Ave. includes more than 400,000 square feet of heavy manufacturing buildings with several existing leases currently in place.
According to an SEC filing, the purchase price was for $13 million, all cash. AMB would not confirm the price. AMB plans to market the vacancies at the property in the short-term with a long-range goal of repositioning the site in order to maximize the significant upside potential in the land enhancing the value of the parcel.
The purchase represents AMB’s first development project in Vernon, a city that consists almost entirely of industrial properties located approximately five miles southeast of Los Angeles. The city is home to more than 1,800 businesses which employ approximately 50,000 individuals. Vernon also consistently boasts one of the lowest vacancy rates in the greater Los Angeles area.
AMB purchased the site for substantially below current land sale value for clean & graded sites ready for construction.
Capital Gains Tax Increase Coming
On January 1, 2011, the capital gains tax reduction that was signed into law by President Bush under the Tax Increase Prevention and Reconciliation Act will “sunset.” The tax rate will revert from the current 15 percent rate back to the former 20 percent capital gain tax rate that was in effect prior to 2003. This will affect the decision making of commercial real estate property owners who have plans to dispose of their property in the near future. Perhaps some sellers will have a higher level of motivation to dump their asset.
CMBS Delinquency Rates by commercial property type
In April, there was no significant movement in delinquencies specific to any one commercial real estate property type. Current delinquency rates by property type are as follows:
Hotel 18.42%
Multifamily 13.60%
Retail 5.83%
Industrial 4.60%
Office 3.97%