MikeBolen.com

In July of 2008 we witnessed the sale of 23 Napa county multifamily units. For August we see nearly a 50% reduction in sales to 12 units all with “special” attributes which skewed prices upwards and none were true multifamily investor deals. Here is a breakdown:

August 2008 Napa County multifamily sales:

August 2008 average unit sale price- $263,750

6778 Yount Street - $223,750 per unit (8 units)

5200 Wragg Canyon - $325,000 per unit (2 Units)

618 Seminary - $362,500 per unit (2 Units)

In June of this year I commentedon the extreme valuation of this property and how a bank would be hard pressed to lend on this property. I search of tax records reveals the new owners borrowed a meager $600,000 of the purchase price and put down $1,190,000!!! Holy cow!!! The seller Jim Keller purchased the property in September 2002 for $850,000 netting over $1,000,000 on this sale 6 years later after tax depreciation and rental income…not bad. Buying opportunities like the one Jim Keller found in 2002 exist right now in the city of Napa. In 2002 Yountville was depressed and forgotten much like Napa now. Although Napa is going through a massive transformation much like Yountville in 2004-2006. The future Napa can be seen, the likes of Ritz Carlton, Westin, La Toque, Oxbow and many others backed by “smart” money are now pouring into Napa. Multifamily in Napa has never been cheaper when compared to money paid for rents received.

So it is now possible to purchase a Napa Valley multifamily apartment real estate investment with 100% financing and still have positive cash flow after paying principal, interest, taxes, maintenance and management. Coupled with extremely strong rents and an ultra low vacancy rate it makes you wonder why we still don’t have more buyers for multifamily.

I am a real estate broker agent at the RE/MAX Napa Valley office RE/MAX Cornerstone I specialize in selling just multifamily apartment investments.  My colleague Armando Lincoln 707-299-9779 part of the team handles all real estate commercial and residential that is not multifamily. Over 65% of our sold real estate deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen for multifamily Mike@MikeBolen.com or 707-254-9999.  Contact Armando Lincoln 707-299-9779 for all other commercial and residential ie. homes, land and other real estate opportunities, and Ken Dunbar 707-365-9070 for all commercial leasing needs.

We also work with over 20 investment buyers in an exclusive buyer agency agreement if you are looking to sell no one has more commercial real estate investment buyers than our team.

Here at the RE/MAX Napa Valley office, RE/MAX Cornerstone the company has created a press release to announce the affiliation of me, Mike Bolen, Armando Lincoln and Ken Dunbar to the new RE/MAX Napa Valley office, RE/MAX Cornerstone. Our three person commercial team was ranked by the North Bay Business Journal at the 11th largest in the Bay area in 2006 and the 10th largest in 2007. Prior to our affiliation with the RE/MAX Napa Valley office RE/MAX Cornerstone the three of us were affiliated with Intero Real Estate Services.

We are very proud of our new affiliation with the new RE/MAX Napa Valley office, RE/MAX Cornerstone. Our affiliation with the RE/MAX Napa Valley office will benefit our clients in multiple ways including:

1. RE/MAX has over 108,000 licensed agents to market property to through our global proprietary intranet.

2. 400,000 page views per month on RemaxCommercial.com

3. RE/MAX is the highest ranked real estate search for keywords “commercial real estate” and “commercial properties”

4. 53% of all real estate TV commercials are RE/MAX

5. Quarterly Wall Street Journal commercial property ads and RE/MAX Napa Valley always participates

6. RE/MAX commercial practitioners completed over $12 billion in sales last year

7. The president of CCIM is a RE/MAX agent

8. The RE/MAX Napa Valley office has a AAA+ corner of 1st & Main location to showcase your listing.

9. RE/MAX Napa Valley has the strongest internet presence of any real estate office in North Bay, visit www.MikeBolen.com, www.RemaxNV.com, www.RemaxNapaValley.com, & www.JoinRemaxNV.com

10. The RE/MAX logo is one of the 10 most recognized brands in the world and we put the 800 pound gorilla to work for you.

For these reasons and many more, myself, Armando Lincoln and Ken Dunbar feel we can complete more transactions in a successful fashion by being a part of RE/MAX International through our affiliation at the new RE/MAX Napa Valley office, RE/MAX Cornerstone.

Here at the RE/MAX Napa Valley office RE/MAX Cornerstone I specialize in selling just multifamily apartment investments.  My colleague Armando Lincoln 707-299-9779 part of the team handles all real estate commercial and residential that is not multifamily. Over 65% of our sold real estate deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen for multifamily Mike@MikeBolen.com or 707-254-9999.  Contact Armando Lincoln 707-299-9779 for all other commercial and residential real estate opportunities, and Ken Dunbar 707-365-9070 for all commercial leasing needs.

We also work with over 25 investment buyers in an exclusive buyer agency agreement if you are looking to sell no one has more commercial real estate investment buyers than our team.

Pre-foreclosures hit record highs in July 2008 both nationally and in 14 states and the District of Columbia according to new figures from ForeclosureS.com, California-based foreclosure information specialists.

“So far this year, more than 1.25 million Americans faced the risk of loosing their homes to foreclosure, up 7.3% from June 2008, and up 88.62% from July 2007,” says Alexis McGee, real estate expert, educator, and president of ForeclosureS.com.

California-based ForeclosureS.com bases its analysis on the number of formal notices filed against a property during the foreclosure process. That can include notice of default, foreclosure auction, and/or REO (lender-owned real estate after a foreclosed property reverts back to the lender). Pre-foreclosure filings are the first initial notice and do not all end up foreclosed.

Foreclosures and short sales (selling homes for less than their loan value) make up a huge chunk of today’s sales market and those low sales prices are skewing sales values down. Now thanks to the new housing bill recently passed first time home buyers are coming into the market to grab their $7,500 tax credits, FHA reform is easing their loan process, and there is a ton of affordable housing to chose from. Plus, for the first time in a long time you can buy a near-new home for less than its replacement cost and buy multifamily with positive cash flow.

A look at a few of the July numbers from ForeclosureS.com:

-- Pre-foreclosures by region based on filings per 1,000 households

 July 2008 YTD versus July 2007 YTD 2007:

     -- Southwest, 21.4 pre-foreclosures per 1,000 households YTD vs.

      10.5 per 1,000 YTD 2007;

     -- Southeast, 24.1 per 1,000 vs. 11 per 1,000 YTD 2007;

     -- Northeast, 8.4 per 1,000 vs. 6.7 per 1,000 YTD 2007;

     -- Midwest, 11.3 per 1,000 vs. 9.3 per 1,000 YTD 2007.).

-- States with the most pre-foreclosure filings per 1,000 households

 July 2008 YTD:

     -- Nevada (59.1 per 1,000 up 126.44% from YTD 2007);

     -- Arizona (54.9 per 1,000, up 403.67% from YTD 2007);

     -- Florida (48.3 per 1,000 up 176% from YTD 2007);

     -- California (25.2 per 1,000, up 119.13% from YTD 2007).

Until the foreclosure and short sales move out of the market downward pressure will continue on small to medium size multifamily properties. Larger multifamily where foreclosure on commercial loans is near non-existent will have little downward pressure from the foreclosure market with higher cap rates being propelled by tough capital markets.

Now is the time to buy multifamily rents are exceptional, vacancy is at record lows and prices have fallen to record lows when compared to income. Here at the RE/MAX Napa Valley office, RE/MAX Cornerstone I specialize in multifamily property contact me, Mike Bolen at 707-254-9999 or email anytime Mike@MikeBolen.com. I look forward to hearing from you.

I guess I will say it again, “What a difference a month makes.” The Napa County July 2008 multifamily apartment sales market saw a steep decline in prices driven by the sale of the 15 unit complex on Lincoln. July was the weakest month on record for apartment sales in Napa County for 2008 when measured by price.

July sales:

July 2008 average unit sale price- $126,734

1761 Park Ave - $162,500 per unit

370 S. Minahen - $219,950 per unit

316 Coombs - $138,750 per unit (4 Units)

680 Lincoln Avenue - $106,666 per unit (15 Units)

So it is now possible to purchase a Napa Valley multifamily apartment real estate investment with 100% financing and still have positive cash flow after paying principal, interest, taxes and maintenance. Coupled with extremely strong rents and an ultra low vacancy rate it makes you wonder why we still don’t have more buyers for multifamily.

Here at the RE/MAX Napa Valley office RE/MAX Cornerstone I specialize in selling just multifamily apartment investments.  My colleague Armando Lincoln 707-299-9779 part of the team handles all real estate commercial and residential that is not multifamily. Over 65% of our sold real estate deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen for multifamily Mike@MikeBolen.com or 707-254-9999.  Contact Armando Lincoln 707-299-9779 for all other commercial and residential real estate opportunities, and Ken Dunbar 707-365-9070 for all commercial leasing needs.

We also work with over 20 investment buyers in an exclusive buyer agency agreement if you are looking to sell no one has more commercial real estate investment buyers than our team.

Here is a unique multifamily property. This property is located at the high end Napa Valley resort called Silverado Country Club Resort and Spa this luxurious #1 Rated Silverado Resort Clubhouse Condo boasts some of the best features of any hotel condo in the country.

The ground level condo (No Stairs) features a fireplace and easy walking distance from the swimming pool, golf course, Silverado mansion, spa and many other Silverado Resort amenities. Unit rents for $550 per night on hotel rental program take advantage of the excellent Silverado rental income of approximately $25,000 net income to the owner and use personally as desired. A full country club membership may be purchased for a discounted $38,000 the normal fee is $85,000.

Check out the resort here.

Check out the property for sale here.

Here at the RE/MAX Napa Valley office RE/MAX Cornerstone I specialize in multifamily real estate. I am a full time agent working out of my office located in downtown Napa right on the corner of 1st and Main next to the Mondavi Opera House. Feel free to stop by if you’re in the area, email Mike@MikeBolen.com or call me Mike Bolen at 707-254-9999

Quick update the 15 unit apartment building located at 680 Lincoln Avenue in Napa just sold for $1,600,000 in an all cash deal both sides of the transaction were brokered by Tom Lyons at Income Property Services. The sale of this 15 unit building will cause further downward pressure on the already declining North Bay apartment market. The units were mostly 2 bedroom units including one large 3 bedroom unit. At $106,666 per unit this is a tough comp for the market to swallow. Expect further downward price modifications of property currently marketed for sale. Look for my July sales update in a few days.

Here at the RE/MAX Napa Valley office RE/MAX Cornerstone our team specializes in off market pocket listings. Over 65% of our sold deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen  Mike@MikeBolen.com or 707-254-9999.

What a difference a month makes. The Napa County June 2008 multifamily apartment sales market improved over May. May was the weakest month on record for apartment sales in Napa county for 2008. Where we witnessed a paltry 2 sales not so in June:

June 2008 average unit sale price- $203,421

106 Valley Oak Circle - $149,700 per unit

161 Valley Oak Circle - $162,500 per unit

2158 Wilkins Avenue - $165,000 per unit

15 Randolph Street - $214,250 per unit

2445 Pine Street - $225,000 per unit

1933 Main Street - $236,000 per unit

1018 Myrtle Street - $271,500

I made a prediction   http://www.crehq.com/blog/36/napa-county-may-2008-multifamily-apartment-sales/  on June 3rd 2008 that we would see triple the sales in June than what we saw in May. We actually sold triple + one in June over May, not bad!

As an update 1711 Lincoln was removed from the market and did not sell nor has it gone into foreclosure. I will continue to update you on the Napa real estate market as it pertains to multifamily apartment and land deals so check back here often.  

Here at the RE/MAX Napa Valley office RE/MAX Cornerstone our team specializes in off market pocket listings. Over 65% of our sold deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen for multifamily Mike@MikeBolen.com or 707-254-9999.  Contact Armando Lincoln 707-299-9779 for all other commercial sales opportunities, and Ken Dunbar 707-365-9070 for all commercial leasing needs.

We also work with over 20 investment buyers in an exclusive buyer agency agreement if you are looking to sell no one has more commercial investment buyers than our team.

Multifamily apartment sales so far in June 2008 for the entire San Francisco North Bay include:

• 6 Unit, 2 West Court Sausalito - $1,200,00
• 11 Unit, 504 Matheson Street Healdsburg - $1,680,000 

Word on the street says the 15 Unit 680 Lincoln street listing offered at $1,778,000 is under contract. My guess this property is under contract far below the asking price. The other interesting napa multifamily property to be put under contract is 6778 Yount Street in Yountville this property consists of 8 units offered at an astounding $1,950,000 or $243,750 per unit. I love Yountville the atmosphere, restauarants and quaint inns are something to long for but these ammenities certainly do not justify $243,750 per unit. And with a reported gross income of only $120,000 I believe an appraiser would have a hard time explaining this price to the bank.

Consider my off market property in downtown Napa consisting of 9 units offered for $900,000 with a gross income of $109,000 and naturally downtown Napa has wind on it’s back with appreciation potential far outstripping that of Yountville over the next 5 years.

There are fabulous values in this market. Here at the RE/MAX Napa Valley office RE/MAX Cornerstone my team and I specialize in off market pocket listings. Over 65% of our sold deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market or foreclosure inventory or to learn how we work with buyers contact Mike Bolen at Mike@MikeBolen.com or 707-254-9999. We also work with over 20 investment buyers in an exclusive buyer agency agreement if you are looking to sell no one has more commercial investment buyers than my team.

1711 Lincoln Avenue has been placed back on the market. Property was in contract as I pointed out in my previous article. 1711 Lincoln was the 10 family property in Napa offered at 1,099,000. Interestingly the property also showed up on the courthouse notice of default list pending foreclosure. This almost certainly will put downward pressure on multifamily apartment values should this property be sold either in foreclosure or sold below the current asking price.

Currently their are five multifamily apartment buildings in various stages of foreclosure in Napa. Prices are decling, rents are going up, an the drive by media says the worst is yet to come. Actually there has never been higher rents in Napa county for apartments then right now. Now is the time to buy multifamily apartments in Napa county.

If you would like to learn about Napa Valley multifamily apartments offered for sale through foreclosure, pre-foreclosure currently listed or off market properties consult with the most knowledgable team in Napa. A sample of current inventory:

• 9 Units $900,000-Napa   

• 6 Units 1/2 acre $1,800,000 - St Helena

• 7 Units zoned OFC/RTL/MF $1,250,000 - Napa

• 38 Units 4,940,000 - Napa

• 2 Units $315,000 - Napa

• 2 Units $299,000 - Napa (New Construction)

Here at the RE/MAX Napa Valley office RE/MAX Cornerstone my team and I specialize in off market pocket listings. Over 65% of our sold deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market or foreclosure inventory or to learn how we work with buyers contact Mike Bolen at Mike@MikeBolen.com or 707-254-9999. We also work with over 20 investment buyers in an exclusive buyer agency agreement if you are looking to sell no one has more commercial investment buyers than my team.

Has Napa finally found its way? Enter the Oxbow Public Market, directly next door to Copia. Modeled after the celebrated Ferry Building Marketplace in San Francisco, the Oxbow Public Market opened in mid-December, and does in a single stroke what neither Copia nor Napa Valley farmers’ markets accomplished in years of trying: It creates a must-visit destination for enjoying the food-wine synergy of Napa. On both of the last two weekends I witnessed throngs of tourists and locals standing in long lines at Taylor’s Automatic Refresher, a spin-off of the great little diner in St. Helena. Inside Oxbow its airy and beautifully designed food hall are vendors with everything we’ll ever need to eat and drink the way we want to eat and drink on Napa weekends: terrific seafood, all-natural meats, organic produce, and killer coffee from the ridiculously good Ritual Coffee Roasters. A Hog Island Oyster Bar is on the way. The Model Bakery, also based in St. Helena, is making great breads and desserts and full breakfast plates to be eaten on outdoor picnic tables. The most fantastic ice cream known to man Three Twins, say hi to my friend and store manager Noel Lopreore. A true cause for celebration is the Fatted Calf shop, offering first-class charcuterie and specialties like duck confit, along with raw pastured meats and pastured chicken and eggs from Soul Food Farm, the current favorite of many high-end restaurants.

One of the biggest attractions of all inside Oxbow, is the Oxbow Wine Merchant. In a big open space, with large windows and outdoor patio tables, this is much more than a wine shop. It’s a wine shop with a wine bar, a kitchen making wine-friendly light eats, and a first-rate cheese shop. Drop in for a bite and you can put together a sensational picnic, enjoying it on the spot.

The economics aren’t entirely there for Oxbow yet—it doesn’t have anything like the daily foot traffic of the Ferry Building. And it’ll need Napa locals to get serious about shopping there, which will put pressure on the alarmingly high prices (which are, no doubt, in turn driven by rents and by the sheer economics of Napa real estate). But the new Westin Verasa Napa—an upscale condo-hotel complex—will soon open across the street, as will a Ritz-Carlton resort. Throw in the wholesale redevelopment of downtown Napa, with the beautiful river walk promenade opening up, and this once-dowdy town, long the back-lot service center for the wine industry, will be on its way to becoming the center of retail gravity for the entire valley.

Now is the time to invest in Napa Valley real estate. If you are seeking a hotel, multifamily, office or retail real estate investment or even an ultra luxury home priced over $4,000,000 you should meet with my team and I for a private consultation. My office is located on 1st and Main on the busiest corner in Napa Valley. Here at the RE/MAX Napa Valley office RE/MAX Cornerstone my team specializes in off market hard to find investment real estate. Contact me, Mike Bolen at Mike@MikeBolen.com or 707-254-9999.