MikeBolen.com

I found an interesting article about futures that can be purchased to hedge against a decline in value of your real estate holdings in the San Francisco bay area. As real estate investors in Napa, Sonoma, Marin and Solano county the past two years have ushered in some interesting buying opportunities. Here is a way to protect your equity:

Using Futures To Hedge Your House

Here at the RE/MAX Napa Valley office RE/MAX Cornerstone I specialize in working with multifamily investment buyers and sellers. If you have a question about Napa, Sonoma, Marin or Solano multifamily give me Mike Bolen a call 707-254-9999 or email me anytime.

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.

Nationwide, home prices in neighborhoods with long commutes and no public transportation are falling faster than prices in communities closer to cities, according to a study by Joseph Cortright, an economist at Impresa Consulting. For example, his study found that prices in distant suburbs of Tampa fell 14 percent in the last 12 months, versus a 9 percent drop in areas nearer the city. “The decline in almost every case is worse in the suburbs and exurbs than it is in close-in neighborhoods because transportation costs are so much more of a factor,” says Cortright

In the years ahead, concerns over sprawl, traffic congestion and the likelihood of higher energy prices will accentuate the desirability of both suburban town centers and more convenient urban living environments such as Napa, Santa Rosa, San Rafael, San Francisco and the like. Extended periods of high fuel prices will end fringe suburban growth and kill demand for apartments with outsized commutes…suburban apartment developers beware.

Keep in mind our entire economy reflects the cost of energy: the cars we drive, the homes we occupy, the kinds of factories we have and the equipment in them, expect large changes in all of these things. The national average price of regular gasoline topped $4.00 a gallon for the first time, AAA, the largest U.S. motoring club, reported yesterday. “At $4 per gallon gas, $125 per barrel oil and $10 per million Btu natural gas, a lot of activity becomes uneconomical,” says Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania.

When you factor in high cost transportation, housing far from urban centers becomes much more expensive, and in many cases more expensive than housing in or near a downtown center. Bottom line sell apartment holdings in far flung suburbs and rural locations if it takes 10 minutes or more to reach vital services your apartment asset will decline in value over the next 5 years along with a rise in vacancy and a reduction in gross income.

BAM! BAM! BAM! I am pounding the table, buy apartments in close proximity to downtown or town center areas. There are many offerings on the table at very attractive prices across the bay area.

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

Carol Lloyd wrote an interesting article for the San Francisco Chronicle about a listing my collegue Armando Lincoln is currently offering for sale Schellville Station  what an amazing property with a tenant already in place.

Take a chance on commercial property

When Eddie Heintz visited the 6,000-square-foot structure on Carneros Highway (Highway 12) last spring, the property was rough, but its potential seemed clear and easily within reach. “The location was perfectly situated between San Francisco and Napa and there was lots of traffic,” Heintz told me. “It’s near Infineon Raceway, as well as only about four miles from Sonoma. That’s why I jumped on it.” Instead of wine, he would specialize in beer. He called it Schellville Station.

The plan was to begin as a deli with a general store of local foods, add a beer garden/bar the following year and finally build out a barbecue shack that would offer comfort food and home-smoked meats. But when the landlord/partner failed to deposit his contribution to the project, Heintz grew nervous. The change in ownership wiped out the validity of Heintz’ lease.

“I feel really bad for Eddie,” said Armando Lincoln, the commercial agent currently representing the owners. “I don’t know what else to say.” Click HERE to see the listing.

Armando Linoln can be reached at 707-299-9779 or Armando@CREHQ.com

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 I specialize in multifamily apartment investments. 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.

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.

The Napa County May 2008 multifamily apartment sales market was dismal. May was the weakest month on record for apartment sales in Napa county for 2008. We witnessed a paltry 2 sales one in downtown Napa of a four family on Brown street and the other deep in the vines of Calistoga with a duplex sale.  

May 2008 average unit sale price- $151,250

1206 Hazel - $153,750 per unit

344 Brown- $148,750 per unit

Based on increased buyer calls, more showings, and some interest from my longtime investor clients my outlook for the June 2008 Multifamily apartment market is much better. I think we will see triple the sales activity of May although expect prices to erode further. We are still waiting for the closing of 1711 Lincoln this is the large 10 family offered at 1,099,000 that went into contract May 8^th, 2008.

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.

Example:

9 Units downtown Napa $900,000

2 Units South Napa $290,000

2 Units Circle Oaks $245,000

To gain access to the off market 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.