AASU Q3 Economic Monitor

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A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Coastal Empire Economic Index Q2 2013

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

AASU Coastal Empire Economic Monitor Q1

Dr. Toma has published the 2013 Coastal Empire Economic Monitor Quarter 1 report.

Summary: We are treading water in a sluggish stream that is moving in the right direction. Consumer confidence is weak, but tourism is up and so is housing. (In fact, in many areas of Savannah we are in a seller's market!)

Click on the images for enlargement.

 

"Year of the Small Deal"

 






Here's an article of interest from April/May Realtor magazine.

The article acclaims the already known fact that 2012, especially the last quarter, brought a bumper crop of CRE deals. It doesn't mention that much of that was due to political fear and a desire to avoid 2013 taxes. It reports that capital markets surged, CMBS lending increased and that cash flow remains king.

2013 hasn't slowed down either, which is fantastic. It shows the motivation to invest is economic more than political. And best of all, Savannah made the cut!

 

This little infographic shows the top 10 U.S. cities with greatest YOY CRE volume. But don't equate the prosaic interview that jobs = growth = CRE deals, with the cities' numbers.

I can't imagine that Lexington, where I used to live, added so many jobs in 2010-2011 that the newly generated wealth prompted a buying CRE buying spree in 2012. And the Savannah MSA unemployment rate was around 9% in 2011 and decreased only .9% in 2012.

So yes, jobs keep a city alive, but don't equate to dramatic CRE sales volume. Remember that multi-family topped $75 billion in sales last year. I think the numbers reflect pent up demand, sales of REOs, and local and foreign investment.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Taking the mystery out of the mortgage process, part 2

To continue the discussion about mortgages from the previous blog post, Steve Nimmer, Coldwell Banker Mortgage (912-604-3834 NMLS #: 186680) emailed me more information.

What happens behind the scenes after closing?

• Warehousing: About 10 days after closing, the lender uses their warehouse line to finance the new loan until it is "sold" to an investor on the secondary market.

• Secondary market: Allows lenders to sell mortgages to investors, providing them with new funds to offer home loans to new borrowers. Your customers' mortgage rates are influenced by the yields demanded by these investors.

Typical investors of mortgage-backed securities in the secondary market include:

• Fannie Mae and Freddie Mac for conventional loans
• Ginnie Mae for FHA and VA loans
• Insurance companies, pension funds and private investors

• Shipping and delivery: Once an investor is secured, the loan is packaged with other loans and applicable documentation and becomes part of a mortgage-backed security (MBS). These mortgage-backed securities are then delivered to the investor. 

• Loan administration/servicing: A loan servicer takes care of the administrative duties once the mortgage-backed securities are delivered to the investor. This includes: customer support, collection of mortgage payments, management of escrow accounts and fund recovery efforts.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Taking the mystery out of the mortgage process

The more CRE work I do, the more phone calls I get about residential real estate. Maybe these inquirers are getting burned by residential agents?? I don't know. 

The answers to a recent question about residential mortgages have been provided by Steve Nimmer (912-604-3834 NMLS #: 186680) with Coldwell Banker Mortgage. I also refer a lot of business to Kirsten Ray with IKON Financial (912-313-4128)

Phase 1 – Origination:

This begins the mortgage process and is actually several steps. The loan officer will help the customer learn what their mortgage financing options are through a pre-qualification process, and assist with filling out a loan application and gathering the necessary documents.

Customers should know: They'll need to provide income, asset and debt information, and their Social Security number to allow the lender to pull their credit report.

Phase 2 – Processing:
The loan processor will then collect, verify and review all required documentation provided by the buyer, order appraisals, order a title search and send all this information in a complete package to underwriting.

Customers should know: Processors will be checking for errors, discrepancies and possible missing information, so customers need to understand how critical it is to provide accurate, complete information in a timely manner.

Phase 3 – Underwriting:
The underwriter analyzes the documentation for accuracy and evaluates the customer's ability to repay the loan based on their credit and employment histories. An appraisal and title review is completed to ensure the loan program guidelines are met, the title is clear, and to determine risk acceptability.

Customers should know: This is "decision time" as the underwriter weighs the risk of lending money and approves or denies the loan – so customers may be asked for additional financial information even at this stage.

Phase 4 – Closing (or Escrow):
The loan processor coordinates all aspects of the closing with the buyer and the closing agent and/or attorney. The closing agent conducts the closing, ensures that all necessary documents are signed, assures closing fees and escrow payments are made, and confirms that all documents are sent out to be recorded according to state and local requirements.

Customers should know: Before closing they should receive information explaining the closing costs, including a standardized Good Faith Estimate (GFE) of how much cash they will need at closing.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Gulfstream leases 70,000SF office building

M2 Communications
 
ENP Newswire - 09 January 2013

SAVANNAH, Ga., - Gulfstream Aerospace has entered a 12-year lease with North Point Real Estate for a 70,000-square-foot office building in the Crossroads Business Park.

The building will house Gulfstream's Information Technology Center of Excellence, supporting the company's worldwide business operations. It will house more than 400 professionals, 100 of whom will be new employees hired over the next several years.

Gulfstream has continued to grow its Savannah facilities since the November 2010 announcement of a seven-year, $500-million Savannah expansion. As part of that expansion, Gulfstream committed to hire an additional 1,000 employees over a seven-year period.

'Within the first two years of that seven-year period, Gulfstream has hired more than 1,695 new full-time employees in Savannah alone, nearly 700 more than what we originally estimated,' said Larry Flynn, president, Gulfstream. 'We've also invested more than $175 million toward our $500 million commitment. 

This brings our total employment in Georgia to 8,580 and demonstrates that Gulfstream is a powerful economic engine for both local and state economies.'

Financial details of the North Point transaction were not disclosed. The Savannah Economic Development Authority (SEDA) played a critical role in securing this site, including site selection, acquisition of additional land and lease support consistent with previous agreements between SEDA and Gulfstream.

[Editorial queries for this story should be sent to newswire@enpublishing.co.uk]

Read the full article at Gulfstream Signs Lease for New Office Building



A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Has Commercial Real Estate Bottomed?

Has CRE hit the bottom? Is it starting to get better? These are the questions Jeff Reeves tries to answer in his latest article.

The problem with this question is that it leaves off a key component- locality.

I think that broad national stats are reassuring, but essentially worthless. Yes, Reeves is writing for a national audience and I don't fault him that. But CRE, like all real estate, is an inherently local business.

Miami and Washington, D.C. have had a great year. Charleston I am told had a so-so year. The Savannah market was on fire- blazing- all 2012. And as soon as the first dredging shovel hits the bottom of the Savannah River, West Chatham is going to explode with development.

A frequent question similar to the article's title was "When will the other economic shoe drop?" Well, again, where are you expecting a shoe to fall? There was no one humongous shoe, but a million little ones. Each market was affected differently.

Reeves' article uses office as a measure of CRE health- and it is an excellent choice. When companies hire, they need a place to do work, so office vacancy rates are a direct correlation to the health of U.S. employment.

National office vacancy rates could not sink past the 17% mark all year. So things aren't getting worse, they might get better or they could stay the same for a while. Half way through 2012, Savannah's office vacancy rate got just below 20%. Not great having 1 out of 5 offices vacant. But downtown Savannah's vacancy is around 9%.

But in an incredibly risky $30 mil gamble, the Cay Building was built downtown and pre-leased 96% at $35/SF. That's 96% of 71,000SF. Wow.

Would I buy an office building for an investment? Not unless I had a lease agreement in place with a tenant who would lease said building. Otherwise if I wanted to buy office space low and have potential to sell high I'd invest in an office REIT.

Invest smart, not spec. Think local, not general.

Update on 1/16/13. Genesis Capital also weighs in on office markets as a sign of market health.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Refinance to plan for employment uncertainty

I had lunch yesterday with a mortgage broker, a digital advertiser and a flooring wholesaler. Apart from Thanksgiving and Disney World plans, conversation mostly concerned the regulations that are published as the Patient Protection and Affordable Care Act legislation is turned into Treasury code. Everyone there except for me (being self-employed) is concerned about the potential impact on their employment.

If your employment contract is likely to be renegotiated to comply with the Patient Protection and Affordable Care Act, it is an idea to refinance your property NOW.

You could reduce your monthly payment and capture low interest rates for the next 20 - 30 years. If you are concerned your hours may be cut to 28 per week, that $200 month savings on your mortgage will come in handy!


Lenders I recommend:

For residential:

Kirsten Ray, IKON Financial
9 one two-354-eight 555

400 Mall Blvd, Ste G
Savannah, GA, 31406

Lucy Bukowiec, BB&T Mortgage
912-9 two one-8752
http://www.bbt.com/lbukowiec

326 Mall Blvdsavannah, ga, 31406
United States

For commercial:

Deepika Paul, EVP, United Community Bank
912-2 three five-3147

8201 White Bluff Road
Savannah, GA, 31406

Anne-Marie Jones, First Citizens Bank
912-23 one-two 194
13 E. York Street
Savannah, GA, 31401

And the attorney to handle it:
TJ Hollis, Lee Black Rouse and Hollis
Nine one 2-355-0023
7395 Hodgson Memorial Drive.
Savannah, GA 31406 

 

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Blizzards on Eisenhower Drive

No, not weather resulting from Hurricane Sandy, but rather the construction of a new Dairy Queen at the southeast corner or Hodgson Memorial and Eisenhower Drives.

I am relieved that another prominent corner is not going to become another gas station / future brownfield. I believe this is the same group that owns local KFCs and Taco Bells.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

AJ&C Garfunkel buys Abercorn Common

The Savannah Morning News reports that David Garfunkel with AJ&C Garfunkel purchased Abercorn Commons for $24.2 million on Thursday.

Considering KimCo paid $40 million for Chatham Plaza in June 2007 and sold Largo Plaza in March for $10 million, this seems like a heck of good deal.

Kudos to the Garfunkels for bringing the development back to local owners and keeping the it in the local economy! Next step is to get the center back up to 100% occupancy, which won't take them long at all.

Read the full article at Local investor buys Abercorn Common

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Atlanta developer to build luxury outlet mall near Savannah

This project has been in the works for the last five years and I am glad to finally see it coming to fruition!

Posted: October 10, 2012 - 12:38am  |  Updated: October 10, 2012 - 7:46am
Reported in the Savannah Morning News by Mary Mayle 

The company that built the Mall of Georgia in Gwinnett County and the upscale St. John’s Town Center in Jacksonville, Fla., is planning a 560,000-square-foot luxury outlet mall in Pooler.

The Outlet Mall of Georgia is projected to open in the summer of 2014 in the southwest quadrant of I-95 and Pooler Parkway with four anchor stores, a food court, restaurants and a wide variety of shops.

The proposed $200-million project is set to break ground next spring and would create as many as 2,000 construction jobs, according to Ben Carter of Ben Carter Enterprises. When fully open, the mall would create between 1,700 and 2,000 retail jobs, Carter said Tuesday.

The 170-acre site will accommodate another half-million square feet for peripheral retail and hotel construction.

While financing is not complete and he would not name potential tenants, pre-leasing has begun, with interest from a number of high-end retailers, Carter said.

Abercrombie, Brooks Brothers, Coach and Louis Vuitton are among the tenants in the Jacksonville mall.

“From a visitor’s perspective, one of things that is missing here is really quality retail,” Carter said.

The Savannah engineering and architectural firm Kern-Coleman is working with Carter on the project.

Carter’s unscheduled presentation came at the end of the Savannah Economic Development Authority’s monthly meeting and was greeted with enthusiasm.

“The announcement today that Ben Carter is developing a luxury outlet mall in Chatham County is fantastic news,” said David Paddison, SEDA board chairman. “In addition to the massive construction investment, job creation and additional tax revenues, the Outlet Mall of Georgia will be a significant amenity for our residents, visitors and the millions of travelers passing through the I-95 corridor.

“This will be the signature outlet project on I-95 between Florida and Virginia”

Savannah is the second largest tourism market on the regional coast with 12 million tourists per year compared to Myrtle Beach at 14 million, Charleston at 4 million St. Augustine, Fla., at 3.4 million and Hilton Head Island at 2 million, according to Carter’s research.

“The closest comparable malls along the I-95 corridor are in Virginia and Florida,” he said. “While the Savannah regional trade area alone would not be sufficient to support a mall of this size, the tourist and traffic counts along the interstate more than make up for that.”

Traffic counts on I-95 run approximately 68,000 vehicles a day or 24.7 million annually.

“This is going to be huge for Pooler and all of Chatham County,” said Pooler Mayor Mike Lamb. “This is the shopping piece we’ve been looking for to make us a more complete city.”

Pooler has been in the bulls eye of targeted growth in the area for the last decade, and Lamb credited city council and staff with helping the city make good growth decisions. “We are ready for this,” he said. “Ben Carter Enterprises is the real deal, and we really appreciate them choosing our city.”

Savannah Area Chamber of Commerce President Bill Hubbard agreed.

“There’s a lot of work still to be done, but this is a great organizaion with tremendous capability,” he said.

“We are eager to help in any way we can.”

Read more about the Outlet Mall of Georgia at Upscale outlet mall proposed for Pooler and Atlanta developer to Ben Carter build luxury outlet mall near Savannah.  

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Ga. Ports report strong start to fiscal year 2013

Published: October 9, 2012 by The Associated Press

 

SAVANNAH, Ga. — The Georgia Ports Authority says the states shipping terminals in Savannah and Brunswick are off to a promising start in the new fiscal year that started July 1.

Georgia ports chief Curtis Foltz says the Savannah port handled more than 522,000 containers in July and August, an increase of 4.4 percent from the prior year. Overall tonnage of cargo moving through Savannah and Brunswick was up 5.6 percent to more than 4.5 million tons of imports and exports during the same two months.

The increased container traffic through Savannah was caused entirely by a very strong August. Port officials reported container traffic in July actually dipped 4 percent compared to the previous year.

Foltz released the figures Monday as the port authority's board met in Brunswick.

Read more here: http://www.macon.com/2012/10/09/2206443/ga-ports-report-strong-start-to.html#storylink=cpy

 

Read the full article at Ga. Ports report strong start to fiscal year 2013              

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Keys to understanding opportunities in real estate

By David Sherman | October 2, 2012 10:04 am as seen in http://www.pionline.com

Summary: The savvy commercial real estate investor knows that properties with stable, long term tenants that produce  reasonable (an amount determined by individual criteria) fetch top dollar. Other properties with slightly more risk (expiring leases, high maintenance, vacancy, refinancing needs, etc) are dirt cheap. The goal is to find the mispriced riskier properties, install new management and add significant value, and then sell as a safe investment for a nice profit. Investors are duplicating this process with properties from single family homes to skyscrapers.

Key Memorable Points:

Income is expensive, but bricks are cheap.

As traditional debt capital remains limited, new sources form.

A steady supply of overleveraged assets will continue to come to market.

Fundamentals have bottomed out in most major markets.

Mispriced risk creates attractive investment opportunities.

Read the full article at Keys to understanding opportunities in real estate

A. Joseph MarshallColdwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Buyers Closing Costs for Commercial Real Estate Purchases

Buying commercial real estate in Savannah, Ga. without the services of a broker? Here is an article you must read to have the best understanding of real estate closing costs.

by Daniel Doran - 25 September 2012 on http://realtybiznews.com
Closing a commercial real estate deal involves many of the same costs as you would find in a residential closing. The main difference is the costs are normally much higher for a commercial deal due to the additional research required in not only closing on the physical property but the financial aspects as well.

It is normal for commercial real estate closing costs, even for an inexpensive property, to run into the thousands of dollars. As a buyer you need to be aware of these costs and factor them into your overall price
for obtaining the property.

All of the closing costs are negotiable between the seller and buyer. As a buyer you can, and should, have it stated in the contract which party will be responsible for each cost at closing such as title insurance, deed stamps, surveys and settlement fees just to name a few. However, since RESPA (Real Estate Settlement and Procedures Act) does not apply to properties that have more than 4 residential units, your lender is not restricted in what they can collect from you at closing.

For example, in a residential closing the lender can only collect a certain amount of money to hold in escrow for expenses like real estate taxes and insurance. In a commercial real estate transaction there is no limitation and your lender could require you to put significantly more money into escrow or charge higher loan administration fees, points or any other cost they deem acceptable. Because of this it is critical you negotiate all of the fees for your loan with your lender well in advance of closing.

While there is nothing stopping you from closing a commercial real estate transaction on your own, it is highly recommended you use the services of a qualified real estate attorney. Although this presents an added expense at closing that can run anywhere from $1,000 to $5,000 or more depending on the size and complexity of the deal, it is money well spent. A mistake made at the closing table can cost you untold tens of thousands of dollars over your entire length of ownership of the property.

With all of this in mind, here is a basic breakdown of what you can expect each party to pay for in a commercial real estate closing.
Seller Paid Expenses

1. Title Policy covering the basic insurance requirements but if your lender requires specific endorsements to the title policy then the buyer can expect to pay for those endorsements.
2. ALTA Survey. Most lenders will require a new survey before lending on a commercial property. These surveys can cost anywhere from $800 and up depending on the property involved.
3. UCC Searches. These are similar to title searches except they are done on any personal property or equipment that is being sold as part of the transaction. The UCC is similar to a mortgage that is placed on property. The UCC search tells the prospective buyer if there are any remaining liens on the property and equipment being transferred.
4. State and County Transfer Taxes. This is normally the deed stamps required by the local jurisdiction to be paid whenever title changes hands on a piece of property. The rate collected is set by the state or county.
5. Pro-rated expenses up until the day of closing. For example any utility bills such as water/sewer or electric that are paid on a monthly or quarterly basis will be paid by the seller up to and including the day of closing. This is also true for any real estate taxes that are owed on the property. The seller is responsible for paying all taxes owed up to the day of closing.
6. Costs to clear title. This includes any amounts needed to pay off the sellers existing financing on the property, record satisfactions of liens or mortgages, payoffs to municipalities, or any other expense that must be paid in order for the seller to deliver clean title to the buyer.

Buyer Paid Expenses

1. Environmental Due Diligence. This includes a Phase I or Phase II environmental study on the property. However many times a contract will state the seller will reimburse the buyer for this expense if any undisclosed contamination is found in the report that causes the closing to be canceled.
2. Title Endorsements. As stated above, these are endorsements to the title policy such as an environmental hazard endorsement that the buyer’s lender requires in order to fund the loan on the transaction.
3. Municipal Transfer Taxes that may be required such as operating permits or pre-paid business licensing requirements.
4. Special Survey Additions such as a flood search or topographical contours of the property or aerial views required by the buyer’s lender.
5. Property Inspection expenses. These include the expenses you incurred as part of your due diligence to determine the status of the property both structurally and for its intended use.
6. Financing Expenses. These are any fees charged by the buyer’s lender to facilitate the funding of the transaction and can include the cost of recording the mortgage, assignment of rents, recording the deed, lender administration and closing fees.

Some expenses are shared by both parties such as the settlement closing fee charged by the title company to perform the actual signing and recording of documents. Also any escrow fee charged by the title company to transfer the funds from one party to the other.


Daniel Doran is a 20+ year veteran in the real estate industry. He is a previous owner of a law firm, mortgage and title company. Daniel has also written several books on mortgage modification, short sales and real estate investing. He currently specializes in Commercial Finance and Real Estate Development and is a graduate of Manhattanville College and Brooklyn Law School. You can contact Dan at Buildings By Owner. Read the full article at Buyers Closing Costs for Commercial Real Estate Purchases


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Q2 2012 AASU Economic Report

Armstrong Atlantic State University in Savannah, Ga. published the Coastal Empire Economic Monitor last week.

Summary: The Savannah MSA saw moderate growth in the last quarter and economic forecasts are positive. Poor national and international political and economic decisions could undermine this growth in Q3 and 2013. Click on each image to view in a larger frame.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

CarMax to open Savannah store in spring 2013

I've gotten two phone calls about this in the last few days, so I'm posting the article that appeared on SavannahNow.com

The article is short and here in its entirety.

Posted: June 22, 2012 - 12:19am

By Adam Van Brimmer

Used car retailer CarMax announced plans Thursday to open its first Savannah location next spring on Abercorn Street.

The Richmond, Va.-based company will build its store on the 8.2-acre vacant lot owned by the Backus family located just south of Montgomery Cross Road. The CarMax location will share that stretch of Abercorn with several other car dealers, including Hoover Chrysler, Savannah Mitsubishi, J.C. Lewis Ford, Vaden Chevrolet, Fairway Lincoln and Southern Motors Honda.

The CarMax site was listed for $3.8 million by Rhett Mouchet and Michael Bone of local commercial real estate firm Kulp Mouchet. Mouchet declined comment for this story, citing a confidentiality agreement.

The Backus family has owned the property since the 1960s, when they bought it as a future home for their Cadillac dealership. The Backuses never built on the site, keeping the Cadillac dealership at their East Victory Drive location instead.

CarMax’s planned Savannah store is one of 10 the company will open in the next 12 months. CarMax announced a Columbus store as well.

CarMax is the nation’s largest used-car retailer with 112 stores in 27 states with approximately 30,000 vehicles in its inventory. The company was developed by executives of defunct electronics retailer Circuit City and opened its first store in Richmond in 1993.

CarMax did $10 billion in sales in 2012, with net earnings of more than $413 million.

CarMax is unique among auto dealerships in that its sticker prices are non-negotiable and sales associates work on flat commissions. Additionally, any vehicle on any of CarMax’s lots nationwide can be purchased from any store location.

Or you could read the full article CarMax to open Savannah store in spring 2013

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Office Markets Continue Trudging Along

Originally posted by Posted by justinp in Commercial Property Research on August 12, 2012

Summary: "While six consecutive quarters of positive new absorption provide evidence that the sector has made it through one of the worst contractionary periods of the last three decades, these levels remain incredibly weak by historical standards.  In fact, demand for office space was so weak that even in the face of little new supply—just 1.6 million square feet was completed nationwide in the second quarter—the level of net absorption seen during the quarter was insufficient to generate a decline in the vacancy rate, which remained at 17.2%.  Of course, with such lackluster job growth it should come as no surprise that the sector continued to struggle."

Savannah's office market sees a change between 2012 Q1 and Q2 of -.6% in office rents and change of -10bps in vacancy. Meanwhile inventory has increased 2.5%. These statistics are courtesy of REIS Reports.

The original article is found here: Office Markets Continue Trudging Along

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Ga. economy forecasted to stall, Athens to sputter

Summary: Political uncertainty in Washington and Atlanta is causing the economy to be cautious now and reserved in the near future. Return here for an update on the Port's activity on September 6th! Create your own fiscal cliff parachute with income producing property!

Key Quotes:  

Political uncertainty is stalling the Georgia and U.S. economies at a time when the power of the state’s second-largest economic engine — its ports — is losing strength, one prominent forecaster warned Wednesday.

Also released Wednesday, a Federal Reserve survey shows business professionals in the Southeast are expecting inflation to rise. 

Both corporate and consumer confidence has been shaken by questions about the election and what Washington will do about coming tax increases and deep spending cuts known as the “fiscal cliff” triggered by congressional failure last year to reduce the federal deficit.

Georgia-based military contractors and installations are bracing for the sting of the cuts.

Rajeev Dhawan, director of the Forecasting Center, said rising oil prices and falling demand for exports add to other factors to push the “pause” button.

“The impact of the slowing global economy already is being felt in Savannah, where growth has decelerated sharply in the past six months, and where port traffic and future expansion will take a hit in coming months,” he said. 

Dhawan is forecasting 1.1 percent job-growth rate for Georgia and an unemployment rate stuck near 9.2 percent for the next two years. 

Read the full article at Ga. economy forecasted to stall, Athens to sputter

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga 

Important USDA Mortgage Insurance Information

Yes, I am a commercial agent, and when relevant residential information to 1/3 of Chatham County presents itself I don't mind publishing it.

USDA loans available for those of you west of I-95.

The USDA has announced changes to their Single Family Housing Guaranteed Loan Program. Effective for all USDA Conditional Commitments received on or after October 1, 2012, there will be an increase to the annual and up-front fee.

With this change, the annual fee (used to calculate the monthly mortgage insurance that is part of the payment) will increase from 0.30% to 0.40% of the loan amount, which will be applied to both purchases and refinances. In addition, the current up-front fee will be increased from 1.50% to 2.00% for refinances only.

This update courtesy of:

Steve Nimmer, Mortgage Advisor

PHH Mortgage and its Brands Divisions

NMLS: 186680

Savannah, GA

912-604-3834 cell

888-850-1272 eFax (toll-free)

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga