Why Low Interest Rates Matter to CRE

Last Friday night I went out for drinks with an investment banker, a financial advisor, an accountant and the owner of a remodeling business.

As the evening relaxed (e.g. Booze!), I mentioned I was going to New York in May and June for meetings regarding distressed assets to drum up some business. The banker asked me, and I'll paraphrase, "Don't you think you'll be wasting your time speaking to those people? Don't you think the worst is behind us and bank owned properties are dwindling?"

And I said, "No, I think that this [2009-present] is just Round One."

And the banker said, "I agree!"

Why did we agree? Well, the systemic causes that lead to the recession are still in place: consumer debt, over-leveraged banks and business, and corruption on Wall Street. And now we're betting that sovereign leverage is the way to go. We have been told that pre-crash normalcy is returning because housing prices are increasing, the stock market is reaching new heights, CRE is back, gold prices are down, etc... And we are told that all this is inherent, indigenous... like creativity without a source.

But there is a source: low interest rates. An interest rate is how much you pay to borrow money. Banks don't make money with annualized interest rates of 3.25% or whatever it is today. But we have low interest rates to encourage people to borrow money to buy things. As an example, Americans are buying cars left and right and European manufacturers are depending on us. Did you know that about 80% of vehicle purchases are financed right now?

When you read in the paper that a million dollar property sold to whoever, chances are they did not pay cash, but borrowed most of the money for the acquisition. The low interest rates for CRE debt means more people will risk an investment.

But what happens when interest rates increase? Suddenly that debt costs more even though you may have "locked it in" and less goes to the principal. People may take less risks and buy less property. Small rate increases aren't a problem. Big rate hikes are.

This article explains that "low interest rates are one of the only things supporting commercial real estate prices." The author concludes that

"Cap rates are close to their historic lows for most property classes. At the same time, other commercial real estate fundamentals are still weak. This apparent disconnect- low cap rates and weak fundamentals- has prompted some observers to question the Federal Reserve's low interest rate policy. The concern is that low rates may be boosting commercial real estate prices excessively." 

But on the surface things look great! So let's focus on arguments that the market is nuanced, complex, dynamic, etc...

The banker and I are hedging by betting that our future income will come from the sale of more distressed properties coming to market as the rates increase. And we're both hoping people will have the means to buy. Got an income producing property in sight? Is it a good calculated risk? Jump on it now!

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

"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

Fiscal Cliff Hogwash

I don't claim to know it all, but when I read JLL reports projecting increased growth and the benefits of the fiscal cliff, I have to wonder if as an industry we only see the trees and not the forest. Which also happens to be on fire.

Core markets (D.C., Chicago, L.A., New York, Atlanta, San Fransisco, etc) that are seats of industry and goverment will almost always do well. And there are smaller markets, like Savannah, that have the real estate throttle wide open.

The problem is that articles glossing over the fiscal cliff, Patient Protection and Affordable Care act, Up-Eurs Zone volitility, etc. make a key error. They presume that decreased uncertainty will equal increased economic growth. Such is not the case.

In his acceptance speech Obama did reduce uncertainty and make some very specific tax proposals. In particular, he promised to:

• Raise the top marginal income tax rate to 39.6%.
• Raise the top short-term capital gains tax rate to 39.6%.
• Raise the top long-term capital gains tax rate from 15% to 20%.
• Raise the top tax on dividends from 15% to 39.6%. There will also be an additional 3.8% tax on dividends as of January 1.
• Replace the alternative minimum tax with the "Buffett Rule." That means the highest income-earners will pay a minimum 30% tax rate on wages, interest, dividends and capital gains.
• Raise the estate tax rate from 35% to 45%.

Every day bits of "Obamacare" are translated into Treasury code and released to the public. These new rules are not reported by media, but their effects are. Layoffs, decreased hours, diminished bonuses, hiring freezes are now daily reports.

In unrelated news, inflation has ticked up, jobless claims are up, poverty rates are spiking.

How can going over "the fiscal cliff" possibly help commercial real estate or the economy as a whole?

The authors gush "Continued low interest rates will prompt people to buy!" True, but lending standards are still tight because banks don't want to lend money if they can't make a decent profit. They'd rather keep the cash in excess reserves for the Fed to pay them interest on.

"Less uncertainty in healthcare means more real estate deals!" I've lost two medical office deals due to the new certainty of taxes and regulation in the last month.

Let's get real about the fiscal cliff: there won't be one. Obama owns this budget deficit now. He must act on it or his legacy will be mud. When has Congress ever had a problem compromising to let federal spending continue?

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

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

Principal Bets on Commercial Property As Bond Yields Fall

I understand that if Putin, Trump or Soros buy gold, even when gold prices are down, investors following that market also buy. And likewise if they sell gold, investors sell their gold, too. The idea is that even you aren't privy to the information Trump, Soros and Putin have, they are doing what they're doing because they have a good reason for it.

The same is true with commercial real estate investors. The big difference is that the information they have is available to all.

Summary: PFG "said it’s turning to real estate to increase investment income as near record-low yields pressure returns from bonds."

Key Quotes:

“The debt market is very strong, the equity market is growing” in commercial property, Chief Investment Officer Julia Lawler said in a presentation to investors today. “The fundamentals continue to improve, largely because there’s a lot of supply constraints.”

 Lawler said her firm has profited by acquiring real estate and attracting new tenants.

“We opportunistically buy distressed properties, lease them up and sell them,” she said. “It’s been a great performer for us.”

If huge multi-national companies are looking to add value to distressed commercial real estate to incease their bottom line, shouldn't you consider it, too?

Read the full article at Principal Bets on Commercial Property As Bond Yields Fall

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

In commercial real estate, the other shoe(s) are falling

Portland Business Journal by Rance Gregory, Morrison Street Capital

Date: Tuesday, September 4, 2012, 10:57am PDT - Last Modified: Tuesday, September 4, 2012

Yes, we've all been reading about colossal 1 ton shoes that will fall on the commercial real estate market. And yet it hasn't happened the way we've been expecting it. Rance Gregory explains why.

Summary and Key Quote.

Commercial real estate simply does not mark-to-market as quickly as do stocks and bonds, no matter how many derivatives the industry puts in place to make bets on the direction of the market or how badly some wish it would be so. In reality, commercial real estate has been a slow-motion train wreck for the past five years. There has been real damage and pain, but it has occurred largely out of view, in loan workouts, consensual foreclosures and complex recapitalizations, resulting in paper writedowns and real losses.

Why then hasn’t the crash been loud and sudden? Why do many have the feeling the industry is recovering or has recovered? It seems many industry veterans were expecting to fight the last war, remembering a saving and loan collapse and a consolidated government-sponsored (RTC) fire sale of troubled assets. Instead, the actual mechanisms involved provided banks with additional capital (TARP), or worked on healing the background credit markets (CMBS) through programs such as TALF, PPIP, etc, in the hopes of stabilizing the system and providing time for the industry to work through its problems in a more organized way.

The answer is that it wasn’t one giant shoe, rather many thousands of smaller shoes, dropping one loan at a time, scattering across a diverse commercial real estate landscape, leaving behind alternating spots of utter destruction and patches of renewal.

 You can read the full article at In commercial real estate, the other shoe(s) are falling

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

Reports Say That Despite Supports, Commercial Real Estate is Recovering at Slow Pace

Posted by Alex Ferreras on August 27, 2012 in Real Estate

Summary: The headline announces slow CRE recovery across the board, but the text reveals that this is in specific markets. Slow job creation growth and lending restrictions has slowed commercial real estate growth in some areas. Otherwise, increasing demand and favorable lending supports CRE growth across the board.

Things are still positive with vacancy decreasing in varying degrees across industry segments (office, industrial, retail, etc). Multi-family is of course very positive with late coming investors jumping on that bandwagon. Multi-family lenders are flooded as a result.

What could slow things down? Drama in Up Eurs Zone, the "fiscal cliff" everyone is talking about, fall out from the November elections and decreased lending by community banks are making everyone cautious about the future.

Read the full article at Reports Say That Despite Supports, Commercial Real Estate is Recovering at Slow Pace

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

5.14 Acres Reduced to $184,000

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

U.S. Federal Reserve Atlanta District Report 2012 2nd Quarter

The following is from the U.S. Federal Reserve Atlanta District Report.

Real Estate and Construction. District residential brokers indicated that home sales were flat to slightly up compared with year-ago levels. Reports indicated strong sales at the middle price points, while several brokers noted that declining inventories of foreclosed homes were limiting investor-driven sales. Brokers also reported that the decline in inventories has helped stabilize home prices in many areas. Most brokers reported that home prices were flat to slightly up compared with a year earlier. However, contacts continued to note some downward pressure on home prices resulting from low purchase offers and appraisals that were coming in well-below asking and offering prices. The sales outlook among brokers remained positive with most anticipating continued modest year-over-year home sales gains.

District homebuilders reported that new home sales and construction rose modestly compared with year-ago levels. The majority indicated that new home inventories declined further on a monthly and an annual basis. Most builders reported that new home prices were flat to slightly up compared with a year earlier. Price gains were strongest among Florida builders. Contacts noted that multi-family construction remained robust. In the near-term, homebuilders expect sales and construction to post modest gains compared with a year earlier.

Apartment sector gains drove improvements in the District’s commercial real estate markets as occupancies rose and rental rates increased. The region’s office and industrial sectors saw small improvements as vacancy rates moderated somewhat; however, reports on District retail real estate continued to be more mixed. The majority of commercial contractors said that construction activity was flat on a year-over-year basis. The majority of contacts anticipate a modest increase in private commercial construction activity through the remainder of the year, while public works projects are expected to decelerate.

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

Starland Dairy on Bull St. Sells to Thermedesignbuild

Press Release picked up from http://www.facebook.com/pages/The-Starland-Cafe/83200028433

FOR IMMEDIATE RELEASE
UNRESTORED PORTION OF THE STARLAND DAIRY ON BULL STREET SELLS TO THERMEDESIGNBUILD OF NY
New York development, design & building company coming to the Starland District.
________________________________________
Savannah, GA - The un-restored portion of the former Starland Dairy, with the iconic star building was sold to Thermedesignbuild Company today July 05, 2012.
________________________________________
The former Starland Dairy, located at 2425 Bull Street (corner of 41st Street) was sold today July 05, 2012 to thermedesignbuild. The seller, Starland Properties, owned by John Deaderick & Greg Jacobs, decided to sell to thermedesignbuild because they would be a good steward for this historic structure. Since 1999, Deaderick & Jacobs spearheaded the redevelopment of over 50 blocks of downtown Savannah thus creating a new neighborhood: The Starland District. Starland Properties, Deaderick and Jacobs (together & individually) still own multiple properties in the Starland District.

thermedesignbuild is a small development and design/build company based in Manhattan but with Savannah roots. Nathan fuller, owner of thermedesignbuild, will be relocating the company and his family to Savannah in the near future to join the unique and vibrant community that is the Starland District.
In a statement regarding the future use of his company’s latest acquisition, owner Nate Fuller, said: “to be able to be a part of the history of the starland dairy community is in itself an exciting prospect. The dairy is an iconic building and the importance of preserving the architecture and historical use of the structure goes without saying. Working alongside individuals and groups within the community we hope to play an active role in the continued rejuvenation of the neighborhood”.

Starland Properties is an organization committed to the growth of our community: The Starland District.
“Because preservation is much more than just saving houses. It's also about rescuing neighborhoods”

Press Release by:
John Deaderick (912-713-6049) john@starlanddining.com – http://www.facebook.com/StarlandProperties

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

SuperValu Inc. Grocery Retailer moving to Starland

The following Press Release is from http://www.facebook.com/pages/The-Starland-Cafe/83200028433

FORMER DAVID’S SUPERMARKET ON BULL STREET SELLS TO SAVE-A-LOT
New grocery store coming to the Starland District.
________________________________________
Savannah, GA - Former David’s Supermarket was sold to national discount food retailer Save-A-Lot today July 06, 2012.
_______________________________________
The former David’s Supermarket (Savannah’s first supermarket opened in 1936), located at 2400 Bull Street (between 40th & Maupas Street) was sold today July 06, 2012 to national food retailer Save-A-Lot. A source close to the deal said that both the former grocery store and the adjoining parking lots (next to Boyz to Men barber) were part of the negotiated lots purchased in today’s closing. According to the same source, Save-A-Lot, already has all city permits ready to begin the reconstruction of the building immediately. It is still undetermined which of the various grocery store models under the parent company SuperValu inc. will be the one they will be opening at this location. However, a new grocery store in this neighborhood will be a welcome addition to the continued rehabilitation of the Starland District since its inception by John Deaderick and Greg Jacobs in 1991. It is due to the vision, dedication and planned revitalizing that both Deaderick and Jacobs have given to this neighborhood for the last 15 years that these types of national stores are now investing in the neighborhood.

The Starland District is an organization committed to the growth of our community. “Because preservation is much more than just saving houses. It's also about rescuing neighborhoods”

The author of this Press Release is:  John Deaderick (912-713-6049) john@starlanddining.com http://www.facebook.com/StarlandProperties

*Update on 8/2/2012*
Former David's Supermarket at 2400 Bull Street to be occupied by Save-A-Lot; renovation begins.
Read full article at Old David's Supermarket Will No Longer Be Vacant.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

The Perfect Storm For Commercial Real Estate Investing

From ValueWalk
July 10, 2012
By: Jacob Frydman

Summary: If one has impeccable timing, buying any investment vehicle will be profitable. If one doesn't, consider these three synchronous events for investing in real estate.

1) Buying debt on property is the cheapest it will ever be. Interest rates are artificially supressed longer than anyone expected.

2) $1.2 trillion in CMBS have been and are coming due. The financial industry has been hoping rising property values will save the day. But that isn't happening except in very specific real estate markets with specific properties. So get ready for more foreclosures to depress values.

3) The "Up Eurs" zone crisis is driving money to alternative investments. Et voilà, real estate.

The article I'm summarizing concludes with "Buy into REITs!" I showcased an article like this before, but the difference between this article and that on is that there is a light at the end of the tunnel! Buy low, add value (literally, revenue) and sell high!

Read this opinion piece in it's entirety at The Perfect Storm For Commercial Real Estate Investing

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

Big plans for Mall Blvd. shopping center

Posted: June 17, 2012 - 1:15am  |  Updated: June 17, 2012 - 2:15pm

By Adam Van Brimmer

Summary: There are ambitious plans to tear down Market Walk and improve it with new construction. Developers will raze the Days Inn, Kroger, mini-storage, office buildings and retail center. The site will house a new larger Kroger with fuel center, a 55,000SF big box, and many retail outlets and restaurants. A date to reopen the 24 acre site is not determined yet.

Conception of redevelopment. Not exact.

Read the full article at Big plans for Mall Blvd. shopping center.

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

Coastal Empire Q1 Economic Monitor

If you don't receive this report by Dr. Michael Toma via email I recommend you email him to include you in the distribution.

Click on the images for a larger view.

 

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

Family Dollar Comes to "Parkersville"

Family Dollar crews have begun site preparation for a new store at Presidents and Pennsylvania streets. The new location should be open by September to serve Pine Garden neighborhood residents. Adam Van Brimmer writes an opinion piece on it titled The Hot Corner on Presidents Street.

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

Whole Foods officially coming to Savannah; will open in 2013

Posted: May 2, 2012 - 5:21pm | Updated: May 2, 2012 - 5:23pm

 

By Savannah Morning Newssavannahnow.com Copyright 2012 Savannah Now. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

May 2, 2012 - 05:21pm

Whole Foods officially coming to Savannah; will open in 2013

After months of speculation, it's official: Whole Foods is coming to Savannah, according to the high-end grocer's second quarter report, released Wednesday.

"The Company recently signed eight new leases averaging 38,600 square feet in size," the report states, "in North Burnaby, B.C.; Alpharetta, GA; Savannah, GA; Maple Grove, MN; Albany, NY; Brooklyn, NY; Memphis, TN; and Toronto, Ontario.

"These stores currently are scheduled to open in fiscal year 2013 and beyond," the report continues.

The Savannah store will move into a portion of the site of the former Backus family automobile dealership at the junction of Victory Drive and Truman Parkway. It will measure 35,000 square feet.

The high-end grocer will be flanked by shops in a 12,000-square-foot building. Another 12,800-square-foot building is proposed on the western edge of the site.

 

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