Welsh Companies - Commercial Real Estate Blog

Jean Kane Named to Midwest Commercial Real Estate Hall of Fame

2012-01-19T13:41:00.003-06:00

Midwest Real Estate News has inducted Jean Kane, President and COO of Welsh & Colliers International (“Welsh”), into the Midwest Commercial Real Estate Hall of Fame.

The 2011 Hall of Fame issue, which highlights the careers of the most accomplished commercial real estate professionals in the Midwest, was published in December. This year’s 62 inductees were chosen from a pool of over 300 nominations, and were selected based on their tenure in the industry as well as their contributions to the real estate marketplace.

Kane was recognized for her historic and inspirational rise to “one of the most powerful positions in the Twin Cities’ real estate industry.” She was also inducted based on her past achievements and her current impact on Welsh and the real estate market as a whole.

Through her hands-on leadership style, Kane oversees the operations of the company’s real estate services group, which includes Brokerage and Real Estate Management (operating as Colliers International |Minneapolis-St. Paul), Welsh Construction, Genesis Architecture, Welsh Capital and FaciliTech. In her 26 years of experience, she has been instrumental in Welsh’s growth into a 300-employee firm, recognized as a top service provider throughout the Midwest.

Kane’s influence extends beyond the Twin Cities as well. She is a member of NAIOP’s distinguished National Executive Committee and has been named among the “200 Minnesotans You Should Know” by Twin Cities Business Magazine. Kane also serves on several executive committees for various local and national business associations, and is committed to working with other corporate and community leaders to cultivate economic growth in the Twin Cities and throughout Minnesota.

To read more about Kane and other recipients of this prestigious honor, read the latest edition of the Minnesota Real Estate Journal.

Welsh Construction Breaks Ground on 126,000-Square-Foot Bridgepoint Business Park in South Saint Paul

2011-12-13T09:40:00.000-06:00

Welsh Construction announced that construction has begun on Bridgepoint Business Park, a 126,000-square-foot industrial building on Concord Street and Bridgepoint Drive in South St. Paul, Minn.

Leased by Colliers International, the project has secured St. Paul-based control systems automation and panel fabrication company BW Systems, Inc. as the anchor tenant. Their new space will also be built by Welsh Construction.

The project was designed by Lampert Architects of St. Paul, Minn and has a clear height of 24 feet. The building features advanced safety technology, including an ESFR fire protection system. Owned, developed and managed by Interstate Partners, Bridgepoint Business Park is scheduled to open in July 2012. A high-resolution building elevation image of the site plan is available upon request.

About Interstate Partners
The project is owned, developed and managed by Interstate Partners. Interstate Partners was formed in 2000 to acquire, develop lease and manage commercial real estate. Interstate Partners has regional offices in the Minneapolis/St. Paul, Chicago and Milwaukee markets, which collectively have developed a series of planned business parks for their own account. Since inception, they have developed, leased and managed more than 46 buildings containing more than 4,815,000 square feet.

Many thanks!

2011-11-17T14:05:00.004-06:00

Many people across the state took part in Give to the Max Day yesterday. Nearly 48,000 people volunteered and over $13.5 million donations were collected for a variety of non-profit organizations.

We would like to thank all of the Welsh employees, a total of 85, who participated in the 2011 Give Time/Receive Time company volunteer event . Hope for the City and Feed My Starving Children greatly appreciate your generosity. The amount of time and progress made in just a few hours and pooled resources is sure to make a big impact.

HFTC results: a total of 385 winter coats were sorted, three full palates of books were inventoried/documented, 102 palates of items were inventories/documented, special events items were inventoried/organized and progress was made with the Pathways exeperiential exhibit. A total of $445 (which translates to $14,685 worth of food and resources) of donations for the food/fund drive was collected as well.

FMSC results: a total of 46 boxes of food were assembled which will provide 9,936 meals for malnourished children. FMSC ships the meals to nearly 70 countries around the world.

Donations to both organizations are always greatly appreciated! Visit http://www.fmsc.org/ or http://www.hopeforthecity.net/ for more information.

FaciliTech Feature

2011-11-04T12:16:00.005-05:00

Dan Campbell has been a part of the FaciliTech team since July 2011. He has over 10 years of industry experience and is currently working out of our Detroit, Michigan office. Read on to find out more about Dan.

Q: Where did you attend college?
A: Southern Illinois University / Michigan State (Geology Major)

Q: What is the one thing few people know about you?
A: I’m a Musician

Q: If you could go on a road trip with anyone, who would you choose? Where would you go?
A: Carl Sagan – The Smithsonian

Q: Favorite author?
A: Robert Heinlein

Q: If you could have any super power, what would you choose and why?
A: Telekinesis. No crane needed to set RTU’s.

Q: What is your dream vacation?
A:   Ireland

Q:   What is one goal you’d like to accomplish during your lifetime?
A:    Finish my college degree

Q:    What is your favorite quote?
A:    Anything designed by Man is subject to failure.

Q:    Do you have any pets?
A:    4 dogs, 6 outdoor cats, 3 geese.

Welsh Construction aids a local non-profit

2011-10-07T14:20:00.002-05:00

The newest affordable-housing building for senior citizens in Hudson is nearing completion. Heirloom Courts will offer 31 one-bedroom apartments to qualifying low-income senior households when it opens ...

Welsh joins NBC Universal in a local rescue project

2011-09-26T16:42:00.000-05:00

Welsh had the opportunity to partner with NBC Universal and George to the Rescue, NBC’s version of Extreme Home Makeover. Host, George Oliphant heard about the devastation caused by the tornado that hit North Minneapolis on May 22, leaving more than a half-million dollars worth of damage in its wake.

The NBC crew along with Welsh Construction, FaciliTech, Martha O’Hara Interiors, Best Buy, 3M and several other vendors (local and national), helped makeover the cafeteria at Sojourner Truth Academy.

The work was unveiled on Monday, September 19th to students, faculty and parents of STA. A 30-minute program about the project will air locally on KARE-11 TV at noon on Sunday, Oct. 16. Episodes of the show can be seen online here.

See full story posted on Finance & Commerce.com:
http://finance-commerce.com/2011/09/welsh-construction-helps-repair-school-in-north-minneapolis/

Welsh Construction selected to remodel the Milestone AV Technologies Headquarters in Eden Prairie

2011-09-26T16:15:00.000-05:00

Welsh Construction has been selected by Milestone AV Technologies to remodel their new headquarters at 6436 City West Parkway in Eden Prairie. Milestone recently purchased the five story building, which was formerly occupied by Dept 56.

Senior Project Manager Chris Loberg, Field Superintendent Rod Kalina and Construction Services Coordinator Jean Springer have already begun the construction process, including the demolition and infill of the approximately 4,500 SF atrium to add additional usable square footage. The project was designed by Mekus Tanager of Chicago, and they expect to achieve a LEED Silver Certification from their eco-friendly design of the 82,000 SF building. A new computer room with UPS systems and a new generator, as well as engineering and testing labs are part of the project, which is scheduled for completion early next year.

Welsh Construction would like to thank Welsh Brokers Bill Ritter, Robin Zellmer, Eric Dueholm and John Johannson for their assistance in securing this project.

The Ritter Restaurant and Beverage Review - August 2011

2011-08-19T14:48:00.002-05:00

by: Bill Ritter Senior Vice President, Welsh Companies

Featured this month: Current Restaurant and Lagunitas Brewing Company

Current Restaurant
3291 St Croix Tr S
Afton, MN
651.436.8883
website

Our summer of 2011 is sadly getting shorter every day so to take advantage of what is remaining I recommend you hop in your car or boat and tour the lower St. Croix River Valley. Beginning near Stillwater and running its course south to Prescott WI, this is truly a hidden gem! Midway through your journey you will find Afton, a small, diverse and unique city with a downtown that spans about three blocks and includes two marinas, several artsy stores and a few interesting dining options. My favorite is the newly opened Current Restaurant. Current is home of the former Catfish Saloon which is the same ownership but with substantial upgrades to interior finishes and most significantly to the menu. I am pleased to say that I have had breakfast, lunch, happy hour and dinner at Current all without a thing to complain about. If you arrive by car, parking is available in a dedicated lot and if by boat, docking is available at Windmill Marina.

A full breakfast menu is available on Saturday but Sunday is all about brunch. My two breakfast favorites are the Huevos Rancheros (green chili pork, beans borracho, tortilla, eggs, queso fresco and tomato salsa) and Fingerling Potato + Short Rib Hash with onion peppers, eggs and Eichten’s gouda fondue. The lunch and dinner offerings are diverse and interesting with Small Plates, Entrée Salads, Soup + Starter Salads, Flatbreads, Sandwiches, Burgers, Entrees and Desserts. Menu items that I’ve tried and love include the Spicy Chicken Drops (sriracha cream, fried leeks, garden greens and sesame seeds); Braised Pork Tacos (street cart style, salsa verde, poblano, corn tortillas, queso fresco); Shrimp “Boom Boom” flatbread (bacon, shrimp, peppers, onion, mozzarella and creole sauce); the Hot Muffuletta sandwich (genoa salami, mortadella, provolone cheese, olive+artichoke relish on ciabatta); the Green Chili Burger (angus beef, green chili pork and queso fresco); the Winner Winner Chicken Dinner (pan seared, crispy polenta, smokey tomato coulis, skinny beans oven finished with truffle oil); and lastly what else but a summer favorite, the Banana Split (Spumoni ice cream, pineapple, cherry, chocolate and a wafer cookie).

Ask to see the specialty drink menu for some interesting craft cocktails which you can enjoy during happy hour on their patio Monday through Friday 3-6 and/or Sunday through Thursday 9-11. Invite a friend as I did a few weeks ago. I was thrilled to watch my St. Croix River neighbor Terry Kingston educate me on the economic tangles of the US and beyond with some finely tuned graphic depictions. I really can’t think of a better way to spend a day or evening, enjoy!!

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Bill's Beverage of the Month

Another fine seasonal offering from Lagunitas Brewing Company, Lucky 13. (Can you tell I’m a fan of the Lagunitas varieties?) If you’re lucky it’s available on tap at your favorite ale house or in a 22 ounce bomber at the beer store.

“Plenty of light roasted malt to keep it rich and mega-dosed with loads of hoppy-sweet and spicy amarillo goodness to keep it on the edge… We lightened up the color on our favorite gal!

Do you like Betty or Veronica?”

Finance & Commerce names Tracey Lange among 2011 Top Women in Finance

2011-08-17T12:06:00.000-05:00

The Top Women in Finance awards recognize the efforts of women who are making notable contributions to their professions and communities. Tracey is also named to the Circle of Excellence for being a two-time recipient of this award. Watch for today's edition of Finance & Commerce for the announcement or click here. Honorees will be celebrated at a dinner and awards presentation on November 10.
Congrats Tracey!

"All Things Real Estate" August 7th Recap - The Big Announcement

2011-08-08T14:25:00.004-05:00

The most recent edition of All Things Real Estate, which aired last Sunday, August 7th, featured our very own Bill Wardwell, Executive Vice President, Brokerage Services and Kevin O'Neill, Senior Vice President of Colliers International | Minneapolis-St. Paul. Wardwell and O'Neill addressed, "The Big Announcement for Minneapolis-St. Paul Commercial Real Estate". As of August 1, Welsh is in affiliation with Colliers International. To listen to the show, Click Here!

The next commercial edition of All Things Real Estate will air on Sunday, August 21st at 8 a.m. on 100.3 News Talk radio.

Welsh kicks off brokerage and property management affiliation with Colliers International

2011-08-01T12:28:00.000-05:00

We are excited to announce that the Welsh brokerage and property management divisions' new affiliation with Colliers International begins today, August 1. While brokerage and property management remain locally owned and operated by Welsh, through this partnership, our longstanding history of delivering personalized services to our clients will not only continue - it will be enhanced significantly.

Colliers is the 2nd most recognized real estate brand and the 3rd-largest commercial real estate services company in the world with 12,500 professionals operating out of more than 512 offices in 61 countries. While there will be many visual changes ahead, these teams remain under the Welsh umbrella with current leadership and staff intact. The remainder of Welsh, including; Welsh Construction, Genesis Architecture, FaciliTech, Welsh Capital, WelshInvest and Welsh Securities are unaffected by this affiliation change.

Scott Frederiksen Shares Market Insights on REIT.com

2011-07-22T15:28:00.000-05:00

IPO Market is Daunting for REITs - Welsh Property Trust CEO Scott Fredericksen puts public offering on back burner.

Check out the full video interview here: http://bit.ly/qwqNxp

The Ritter Restaurant and Beverage Review - July 2011

2011-07-21T16:01:00.003-05:00

by: Bill Ritter Senior Vice President, Welsh Companies

Featured this month: Northeast Social and Full Sail India Pale Ale

Northeast Social

359 13th Avenue Northeast

Minneapolis, MN

612.877.8111

13th Avenue NE in Minneapolis has a lot going on, especially if you’re walking the block between University and 4th Street. On one corner it starts with the 331 Club, a place well known for cheap beer and good live entertainment. A few steps down you’re in front of the Modern Café where the food is “All you can eat for as much as it costs.” And if a show is what you’re in for you will also find the richly historic Ritz Theater. My favorite part of this entire stretch of concrete though is the restaurant, Northeast Social. As proclaimed on their website, Northeast Social is located in the heart of the art district in Northeast Minneapolis and is an American contemporary style restaurant with a farm-to-fork agenda.

I often marvel at how wonderful great food can be when balanced perfectly with a comfortable environment, great service and the company you keep. And with that being said, I recently enjoyed a fantastic lunch there with Dr. Kristin Ritter, my youngest daughter. We enjoyed a light lunch though it was certainly not light on flavor. We shared entrees of scallops with English Pea Gnocchi and Muscles in Jalapeno Tomato Water with bread. Both were incredibly savory and not something you see on every menu in the metro.

One trip to the Northeast Social is not enough and their minimalist menu offerings are actually a nice approach, (simple and spectacular)! A word of caution, the AC is older so it doesn’t work the best, and with the 120 degree heat index we experienced this week you may be tempted to indulge in a cold one or two!

Beverage of the Month: Full Sail India Pale Ale

My wife recently got a new bike so the two of us took a leisurely trip along the St. Croix to break it in. On our way back home we made a pit stop at the Sail Away Cafe in Afton and recharged with a cold refreshment. I had the Full Sail India Pale Ale from the Full Sail Brewing Co out of Hood River, Oregon. It is a full flavor ale with a light citrus taste to it so it really hit the spot while lounging on the patio. Nothing better than a bike ride and beers on a beautiful day!

Visit my website, http://billritter.info/review.asp to check out past reviews.

GlobeSt.com - Generation Y Wants Flexible, Modern Offices - Daily News Article

2011-07-15T14:51:00.000-05:00

GlobeSt.com - Generation Y Wants Flexible, Modern Offices - Daily News Article

ARC Welding Terms and Definitions

2011-07-12T12:56:00.003-05:00

ARC Welding is the process of joining two pieces of metal into one solid piece. To do this, the heat of an electric arc is concentrated on the edges of two pieces of metal to be joined. The metal melts, and while the edges are still molten, additional melted metal is added. This molten mass then cools and solidifies into one solid piece. There are numerous types of welding processes to fit just about any need. Here are a few of the more commonly known welding processes:

Stick Welding: A short stick of welding “filler metal” consisting of a core of bare electrode, covered by chemical or metallic materials that provide shielding of the welding arc against the surrounding air, is melted in place. This also completes the electrical circuit, thereby creating the "ARC". This is used for structural steel and frame supports.

MIG Welding: Like a stick electrode, MIG wire completes the electrical circuit creating the arc, but it is continually fed through a welding gun from a spool or drum. MIG wire is a solid, non-coated wire and receives shielding from a mixture of gases. Metal is deposited only when the wire actually touches the work piece. MIG Welding is used for light gauge steel such as handrails, door frames, cabinets, etc.

TIG Welding: A less intense current produces a finer, more aesthetically pleasing weld appearance. A tungsten electrode is used to carry the arc to the work piece. Filler metals are sometimes supplied with a separate electrode. Gas is used for shielding. This is a more artistic and precise process used with stainless steel and aluminum.

Welsh Property Trust, LLC Acquires Seven Industrial Buildings Totaling 1,355,777 Square Feet in the Greater Atlanta Area

2011-07-07T16:57:00.001-05:00

Welsh Property Trust, LLC announced today the acquisition of seven industrial buildings totaling 1,355,777 square feet for $64,950,000. The buildings are 100% leased and include the following locations:

• 1370 Discovery Industrial Court, Mableton, GA – 150,000 square feet
• 6751 Discovery Boulevard SW, Mableton, GA – 115,000 square feet
• 1685 Boggs Road, Duluth, GA – 164,008 square feet
• 2940 Old Norcross Road, Duluth, GA – 132,394 square feet
• 8 Mount Moriah Road, Auburn, GA – 155,000 square feet
• Hartman III, 600 Hartman Industrial Court, Austell, GA – 525,627 square feet
• Hartman IV, 7515 Hartman Industrial Way, Austell, GA – 113,748 square feet

“We are very pleased that we were able to assemble a 100 percent leased portfolio of high quality assets in some of the best submarkets in Atlanta. Our team has worked very hard to combine a series of off-market transactions to create a strong and diverse group of assets that will give us a meaningful presence in a major Southeast distribution hub. This purchase will be a nice addition to the overall Welsh Property Trust portfolio,” says Scott Frederiksen, Welsh Property Trust CEO.

Major tenants include Recall Total Information Management, Boise Cascade, and Keystone Automotive. The company has selected the Atlanta office of Colliers International to manage the properties.

Grand Opening Best Western Plus Bloomington at Mall of America®

2011-06-20T16:12:00.005-05:00

Welsh Companies and RegencyInvest, an affiliate of The Ramkota Companies – a nationally known hotel owner and operator, proudly announced the grand opening of the RedRossa Italian Grill at the BEST WESTERN PLUS Bloomington Hotel at Mall of America®. A ribbon cutting ceremony was held last Thursday, June 16, 2011at the hotel’s event center with honorary guest, Mayor Gene Winstead of the City of Bloomington.

WelshInvest LLC and RegencyInvest purchased the 165,000-square-foot hotel, located at Killebrew and Cedar across from the Mall of America (1901 Killebrew Drive) in Bloomington, in 2008. It was previously the Days Inn Hotel Mall of America®.

Genesis Architecture and Welsh Construction recently completed a major renovation which includes the expansion of 211 guest rooms and luxury suites with upgraded amenities, large flat-screen TV’s, fitness center, family-friendly water play land, and on-site meeting and event facilities which can accommodate up to 280 people.

Other notable facts:

• RedRossa Italian Grille is a full-service, on-site restaurant which also provides room service and caters all events held in the hotels Event Center. It is the first time a restaurant has been operating in this location in a decade.

• Number of employees the hotel has brought to the area: 52 hospitality 86 RedRossa Italian Grille

• Over 200 trade people were employed during construction; approximately 30 workers on-site every day for 14 months

• WelshInvest granted the right of way to allow the construction of a pedestrian bridge in 2012 over Killebrew Drive that will allow access to the Mall of America

Next on "All Things Real Estate": Commerical Real Estate Market Update

2011-05-27T10:36:00.000-05:00

Upcoming Show - 5/29/11
Topic: Commerical Real Estate Market Update
Guests: Zach Stensland of Welsh Companies and Dan Gleason of Northmarq
For more information, to meet the team, or to access podcasts, visit http://www.mncreexperts.com/

The Ritter Restaurant and Beverage Review - May 2011

2011-05-23T11:52:00.003-05:00

by Bill Ritter, Senior Vice President, NAI Welsh
Featured this month - May 2011: Meritage and Undercover Shut-Down Ale

Meritage
410 Saint Peter Street
St. Paul, MN
651.222.5670

The Hamm Building in downtown St. Paul was built in 1915 and is a blend of limestone, brick and terra cotta (whose ornamentation is considered to be among the best in the Midwest). While its architecture has landed it on the National Register of Historic Places, what it contains is far more appealing to me. Enter Meritage, a French restaurant which has received numerous local and national awards and whose owner was previously head chef at W. A. Frost.

This absolutely delicious restaurant inspired me on two separate occasions, dinner and Sunday brunch. It would be perfectly suitable though to just stop for a craft made Bloody Mary or specialty French Beer and one or more Amusements (tiny single serving appetizers). Several different dining options are available. You can sit in the dining room or street side in the terrace, weather permitting, and in the summer you can hit up the Meritage Crepe Stand. I however followed my usual protocol and took a spot in the small oyster bar.

I am very much a seafood enthusiast, from sushi to a good fish fry, so to my contentment the Meritage offerings are diverse. You’ll find in the Fruit de Mer section a variety of Oysters, Escargot and Wild Baja Shrimp Cocktail. If small portions aren’t enough for your craving order Le Meritage version of Le Grand Plateau. You’ll get 12 Oysters, 6 Shrimp, 12 Littleneck Clams and Market Fresh Assortments (which in my order included Lobster Tail and Stone Crab Claws). As I look back over the Main Characters section from the menu my mouth waters and my stomach growls (and it’s 6:00 am). A few of the current main courses are Alaskan Halibut Gently Poached in Olive Oil, Stuffed Saddle of Minnesota Rabbit and Iowa Lamb Shank Braised in Framboise. And last but not least, if there is one thing you must try out of all I have suggested, order the Pommes Frites (house cut fries served with béarnaise). Meritage also offers a 5, 7 and 9 course Tasting Menu which is a great way to experiment with the current seasonal offerings.

Beverage of the Month: Undercover Shut-Down Ale
Another WOW from Lagunitas Brewing Co. is Undercover Shut-Down Ale. Be careful while consuming this one, it has a 9.75% ABV. If you visit their website you can even have a virtual taste.

Visit my website, http://billritter.info/ to check out past reviews.

Minnesota Land-Use Rules Clarified

2011-05-10T15:07:00.001-05:00

By: Brian Lubben, AIA, CID
Senior Vice President / Director of Architecture
Genesis Architecture

After nearly a year in limbo, a key Minnesota land-use rule was finally clarified last week. On Thursday Governor Dayton signed HF 52 into law as MN Chapter 19, setting the stage for some stalled development projects to move forward and allowing land-use flexibility for future projects.

In 2010 the Minnesota Supreme Court ruled on a lawsuit filed by the neighbor of a Minnetonka property owner who was granted a variance by the City of Minnetonka to expand a garage. The court decision effectively raised the standard for granting of a variance to the point where such variances could only be approved to avoid a regulatory “taking” of property.

The new law allows Minnesota cities to return to a variance approval process similar to that in use prior to the 2010 Minnesota Supreme Court decision and replaces the court-interpreted standard for granting of a variance from that of an “undue hardship” to the lower standard of “practical difficulties”. Under this new standard, municipalities may resume consideration of variance requests immediately. The final authority as to whether a variance is granted lies with the municipality.

Both the Builder’s Association of the Twin Cities and the League of Minnesota Cities were key players in the effort to encourage legislators to make this change.

Beware of Inflation

2011-05-05T10:18:00.001-05:00

Generations that have never witnessed inflation will experience its destructive power, says NAI Global Chief Economist Dr. Peter LinnemanIn his latest white paper, NAI Global Chief Economist Dr. Peter Linneman questions how it is possible not to have inflation in the U.S. economy when healthcare and commodities prices are rapidly increasing and Federal and State governments are running record deficits. Dr. Linneman examines the impact of CPI increases, the Federal Reserve’s monetary policy, government deficits and other factors that will lead to massive inflation in the US economy. Click to download the report.

CoStar Amps Up Offerings with LoopNet Acquisition

2011-04-29T12:15:00.001-05:00

Read the article: CoStar Amps Up Offerings with LoopNet Acquisition

Best in Real Estate Winners Announced

2011-04-25T17:25:00.000-05:00

The Minneapolis/St. Paul Business Journal on Friday named its “Best in Real Estate” winners for 2010 and we are pleased to report that Welsh was honored in two categories!
Best Third-party Managed Property – (Office less than 300k SF)
Welsh Property Manager, Audrey Rohrbach, received an award for her work managing One Southwest Crossing in Eden Prairie. The article cites Audrey’s outstanding commitment to building tenant relationships, communicating and providing responsive service. Click to read more.

Best Industrial Lease
Jason Simek, Peter Mork and Steve Nilsson received an award for representing First Industrial Realty Trust in a 175,000-square-foot lease in Maple Grove to Caterpillar, Inc. The team demonstrated outstanding persistence throughout the negotiation process and was congratulated for being able to accommodate and expand a large Fortune 50 company in this market. Click to read more.

Congratulations!

Bob Minks Featured in Star Tribune's Article, "Big Lots Looks at Bigger Stores"

2011-04-19T11:28:00.003-05:00

Bob Minks recently brokered three large deals with Big Lots as they plan a big push into the Minneapolis-St. Paul area. Click here to read full article.

What's Next for the Global Economic Recovery and Commercial Real Estate?

2011-04-15T16:09:00.002-05:00

Watch the April 2011 Global Econonic Outlook Outlook web conference On Demand.

Where do we stand with the global economic recovery? How will the devastating events in Japan impact the fragile recovery? When will jobs be created? Is there too much housing or too few households? Is it time to hedge inflation with real estate? Join NAI Global Chief Economist Dr. Peter Linneman for an insightful discussion on these topics and more in NAI Global’s Quarterly Economic Outlook web conference.

Next on "All Things Real Estate": Most Frequently Asked Questions in Commercial Real Estate

2011-04-01T11:53:00.003-05:00

Upcoming Show - 4/3/11

Topic: Most Frequently Asked Questions in Commercial Real Estate
Guests: The Bainey Group

Click Here to read Business Journal Arcticle, "Welsh Brokers Launch Radio Show"
For more information, to meet the team, or to access podcasts, visit http://www.mncreexperts.com/.

"All Things Real Estate:" Commercial Real Estate Leases

2011-03-22T14:52:00.000-05:00

Jason Simek, Industrial Assoc.
NAI Welsh
612.310.5227

There are seven things every entrepreneur or business executive should know when making a commercial real estate lease decision.

1. Understand conflicts of interest: The conflict is between you, the tenant and your landlord. Your landlord wants the most amount of rent and you want to pay the least. You need to understand what your landlord will loose in the event that you leave; loss of rent, holding costs, re-tenanting, and improvement costs.

2. Risk of no plan: Have a plan in place that maximizes your options; the more options you have, the more leverage you have.

3. Review space needs: If your space needs to be changed and your existing landlord can reasonably accommodate, they will. You need to ask for what you want.

4. Don't assume market is efficient: Different landlords have different motivations; some are really motivated to attract new tenants, and some will wait.

5. Time = Leverage: Plan to meet 12-18 months before lease expiration. You may love your space and have no desire to move, but unless you negotiate as if there is a real possibility of moving you have severely limited your negotiating leverage.

6. Work with a professional broker: Brokers typically save clients 15-20% in occupancy costs. The mere presence of a broker will enhance your position and mitigate risk.

7. Attain legal review before signing a lease: Document inspection is imperative before you contractually bind your company to a 3, 5, or 10 year lease. The knowledge of a real estate attorney can and will save your from liability pitfalls.

Next on "All Things Real Estate": Best Practices When Renewing Your Commercial Real Estate Lease

2011-03-18T17:08:00.000-05:00

Upcoming Show - 3/20/11

Topic: Best Practices when Renewing your Commercial Real Estate Lease
Guests: Jeff Johnson; Barna, Guzy & Steffen, Limited

For more information, to meet the team, or to access podcasts, visit http://www.mncreexperts.com/.

NAI Welsh Vice President Eric Dueholm Named to Business Journal's '40 under Forty'

2011-03-18T14:39:00.000-05:00

The Minneapolis St. Paul Business Journal has named Eric Dueholm, NAI Welsh vice president, to their 2011 ‘40 under Forty’ list of the Twin Cities’ sharpest, most successful professionals under 40 years old.
The '40 under Forty' award spotlights 40 of the region’s top young business and civic leaders who have made tremendous accomplishments and are poised to leave their mark on the Twin Cities for years to come. Candidates demonstrate a consistent, outstanding professional achievement and show a commitment to community service.

Dueholm is one of only a few LEED-accredited commercial brokers in the Upper Midwest. He utilizes his certification and interest in sustainability to raise awareness and implement green building strategies for his clients. Over the past 16 years, Dueholm has closed over 500 commercial real estate transactions exceeding eight million square feet. He drives Welsh’s Sustainability Task Force, which is focused on improving sustainable efforts of the company’s 28 million-square-foot managed portfolio as well as third party clients, and is a frequent speaker for the U.S. Green Building Council (USGBC).

An active member in the community, Dueholm currently serves as a board member of the Polk County Economic Development Corporation, Wild Rivers Habitat for Humanity, Luck Village Council, and the Luck Public Golf Course. He is also a member of the Council of Supply Chain Management Professionals, LifeScience Alley and CoreNet Global.

Visit the Minneapolis/St. Paul Business Journal’s website for additional information on the ’40 under Forty’ awards and profiles of each honoree.

NAI Welsh Facilitates Sale of $31.7 million Distribution Facility in Rural Hall, N.C.

2011-03-16T13:01:00.002-05:00

NAI Welsh completed the $31.7 million sale of a 930,451-square-foot distribution facility located at 521 Northridge Park Drive in Rural Hall, N.C. The building is fully-leased to Hanesbrands, Inc. through 2022. NAI Welsh Senior Vice President John Johannson referred the property to Cole Real Estate Investments, who purchased it from Capital Solutions.

NAI Welsh's Bill Wardwell to speak at MNCAR Event, March 23

2011-03-15T11:53:00.001-05:00

NAI Welsh's Executive Vice President, Bill Wardwell will participate in MNCAR's next event: The State of Brokerage. The event will be held on March 23, from 3:30-5 p.m., at the Marriott Southwest in Minnetonka (5801 Opus Parkway). Other commercial real estate experts serving on the panel include Clint Miller of Cushman & Wakefield, Mike Ohmes of NorthMarq, and Whit Peyton of CB Richard Ellis. The panel will be moderated by Dave Jellison of Liberty Property Trust. Click here to register.

Test your sump pump to prevent flooding this spring

2011-03-08T15:08:00.004-06:00

Twenty minutes could save you from dealing with the hassle of a flooded space this spring. If you have a sump in your drain tile system, whether it is a commercial property or basement of your own home, now is the time to test the pump for operation.

A quick test:
Remove the lid from the basket and add enough water to the basket to activate your pump. This is usually to the point of about three-quarters full. The pump should start and proceed to remove the water to a level where the pump will shut off. If your first attempt is successful, repeat the procedure.

If the unit successfully pumps out water, you are ready for spring. If it does not start to pump water you need to address the issue now in order to avoid an unsightly flood when the snow begins to melt. This simple 20 minute task could save you hours of turmoil later.

"All Things Real Estate" March 6, 2011 Recap

2011-03-08T10:41:00.007-06:00

The most recent edition of All Things Real Estate, which aired last Sunday, March 6, featured U.S. Bank's Jane Livingston and Mark Goodman from Commercial Partners Title. They addressed the topic of purchasing commercial property, with focus on financing and title insurance. Click here to listen to the podcast. The next commercial edition of All Things Real Estate will air on Sunday, March 20 at 8 a.m. on 100.3 News Talk radio.

Next on "All Things Real Estate": Purchasing Commercial Properties

2011-03-04T10:52:00.009-06:00

Upcoming Show - 3/6/11

Topic: Purchasing Commercial Properties: Financing & Title Insurance
Guests: Jane Livingston of U.S. Bank and Mark Goodman of Commercial Partners Title Company

For more information, to meet the team, or to access podcasts, visit http://www.mncreexperts.com/.

Welsh Wins Prestigious TOBY Award for Management of One Southwest Crossing

2011-02-16T16:43:00.000-06:00

The Building Owners and Managers Association (BOMA) of Greater Minneapolis awarded Welsh the Outstanding Building of the Year (TOBY) Award for the management of One Southwest Crossing in Eden Prairie, Minn.

One Southwest Crossing won in the 100,000 – 249,999-square-foot category. Built in 1986, this five story Class A multi tenant office building comprises of 239,119 square feet on eight acres, and is located across from Lake Smetana. The heart of the property contains a 16,850-square-foot garden atrium and 24-hour security guard station. Other amenities include a cafeteria/deli, fitness center, conference rooms, parking ramp, tenant-accessed balconies, walking path, and on-site management and engineering staff.

Welsh has successfully transformed the property with successful asset and property management in the form of debt restructuring, expense reduction and lease negotiations. The company will now advance to the regional level of competition.

The TOBY Awards are one of the highest honors of their kind in the commercial real estate industry, recognizing excellence in office building management in fourteen different categories based on size and facility type. Buildings are judged by all facets of building operations including energy management, tenant relations, community involvement, emergency preparedness, and security.

NAI Welsh Announces Select January 2011 Real Estate Transactions in the Twin Cities

2011-02-09T14:34:00.002-06:00

NAI Welsh completed the following select transactions in January 2011.

American Woodmark sells 89,089-square-foot industrial complex in Ham Lake to Fleetwoods
American Woodmark Corporation, a Winchester, Virginia-based cabinet manufacturer and distributor, sold an 89,089-square-foot industrial complex to Fleetwoods, a Minnesota-based cabinetry manufacturer. The 15.36-acre property is located at 16430 Highway 65 NE in Ham Lake, Minn. and will continue to be used for cabinetry manufacturing. NAI Welsh Vice Presidents Dan Friedner, Jay Chmieleski and Associate Aaron Sillanpa represented American Woodmark in the sale.

MultiSource purchases 41,472-square-foot industrial building in Ramsey
MultiSource Manufacturing LLC, a Burnsville-based manufacturing outsourcing company, purchased the former Harber Industries Building from CorTrust Bank N.A. The 41,472-square-foot manufacturing facility sits on a 4.05-acre site at 6690 Sunwood Dr NW in Ramsey, Minn. NAI Welsh Vice President Dan Friedner represented MultiSource.

Advanced Dermatology Care purchases former Baker’s Square in Stillwater for $1.325 million
The owners of Advanced Dermatology Care P.A. purchased the former Baker’s Square in Stillwater, Minn. from a private investor for $1.325 million. The 5,754-square-foot property is located at the intersection of Highway 36 and Greeley St., and is currently being converted to a dermatology clinic, which is scheduled to open in spring 2011. NAI Welsh Vice President Dick Friedrichs and Senior Associate Amy Senn represented the seller.

Digital River signs 10-year lease at former Opus headquarters in Minnetonka
Digital River, a leading provider of global e-commerce solutions, signed a 10-year lease at Opus Park West, the former Opus Group’s corporate offices in Minnetonka, Minn. The new office building, located at 10350 Bren Road W., will serve as Digital River’s headquarters beginning July 2011. NAI Welsh Senior Vice Presidents Bill Ritter and Kevin O’Neill represented Digital River.

Foldcraft renews 59,336-square-foot lease with Dosch Properties
Foldcraft, a foodservice and casino furniture manufacturer, renewed a 59,336-square-foot lease with Dosch Properties. The complex, located at 1800 94th St. W, Bloomington, Minn., includes office, showroom and warehouse space. NAI Welsh Senior Associate Ryan Krzmarzick and Senior Vice President Bill Ritter represented the tenant in the transaction.

CTV North Suburbs leases 13,571 square feet from Ryan Companies US, Inc.
CTV North Suburbs, the north suburbs’ public access television channel, signed a lease with Ryan Companies US, Inc. for a 13,571-square-foot space in the Twin Lakes Corporate Centre III building, located at 2670 Arthur St in Roseville, Minn. It will serve as the company’s production studio beginning 2nd Quarter 2011. NAI Welsh Associate Justin Rath and Senior Vice Presidents Mike Perkins and Kevin O’Neill represented Ryan Companies US, Inc. in the lease to CTV North Suburbs, who was represented by Rob Davidson of Davidson Companies.

Pizza Ranch leases 6,574 square feet from HOM Furniture in Lakeville
Pizza Ranch signed a 6,574-square-foot lease in a multi-tenant retail center owned by HOM Furniture. The new Pizza Ranch, located at 16975 Kenyon Ave S., Lakeville, Minn., will be in front of HOM Furniture and Gander Mountain, giving them high visibility to Interstate 35. The restaurant is slated to open on June 1, and will be the first Pizza Ranch in the Twin Cities metro area. NAI Welsh Associate Zach Stensland and Senior Associate Sara Martin represented the landlord, HOM Furniture, in the transaction.

Finance and Commerce Names Nils Snyder One of 40 "Minnesotans on the Move"

2011-02-08T14:15:00.002-06:00

Finance and Commerce selected Vice President Nils Snyder as one of 40 “Minnesotans on the Move,” which recognizes professionals who are poised to make business news in the coming years.

Over the past 10 years, Snyder has completed 3.4 million square feet in transactions with values approaching $320 million, and has represented high-profile Minneapolis buildings including Renaissance Square, 50 South Sixth and 225 South Sixth. Active in both his community and the commercial real estate industry, Snyder serves on the housing and development committee for Project for Pride in Living, and is a member of the Guthrie Theater’s Business Circle, the Organization for Commercial Realtors, the Minneapolis Association of Realtors, the St. Paul Owners and Managers Association (BOMA), and NAIOP. He also serves on the board of directors of the Minneapolis Downtown Improvement District (DID).

In 2009, Snyder was named a Developing Leader by the Commercial Real Estate Development Association (NAIOP), and to the Minneapolis/St. Paul Business Journal’s “40 Under Forty.” In 1998, he founded the St. Olaf Alumni Partnership, a student organization established to create communication between alumni and current students. He holds a Minnesota Real Estate License and is a Certified Commercial Investment Member (CCIM).

All 2011 Minnesotans on the Move will be honored at an April 7 reception and awards presentation at the Hyatt Regency Hotel in Minneapolis, and will also be featured in a special section of Finance and Commerce.

NAI Welsh Hires Larry Chevalier as Vice President, Office Brokerage

2011-02-01T16:47:00.000-06:00

Larry Chevalier joined the NAI Welsh team as vice president in the office brokerage division. With over thirty years of commercial real estate experience, Larry plays a key role in the Twin Cities office market, specializing in tenant representation and owner/occupier sales.

Larry most recently served as senior vice president at Cassidy Turley, where he received the Cassidy Turley Top Achievement Award for 13 years. He is involved in many industry organizations, having served as president of the Society of Industrial and Office Realtors’ (SIOR) Mid-Continent Chapter and board member of the Minnesota Commercial Association of Realtors (MNCAR). Larry is currently a member of the National Association of Realtors (NAR) and the Commercial Real Estate Development Association (NAIOP).

In 2003, MNCAR named Larry the Minnesota Commercial Realtor of the Year. He also received the Robert Boblett Award from SIOR, and is a two-time recipient of the Cassidy Turley Darrel Hold Service Award. In addition, Larry frequently serves as a panelist for industry events, including those hosted by SIOR, the Building Owners and Mangers Association (BOMA), and the Institute of Real Estate Management (IREM).

Welsh receives three MNCAR Awards for 2010: Broker of the Year, Rising Star of the Year, and Industrial Transaction of the Year

2011-01-28T14:04:00.003-06:00

The Minnesota Commercial Association of Realtors (MNCAR) awarded Welsh with three significant awards at Thursday night’s award ceremony. NAI Welsh Senior Vice President John Johannson received their highest honor, Broker of the Year, Associate Judd Welliver was named the 2010 Rising Star, and Senior Vice Presidents Bill Ritter and Mike Perkins won “Industrial Transaction of the Year” for their contribution to the Lifetouch lease at the 35/13 Crossing building.

Broker of the Year
MNCAR’s Broker of the Year award recognizes a real estate veteran who demonstrates a high level of professional conduct, has a significant level of production, has contributed to the profession, and actively participates in other business, civic and community activities. The same criterion applies to the Rising Star award, which recognizes an up-and-coming professional.

Over the past 20+ years, Johannson has sold or leased over ten million square feet of retail space, 370 acres of commercial land, and approximately 12 shopping centers exceeding 1.2 million square feet in the Twin Cities. He owns a 1.2 million-square-foot retail portfolio, and has developed nearly three million square feet of owned retail space.

Johannson is a member of the XTeam, the International Council of Shopping Centers (ICSC), the Minnesota Shopping Center Association (MSCA) and MNCAR, and also serves on the University of St. Thomas Real Estate Advisory Board. He is an active member at Spring Hill, Interlachen and Minikahda Country Clubs, and coaches his two son’s hockey teams.

Perhaps one of Johannson’s strongest qualities is his devotion to other’s success. According to Welsh’s Executive Chairman Dennis Doyle, “John has been instrumental in providing Welsh colleagues with support and mentorship. He has continually stepped up to take on the role of mentor, and as such, is often considered the go-to guy when others need help or support. He is a true partner in every sense of the word.”

Rising Star of the Year
A third-generation real estate professional, Judd Welliver has consistently ranked as one of Welsh’s top producing brokers in transaction volume since 2006, and in 2007 was named Rookie of the Year. He averages 50 transactions per year, and in the past 12 months has completed over 65 deals totaling more than 700,000 square feet. He has many repeat clients, which speaks to his high level of professionalism.Welliver is a presenter for the University of St. Thomas Real Estate Society, serves on MNCAR’s Community Relations Board, and coaches St. Paul Highland Park’s Bantam A’s youth hockey team.

Industrial Transaction of the Year
NAI Welsh Senior Vice Presidents Mike Perkins and Bill Ritter received the “Industrial Transaction of the Year” for their significant contribution to the Lifetouch lease in Burnsville. Ritter and Perkins represented the Minnesota-based school portrait company, Lifetouch, in a long term, 100,480-square-foot lease transaction at United Properties/Kennedy Associates’ 35/13 Crossing office warehouse building in Burnsville, located near Interstate 35W and Highway 13.

Lifetouch was looking to consolidate three of its west metro operations into one building, and 35/13 Crossing complex was one of the few properties that met the tenant’s requirements. The lease began in July 2010 and is now used as Lifetouch’s camera-support and studio-technical services, its distribution warehouse and picture-taking kit assembly. Lifetouch moved approximately 100 people in technical and distribution jobs which did not affect the company’s headquarters on I-494 in Eden Prairie.

The lease brought the 180,000-square-foot, two-building complex to 97% occupancy. Ritter and Perkins worked with the NorthMarq team of Kris Smeltzer and Lonnie Provencher, who represented United Properties/Kennedy Associates.

Welsh Construction Wins NAIOP Award of Excellence for HealthEast Medical Transportation Facility

2011-01-19T14:54:00.001-06:00

Welsh Construction was granted an Award of Excellence from the Commercial Real Estate Development Association (NAIOP) for HealthEast Medical Transportation Facility.

The 46,119-square-foot facility comprises office/warehouse space with parking accommodations for 117 vehicles. It was designed and constructed to the U.S. Green Building Council’s LEED Silver specifications, with detailed efficiencies in building layout to accommodate regions of administration, operations and vehicle services.

The facility provides for the continued growth of the EMS community, and supports the latest technology for continuing education and training of paramedics and emergency department staff.
The NAIOP Awards of Excellence recognize exceptional new and renovated office, industrial, mixed-use and special purpose developments in the State of Minnesota. Projects are judged on site improvements and design, architectural integrity, market feasibility, project success, and overall impression.

Division Manager Steve Stecker, Project Manager Devin Doyle, and Superintendent Mike Milless contributed to the success of this project.

How to silence buzzing light bulbs

2011-01-19T10:57:00.001-06:00

Dimmer switches are the ideal tools to control lighting levels in each room of your home, but in some cases can cause light bulbs to produce an irritating buzzing sound. The source of the buzz is either the light bulb itself or the dimmer switch. In either case, the problem is simple and inexpensive to correct.

First, try replacing the light bulb with a higher quality bulb from a different manufacturer, which will in many cases resolve the issue. There are two main components inside any light bulb – support posts and filaments. The electric current running through the bulb when it is switched on turns the filament into a magnet, creating light. A dimmer switch works by varying the amount of current going to the bulb’s filament, therefore varying the amount of light that is produced. When the dimmer is turned all the way up, the bulb gets full power, and when the dimmer is turned down, it gets less power which actually causes a stronger magnetic field in the filament. As a result, the filament vibrates against the support posts. If the posts inside the bulb are flimsy, they may “buzz” from the vibration, but if they are sturdy, like those used in most high quality light bulbs, no vibrating will occur.

If changing the light bulb does not fix the problem, you should consider upgrading your dimmer switch. Typically, dimmers in the mid-price range of $25 to $35 will not cause light bulbs to buzz because they better control the amount of current going to the bulb.

Lighting tips for seniors

2011-01-19T09:57:00.003-06:00

Follow these tips to ensure your home is safe for seniors:

1. Adequately light all areas of the home, especially hallways and stairs
2. Position light switches in easy to reach locations. Ideally, they should be at the top and bottom of stair cases and near doorways and beds.
3. Consider installing occupancy sensors or using night-lights in hallways, bathrooms and bedrooms.
4. Use lighting fixtures that reduce glare.
5. Consider using illuminated toggle switches to make it easier to find the switch in the darkness.
6. Use plug in night-lights for cost-effective illumination in dark areas.

Dennis Doyle named to Midwest Commercial Real Estate Hall of Fame

2011-01-07T12:33:00.002-06:00

Midwest Real Estate News has inducted Dennis Doyle, Executive Chairman of Welsh Property Trust, LLC (“Welsh”), into the Midwest Commercial Real Estate Hall of Fame.

The first-ever Hall of Fame issue, which highlights the careers of the most accomplished commercial real estate professionals in the Midwest, was published in December. Sixty inductees from 11 Midwest states were selected in the categories of developer/owner, brokerage, property management, and law.

Doyle was chosen “for the many contributions he’s made to the field of commercial real estate,” but more importantly, because he has given back immensely to his community.

Doyle and wife Megan founded Hope for the City, a privately funded, 501(c)3 relief organization, to fight poverty, hunger and disease by utilizing corporate surplus, in 2000. To date, the organization has distributed $450 million worth of goods to non-profit organizations serving those in need.

Doyle entered the commercial real estate industry in 1977, as co-founder of Welsh Construction. Since that time, he has transformed the small development and construction firm into the full-service company it is today, now operating as Welsh Property Trust. Under his leadership, the company has consistently been recognized as a top place to work in the Twin Cities.

In 2007, Doyle received Ernst & Young’s Entrepreneur of the Year Award, and in 2010 was named the Minneapolis/St. Paul Business Journal’s Best in Real Estate Lifetime Achievement Award Honoree.

To read more about Doyle and other recipients of this prestigious honor, read the latest edition of the Minnesota Real Estate Journal.

NAI Welsh Announces 4th Quarter 2010 Real Estate Brokerage Transactions in the Twin Cities

2011-01-03T15:46:00.002-06:00

NAI Welsh announces the following sale and lease transactions completed in 4th Quarter 2010.

Walmart purchases Four Seasons Mall in Plymouth, Minn.

Walmart purchased the Four Seasons Mall in Plymouth, Minn. from Four Seasons II, LLC, who was represented by Senior Vice Presidents Tim Prinsen and Bob Pounds. Located at the intersection of Highway 169 and Rockford Road, the 17.29 acre site that currently houses the 120,000-square-foot mall will be the site of a new Walmart, pending rezoning approval from the City of Plymouth.

Luther Automotive purchases former American Ford in Bloomington, Minn. for $5.65 million

The Luther Automotive Group purchased the former American Ford at 4801 American Blvd West in Bloomington, Minn. from Palmer Limited Partnership for $5.65 million. The 7.3 acre site contains a 41,431-square-foot dealership that is currently undergoing renovation. Vice President Dick Friedrichs represented Luther Automotive; Palmer Limited Partnership was represented by Transwestern.

First Industrial Realty Trust sells 126,000-square-foot industrial facility to Bellcomb Technologies for $4.4 million

First Industrial Realty Trust, Inc. sold a 126,000-square-foot industrial building, located at 9200 10th Ave N, Golden Valley, Minn. to New Hope, Minn.-based Bellcomb Technologies for $4.4 million. Bellcomb, a manufacturer of lightweight building panels, will use the building as a second production facility. Vice President Paul Bickford represented First Industrial Realty Trust, Inc. in the sale.

Central Bank sells two office buildings

Vice President Eric Rapp represented Stillwater, Minn.-based Central Bank in the sale of two Class A suburban office buildings. Tamarack Hills F12, a 17,816-square-foot building, is located at 587 Bielenberg Drive in Woodbury, Minn., and Stonebridge Professional Building, a 19,824-square-foot facility, is located at 971 Sibley Memorial Highway in Lilydale, Minn. The buildings were sold separately to different investment groups.

Reliance Development Company sells Diffley Marketplace

Reliance Development Company sold Diffley Marketplace to Inland Real Estate Corp. The 62,000-square-foot retail property comprises 42,000 square feet for its anchor, Cub Foods, and 20,000 square feet for smaller retailers. The shopping center is located at 1020 Diffley Road in Eagan, Minn. Senior Vice Presidents Tim Prinsen and Bob Pounds represented Reliance Development Company.

Wedding Day Diamonds signs 3,000-square-foot lease at St. Louis Park’s West End

Senior Associate Tony Strauss represented Wedding Day Diamonds in a 3,000-square-foot lease at The Shops at West End. Located at 1673 Park Place Blvd. in St. Louis Park., Minn., this is the sixth location for Wedding Day Diamonds. Having opened in mid-November, this outlet features a new store layout offering clients a more interactive shopping experience.

T-Mobile franchisee signs 2,500-square-foot lease in Maplewood, Minn.

Wireless Vision, LLC, the nation’s largest T-Mobile franchisee, signed a 2,500-square-foot lease at the corner of White Bear Ave N & Larpenteur Ave E in Maplewood, Minn. Senior Associate Tony Strauss represented Wireless Vision in the agreement. The store opened the first week of December.

Frattallone’s Ace Hardware signs 18,000-square-foot lease at Normandale Village

Frattallone’s Ace Hardware signed an 18,000-square-foot lease at Normandale Village, located at 5101 98th St. W in Bloomington, Minn. Anchored by Lunds, the Normandale Village shopping area will now be the home of Frattallone’s Ace Hardware’s sixteenth retail location, which is scheduled to open April 1, 2011. Senior Associate Sara Martin represented the landlord, MLG Capital/Normandale LLC.

December MNCAR Program Recap by Associate Mike Doyle

2011-01-03T10:12:00.005-06:00

Being More Grounded: December Program Recap

The event, "State of Commercial Real Estate: What do you Think?," was a successful interactive event with a great lineup of industry veterans.

The roundtable discussion - led by Tim Murnane, Kim Culp and Scott Tankenoff, and moderated by Jim Damiani - was packed full of useful information, as well as non-stop laughter. Read more on MNCAR's blog.

2010 NAIOP Office Market Program Recap by Associate Mike Brehm

2011-01-03T10:04:00.007-06:00

There have been many comparisons of today's recession to that of the early 1990's, mostly with regards to the basic demands and needs of tenants. In the early 90's, tenant decisions were based on cost, CEO/CFO approval, image and growth. Read more on MNCAR's blog.

WelshInvest disposes of 487,121-square-foot property in Orange City, Iowa for $12.3 million

2010-12-20T10:24:00.001-06:00

WelshInvest, LLC, a subsidiary of Twin Cities-based Welsh Property Trust, LLC, a respected and established leader in commercial real estate, announced today the disposition of a 487,121-square-foot property in Orange City, Iowa.

Gladstone Commercial purchased the office warehouse facility from WelshInvest on December 15, 2010 for $12.3 million. The property, located at 1520 Albany Place, is 100 percent leased by Staples, Inc. through 2026.

NAI Welsh seeks buyer for former Burger King building in Northeast Minneapolis

2010-12-03T11:32:00.002-06:00

Property is located at 1717 Central Ave NE, Minneapolis

NAI Welsh has been selected by property owner Cushman Minar to market for sale the former Burger King building located at 1717 Central Ave NE in Minneapolis.

The 3,564-square-foot freestanding restaurant sits on a .74-acre corner lot with approximately 42 parking stalls. It’s just a couple blocks away from the busy Quarry Mall, is on the bus line, and has exposure to traffic counts of 19,400 cars per day. These factors make it an ideal location for another fast food or independent restaurant, entrepreneur or redevelopment. Signage will be available on the property itself and on the Quarry Mall pylon sign on Central Avenue.

“Many improvements have been made to this area,” said Brian Bruggeman, Associate, NAI Welsh, who is marketing the property. “New housing developments are being built, a Falafel King is opening at the old Porky’s site, and Northeast Library is currently undergoing renovation.”

“Burger King was an ideal tenant for the past 30 years, but now it’s time to move on and give way to what’s next,” said Property Owner Cushman Minar.

Welsh Property Trust, LLC Secures $200 Million Credit Facility from Rothschild Realty

2010-12-02T16:42:00.002-06:00

Scott Frederiksen becomes CEO, Dennis Doyle continues as Executive Chairman of the Board

Welsh Property Trust, LLC (“Welsh”) announced today that it has obtained a $200 million credit facility from Five Arrows Realty Securities V, L.P. (“FARS V”).

Five Arrows is an investment fund managed by New York-based Rothschild Realty Managers, LLC, a leading provider of growth capital to public and private real estate companies. As part of this transaction, FARS V representatives John D. McGurk and Andrew M. Silberstein have joined the Welsh Board of Managers, which also includes Dennis Doyle, Scott Frederiksen, and Jean Kane.

Welsh will use the capital from Rothschild Realty Managers to expand its portfolio of properties and exercise an aggressive growth plan for its services businesses. Currently, the Welsh Property Trust portfolio contains both industrial and office buildings and spans many markets throughout the central and eastern United States. It also includes all of the operating businesses of Welsh Companies.

Scott Frederiksen will serve as chief executive officer of Welsh Property Trust, while Jean Kane will continue to oversee operations of the company’s real estate services group as president and chief operating officer. Welsh founder Dennis Doyle will be executive chairman of the Board of Managers.

“The credit facility will allow Welsh Property Trust to acquire additional real estate and grow our services businesses, positioning the company for continued success,” said Chief Executive Officer Scott Frederiksen. “We are very pleased with the addition of John and Andrew to our Board of Managers as they bring a long history, many excellent relationships, and great deal of expertise.”

“Welsh has a long history of success, both as an owner/operator of high quality real estate and as a client-focused provider of real estate service throughout the central U.S. We believe the Welsh team has a great opportunity to utilize our commitment to grow its industrial portfolio and implement management’s integrated growth strategy for the platform,” added Andrew M. Silberstein, Managing Director, Rothschild Realty Managers.

Kris Glaros Hanson Joins Welsh Construction as Director of Business Development

2010-12-01T11:29:00.002-06:00

Welsh Construction has hired industry expert Kris Glaros Hanson as director of business development to source opportunities in senior housing and skilled care facility development.

Glaros Hanson has 17 years of construction sales experience including 13 years consulting senior housing/skilled care clients on design-build projects. She also has extensive experience in sales and marketing, training and development, seminar presentation, and workshop facilitation. In 2008-2009 alone, she secured approximately $100 million in construction volume.

“Kris is a high-performer who truly understands the needs of her clients, and we’re honored to have her on our team,” said Bill Krake, President, Welsh Construction. “She brings an enthusiastic, energetic and organized approach, providing a well-rounded, full-service perspective on each and every deal.”

Glaros Hanson was most recently involved with York Gardens, an addition to 7500 York Cooperative, the first senior cooperative in the country, as well as Carondelet Village in St, Paul, Heartwood Senior Living in Crosby, and Carty Heights in St. Paul.

Ted Jokerst to Lead Welsh Capital as Senior Vice President

2010-11-03T15:09:00.003-05:00

Ted Jokerst has been promoted to senior vice president of Welsh Capital, where he will oversee day-to-day operations and strategy.

Jokerst joined Welsh in 2005 as vice president and director of finance for WelshInvest and Welsh Capital, where he held responsibility for loan acquisitions and financial management. He has been directly involved in the acquisition of senior loans, mezzanine financing, interest rate derivatives, and preferred equity.

“Over the past five years, Ted has been instrumental in providing creative financing solutions for our clients, having helped close a transaction volume in excess of $861 million” said Jean Kane, President and COO. “In his new role, Ted will build upon Welsh Capital’s strong business relationships to provide creative solutions for difficult financing assignments in today’s challenging market.”

Jokerst is a member of the National Association of Industrial and Office Properties (NAIOP), the Minnesota Shopping Center Association (MSCA), the Mortgage Bankers Association (MBA), the Bank Holding Company, and serves a board member at Hope for the City. He holds a bachelor’s degree from Marquette University and a master’s of business administration from St. Louis University.

What is the difference between an air handler, air conditioner, condenser and chiller?

2010-10-27T12:21:00.003-05:00

An air conditioner is designed to dehumidify and remove heat from an area. The cooling is done using a simple refrigeration cycle. A condenser is a component of the basic refrigeration cycle that removes heat from the system. The condenser is the hot side of an air conditioner. Condensers are heat exchangers that can transfer heat to air or heat to fluid (such as water or glycol) to carry the heat away.

An air handler, or air handling unit (often called an AHU), is used to condition and circulate air as part of an HVAC system. An air handler usually contains a blower, heating or cooling elements, filter racks or chambers, sound attenuators, and dampers. Air handlers usually connect to ductwork that distribute the conditioned air through the building and return it to the AHU.

Small air handlers are called terminal units, and may only include an air filter, coil, and blower. These smaller units are also called blower coils or fan coil units. A larger air handler that conditions 100% outside air, and no re-circulated air, is known as a makeup air unit (MAU). An air handler designed for outdoor use, typically on roofs, is known as a rooftop unit (RTU).

A chiller removes heat from a liquid through a vapor-compression or absorption refrigeration cycle. This cooled liquid flows through pipes in a building and passes through coils in air handlers, fan-coil units, or other systems, cooling and usually dehumidifying the air in the building. There are two types of chillers - air-cooled or water-cooled. Air-cooled chillers are usually outside and consist of condenser coils cooled by fan-driven air. Water-cooled chiller are usually inside a building, and heat from these chillers is carried by re-circulating water to a heat sink such as an outdoor cooling tower.

The Ritter Restaurant and Beverage Review - October 2010

2010-10-25T09:08:00.005-05:00

by Bill Ritter, Senior Vice President, NAI Welsh

Featured this month - October 2010: Sakana Sushi and Chaucer's Honey Mead

Sakana Sushi

683 East Lake Street

Wayzata, MN

952.476.7000

If you search the Minneapolis/St. Paul Metro Area at http://www.eatsushi.com/ it will identify 30 locations. As a member of a 6 person sushi club, with a rotating host who selects the location and picks up the tab, I have experienced most of the finest Sushi restaurants throughout the Twin Cities. It is good to have choices but sad that Sakana Sushi in Wayzata is not included on this website.

What better reason to go to this undiscovered restaurant than a birthday lunch for my long term and great friend Scott Frederiksen (and fellow sushi club member). Sakana is small and quaint, set in the upscale retail shopping district in Wayzata at 683 East Lake Street. From their simple and organized menu we ordered hot apps of Edamame (soy beans, steamed and salted), Yakitori (grilled chicken skewers with peanut sauce) and Gyoza (pan fried pork dumplings with sesame ponzu sauce). They were excellently prepared and met the match for great beginnings. We followed the savory appetizers with an assortment of rolls and sushi. From the Chef’s Special Roll section of the menu we devoured a Mango Tuna Roll, Crunchy Roll and the Sweet Heart Roll. From the Sushi & Sashimi section we ordered Maguro (Tuna), Hamachi (Yellowtail) and the White Tuna. The food was fresh, tender, filled with flavor and the quality was exceptional, a critical element when dining on sushi.

If you’re boating on Lake Minnetonka, conducting business in the west suburbs or hitting the hot shopping spots on Lake Street, venture into Sakana Sushi. It is truly one of the best sushi restaurants in the Twin Cities. Try it, you will agree!

Beverage of the Month: Chaucer's Honey Mead

Despite this extended Indian summer we all know it’s just a matter of time before we’re viewing a wintery scene through our windows. The perfect way to take the chill off an evening like this is with Chaucer’s Honey Mead, a desert wine made with a blend of three honey’s, heated with mulling spices and served warm. Chaucer’s Honey Mead has won multiple awards and rates high in Wine Enthusiast Magazine and with the Beverage Testing Institute. If the weather holds out you can also enjoy it chilled. The website recommends serving it along side fruits and nuts or with strong or aged cheeses. It is really delicious and worth trying!

Visit my website, http://billritter.info to check out past reviews.

Welsh Completes 24,900-square-foot lease at Green Park Pointe

2010-10-20T15:30:00.000-05:00

Welsh recently completed a 24,900-square-foot industrial lease for Premier Manufacturing at Green Park Point in Hazelwood, Mo., which is now 100 percent leased. CB Richard Ellis’ Marc Cacciarelli represented Premier Manufacturing in the lease from Welsh, who was represented by Allen Kippel of CB Richard Ellis.

Welsh Completes Four Industrial Lease Renewals at Lambert Pointe Business Center

2010-10-20T14:41:00.001-05:00

Welsh today announces four 5-year lease renewals totaling nearly 200,000 square feet at Lambert Pointe Business Centre in Hazelwood, Mo. with Aesculap USA, Cintas Corporation, Siemens Corporation and Wellfit Parts International. General Manager Andrew Shiell represented Welsh in every transaction at the center, which is 80% occupied.

Aesculap USA signs 69,379-square-foot renewal
Surgical instrument supplier Aesculap USA renewed their 69,379-square-foot office/industrial lease for another five years. Aesculap USA was represented by John Langa of Jones Lang LaSalle.

Cintas Corporation expands and renews for 5-years
Cintas Corporation’s Fire Protection and Document Management divisions expanded by 20,000 square feet and renewed for 5 years with 89,743 square feet. CB Richard Ellis’ Allen Kippel represented Cintas Corporation in the lease from Welsh.

Siemens Corporation renews 12,523 square feet
Represented by Jared Aubrey of Fischer & Company, Siemens Corporation’s U.S. Filter division renewed 12,523 square feet for five years.

Wellfit Parts International renews 27,903 square feet
Wellfit Parts International, an auto parts replacement supplier, renewed 27,903 square feet for five years. They were represented by Jeff Hawley of Block-Hawley.

20 Ways to "Green" your Commerical Properties

2010-10-20T11:56:00.004-05:00

Energy Conservation

Replace incandescent lamps with compact fluorescent lighting
Use occupancy sensors to automatically turn off lights in unoccupied rooms
Replace standard motors with premium efficient motors
Replace older exit signs with LED or photo luminescent exit signs
Use ENERGY STAR rated products

Water Conservation

Install waterless/low-flow urinals
Install low-flow wash fountains
Use low-flow sensor faucets to regulate water use
Install aerators to reduce water flow rates on existing faucets
Retrofit to touchless flush valves

Green Cleaning & Indoor Air Quality (IAQ)

Use Green Seal cleaning chemicals to reduce toxins
Use Greenguard certified wood floor cleaners to preserve indoor air quality
Use microfiber cloths while cleaning to reduce chemical use
Replace air filters with high-energy filters
Use paint that is low VOC or VOC-free

Waste Reduction

Use paper products with recycled content
Use trash can liners with recycled content
Provide recycling containers for all employees
Use recycling kits for used fluorescent lamps, ballast and batteries.
Install bathroom partitions and lockers containing recycled content.

How to test a Ground Fault Interrupter Receptacle (GFCI)

2010-10-19T16:18:00.001-05:00

The Leviton Institute advises that Ground Fault Interrupter Receptacles (GFCI) be tested monthly to ensure they are functioning properly. To conduct the test, first plug a lamp or appliance into the GFCI receptacle. Turn on the lamp or the appliance and push the TEST button on the receptacle. If the GFCI is working properly, the procedure should turn off the power to the lamp or the appliance. Push the RESET button on the GFCI and that should return power to the receptacle, illuminating the lamp. If the power did not go out when you pushed the TEST button, there is an electrical problem that should be corrected by a licensed electrical contractor.

NAI Welsh Announces Recent Real Estate Brokerage Transactions in the Twin Cities

2010-10-12T15:16:00.001-05:00

NAI Welsh recently closed the following transactions.

Osaka signs two 10-year leases
Represented by Associate Zach Stensland, Osaka signed an 8,000-square-foot lease at Springbrook Mall in Coon Rapids, Minn., located at 77-141 85th Ave NE and a 9,000-square-foot lease at 2043 Superior Drive NW in Rochester, Minn. Both locations are expected to open by February 2011.

Little Caesars Pizza signs new 5-year lease in Burnsville, Minn.
Little Caesars Pizza signed a new 5-year lease at Burnhill Plaza, located at 1246 County Road 42 in Burnsville. This location is expected to open by Oct. 31, 2010. Little Caesars was represented by Associate Zach Stensland.

Lexion Medical purchases 38,584-square-foot industrial building in St. Paul, Minn.
Lexion Medical purchased the 38,584-square-foot former headquarters of Premium Stoneworks, located at 545 Atwater Circle in Saint Paul for $1.575 million. The industrial building sits on 2.03 acres. Senior Associate Eric Batiza and Vice President Brian Doyle represented Lexion Medical in the purchase from Bank Cherokee, who was represented by CB Richard Ellis.

Americraft Carton signs 100,631-square-foot industrial lease at MSP Midway Industrial Park #13
Vice President Steve Nilsson represented Americraft Carton in their 67-month, 100,631-square-foot lease at MSP Midway Industrial Park #13, located at 2228 Territorial Road in St. Paul, Minn. Senior Associate Eric Batiza represented the landlord, ING Clarion Partners.

Register Today for the Global Economic Outlook with Dr. Peter Linneman this Wednesday!

2010-10-12T07:23:00.000-05:00

How Will the Deficit, Fed Policy and Inflation Impact Economic Recover and Commercial Real Estate?

Web Conference: Wednesday, October 20 from 12:30 - 1:30 pm CST

Is the U.S. facing a double-dip recession? Should we be worried about inflation? What are the long-range implications of the federal budget deficit, the Fed's monetary policy and what does it all mean for commercial real estate? Join NAI Global Chief Economist Dr. Peter Linneman for a discussion on these topics and more during NAI Global's Quarterly Economic Outlook web conference, October 20, 2010 at 12:30 pm CST.

Click Here to Register. Participation is limited, so be sure to register early.

Commercial Financing Update

2010-10-11T12:42:00.004-05:00

Financing report for the week ending Oct. 8, 2010, provided by Welsh Capital - view the report.

Word of the week: Economic Vacancy

Unlike physical vacancy which simply measures the actual unoccupied square footage of a property, economic vacancy also factors in the potential revenue that is currently not being captured, often in the form of concessions/discounted rent, turnover/make ready period, excessive tenant improvements, model units, etc. It allows one to compare a property's actual performance to an "ideal" performance, one in which every square foot or unit is generating the maximum income for the entire period. Additionally, it can help a landlord assess the performance of the property manager.

As an example, let's say you have a property with a vacant unit. As a concession to get a tenant, you give away one month of free rent. While your physical vacancy for that unit is 0% for the year, the concession means that the unit is not generating income for one month, effectively creating an 8.3% economic vacancy rate for that unit for the year.

In today's environment, where landlords are heavily competing for tenants, and therefore offering substantial concessions, economic vacancy is an increasingly important performance metric. Unfortunately for owners looking to refinance, appraisers and underwriters are very familiar with this measure.

U.S. Bank selects Welsh Construction to build 3,540-square-foot branch in Anoka, Minn.

2010-10-07T12:32:00.001-05:00

Welsh Construction will break ground this month on a single-story 3,540-square-foot U.S. Bank branch located at 123 West Main Street in Anoka. Built on a .69-acre site, the property will feature a two lane drive-up canopy and parking for 18 vehicles. The project is slated for completion within six months.

Welsh Construction’s Abe Hofmeister will serve as project manager and Mike Milless is the field superintendent.

CORE Realty Holdings and Waterton Associates Select Welsh to Lease and Manage Twin Cities' Industrial Portfolio

2010-10-05T15:24:00.002-05:00

Company adds over 1.8 Million Square Feet to Property Management Portfolio in September

Welsh was awarded the leasing and management contracts for both CORE Realty Holdings and Waterton Associates’ Twin Cities portfolios.

Welsh will manage and lease California-based CORE Realty’s 12-building, 550,000-square-foot Twin Cities’ industrial portfolio and Chicago-based Waterton Associates’ Evergreen portfolio that comprises 15 industrial buildings and 720,000 square feet in the northeast metro.

The company was also chosen to lease and manage 549,587 square feet of receivership property located throughout the Twin Cities metro that comprises industrial, office and residential facilities. Welsh was awarded over 1.8 million square feet in property management and leasing business in September. The company’s Twin Cities’ managed portfolio is 18 million square feet.

Commercial Financing Update

2010-10-04T08:56:00.005-05:00

Financing report for the week ending October 1, 2010, provided by Welsh Capital - view the report.

Word of the Week: DIP Financing

DIP financing is an acronym short for debtor-in-possession financing and is generally used to refer to financing arranged by a company while in the Chapter 11 bankruptcy process. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims. It gives a troubled company a new start, albeit under strict conditions related to fulfillment of obligations under its plan of reorganization. A lender providing DIP financing supplies the funds to work out a settlement with creditors up front, in order to walk into corporate bankruptcy court with a pre-packed settlement.

Commercial Financing Update

2010-09-27T08:20:00.003-05:00

Financing report for the week ending September 24, 2010, provided by Welsh Capital - view the report.

Word of the Week: Springing Recourse

Much of the real estate financing of the recent past was originated through conduit lenders and life insurance companies. One of the attractive features of these loans was that they were generally non-recourse (no guaranties were required from the borrower). However, these non-recourse loans often included recourse carve-outs, circumstances or events which trigger enforcement of guaranties. This is often referred to as "springing recourse." The circumstances triggering recourse often involve illegal or adverse events or activities, such as misrepresentations, fraud, illegal transfer of real estate, environment, filing for bankruptcy, or other willful violation of loan covenants.

Let's end on a positive note. We have recently seen the return of conduit lending, and life insurance companies' quotes have been increasingly aggressive. This means financing should be easier to come by, and non-recourse money is making a comeback.

Welsh Capital Completes Two Commercial Financings, Totaling $4.7 Million

2010-09-24T11:02:00.000-05:00

Officials of Welsh Capital announced today the recent closings of two commercial real estate loans, totaling $4.7 million.

Welsh Capital sourced a local credit union for a $3 million financing for Park ‘N Go Minnesota, an airport parking facility located at 7901 International Drive in Bloomington, Minn. The loan has a 25-year amortization with a coupon of just over 5%.

A 2-year, interest only $1.7 million loan was secured with a lender in Florida for the Vero Beach Surf Club Hotel, located at 4700 N A1A in Vero Beach, Fla."In today’s market, it’s imperative to have a good pool of lenders to work with in order to find solutions that fit the borrowers’ expectations," said Lucas Goring, Associate, and Welsh Capital.

Paul Bickford and Brad Bohlman secure NAI Welsh's first industrial listing for Duke

2010-09-23T16:38:00.002-05:00

Duke has hired NAI Welsh brokers Paul Bickford and Brad Bohlman to list Cornerstone Business Park, a 132,000 SF office/warehouse building in Hopkins.

NAI Welsh leases three restaurant spaces totaling 30,922 SF; sells one

2010-09-22T09:25:00.001-05:00

Zach Stensland leased 8,000 SF to Osaka a 77 85th Ave NW in Coon Rapids, while Tony Strauss 9,722 SF to Tom Pham’s Wondrous Azian Kitchen in the Plymouth Building downtown, and 13,200 SF to Whiskey Park, a new country western bar, located in The 15 building.

Bob Minks sold the 5,498 SF Former Bella Sera Restaurant, located at 12730 Elm Creek Blvd in Maple Grove.

NAI Welsh sells three buildings totaling 267,340 SF

2010-09-21T08:30:00.002-05:00

Paul Bickford and Rob Brass recently sold two buildings totaling 135,340 SF for High Street Equity Advisors. Both buildings are located in Brooklyn Park, Minn. Welsh has managed and leased the eight building High Street portfolio for the past four years and will continue to manage and lease the remaining six properties, located throuhout the Twin Cities.

Paul Bickford also sold a 132,003 SF industrial building located at 9200 10th Ave N in Golden Valley, for First Industrial.

Commercial Financing Update

2010-09-20T08:49:00.005-05:00

Financing report for the week ending September 17, 2010, provided by Welsh Capital - view the report.

Word of the Week: AM's

From previous versions of Word of the Week, you all know about "Super Seniors," but last week the "AM's" were also making news, "Mezzanine AAA's Soar." "AM's" is short-hand for the senior mezzanine tranche within the AAA rated tranches of a Commerical Mortgage-Backed Securities bond structure. Even though the "AM" tranche is part of the AAA rated tranches, the bonds are subject to the potential of 100% loss because of their subordination to the Super Seniors. In late 2008 and 2009, "AM" bonds were quoted at 30 cents on the dollar or less. Now, the dollar prices on some "AM" bonds exceed par for some higher quality issues from 2005 and 2006. Many 2007 "AM" bonds are now trading at $90. (Treppwire, Sept. 2010)

Changes to Minnesota Land-Use Approvals

2010-09-15T16:39:00.002-05:00

By: Brian Lubben, AIA, CID
Senior Vice President / Director of Architecture
Genesis Architecture

The Minnesota Supreme Court recently released its opinion in Krummenacher v. City of Minnetonka, which now turns out to be a landmark opinion on land-use variances. Minnesota property owners and developers should be aware of the implications of this ruling as they consider new projects that might require variances.

The Case
In March 2008 the city of Minnetonka approved a variance to expand a non-conforming use at property owned by JoAnne Liebeler based on the analysis that the property could not be “put to reasonable use” by other means. Liebeler’s neighbor, Krummenacher, appealed to the city of Minnetonka City Council where the variance was upheld. Krummenacher then sued in district court challenging the City’s findings and the granting of the variance. The district court affirmed the City’s decision and that ruling was upheld when Krummenacher filed an appeal. Krummenacher then appealed to the Minnesota Supreme Court.

Ruling
The Supreme Court decided that “put to reasonable use” is a very tough standard and one that should only be met when absolutely necessary to avoid a regulatory taking. The Supreme Court overturned the appeals court ruling, significantly reducing the authority of the City of Minnetonka and all other Minnesota cities to allow flexibility to property owners who want to make changes to their property. Prior to this ruling, Minnesota cities had broad discretion in granting variances that allow exceptions to their zoning ordinances.

Scope
The Minnesota Supreme Court made its ruling based on the current state law regarding how cities may grant variances. Therefore, every city in the State of Minnesota is affected by this ruling. Until there is a change to the state statute, all cities are required to abide by the Minnesota Supreme Court’s decision.

Next Steps
The standard for granting variances has been severely restricted by this ruling. Several cities including the City of Minnetonka are working with the League of Minnesota Cities on a broader solution including a proposed change to the state statute during the next legislative session. Some cities may create new permit processes to accomplish the zoning flexibility previously provided through the variance process.

Be sure to consult with your real estate attorney to determine how this ruling affects your property or potential development.

Commercial Financing Update

2010-09-10T16:34:00.003-05:00

Financing report for the week ending September 11, 2010, provided by Welsh Capital - view the report.

Word of the Week: Trailing 12 months ("TTM")

Used frequently by underwriters, and most commonly by agency and conduit lenders, a "TTM" statement shows the last 12 months of income statements for a property. This month-by-month breakdown provides the lender with a more complete picture of the property and helps them spot trends in both income and expense items. To think of it another way, the annual statement is a snapshot, while the "TTM" is a movie (or, fimstrip). When another month is in the books, the oldest month falls off to create the new "TTM." With the downturn, the "TTM" has become a more common request from lenders, who have become more conservative and are more thoroughly analyzing loan requests.

Commercial Financing Update

2010-09-09T11:37:00.004-05:00

Financing report for the week ending September 3, 2010, provided by Welsh Capital - view the report.

Word of the Week: Discount Window

Is there actually a 'discount window'? There probably used to be. The term originated when banks needed to send a representative to a central or reserve bank teller window to borrow money.

Today, the discount window is an instrument of monetary policy that allows banks to borrow money from the Federal Reserve Bank on a short-term basis to meet temporary shortages of liquidity. Each of the 12 Federal Reserve Banks must establish its rate, the "discount rate," at least every 14 days.

The "discount rate" is different than the "federal funds" rate, which is the rate that banks lend balances (federal funds) at the Federal Reserve to other banks. The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee, which normally occurs eight times a year. This target rate for federal funds is usually what is meant when people refer to the Federal Reserve "changing interest rates."

Commercial Financing Update

2010-08-30T08:41:00.004-05:00

Financing report for the week ending August 27, 2010, provided by Welsh Capital - view the report.

Word of the Week: Co-tenancy clause

A co-tenancy clause is common in retail lease contracts. It allows a tenant to receive a rent reduction or terminate their lease if key tenants vacate the property, or overall vacancy hits a certain level (often 70-75%). A large or key retail tenant is a big traffic draw, and other tenants often choose their locations based on traffic derived from those key tenants. A co-tenancy clause provides the tenant with some form of protection in the form of reduced rent to compensate for loss of traffic from the co-tenant.

Retail properties in the worst position are power centers with multiple big-box and junior anchors, in addition to lifestyle centers, which offer co-tenancy clauses on nearly every lease in an effort to attract specialty retailers. These clauses, which were generously offered in good economic times (things will keep getting better forever, right?), end up whip-sawing landlords by amplifying their rental revenue losses in recessions.

Hopefully the economy will improve enough that we will hear the term less and less going forward!

Commercial Financing Update

2010-08-23T08:45:00.002-05:00

Word of the Week: Health Ratio

How's your health? If you are a retail property owner, it may only be as good as your tenant's health. A tenant's health ratio is an indicator of its economic sustainability within a shopping center. It is calculated as the rent expense (base rent plus expense reimbursements) divided by annual sales. For healthy tenants, the health ratio should be in the range of 2-3% for department stores and supermarkets; 5-7% for other major tenants; and 7-10% for inline tenants. These are generalizations, higher margin tenants can tolerate higher ratios and still pass their physical.

Commercial Financing Update

2010-08-16T14:12:00.002-05:00

Financing report for the week ending August 13, 2010, provided by Welsh Capital - view the report.

Word of the Week: Make Whole

A "make-whole" provision in loan documents allows a borrower to prepay the remaining fixed rate term debt balance, but assesses a penalty for doing so. In addition to the debt repayment, the borrower must pay an additional amount that is derived from a formula based on the net present value of the future debt payments. This payment ensures that the lender is compensated, or "made whole." This amount can often be significant. These provisions, while rarely invoked, appear to be more commonplace today, as banks want to ensure that they are adequately compensated for committing long-term funds. Make whole is an alternative to other prepayment penalties including defeasance, yield maintenance, and structured prepayments.

Commercial Financing Update

2010-08-09T10:27:00.003-05:00

Financing report for the week ending August 6, 2010, provided by Welsh Capital - view the report.

Word of the Week: Minimum Debt Yield

I was reviewing a quote for financing, a quote that contained the usual list of required ratios, and I considered that one of these ratios seems to have taken a more prominent position in recent years. That ratio is: Minimum Debt Yield.

While commonly calculated and used internally by lenders, Minimum Debt Yield requirements has been virtually absent from bank term sheets and quotes.

Minimum Debt Yield is simply underwritten net cash flow divided by the principal amount of the loan. This is comparable to a direct capitalization rate where you have net cash flow divided by the sales price, but here, the loan amount replaces sales price in the denominator.

In the turmoil of the last couple of years, Minimum Debt Yield has re-emerged as a go-to benchmark for lenders because it is a clean, straightforward measure of relative risk. Also, if you know a property's NOI and you know the Minimum Debt Yield you want to achieve, then you know your loan amount. With uncertainty about capitalization rates and sales prices, some lenders deflect arguments about current market values by establishing their Minimum Debt Yield and letting a few of the other traditional indicators fall where they may.

Welsh Capital accepting applications for Vice President position

2010-08-06T15:41:00.004-05:00

SUMMARY: Welsh Capital is a financing specialist that provides a variety of creative mortgage financing solutions for developers, owners and investors of commercial real estate. As a member of the Strategic Alliance Mortgage, LLC (SAM), this role combines local expertise with a nationwide network to deliver the best capital market solutions. Welsh Capital provides financing solutions for a variety of property types from sources including commercial banks, Wall Street conduits, life insurance companies, and institutions such as FHA and FNMA. Property Type Specialties include: office, retail, industrial, multi-family apartment, manufactured housing, owner -occupied facilities, and new construction.

For more information about the Vice President position, please visit the Welsh careers page at www.welshco.com/careers/.

Commercial Financing Update

2010-08-02T08:58:00.003-05:00

Financing report for the week ending July 30, 2010, provided by Welsh Capital - view the report.

Word of the Week: Negative Easement

Question: A friend of mine is interested in buying a condo in downtown Minneapolis. It's well priced and a has a great skyline view, but he is concered that his view might become blocked by a new building on an existing surface parking lot next door to the condo building. He was told by the agent that his view would not be blocked because the zoning for the parking lot limited a new building to no more than 5 stories. Is there a term to define what his agent was referring to?

Answer: This limitation could be called a negative easement; a promise not to do something with a certain piece of property. This is essentially the right to prevent the adjoining landowner from doing anything that prevents the full enjoyment of your property, such as a view (building a fence that blocks your view of the mountains), the right to free flow of air, or the right to receive light (solar easements are becoming increasingly popular). Similar to a negative pledge, the negative refers to not doing something.

Commercial Financing Update

2010-07-26T08:59:00.004-05:00

Financing report for the week ending July 23, 2010, provided by Welsh Capital - view the report.

Word of the Week: NOL's (no-las)

Question: Who buys NOL's?

Answer: NOL's are net operating losses. The net operating loss for the company can generally be used to recover past tax payments or reduce future tax payments. In the past, the company could sell those NOL's but the IRS has effectively shut down this activity. The Department of Revenue at the state of Minnesota confirmed that the state does not allow the sale of NOL's. Several states, like New Jersey, had programs to allow the sale of NOL's between high tech companies but they have since been phased out.

Welsh Capital Arranges Acquisition Financing for St. Paul Apartment Complex

2010-07-20T14:35:00.001-05:00

Officials of Welsh Capital announced today the recent closing of a $678,750 acquisition loan for 700 Como Apartments in St. Paul, Minn.

Financing for the 17-unit apartment complex was secured with a local credit union at a fixed rate of 5.69 percent for 30 years. The loan-to-purchase price was 75 percent.

“With all the negative news, it’s nice to deliver a 30-year, fully amortized loan with a coupon of 5.69 percent,” said Welsh Capital Associate Lucas Goring.

Welsh Named 'Best Place to Work' by Minneapolis St. Paul Business Journal for Second Consecutive Year

2010-07-19T16:18:00.002-05:00

The Minneapolis St. Paul Business Journal has selected Welsh as one of the ‘Best Places to Work’ in the Twin Cities for the second consecutive year.

Welsh is one of 15 medium-sized companies, and 55 companies overall, to have made the list in 2010. Rankings will be announced at an awards ceremony on Thursday, Aug. 26. Winning companies are determined by a third-party online employee survey that asks staff to rate their companies’ work environment, people practices, personal growth and development opportunities, day-to-day operations, and innovation and new ideas.

“We are honored that our employees continue to rate Welsh highly. We are committed to providing programs, resources, and a good workplace culture to help make our valued employees successful,” said Rhonda Allen, Vice President, Human Resources.

The Star Tribune recently cited Welsh as a ‘Top Workplace’ in the Twin Cities, ranking among the top 35 midsize companies. In 2009, Welsh held the No.1 Best Place to Work ranking for medium-sized companies from the Minneapolis St. Paul Business Journal. The company has also been named among the ‘Best of the Best’ by Midwest Real Estate News and has received three consecutive Wellness by Design Worksite Awards from Hennepin County for promoting a worksite culture that supports employee health and well-being.

Welsh Capital Arranges Construction-Permanent Financing for Affordable Senior Housing Project

2010-07-19T11:11:00.001-05:00

Officials of Welsh Capital announced today the recent closing of a $3.55 million construction-permanent loan for Taylor Park Senior Apartments, an affordable senior housing project in Sheboygan, Wis. The borrower, an affiliate of St. Paul, MN-based Real Estate Equities, intends to renovate the vacant six-story apartment building at the northwest quadrant of Erie Ave. and 29th St. The property will feature 42 low-income senior housing units when construction is completed. The project is being developed using low-income housing tax credits (LIHTC’s).

The permanent portion of the loan is non-recourse, has a fixed 17.5-year interest rate and a 30-year amortization. Welsh arranged the financing with a local bank within its network.

“Financing LIHTC projects has become increasingly difficult, as several lenders have ceased lending in that space. But by utilizing our extensive lender network, we were able to identify an experienced lender who remains active in tax credit projects,” said Erik Johnson, Senior Associate, Welsh Capital

Commercial Financing Update

2010-07-19T10:25:00.003-05:00

Financing report for the week ending July 16, 2010, provided by Welsh Capital - view the report.

Word of the Week: Super Senior Notes (debt)

Question: I know what a "super senior" is. (someone who takes more than 4 years to get a college degree or someone who is over the age of 65 that finishes the Twin Cities Marathon) How does that apply to "notes"?

Answer: Certain financial assets, like auto loans, credit card receivables, and student loans are pooled together and sold as a security. The security is collateralized by these financial assets and are referred to as collateralized debt obligations or CDO's. The most expensive securities in this pool have the highest quality and lowest exposure to risk. These securities are often referred to as "super senior notes" (the top rated debt in a credit rating). In the case of a default, "super senior debt" is more likely to see at least a portion of its value returned to an investor.

Commercial Financing Update

2010-07-12T15:23:00.002-05:00

Financing report for the week ending July 9, 2010, provided by Welsh Capital - view the report.

Word of the Week: Licitation

Question: I had a client ask me about the sale of a commercial property and they said it was on a "licitation" basis. What is that?

Answer: "Licitation" refers to the sale, typically at auction, to the highest bidder. According to a July 7th article in Bloomberg Businessweek magazine, commercial real estate sales during the first half of this year were about 12% of the sales volume we enjoyed during the first half of 2004. The article went on to explain there weren't enough quality deals hitting the market, owners who owed more than their properties were worth are finding new equity sources, and the existing lenders are willing to restructure their loans. Even though sales climbed 58% from last year's first half, the market would not be considered robust. A robust market would help us climb out of this commercial real estate slump.

A Robust Rebound to Mediocrity?

2010-07-08T16:33:00.005-05:00

Robust Recovery in 2010 Will Just Return U.S. to Middling Economy, Says NAI Global Chief Economist Dr. Peter Linneman

Strong, steady economic growth over the next two years will just return the U.S. economy to a pre-2008 level, giving us back what we needlessly lost due to government-induced panic and poor lending practices, according to NAI Global’s new white paper from Chief Economist Dr. Peter Linneman. The white paper examines the overall outlook for the job market and provides a forecast for the next three years.

“The key for the real estate sector is job growth, as a recovery without jobs does not fill buildings,” Dr. Linneman noted. “We anticipate that the next three years will continue to see average job growth of 250,000 jobs per month, for a three-year job increase of at least 9 million jobs by early 2013.”

“That is robust job growth, but it is important to remember that our forecast would leave us with almost the same number of jobs in mid-2013 as existed at the beginning of September 2008,” said Dr. Linneman. “Even with a robust recovery adding 9 million jobs over the next three years, we will still have an anemic unemployment rate of 7%. Hence, we expect a robust rebound to mediocrity.”

A Robust Rebound to Mediocrity? reviews payroll history and trends, providing an economist’s view of the recovery’s impact on the jobs market today and tomorrow. NAI Global’s white papers and research resources are available for free download at http://www.naiglobal.com/ under Publications/Articles & White Papers.

Commercial Financing Update

2010-07-07T13:06:00.005-05:00

Financing report for the week ending July 2, 2010, provided by Welsh Capital - view the report.

Word of the Week: Carried Interest

Question: I heard that a proposal to change the way carried interest is taxed was recently defeated by the senate. What is carried interest and would that have affected me?

Answer: If you are a general partner of a private equity or hedge fund, the answer would have been yes. Carried interest is the share of profit that the general partners receive as compensation. It is meant to serve as the primary source of income for the general partner. The defeated bill was seeking to tax carried interest as ordinary income rather than as a capital gain. This bill has now been defeated three times.

How to choose the right extension cord

2010-07-02T09:34:00.001-05:00

Extension cords are generally rated in amps and volts, while light bulbs and appliances are rated in watts. To determine if an extension cord is properly rated for the number and types of devices being plugged in, add the total wattage of each bulb or appliance and divide by 120 to calculate the total number of amps. If the total amps are equal to or greater than the maximum rating of the cord, you must use a higher rated extension cord.

Welsh Property Trust, Inc. Withdraws IPO, Cites Unfavorable Market Conditions

2010-07-01T14:51:00.001-05:00

Welsh Property Trust, Inc. (the “Company”) today withdrew plans for its initial public offering, citing unfavorable market conditions as the primary factor in their decision to withdraw their registration statement.

In an offensive move to take advantage of commercial real estate acquisition opportunities, Welsh Property Trust filed a registration statement for a proposed initial public offering on March 3, 2010. The strategy was employed in an effort to source lower-priced capital to finance the purchase of additional real estate.

“We have a strong company that we believe was well-positioned to take advantage of the buying opportunities available in the market today and to deploy offensive capital. Unfortunately, the conditions in the IPO market have proven unfavorable,” said Dennis Doyle, CEO, Welsh. “After facing challenging public market conditions, we decided that it would be in the best interest of our existing investors to cancel the offering.”

Welsh will continue to own and operate commercial real estate, while providing the gamut of commercial real estate services to third-party clients, as they have for the past 33-years. The company will continue to evaluate their options related to the purchase of additional real estate.

More companies in the United States this year have cancelled or postponed IPOs than have actually gone public, according to Thomson Reuters. A total of 67 companies have gone public in 2010, four of which were REIT’s, as compared to 71 who have delayed or cancelled their offerings.

Highview Hills by Walker selected to Minnesota Physician's 2010 Health Care Architecture Honor Roll

2010-06-29T11:54:00.003-05:00

Highview Hills by Walker, a project designed by Genesis Architecture and built by Welsh Construction, has been named to Minnesota Physician’s 2010 Health Care Architecture Honor Roll.

The 245,486-square-foot, 153-unit senior living community nestled on just over 6 acres was designed with a continuum of care concept, allowing residents to remain within the community as their care needs change. The building includes 75 independent-living units, 44 assisted-living units, 24 memory-care units, 10 assisted-living care suites and two guest suites. Other amenities include a commercial kitchen with demonstration area, salon, theater, convenience store, fitness center, library, billiards room, craft room, walking paths, rooftop garden and nine-hole putting green.

Minnesota Physician’s 2010 Health Care Architecture Honor Roll recognizes nine outstanding projects completed in the past year. The projects differ in intended uses, but share a focus on efficiency, safety and patient-centered care in addition to environmentally sound design, state-of-the-art technology and continuity of care.

Highview Hills by Walker is owned and operated by Minneapolis-based Walker Methodist, which operates nine other senior living facilities in Minnesota. For more information on Highview Hills, visit www.highviewhills.com.

Commercial Financing Update

2010-06-25T16:49:00.003-05:00

Financing Report for the week ending June 25, 2010, provided by Welsh Capital - view the report.

Word of the Week: Creative Financing

Question: In commercial real estate, what does "creative financing" really mean?

Answer: Creative financing generally refers to non-traditional means of financing commercial real estate or financing techniques not commonly used. Historically the goal was to finance a property with the least amount of equity possible (greatest leverage). Today, a more accurate definition might be the strategies used to cover the difference between what is owed on the property and what a lender would lend on the property. Financing this shortfall involves creative strategies from pledging additional collateral, increasing personal guarantees, drawing on lines-of-credit, or creating secondary debt on other performing real estate. Our role as a commerical mortgage broker has expanded to include creative financing.

HVAC Preventable Maintenance

2010-06-23T09:00:00.000-05:00

There are a number of things you can do to extend the life of your heating and air conditioning units.

1. Wash your home condenser unit at least two times during the summer. To do so, turn off the power using the wall switch. Then wash the coil from the inside out. You don’t need to remove the top of the unit or any other covers, simply spray the inside of the coil surface with the garden hose until the water comes out nice and clean. This will make your A/C unit last longer and work less to save energy and money.

2. Have your furnace checked during the summer months. This will give you an advantage in purchasing replacement parts at lower prices. If you wait until fall, not only will contractors be booked up, but you won’t have time to shop around for the best price.

3. If you have a thermostat containing mercury, remove and replace with a mercury-free version that allows you to set programs. This will enable you to use less energy when are away at work or out of town. You can recycle your old thermostat at the store where you purchased it.

Welsh Named Top Workplace by Star Tribune

2010-06-21T09:45:00.005-05:00

Welsh has been named one of the Top Workplaces in the Twin Cities metro area by the Star Tribune. Results are based on a third-party employee survey.

Welsh ranked No. 15 in the midsize category. Of the 100 companies on the list, 20 are large companies, 35 are midsize and 45 are small. Complete results can be found in the Sunday, June 20 edition of the Star Tribune or online at www.StarTribune.com/topworkplaces.

Top Workplaces recognizes the most progressive companies in the Twin Cities metro based on employee opinions relating to the company’s leadership, career opportunities, workplace flexibility, compensation and benefits. The analysis included responses from over 33,000 employees at Minnesota public, private and non-profit organizations.

Final rankings of Top Workplaces are based on the survey information that was collected by Workplace Dynamics, an independent research company that specializes in employee engagement and retention.

Star Tribune Publisher Michael J. Klingensmith said, “I congratulate each of the companies in the Star Tribune Top Workplaces on their outstanding accomplishment. They have succeeded in creating a positive workplace for their employees during very challenging economic times.”

In 2009 Welsh was named to the Minneapolis St. Paul Business Journal’s ‘Best Place to Work’ list, placing No. 1 in the medium-sized company category. The company was also named among the ‘Best of the Best’ by Midwest Real Estate News and has received three consecutive Wellness by Design Worksite Awards from Hennepin County for promoting and fostering a worksite culture that supports employee health and well-being.

To qualify for the Star Tribune Top Workplaces, a company must have more than 50 employees in the Twin Cities metro area. Over 1,000 companies were invited to participate. Rankings were composite scores calculated purely on the basis of employee responses.

Commercial Financing Update

2010-06-18T15:32:00.003-05:00

Financing report for the week ending June 18, 2010, provided by Welsh Capital - view the report.

Word of the Week: Floor Planning

Question: I've heard the term floor planning used by auto dealers. What is that?

Answer: Floor planning is a loan made by a bank to finance a dealer's inventory. The dealer issues a Trust Receipt to the bank, and the bank is repaid as the cars are sold. This typically is higher risk financing because there is a chance a car could be sold without notifying the bank, which is also referred to as, "selling out of trust."

Welsh Earns Third Consecutive Hennepin County Wellness by Design Award

2010-06-18T09:26:00.001-05:00

Welsh was awarded Hennepin County’s Silver Wellness by Design Award for excellent efforts in promoting workplace wellness. This is the third consecutive year the company has been recognized.

Welsh fosters a workplace culture that supports and promotes health and wellness. The company subsidizes annual participation in the Twin Cities 5K, operates free employee fitness centers, and supports an on-site wellness center that provides chiropractic care and massage therapy. They have also partnered with Nutritional Weight & Wellness to offer nutritional counseling and various seminars for employees.

“The Wellness by Design Award, now in its fifth year, has come to symbolize an organization’s commitment to creating policies, programs and environments that support and encourage employee and student health,” said Lisa Mueller, program manager, Hennepin County Public Health Promotion.

Wellness by Design Award winners have an infrastructure in place providing supportive environments for developing lifelong, healthy behaviors. In 2010, Hennepin County honored 67 worksites and 45 schools for their efforts. Awards are presented in four levels: bronze, silver, gold and platinum.

Since its inception in 2006, 297 Wellness by Design Awards have been presented. For more information, visit www.hennepin.us/wellnessbydesign.

Commercial Financing Update

2010-06-11T17:23:00.001-05:00

Financing report for the week ending June 11, 2010, provided by Welsh Capital - view the report.

Word of the Week: NAIC Rating

Question: I’ve heard of a Moody’s, S&P and a Fitch ratings but what is an NAIC Rating?

Answer: An NAIC Rating is a rating scale developed by the National Association of Insurance Commissioners (NAIC). The NAIC would rate municipal or public debt using a number from 1- 6. A rating of 1 or 2 would be considered “investment grade”, a rating of 3 or higher would be considered “non-investment grade”. Insurance companies hold the greatest percentage of outstanding municipal bonds as investments. The chart below compares the NAIC Rating to Moody’s, S&P and Fitch credit ratings.

Is the Economic Recovery on Solid Ground?

2010-06-08T07:55:00.001-05:00

Join NAI Global Chief Economist Dr. Peter Linneman for a discussion on how the European debt crisis will impact economic recovery in the U.S. and the rest of the world. Is our confidence shaken, or just stirred? Dr. Linneman will also be available to answer your questions during the event.

The Global Economic Outlook Web Conference will be held July 21, 2010 at 1:00 pm EDT. Participation is limited, so be sure to register early by clicking here.

Commercial Financing Update

2010-06-07T15:01:00.001-05:00

Financing report for the week ending June 4, 2010, provided by Welsh Capital - view the report.

Word of the Week: Boston Matrix

Question: I’ve heard the terms rising star, cash cow, dog, and problem child used in business discussions. Where do these terms come from?

Answer: The Boston Matrix model is used to classify a product or service in both a growing market and a mature/contracting market.

If the product or service is in a growing market but it has low market share, then it is commonly referred to as a “problem child”. Conversely, if it has high market share, then it is commonly referred to as a “rising star”. A property leasing up quickly in a booming real estate market would be a “rising star”.

If the product or service is in a mature or contracting market but it has low market share, then it is commonly referred to as a “dog”. Conversely, if it has high market share, then it is commonly referred to as a “cash cow”. A property maintaining occupancy and attracting new tenants in a mature or declining market would be a “cash cow”.

Managers will create a strategic plan based upon where the product or service fits in the Boston Matrix.

Commercial Financing Update

2010-06-01T08:38:00.003-05:00

Financing report for the week ending May 28, 2010, provided by Welsh Capital - view the report.

Word of the Week: Cash Flow Sweep

Question: My lender is asking me to agree to a "cash flow sweep" in my loan documents. What is that and why do they want that?

Answer: In commercial banking, a cash sweep is an automated process whereby all, or a portion of the available cash is moved from a non-interest bearing account into an interest bearing account or an interest bearing instrument. In commercial lending, a cash flow sweep is an agreement by the borrower up front to have their tenants deposit their rent checks with the bank. The bank would pay the operating expenses of the property and apply the balance to principal and interest payments due on the loan. Typically, a cash flow sweep is triggered if the loan goes into default status. Whether this account is set up at the time the loan is closed or a future date is dictated by the lender.

Commercial Financing Update

2010-05-24T07:54:00.003-05:00

Financing report for the week ending May 21, 2010, provided by Welsh Capital - view the report.

Word of the Week: Intertemporal Consumption

Question: I've heard and read stories as to how this "new economy" is changing the way consumers save and spend, and have also heard that the "20 something" population is spending. What is "intertemporal consumption?"

Answer: Intertemporal Consumption relates to economic theories that seek to explain people's preferences in relation to consumption and saving over the course of their life. Consumption and savings patterns are different for a 26 year old consumer and a 70 year old consumer. One economic theory is "hump saving," which hypothesizes that savings would be highest in the middle years of a person's life as they save for retirement.

Commercial Financing Update

2010-05-17T13:17:00.003-05:00

Financing report for the week ending May 14, 2010, provided by Welsh Capital - view the report.

Word of the Week: Cloud Computing

Question: I was told that "cloud computing" is a new trend that will change how I get updated computer software and how computer file storage will be handled in the future. What is it?

Answer: Cloud computing is a general term used for anything that involves delivering hosted computer services over the internet. These services are broadly divided into threee categories:

Infrastructure-as-a-Service (IaaS): Infrastructure as a Service is a provision model in which an organization outsources the equipment used to support operations, including storage, hardware, servers and networking components. The service provider owns the equipment and is responsible for housing, running and maintaining it. The client typically pays on a per-use basis.

Software-as-a-Service (SaaS): Software as a Service is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the internet.

Platform-as-a-Service (PaaS): Platform as a Service is a paradigm for delivering operating systems and associated services over the Internet without downloads or installation.