The Holton Group buys 1240 Cedar Ave for $2.05 million

Apartments bought for $2.05 million BOULDER -via BCBR

A Boulder-based real estate investment company has purchased a 13-unit apartment building near the intersection of Broadway and Cedar Avenue in Boulder for $2.05 million. 1240 Cedar LLC, managed by Scott Holton and Chris Jacobs, both of the Boulder-based Holton Group, bought the 12,804-square-foot building at 1240 Cedar Ave. with financing from FirstBank of Boulder. The seller was Denver-based Cedarbridge Apartments LLC.

"The apartments at 1240 Cedar have very high historical occupancy, and it's rare to be able to purchase a building with such character so close to downtown," Holton said. "This acquisition underscores our continuing confidence in the strength of the Boulder residential market." Holton said he plans to keep the building as apartments for now.

The Holton Group made a similar acquisition in the same neighborhood in 2008 - purchasing 1201 Balsam Ave. (http://1201balsam.com) and converting the 16 one- and two-bedroom units into for-sale condominiums. Holton said 11 out of 16 units at The Flats at 1201 Balsam are under contract with five remaining in the $335,000 to $365,000 price range. The project is expected to be complete by March 1.

"We truly believe in that sub market - being close to downtown, parks and shopping," Holton said.

Crispin Porter + Bogusky Names New Partners

Shopping center in Boulder SOLD

Shopping center in Boulder sold
Source:
--> By Business Report Staff


January 25, 2010 --

BOULDER - A real estate investment company based in Honolulu has acquired the Meadows on the Parkway Shopping Center in Boulder for $30.8 million.

A&B Properties Inc., the real estate subsidiary of Alexander & Baldwin Inc., (NYSE: ALEX) bought the 216,400-square-foot retail center from Foothills Center Limited Partnership based in Piedmont, Calif.

The eight-building center is located at the intersection of Baseline Road and Foothills Parkway one mile from the University of Colorado campus. It was constructed in 1989 and features seven retail-designated buildings with 179,800 square feet of space and one office building with 36,600 square feet of office space. The center is approximately 83 percent occupied. Key national tenants include Safeway, Michael's and Rite Aid.

"The addition to our portfolio of Meadows reflects A&B's strategic objective of acquiring properties in prime markets with excellent potential for appreciation and growth," said Norbert M. Buesling, president of A&B Properties.

A&B Properties' commercial property/investment portfolio consists of 8.3 million square feet of retail, office and industrial space located in Hawaii and eight U.S. mainland states.

Posted: Monday, January 25, 2010 2:14 PM by Jennifer Egbert | 0 Comments

Clovis led Boulder Valley VC parade

Clovis led Boulder Valley VC parade via Boulder County Business Report

BOULDER - Drug developer Clovis Oncology Inc. in Boulder led nine companies in the Boulder Valley that received $73.4 million in venture capital during fourth quarter 2009, according to the MoneyTree Report compiled by PricewaterhouseCoopers and the National Venture Association.

Clovis received $65.6 million in two separate rounds of $50.5 million and $15.1 million from Aberdare Ventures, Abingworth Management Ltd., Domain Associates LLC, Frazier Healthcare and Technology Ventures, New Enterprise Associates Inc., ProQuest Investments and Versant Ventures.

The company received $146.3 million in venture capital during the second quarter of the year. Clovis raised about $212 million in 2009.

The early stage biotech firm is focusing on developing and commercializing anti-cancer compounds in the U.S., Europe and other international markets. Clovis was co-founded and is headed by Patrick Mahaffy.

Mahaffy previously co-founded and ran bioscience firm Pharmion Corp., which was sold to Celgene Corp. (Nasdaq: CELG) in March 2008 for $2.9 billion.

For the year, Boulder Valley companies raised $340,511,000.

Statewide, 19 companies raised $171,650,300 during the fourth quarter. Colorado companies raised $514,998,400 for the year.

Other companies in the Boulder Valley raising funds in the fourth quarter listed by name, city, amount raised, business description and funders:

EnVysion LLC, Louisville, $2,330,000, computers and peripherals, Columbia Capital LLC, High Country Venture LLC.

SimpleGeo Inc., Boulder, $1,500,000, develops location-based technology, First Round Capital, individuals, Redpoint Ventures, undisclosed firm.

Graphic.ly, Boulder, $1,200,200, provides digital content delivery system and community platform, DFJ Mercury, GC&H Partners, individuals, North East Finance, undisclosed firm.

SendGrid Inc., Broomfield, $750,000, provides e-mail services, Highway 12 Ventures, SoftTech VC, TechStars, undisclosed firm.

Next Big Sound Inc., Boulder, $585,000, provides online music analytics and analysis, Foundry Group.

Efficas Inc., Boulder, $500,000, develops compounds for health and wellness management, Burrill & Co.

Mandelbrot Project Inc., Boulder, $500,000, provides products and services, Foundry Group.

Everlater Inc., Boulder, $350,000, operates an online platform for sharing travel experiences, Highway 12 Ventures.

HUD relaxes restriction on investor fix and flip

On Monday, Jan. 18, 2010, the Housing and Urban Development Office temporarily waived restrictions regarding reselling homes purchased and resold within 90 days. For the past three years, HUD would not guarantee FHA loans for a home that had been acquired by the seller within the previous three months, Buyers using government backed mortgages were unable to purchase homes that had been reconditioned until the mandatory 90 days had passed. For the next year, that restriction is removed in hopes of stimulating the sale of foreclosed and distressed properties.

The new policy recognizes that most foreclosed homes require improvements and that investors provide the capital, resources, and manpower to bring the home up to an acceptable standard. The 90-day rule added an additional cost to the investor, as it required incurring 3 months of additional interest payments and loss of available funds for other investments, diminishing the return on the investment. With prices falling for the past two years, the additional restrictions only fueled the problem. The result was discouraging investments into neighborhoods as homes stood vacant and often vandalized and deteriorating over time.

There are other aspects that are required as part of the revised policy.

First, the sale must be at an arms length. In short, you cannot sell a home you purchased less than 3 months ago to a family member or someone with an “identity of interest.”

Second, if the new sales price exceeds 20% of the original acquisition costs, there must be substantial documentation in the file as well as 1-2 appraisals. In addition, the lender must order an inspection to be completed with the report provided to the buyer prior to closing. The lender has the right to recover the costs from the buyer.

Third, the loan must be a new loan and does not apply to Home Equity Conversion loans. For a full review of this policy, please visit http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

The bottom line for investors; You are now able to shorten the time between acquiring a property and placing it back on the market for buyers using Government back mortgages. If the new sales price is more than 20% from the price you purchased the home for initially, you will be asked to provide documentation to justify the increases. Best practice is to establish an independent account detailing expenses and fund used. It will ultimately depend on the appraisals to warrant the increase is within market pricing and neighborhood values.

The bottom line for Buyers; You now have the advantage of finding a recently updated home without having to wait till the seller exceeds 90 days. If you are using a Government backed mortgage program such as FHA, you will have access to more home buying options sooner. In addition, credible investors insure your new home has been brought up to current building codes and improved the style and décor, minimizing your initial expenses as well. Be aware that the process will require documentation from the seller to justify the sales price if greater than 20% and two appraisals are likely. In addition, the lender will most likely charge you for an inspection they originate regardless of the outcome of the inspection. This may be independent of the Inspection deadline and resolution deadlines you present in your offer to buy. Best practice is to discuss this scenario with your lender before entering into an agreement or contract with a seller.

Investment in real estate often provides higher returns in comparison to other traditional and less secured sources. Combined with the incentive to new buyers, it is beginning to shift the landscape to a more balanced marketplace. Boulder recovers faster and often, neighborhood by neighborhood. It is important to be fully aware of the history of the home and to know what has been done to improve the property. Remember, compared to other investment opportunities, real estate often outperforms traditional sources.

Making Home Affordable Program

Making Home Affordable Program via Realtor.Org

On February 18, 2009, President Obama announced his Making Home Affordable Program (MHA), designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. In doing so, the plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

For more detailed information, visit MakingHomeAffordable.gov. 

Latest News:
FHA Home Modification Program Will Help Thousands of Homeowners

What Should You Do If You Think a Servicer Isn’t Following the Making Home Affordable Program Guidelines

Members have called NAR asking what to do if they think that servicers are not following the guidelines for the Obama Administration’s Making Home Affordable Program for modifying eligible mortgages and refinancing Fannie Mae and Freddie Mac mortgages.
View the recommended steps to take>

Part of NAR's Right Tools, Right Now Initiative
In these uncertain times, NAR is here to help you succeed with the Right Tools, Right Now initiative, offering more than 300 educational products, publications, and services free or at cost. For more information, visit www.REALTOR.org/RightTools.

Bridge Loans: Using the Home Buyer Tax Credit Up-Front

Bridge Loans: Using the Home Buyer Tax Credit Up-Front via Realtor.Org

In mid-May 2009, the U.S. Department of Housing and Urban Development (HUD) launched a program that would allow federally approved lenders to offer bridge loans to cover closing costs for borrowers who take the 2009 First-Time Homebuyer Tax Credit and who use financing backed by the Federal Housing Administration (FHA). These loans allow buyers who are eligible for the credit to apply those funds towards their downpayments and closing costs, using the credit as collateral.  Once buyers receive the credit after filing their 2009 tax returns, the money will then be used to repay the bridge loan. 

Due to considerable challenges in making these loans widely available, few lenders are currently offering these bridge loans. However, there are still many other funding sources to explore, including:

1. State Housing Finance Agencies
2. Local Governments and Nonprofit Agencies

State Housing Finance Agencies

Determining whether your state has a program

As of mid-2009, more than a dozen state housing finance agencies (HFAs) were offering bridge loans to prospective buyers, and many more were planning to do so. Currently, the following states have programs in place: Colorado, Delaware, Idaho, Illinois, Kentucky, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee, Texas, and Virginia.

To determine whether or not your state has begun offering these loans, you can:

• Find your state's HFA phone number on the National Council of State Housing Agencies' (NCSHA) member list.  
• Consult the NCSHA's list of HFA's offering bridge loans.

If your state offers these loans, information should be available on the state's HFA web site, which should be listed on one of the pages above.

Things you should expect from a state HFA advance loan

Although state HFA bridge loans differ from state to state, here are some typical characteristics

• Buyers will need to make a minimum down payment from their own funds—probably approximately $1,000.
• A local lender approved by the HFA will need to originate the loan, since HFAs themselves do not originate loans.
• Buyers will use HFA-backed financing for their mortgages.
  

Other things to note about HFA bridge loans

• Some are interest-free, others are not. So be sure to check with your lender.
•  HFAs have limited funds to devote to these bridge loans, so they are often made on a first-come, first-served basis.

Applying for an HFA loan

Since this financing often includes a below-market interest rate, it requires borrowers to meet eligibility criteria—often these include being a first-time buyer, and meeting income requirements.  For the bridge loans, there’s a good chance the criteria will be similar to what’s required for the tax credit.

Local Government/Non-Profit Associations

If your state HFA does not offer loans, the staff may be able to direct you to local nonprofit organizations that do have programs—if any exist. 

Another good place to start a search is NeighborWorks, a national nonprofit which maintains a list of more than 200 local affiliates that provide housing assistance. Each affiliates' loan program will be different, so buyers should be sure that the organization offers bridge loans repayable with the tax credit, and that they understand the underwriting standards and loan terms. 

FHA-Approved Lenders

If you are unable to identify other sources of funding, you may be able to obtain loans from FHA-approved lenders. Although as of mid-2009 many lenders had not yet begun offering these loans, it is possible that more will launch bridge loan programs before the credit expires.

Unlike loans from state and local agencies or nonprofits, the bridge loans provided by private, for-profit FHA-approved lenders must be structured in the form of a personal loan or line of credit. These loans are collateralized by the tax credit and cannot be structured as a second mortgage.

Also, although FHA allows you to use the bridge loan to cover closing costs or to buy down your interest rates,  you can put it towards the down payment only after you've covered the 3.5 percent minimum that is required on any FHA loan. Therefore buyers will need to contribute the 3.5 percent minimum down payment themselves or find another funding source to cover it. However, buyers should be aware that seller-funded down-payment programs are not permitted to be used. 

HUD provides complete details in Mortgagee Letter on “Using First-Time Homebuyer Tax Credits”. However, since individual FHA-approved lenders will be making the loan, actual loan terms will vary. At a minimum, though, the bridge loan must meet certain restrictions, which are intended to eliminate fraud or ensure that borrowers do not get in over their heads. Restrictions include: 

a. Loans can not result in cash back to the borrower
b. The amount can’t exceed the amount required for the down payment, closing costs, and prepaid expenses
c. Monthly repayments must be included within the qualifying ratios and, when combined with the first mortgage, cannot exceed the borrower’s reasonable ability to pay.
d. Payments must be deferred for at least 36 months to not be included in the qualifying ratios.
e. There can be no balloon payment required before ten years.

Applying the Home Buyer Tax Credit to Your 2009 Tax Return

10 Tips for Home Buyers to "Go Green"

With “going Green” the hottest topic in Real Estate these days, it can sometimes be a daunting task getting your head around all that “Green” involves and includes. This helpful article gives a better sense of ten items to look for when you want to go green on your next home. For the full article;  http://realestate.msn.com/article.aspx?cp-documentid=23255669

1. How big is it? The bigger the home, the more energy it uses. The U.S. Green Building Council considers a “neutral size” home — basically what most people need, without what might be considered luxury space — to be 900 square feet for a one-bedroom home, 1,400 square feet for two bedrooms and 1,900 square feet for three bedrooms. A 100% increase in the size of the home adds anywhere from 15% to 50% to energy use.

2. Where is it? Can you walk to public transportation? Are there sidewalks or easy places to walk in the neighborhood, so you don’t always have to drive?

3. How is it oriented? South-facing windows can trim heating costs in the winter. Shade from trees to the south and west can reduce cooling costs in the summer.

4. Is it well-insulated, and are doors and windows sealed tightly against air leaks? The U.S. Energy Star Web site, energystar.gov, features a calculator to help determine how much insulation you need, based on your location.

5. Has the indoor air quality been tested? Well-insulated, well-sealed homes not only hold in heat and cooling, but also can retain toxins such as formaldehyde, mold, asbestos and lead

6. If it’s an older home, have insulation, heating and cooling systems and appliances been upgraded? Newer products are far more efficient than those bought several years ago.

7. How efficient is the water usage? Are the kitchen and bathrooms equipped with water-efficient plumbing fixtures?

8. What’s on the roof? A lighter-colored roof reflects more heat than a dark-colored roof, which absorbs heat, putting more strain on the cooling system.

9. Where did the home’s materials come from? Recycled or salvaged building materials reduce the home’s impact on the environment.

10. Has it been certified green? The U.S. Green Building Council, the Environmental Protection Agency and others offer ratings on homes, based on inspections by trained third-party professionals.

Boulder Market Trends 2000-2009

Boulder County offers 'green' commercial loans

County offers 'green' commercial loans via Boulder County Business Report

A Boulder County program offering low-interest loans for energy efficiency and renewable energy upgrades is now open to commercial property owners.

County officials said there is $12 million available to the commercial real estate sector within Boulder County and its cities through the ClimateSmart Loan Program.  Applications are due by March 15.

The program provides full financing at a discounted rate for more than 40 different energy efficiency and renewable energy upgrades. The county was authorized to issue up to $40 million in bonds - ultimately funded by outside investors - to support the program after voters passed ballot issue 1A in November 2008.

In 2009, Boulder County allocated 612 ClimateSmart loans worth about $9.8 million to the residential real-estate sector. This will be the program's first foray into the commercial sector.

Financing obtained through the ClimateSmart Loan Program is repaid by the property owner during a 15-year period. Payments are made via a special assessment that is included with the annual property tax bill, tying the loans to the actual energy improvements and not to individual owners.

For more information, visit: http://ClimateSmartLoanProgram.org

Noodles' founder to back new eatery

Noodles' founder to back new eatery

 

LONGMONT - Aaron Kennedy, the founder and former chief executive officer of Noodles & Co., is co-founding a new restaurant in Longmont. Basil Flats at 1067 S. Hover Road will be a fast-casual restaurant and feature a northern Mediterranean coast cuisine with a wine bar and a regional microbrew selection. It is expected to open in mid- to late February. Kennedy is co-founding the new restaurant with former Noodles Chief Operating Officer Joe Serafin, who developed the concept. Company officials said more details about the new restaurant will be revealed closer to opening day. Kennedy founded Noodles & Co. with a group of private investors in 1995. He helped grow the fast-causal noodle restaurant nationwide. He stepped down as chief executive officer in 2006 and as chairman of the board in 2008. Today, Noodles has 220 restaurants in 18 states.

 

As reported in the Boulder County Business Report 1/12/2010

The Awesome Breakdown of the $6500 Tax Credit

Are you eligible to receive the $6,500 tax credit for home buyers?  The Washington Post has put together a punch list for you, to review:

• You have owned and resided in your current home for a consecutive 5 out of the last 8 years and your adjusted household income doesn't exceed $125,000 if you file your taxes singly and $225,000 if you're married filing jointly.

• Whatever you intend to purchase, the home cannot cost more that $800,000

• The replacement home must become your primary residence.  There is no requirement in the legislation that says you have to sell your current home

• Like the First Time Home Buyer Credit, the $6,500.00 version permits a broad range of dwelling types for your purchase.  These include newly constructed or existing single-family homes, condos, manufactured or mobile homes, even boats that function as your principal residence!!!

• Be under contract by April 30th and close by June 30, 2010

Learn more about the tax credit from the Official Gov't website at http://www.federalhousingtaxcredit.com

Listen, home prices are stabilizing.  Interest rates are at historic lows.  If you have given ANY THOUGHT to purchasing your dream home, now is a KILLER time to be doing so.  

 

I hope you're having an awesome holiday season!!!

Best Regards,

Jennifer 

 

 

 

Slow recovery ahead for real estate

Slow recovery ahead for real estate
Source:
--> By Business Report Staff


November 25, 2009 -- BOULDER - It's a clichÇ phrase in the real estate world, but experts at the Boulder Valley Real Estate Conference & Forecast told audience members that "now is the time to buy."

Giving their views for 2010, local and national real estate experts said they expect the economy to slowly recover, and along with it interest rates likely will rise.

About 500 people attended the conference presented by the Boulder County Business Report on Nov. 19 at the Millennium Harvest House Boulder. Lead sponsors were Re/Max of Boulder and The Colorado Group.

Brad Blackwell, retail national sales manager of Wells Fargo Home Mortgage, said the U.S. Federal Reserve plans to slowly withdraw its emergency support from the mortgage markets, which likely will raise rates starting in January.

While housing prices may still fall in 2010, today's low interest rates are a better deal in the long run.

"It's important for people to move off the fence now," Blackwell said "It's a great time to buy."

On the commercial side of real estate, Scot Smith with The Colorado Group Inc. said local vacancy rates were holding up stronger than expected as many landlords lowered rates and offered deals to keep tenants.

"Tenants can expect some lease concessions, but they should also be prepared to give some form of personal financial assurance that they will pay the lease," Smith said. "For landlords, it's important that they sell the value of their product - 'you can get a good deal from me, but it's not slash and burn time.'"

In the buying and selling real estate market, Smith said things likely will remain stagnant. While there will be good deals to buy, loans will be difficult to obtain, he said.

On the residential side of real estate, D.B. Wilson with Re/Max of Boulder said homes of less than $500,000 continue to see improvements in sales, but the high-end home market is still facing challenges. Much of that is tied to higher jumbo mortgage rates, although those have come down from 8 percent last year to about 5.75 percent today.

Wilson also noted that foreclosures were back on the rise, and that would be something to watch out for.

From a macro-economic viewpoint, Patti Silverstein, chief economist for the Metro Denver Economic Development Corp., and Paul Bishop, managing director of Real Estate Research at the National Association of Realtors, said the economy likely had hit bottom in the third quarter of 2009 and would start to make a slow recovery.

Bishop said raising consumer confidence would be a key factor in getting the economy back on track. Silverstein said while residential real estate will continue to recover in 2010, commercial real estate will likely face troubles as short-term loans from the boom come due in midst of a tough credit market.

- David Clucas

Posted: Monday, November 30, 2009 11:06 AM by Jennifer Egbert | 0 Comments

Making a Difference in the World.

DOING BUSINESS WITH JENNIFER MAKES A DIFFERENCE

5% of every one of our closings is donated to the Sioux Indian YMCA.  The Sioux Indian YMCA is located in Dupree County in South Dakota.  This county is the United State's most impoverished.  Even if you're not buying or selling, right now, and have extra ANYTHING that you can donate, please do so. 

Please click on this link: http://www.siouxymca.org/ to locate the donations page.  ANYTHING HELPS and THANK YOU for your generosity.

Open House This Sunday

Please take a peek at http://427vivianst.jenniferegbert.com this Sunday from 1 to 3pm.  This Old Town Longmont Bungalow is PERFECT!!! If you have any questions, give me a call.

 

Jennifer