Yep, You DO Need a North Carolina Commercial Real Estate Broker to Sell Your Land!
Commercial land transactions that did not end well are a leading contributor to the use of error and omissions insurance claims! There are so many variables in a land transaction that it pays to have someone experienced leading, guiding, educating and closing the sale for you. In the state of North Carolina we have seen far too many agents not educated in the potential intricacies associated with the purchase or sale of land. Often times the broker is a residential only agent that see dollar signs in front of them. We all understand this and many have been down this road. Heck, we know great land brokers today that once started that way and came through unscathed. But we also know brokers that have gotten in over their heads and ended up regretting the fact that they attempted. In many cases the client just moved on and a relationship was damaged. Often times the Broker has waited too long and the damage has been done. In which case, hopefully the Broker has good E&O insurance.
Land? Help me sell it!
Of course we want to determine the highest and best use of the property in question. But there are so many questions to be asked! Does the land have access to public utilities? Who manages those utilities? Are they onsite? Which utilities? How far from the subject property are the water main taps? Does the water line need to be extended? Are we are on a well? Commercial septic? Private septic? Ingress and egress? What will the municipality require? How is the topography? Are there wetlands? What is the current zoning? What is the tenor of the municipality regarding rezoning? Special use permit needed? What are the setbacks? Do you know about any upcoming road changes? What is DOT requiring? Turning lanes? Road widening? Traffic signals? Will you need curb and gutter? Of course many of these questions are more about the end user developing the land if indeed the highest and best use is to develop it for commercial or residential purposes. What about the things like the timber? Is the land being used or leased for agricultural purposes? Do you own the surface rights only? Do you own all of the mineral rights? Is any of the land in a floodplain? Will it perk? What about the impact of neighboring tracts? Has anyone done a Phase I environmental study? Is there rock on the land? Does the property need to be annexed? Are there cemeteries on the land? Are they of historical significance? Is there historical significance of any kind on the property? Easements and right of ways – have any been granted?
We recently sold and closed on a tract of land that experienced a delay in the process due to the fact that there was a small old (barely can find it) cemetery on the property. When the state took a look they recommended that the state historical and anthropology department take a closer look. For the next 30 days, while the Seller and Buyer waited anxiously, the anthropologists worked the soil to determine if there was additional historical significance. Thankfully for us, we are now closed. It is the unexpected contingencies that can cause stress if the buyer or seller are not prepared in advance.
Do not be blown away by Big Brokerages and/or Big Named agents. While they may be the answer you are looking for and be a great fit, they may not be? Ask them about the things above. Ask them if they have ever sold any land and how those transactions went. Ask them about the various contingencies that may present themselves. The pint here is. Find someone that will put the time in to “walk the land” and get to know it. Someone that will help identify the various Highest and Best Uses. Find someone with “reach” to investors and and users alike. Someone that wants to list AND sell your property. Not just list it.
Mineral Rights versus Surface Rights
If you have commercial real estate needs, please contact our team here at Kima Commercial @ KW Commercial. Our team is ready to assist you in the pursuit of your real estate needs.
- Raleigh commercial real estate
- Wake Forest commercial real estate
- Cary commercial real estate
- Apex commercial real estate
- Rolesville commercial real estate
- Fuquay Varina commercial real estate
- Morrisville commercial real estate
- Garner commercial real estate
- Holly Springs commercial real estate
- Wendell commercial real estate
- Zebulon commercial real estate
- Youngsville commercial real estate
North Carolina is experiencing an increase in the level of investors flocking into all counties of the state. Domestic and foreign monies are ready to be spent in the Tar Heel state due to the strong economic impact of commerce, industrial, and tourism. Also, the lower retail vacancy compared to the rest of the nation has catapulted the Tar Heel state at the forefront of North American Economies. 1031 domestic and cash foreign investors are taking advantage of the unparalleled economic growth in cities such as Charlotte, Raleigh, Greensboro, Winston-Salem, Ashville, Carrboro/Chapel Hill and Wilmington.
Just to name a few investors in the thriving North Carolina cities, the following are recent transactions:
- Cedar Grove Capital, a New York-based property investment firm, purchased the 86 North Apartments complex in Chapel Hill, North Carolina, for $17.2 million, or about $178,000 per unit.
- A real estate investment group based in Southern California closed on its purchase of an apartment community in North Carolina’s Research Triangle area, home to the nation’s largest research park. Brookline Investment Group bought the Phillips Research Park, a 292-unit apartment community at 1533 Ellis Road in Durham, according to a statement from Capstone Apartment Partners, which represented the seller in the deal. Brookline paid about $46 million for the complex, according to CoStar data, and bought the property from Tampa, Florida-based Phillips Development.
- Longfellow Real Estate Partners bought out its equity partner in a nearly 1.34 million-square-foot portfolio in North Carolina’s red hot Research Triangle for about $303 per square foot. Boston-based Bain Capital Real Estate sold its stake in the 18-property portfolio in a transaction valued at about $405 million, according to a statement from JLL, which represented the seller in the deal. The deal was being marketed by HFF prior to the company being acquired by JLL on July 1.
- The Chicago-based company bought the 184,244-square-foot The Shoppes at Midway Plantation and the 138,756-square-foot Midtown Commons Shopping Center for $43.6 million, according to CoStar data. The Shoppes at Midway Plantation is home to Target, Ross Dress For Less and Petco, among other tenants. Midtown Commons’ tenants include Dick’s Sporting Goods, T.J. Maxx and Kohl’s, according to Kimco’s website. Kimco Realty acquired those shopping centers in late 2010 for $23.4 million, according to CoStar data.
If you have an interest in Commercial Real Estate in North Carolina please let us know as we are ready, willing, and able to help!
Triangle Commercial Bits and Pieces…
RTP Getting New Mixed Use Development
The largest research park in America is changing things. Wait, that’s not right, America is changing things for the largest research park. A new concept mixed use development is hitting the park! Durham, NC is welcoming Beacon Properties Group and the mixed use development that will lay right along the busy 15-501 corridor looking to capitalize on new restaurants, variety of office space, hotel(s), and apartments. It will be a walkable mixed us district and the first of it’s kind in the area! Multifamily continues to expand in the Triangle market. Just this week there are several on planning board agendas throughout the region including one on Rogers Branch in Wake Forest, NC.
North Carolina continues to grow quickly and remains on the top or near the top of many lists of best places to live and work! This is a reflection of that very thing.
View of RTP from the south
Featuring 57,000 square feet of retail and 25,200 square feet of office along with 17,000 square feet for restaurants and 300 apartment units, the project name, Oakridge will have major impact in our market. The first of several? We will see.
DOWNTOWN Raleigh By the Numbers….
While residential builders are helping change the face of the market near downtown Raleigh, it is the commercial impact that truly will drive the traffic to these homes! What came first? Chicken? Egg? Smoke? Fire? Residential? Commercial? Twenty nineteen has been a good year for Raleigh. Hemp stores, cocktail lounges, new restaurants, new office space, etc….. Here it is by the numbers according to the TBJ.
37 – Number of businesses closed since Jan 2018.
64 – Number of new businesses since Jan 2018.
15 – Number of storefronts closed in 2019.
20 – Number of new storefronts in 2019. (We call that growth)
Triangle Rental Rates Up
The second quarter showed a boost in Triangle area office rental rates. With the expansion of local businesses and the growth of outside companies coming in to the market, it appears that vacancy rates continue their decline. Average Class A office rental rates climbed in the second quarter to $29 per square foot. That is nearly a 40% increase from earlier in 2019. Rates were holding steady over the previous year as well. Again, we call this growth. The economy continues to flourish! Class A rates exceeded $32 per square foot in submarkets like downtown Durham, Six Forks/Falls of Neuse, and Raleigh. Where would you expect the first over $40 per square foot to be recorded?? Yep, you guessed it, Kane Realty announced earlier that Tower IV at North Hills hit $41.50.
Trending up. What goes up must come down…right? Not in the near future experts say. There are several proposed projects in downtown (remember the smoke versus fire thing earlier in this post?) that are likely to ask similar rental rates.
By the Numbers:
7.5% = Class A vacancy rate across the region
3.1% = Class A vacancy rate in downtown Raleigh
Massive Development Project – Johnston County
Whew, this one took some time. After a year plus of preparation, planning, designing, talking, drinking coffee, more talking, more planning…you get the idea…a new 470 plus acre mixed-use development in Johnston County has officially begun construction.
A 2.8 Million square foot project that will encompass the land running from exits 97 and 98 on I-95 near Selma. Retail? You want retail? Okay, this feature a massive amount fo retail, restaurant, office medical space, hotels, senior living, residential development etc….A total of 1 Million square feet will be created. Wow! This isn’t your parent’s Johnston County!!!
Locals will enjoy a farmer’s market, farm to table dining options and other ways to make the residents and workers feel “grounded”.
What Are You Looking For?
Our team here at Kima Commercial would love to earn your business. Whether you need land to build commercial space on, land for residential development, office, industrial, leasing, etc… our team stands ready and welcomes your business. Our partners are all encompassing. In other words there isn’t a commercial real estate team member we cannot bring to the table for you. Meaning if you need a reputable commercial builder to build or do an upfit or just quote one for you, civil engineers, architects, inspectors, designers, etc…we can help. Please feel free to visit us at one of our two offices. We currently run our day to day operations for our commercial business out of the Brier Creek location in Raleigh and also have an office in Wake Forest. We have sold all across the state of North Carolina and have resources across the country.
So you want to start a wedding venue business?
As I was walking through this beautiful almost 3 acres historic property that Kima Commercial has listed, the owner says : “You know Mehdi, this property can make a gorgeous wedding venue with its own red barn ”. So, I started imagining a southern style wedding where guests are dancing on the lawn with this beautiful Victorian style house as their back drop, tables that are beautifully set up in the red barn under crystal chandeliers and I forgot for a second that I was in the middle of the Town of Wake Forest, NC and then I realized that the owner is right: This property with its Victorian style house, with its size, its location and being already zoned for commercial use can make a great wedding venue so if you have the same vision, here are some of the things you need to consider first:
#1: Do your research and spend time looking at properties, check out wedding venues and find a venue owner mentor. This last one may be tricky because you may be soon the competition, but you should be able to find a helpful venue owner in a different state.
#2: Join one or more of the venue associations to collect information such as the International Association of Venue Managers and National Associations for Catering and Events.
#3: Research the venue competition in your local market to see what they offer and the market they target so that you can offer something unique like being in a historic property. Your connection with venue associations and or a mentor can help you identify the opportunities in your market the competition is not covering.
#4: Research what services your venue will offer, such as wedding planning services, catering and photography. You can also attend wedding conventions and talk to couples who are actively looking to book their venues.
#4: Use TheWeddingReport.com to get specific numbers for your market such as the number of weddings in your local market and a breakdown of spending by category. For example, some the numbers in Raleigh Metropolitan area for 2018: 6,628 was the number of weddings and $26,797 was the average wedding cost.
#5: Check with the local zoning boards and get a list of all the permits you will need along with their cost and what it takes to get them all.
#6: If your wedding venue vision includes a barn and the property you are considering does not have a barn or has one but needs renovation, then talk to builders with specific experience renovating barns and bringing them up to code as safety is key. A good real estate agent and a construction manager may be vital here as they can advise on total cost right from the start.
#7: Once you have decided on your product offering and location, an immediate factor is to consider the cost of purchasing or developing the venue versus the income you can expect for the business. Bank loans and other borrowing may be necessary, so you’ll need a good business plan to support your loan application. Weddings are typically good for cash-flow since you’ll be making bookings, and receiving a percentage
of the fee, up to six or nine months in advance. Pull this information together in a solid financial projection to help with your finances.
11300 Capital Blvd, Wake Forest
The Secret to Profitable Wedding Venues
As recession-proof start-ups go, a wedding venue business is a good bet. Just more than 2 million marriages take place every year in the U.S., according to federal government data and many of the ceremonies and receptions will take place in a rented wedding venue.
Starting your own wedding venue business is a way to help each couple you host have the experience they dream of while you reap your share of the multi-million dollar wedding industry. Like other wedding businesses, venue owners need to know their numbers to find success. They also need to know the following:
1. How much income do you need to draw from the business?
2. How much are your expenses?
3. How many weddings do you need to book at what price to make your target sales
4. How many leads and website visitors will you need to hit those booking numbers?
Do your research, know your numbers and your competition and you’ll know whether this is the adventure for you.
If you’re interested in commercial real estate, wedding venues, and/or the great property we have listed at 11300 Capital Blvd, reach out today!
VP of Commercial Real Estate
How can we honor them this summer?
Memorial Day « D-Day « Independence Day « Purple Heart Day
Many people see summer holidays as a chance to head to the beach, vacation with family, fire up the grill, and take a little time off work. And while these things are all well and good, we see something different—we see opportunities to honor the bravest among us: our soldiers. We decided to take some time to reflect upon what each of these “summer holidays” is really about, and to encourage you to join us in honoring those who so greatly deserve it.
Part 2: Independence Day and Purple Heart Day
Independence Day, of course, celebrates the day the Declaration of Independence was signed by the Second Continental Congress on July 4, 1776. Skirmishes, including the famous Battle of Bunker Hill, had been occurring for more than a year by that point, and a “growing majority” of colonists wanted to be free of King George’s oppression. While the original resolution to separate was not unanimous, it was eventually ratified by each of the original 13 colonies, and the rest, as they say, is history. And though celebrations in honor of that declaration have looked different over the years, our Declaration has been joyfully celebrated every year since.
The historian in me would love to share many more details (Who thought the annual celebrations should be celebrated on the 2nd instead of the 4th? What state abstained from voting for separation at BOTH Continental Congresses?), but instead, I’ll share how you can participate in the festivities! Wake Forest has a rich history of celebrating the Fourth. For decades, volunteers have organized and staged a fantastic fireworks display in Trentini Stadium with the incomparable Band of Oz ushering in the evening, followed by a Children’s Parade along historic North Main Street and art activities and games in Holding Park on the morning of the Fourth. A few things have changed recently, as the Town of Wake Forest is currently in its second year of hosting the events instead of the previous all-volunteer group, but the spirit of unity we share in celebrating our Nation’s freedom is always palpable in Wake Forest, and always fun!
«Purple Heart Day«
“Let it be known that he who wears the military order of the Purple Heart has given of his blood in the defense of his homeland and shall forever be revered by his fellow countrymen.”
Purple Heart Day occurs annually on August 7th, and is designated as a day set aside to remember and honor the brave men and women who have been injured defending our nation. The history behind the Purple Heart (see here and here) is unique, as it was initially established and awarded during the Revolutionary War, then was essentially forgotten until World War I. It is also the only medal a recipient does not require recommendation to receive, but rather is automatically entitled to receive upon enduring the prerequisite injury. Due to a lack of precision in record keeping, the realities of war, and a fire at the National Personnel Records Center in 1973, it is not known exactly how many Purple Hearts have been awarded, but estimates indicate that number to be approximately 1.8 million to date.
Those in the Wake Forest area have a very unique opportunity to honor Purple Heart Recipients. In 2009, three of our amazing citizens co-founded the Wake Forest Purple Heart Foundation. Their plan was to host an annual banquet wherein the community could come together in recognizing and honoring the Purple Heart Recipients in attendance. Currently in its 11th year, the banquet is held the Saturday closest to Purple Heart Day each year (this year it’s August 3rd), and it is an incredibly moving event! In addition to the dinner itself, the evening features musical entertainment and guest speakers. Past speakers have included four-star generals, a colonel portrayed in the movie “Black Hawk Down”, a Medal of Honor Recipient, and other inspiring soldiers. The event is open to the public for the price of a ticket (just $20!), but is free to recipients and their families. The banquet has been such a hit that other towns across the state have asked for help in starting their own banquets, resulting in even more Purple Heart Recipients being honored. The efforts of the Foundation have also led to Wake Forest being the first municipality in the state to be designated a Purple Heart Community, the establishment of a scholarship for Purple Heart Recipients and their families, the monthly Flag Raising Ceremony held at Wake Forest Town Hall to honor deceased veterans, the erecting of Town limit signs prominently proclaiming Wake Forest as a “Purple Heart Community”, and the October 2018 hosting of The Wall That Heals, a traveling, two-thirds scale replica of the Vietnam Veterans Memorial Wall.
Wake Forest is proud of its soldiers, past and present. We appreciate their sacrifices, respect their service, and honor their lives. Just a bunch of “summer holidays?” No…not around here.
Kima Commercial is grateful for each man and woman who has served our nation with honor.
Like sports? Want options?
Welcome to North Carolina!!
Months after the NFL Draft Picks, the Stanley Cup finals and—at least ‘round here—the ACC College Baseball Championship playoffs – TVs in many local restaurants are still blaring stats and scores and highlight reels when the games aren’t actively on, car flags are flying on game days, and the countdown to the official first day of football is on!
That’s all fun and good, you may be thinking, but WHAT does that have to do with commercial real estate in Wake Forest or Raleigh? We’re so glad you asked! 😉 Sports are not just a huge draw for families, but they’re great for business professionals, too—entertaining clients and investors, team building, employee recognition, donating to charities, etc. So where there is a strong sports culture, there is often potential for strong business growth…and businesses need spaces in which to work…and that’s where we come into the picture a little more clearly!!
Now that you’ve got the connection, let us share some of the awesome sports opportunities we have in the Wake Forest/Raleigh-Durham areas…and a little beyond!
You probably already know about some of North Carolina’s professional teams, such as the Carolina Hurricanes (RIGHT HERE in our backyard!!), and the Charlotte-based Carolina Panthers and Charlotte Hornets. But if you thought the fun ended there…well, we have some great news for you!
Did you know we have not one, but TWO local Minor League Baseball teams?!
- Thanks in part to Kevin Costner’s 1988 blockbuster, “Bull Durham”, you may have heard about the Durham Bulls. Their home in downtown Durham, the Durham Bulls Athletic Park (affectionately pronounced locally as “D-BAP”), is a mere 30-40 minute drive from both Wake Forest and Downtown Raleigh.
- The smaller—but some would say more accessible and family-friendly—Carolina Mudcats serves a more rural crowd at Five County Stadium in Zebulon, where Muddy the Mudcat entertains fans young and old, and Friday Night Fireworks joins a slew of other fun events. “Mudcat Stadium” is a quick and easy 20-30 minute drive from both Downtown Raleigh and Wake Forest.
In addition to these super-fun Minor League teams, Raleigh is positioning to be the home of the next Major League Baseball team…when the League is ready, that is. Commissioner Rob Manfred has talked much over the last few years about expanding to 32 teams, and there’s optimism among many that we could be the home of the League’s newest team. Want to check it out? Go to MLBRaleigh for info…and if you’re interested, you can also sign the petition to bring the MLB into our backyard!
Wake Forest now has even more reason to love professional baseball. Three of our local students were drafted in this year’s Major League Baseball draft: Thayer Thomas (Boston Red Socks), Justin Kunz (LA Angels), and Tyler Driver (Seattle Mariners)! Congrats, guys!!
Yes, North Carolina’s professional football team is a couple hours to the West in Charlotte, but it’s a pretty easy day trip from Central NC, and who says it’s all about the pros?! With Duke, Carolina, and State right here, October and November are packed with tailgating parties and quests for bragging rights! (To be fair, State usually comes out on top pretty easily during football season, but Duke and Carolina leave State in the dust during basketball season, so it all balances out!)
Wake Forest has our own reason to brag about football lately. Our own Wake Forest High School football team has won the Division 1-A State Championship not once…not twice…but THREE TIMES in a row (2016, 2017, and 2018)! You can check out the highlights of the 2018 game here. WFHS has a phenomenal football team, and you’d better believe we’re proud of them!! We’re also enjoying watching some of our local boys shine in college and the NBA draft! Do the names Bryce Love or Dexter Lawrence ring any bells? Great football players and great guys!! We can’t wait to support them as they begin the careers of their dreams!!
Ever hear of the NCFC (formerly the Carolina Railhawks) or NC Courage? If not, you may soon! The Owner of NCFC and NC Courage, Steve Malik, is working diligently with other investors to bring professional soccer to downtown Raleigh in a BIG way!! Currently, the men and women’s soccer leagues play in Cary, but if Malik gets his way, a major stadium development will make the couple-mile jump to Raleigh. It’s a pretty impressive mixed-use proposition—a North Hills-style groove of live/work/play…but with a 10-acre stadium—designed to create an economic boom for Southeast Raleigh and bring opportunities for locals. We’ll be watching that one!
UPDATE: According to Business North Carolina’s June 19th Daily Digest, Malik and NCFC will unveil the location and additional details about the $1.9 billion dollar complex in a press conference Tuesday, June 25, 2019. Can’t wait!!