Who we are and what we do

Who we are and what we do

Video is a favorite way for most people to quickly get the information they want. Taking that to heart, we created a new video that in just 3 minutes illustrates exactly what we do and means with which we do it.

No more needs to be said. Just click the iimage below.

We'd love to get your thoughts. Let us know if you think this does a good job explaining our business.

 

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The commercial real estate market vs. signs of a strengthening economy

The commercial real estate market vs. signs of a strengthening economy

We asked our head of Real Estate, Jonathan Sorkenn, to comment on what he is seeing as the current state of commercial real estate. He offers an outlook that is a bit at odds with current US economic trends we are seeing right now.

With the U.S. economy slowly picking up steam and the stock market nearing historic highs, it seems logical to many that the commercial real estate market will recover all the lost value from the last recession. With interest rates at historic lows, there has been a flight to quality relative to commercial real estate. Well-located and leased office, retail, industrial and multi-family properties have continued to drive transaction volume. Cap-rate compression for the best assets continues unabated as investors hunger for yield.

All is not well, however, within the industry. A disparity between the “haves” and “have nots” remains acute, with primary markets and metro areas (NY, Boston, Washington DC, San Francisco and Los Angeles) garnering pricing premium due to their higher barriers to entry for new supply. Suburban office, retail and older manufacturing facilities, especially in secondary and tertiary markets, continue to languish. With systemic changes underway relative to how (by price) and where (on-line) consumers shop, the amount of obsolete retail space will continue to grow.

With regard to workplace characteristics, traditional office users are adjusting (reducing) their occupancy needs to address the increased prevalence of tele-commuting, virtual offices and smaller, collaborative office layouts. Especially in suburban markets, there is an abundance of Class B & C office space that will likely become redundant. Regarding older, former manufacturing facilities, no amount of On-Shoring will be able to compensate for many poorly-located, obsolete and often environmentally-tainted properties. What can an owner or a tenant, subject to a lease, do to mitigate their financial exposure? The conventional plan of action is to market the facility for sale or sublease. Unfortunately, there are many instances where the mere drastic reduction in price is not effective in generating demand for these challenging assets.

One alternative that continues to gain traction for retailers and manufacturers is using a portion of their existing expenditures to recapture what would otherwise be an unrecoverable loss on a surplus property disposition. Corporate Trade or Barter companies, such as Evergreen-Partners, can pay a significant premium price relative to the cash market value for these assets. Effectively, the Trade company is the conduit that allows companies to use their impaired real estate as partial payment for their invoices on advertising and other business services.

Using trade to eliminate your costs on unused but committed lease space

Using trade to eliminate your costs on unused but committed lease space

We've written a great deal on this site about how corporate trade can rid surplus owned real estate from corporate portfolios. Did you know that trade can also absolve you from lease costs on unwanted or unused lease space?

For example, say you have office space in Boston, originally leased to house your east cost office. But you've closed the office and have five years remaining on your lease agreement costing you $1mm/year. You are still writing a hefty check every month regardless of whether you occupy it or not. You've tried finding a sub tenant, but the market has changed since you took the lease and there's no relief in sight.

Corporate Trade could be your answer. The trading company cannot absolve you of your lease agreement, but it can provide you with the cash necessary to cover your monthly payments. With each month's lease payments 100% reimbursed to you, you are now cash flow neutral.

As with the receipt of any financial benefit accruing from trade, all you need do to receive reimbursements for your lease payments is to

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Selling surplus corporate real estate for much more (despite the market)

Selling surplus corporate real estate for much more (despite the market)

Is the commercial real estate market recovering? It depends upon who you talk to. One thing, however, remains: if you're trying to sell a store location that underperformed, a problematic track of land, or an office building that you bought at the height of the real estate market, you're unlikely to be thrilled today with your selling price.

What if there was a legitimate way to sell your commercial real estate for 30 to 50 percent more than the market will currently bear? Well, there is.

Through Evergreen-Partners, commercial real estate can be purchased for significantly higher than the current market price. The extra purchase funds come through our placement of a portion of your advertising.

As an example, we recently purchased a stand-alone location from a well known sporting goods retail chain. The building had turned out to be a poor location and as a result had been closed and standing vacant for 7 years. Through all these years, it made sense to hold on to the building/land and pay the taxes and other holding costs rather than take the loss on the available selling price.

That choice changed when they learned that Evergreen-Partners could pay them their asking price simply in exchange for placing a portion of their broadcast advertising. After all, the advertising that we place for our clients is the very advertising that their agency and marketing people plan and price. If your advertising agency agreed to write you a check for an additional, say, $2mm as part of their full payment for a surplus piece of aged real estate in exchange for a commitment to place an upcoming $8-$10mm of your advertising, it would probably be a very easy decision for you, right?

The types of commercial real estate we can purchase at full asking price can range from the above type of unsold retail locations to now overpriced office buildings to environmentally distressed land for which remediation is not cost effective. For properties requiring remediation, we can very often create the funds for the clean up so that our client can at last sell the land at an acceptable price.

Is the market for commercial real estate coming back? We don't know. What we do know is that the financial service of Evergreen-Partners is a unique method of selling off problematic portions of your real estate portfolio much quicker than waiting for the market to recover or a location to improve.