Your CORE Advisor Blog

New Salvation Army Store

Montrose Colorado

Opens February 2010.

The lease is signed and move in and setup has begun!

Salvation Army Store Plans Grand Opening of its new Montrose Colorado Store location at

1210 N. Townsend Unit E, Montrose,  Colorado 81401

in February of 2010. 

This location is on the NE Corner of San Juan Ave and N

Townsend Ave.  

(For locals this was most recently “Stone Mountain Flooring” and before that for you old timers who have been around Montrose forever… the Old Vurls Farm Supply and Hardware Store…  Wow that takes me back.)

They have quadrupled their size (almost 18,000 SF) from their old location on S 1st and anticipate being able to offer not only a better selection of clothing, furniture and household goods but hopefully with time they plan to bring additional services for the community. 

Plus the entire store and space will just feel more freindly and open with better lighting and elbow room.  Be sure you check it out no once but throughout the year as I am sure the store will evolve and improve on an incremental level with time as it adapts to its new larger space.

Stop by and see the new store, (Say hi to Eric or Dan if they are there), pick up something you need or don’t need and know that you are helping the community.  Or better yet make a donation of time, money or something you don’t need and help out.

Many of you saw the Bell-Ringers for the Salvation Army in front of local stores recently around Christmas and all of these people were volunteers many Realtors, trying to pitch in. 

The Salvation Army is a great organization that helps many people in need.  Please stop by and congratulate them on their new location at

1210 N. Townsend Unit E, Montrose,  Colorado 81401

Let them know you appreciate them being here to help the community!

Their Phone Number is (970) 249-3891

http://www.salvationarmyusa.org/

The link above is to the USA Salvation Army Website - currently when viewed it is showing me pictures from the Haiti Earthquake Disaster and talking about their relief efforts and fundraising. 

This is exactly how Salvation Army responds to disasters around the USA and around the Globe.  They are an International Non Profit Organization.

Similar to Good Will and in disaster releaf to the Red Cross all of these organizations and thousands of other smaller ones help to make the world a better place.

Here is a direct link to make an online donation for the Haiti Relief Fund.  Please donate if you can.

https://secure20.salvationarmy.org/pages/makeDonation/usa/makeDonation.jsf

Thank You and God Bless!

Chris

www.SoldCORE.com

Here is a couple photos driving down Main Street in Montrose.   (I was going to post a whole series but ran out of time and had this saved in drafts since June…)  But as Arnold Schwarzenegger, said in “The Terminator”  “Ill be back”

I often like to use photos to capture for rent signs and phone numbers, for sale signs, FSBO signs, etc.  One brilliant teacher’s program I bought (whom unfortunately I forget which one so I can’t give credit right now) also suggested taking a small (8×12) white board and writing the address on the white board in large print and then holding it up to take the photo of the property or house.  This way you have all the pertinent information and as “they” say “a picture is worth a thousand words”.

Anyway, while I don’t claim to be a professional photographer, I like to shoot lots of digital photos and hope to get lucky and sometimes it works, but for informational purposes, like what does the street look like, town etc. I think the drive by shootings (of photos) are often sufficient. 

I even shoot through the windshield as you will see (reflections) or hold my camera up through the sunroof, so cut me a little slack on the quality or composition, we can call them informational photos…

Great Property & Location for Restaurant/Bar

Drive by shooting of McDonalds on Main St Montrose

Looking West on Corner of Main and Locust

The Red Barn Restaurant - Good Food & Good Times!

Century 21 Action Realty (My Office) Corner of Main and San Juan Ave

Dominos Pizza at NE Corner Main and Nevada

Half of the Coffee Trader (Sorry) at Main and Junction

Old Hallmark Building NW Corner Main and Cascade

Thats all for now!

I get the question often…  So hows Real Estate?  I usually try to be somewhat optimistic in my response.  Still the facts are that values are down a bit and the momentum appears to be continuing downward for the time being.  

Some people specifically ask me about Commercial Properties

Main Street Montrose

There are few commercial comparable sales to show this downward trend like there are in residential property.  Yet all the signs are lurking.

If you look two key factors the increasing vacancy rate, especially on Main St., and the increased pessimism and decreased optimism on the economy then you know that values are dropping.

Currently commercial values are facing a double edged sword.  Increased vacancy means decreased Gross Revenue, which means decreased Net Operating Income.   This means decreased value for the property when looking at a CAP Rate or a ROI valuation method.  These are most commonly used by banks and investors. 

The CAP (Capitalization Rate) is basically the same thing as Return on Investment.   

If a property makes $10,000 per year in Net Operating Income (NOI = Gross Income minus all expenses not paid by tenant(s)) then at a 6% CAP Rate or for a 6% ROI a buyer could pay $166,666 for the property.  Then when they get their $10,000 each year that would be a 6% return on investment. 

The second side of the sword is that the CAP rates or expected return on investment are rising due to the increased perception of risk (the economy, the vacancies, jobs, amercian auto companies, etc.)  That same property making $10,000 per year at a 8% CAP rate is only worth $125,000 and at a 10% CAP rate is only worth $100,000.

So unfortunately for many owners commercial values are just as subject to change as the opinions and faith of the would be buyers just like with residential property, or stocks, or even T-bills. 

The good side is, if you can buy a property from a motivated owner at a 10% CAP rate and then the market mentality changes to accept an 8% CAP rate you can gain a 25% increase in value.  

If you decide to hold on and just rent your properties, you need to keep in mind that you don’t want to lock in lowered rents for the long term that will affect your properties value well into the future.  Instead, offer short term incentives or even credits back or maybe tenant finish, in exchange for better escalators, or more on par rents.  

Also it is always best for the owner to be as close to a NNN lease where the tenant pays, utilities, insurance and taxes because these things can chew away at your Net Operating Income as they increase if they aren’t passed onto the tenant appropriately.

If you are leasing commercial space, obviously a Gross lease is best for you as a tenant, because then your costs are very controlled and predictable. 

Overall it is still the same game, just a different day with a slighltly different perspective.   In my opinion, it is a great time to buy (assuming you have deep enough pockets to ride out the storm)!