kibitz: (chat) with Kelly Johnson, A.A.E. - Airport Director/NW Arkansas Regional Airport (XNA)

This week we were able to catch-up and chat with Kelly Johnson, A.A.E. - Airport Director/NW Arkansas Regional Airport (XNA). 


We are grateful for her taking time to tell us about Northwest Arkansas Regional Airport's (XNA) plans, growth, and predictions.



XNA (Northwest Arkansas Regional Airport) continues to expand and grow - can you tell us about some of the recent and planned expansions?

In 2011 the airport completed two major projects-the addition of an 11 gate upper level concourse ($21.5 million dollars) and the construction of an alternate landing surface (38.5 million dollars).


What trends has XNA seen the most growth in this year?  Increase of travelers, flights, specific flight destinations, etc?

The economy has a tremendous impact on our business. The uncertainty of the financial health of business' and our government creates a situation where people pull back from expenditures.  For these reasons XNA has experienced a fairly flat year where passenger growth is concerned.  This coupled with the fuel cost to the air carriers (which increase ticket prices) has limited our ability to convenience our airline partners to add new capacity and destinations at this time.

How many people fly in and out of XNA each year?

About 1.1 million people get on and off planes at XNA annually.

We have heard rumored plans of building more transportation routes to the airport.  Do you know of anything in the works?  How would that benefit NWA?

A roadway to the airport is one of our ongoing projects.  The route is expected to receive environmental clearance early next year and we will work to develop a financial plan to make construction of the new roadway a reality.  A direct route to XNA would benefit a customer's in ease getting to the airport and traffic mix.  The existing roadways traffic mix includes farm equipment, school buses etc.

What are the greatest challenges XNA faces with infrastructure?

The greatest challenge we face is lace of an aviation bill from Congress.  The majority of our large projects are directly tied to Federal Grants.  The last aviation approved by Congress expired 4 years and three months ago.  The FAA is now operating under the 22nd continuing resolution which expires January 31st.  It is very difficult to construct multi-million dollar projects with 3 or 6 months funding at a time in a climate where you may or may not receive that funding.

As an aside, the Grants the airports' receive are funded by a 7.5% ticket tax each passenger pays when they purchase their ticket.  I share this because we want to make sure the public understands that the Grants airports' receive are not funded from general revenues, they are funded by only those people who use the aviation system.

kibitz: (chat) with Mayor Bob McCaslin - Mayor of Bentonville, Arkansas

This week we were able to chat with Mayor Bob McCaslin, Mayor for Bentonville, Arkansas.

We appreciate all he does to make Bentonville such a wonderful place to live and work.  Thank you for taking time to chat with us this week!







What have you seen as far as job creation in Bentonville this year?

The City does not track jobs but we do track utility customers. Utility customers continue to grow at an annual rate of  +/- 3%.

What do you predict in terms of growth for 2012?

We are projecting 2012 growth at 3%.

How is the Crystal Bridges Museum effecting the Bentonville economy?

The economic impact of Crystal Bridges will take some time to quantify. Intuitively, we all know that the museum will create additional hospitality revenues for the City and NW Arkansas.

What other museum attractions can we expect to see on the horizon?

The free market will find its own way here – as demand surfaces, the supply side will step-up. It is likely that galleries and art associate commerce will begin to appear as the museum becomes a destination for regional, national and international travelers.

 How is the Splash Park and ice skating rink effected the downtown business development?

The unique Bentonville Square and its many planned activities continue to draw visitors from area cities and beyond. The 2nd season for the outdoor ice rink is expected to be as successful as the opening season which saw more than 10,000 participants enjoy this unique amenity.


Would you attribute most business growth this year to be from large-scale industry or small business?

Bentonville has enjoyed sustainable growth in residential construction and the small business sector.


What are some of the most exciting developments going on right now in Bentonville?

The renovation of East Central from the Square to SE “J” Street will create a beautiful and unique gateway into what many say is one of the most ideal downtown squares in the United States. We have parks renovations, improvements and additions  taking place throughout our City. The recently completed Downtown Activity Center allows visitors and citizens to enjoy adult wellness activities including bicycle rentals. The DAC offers maps and suggestions for either walking or cycling tours of our beautiful trail system.

How is the infrastructure keeping up with the growth?

The City has made an intentional effort to invest in the infrastructure that will draw investment and visitors to our  town. We have street improvements underway and plans for others in various stages of design and implementation.

kibitz: (chat) with Trish Kalbas-Schmidt, Marketing and Training Director for the University of Arkansas Small Business and Technology Development Center

This week we had an opportunity to chat with Trish Kalbas-Schmidt, Marketing and Training Director for the University of Arkansas Small Business and Technology Development Center.  She is responsible for developing, coordinating, and implementing training and educational activities for small business owners in Northwest Arkansas. Trish also coordinates media relations and marketing efforts on behalf of the SBDC and its’ training seminars in an effort to cultivate lasting relationships with potential supporters such as commercial loan officers, local chambers of commerce, and community professionals.

What does the Arkansas Small Business & Technology Development Center do in Northwest Arkansas?

As part of the Arkansas Small Business and Technology Development Center state wide network, we serve new and existing businesses through consulting, training, market research and innovation-based business assistance.  Our office serves the following counties: Benton, Boone, Carroll, Madison, Marion, Newton, Searcy, and Washington.

How many businesses do you help each year regionally and state-wide?

In our office we meet with over 250 entrepreneurs each year. 

What trends have you seen in small business growth in our area?  Are there any specific sectors that seem to be increasing more than others?

The current trend seems to be service based businesses (i.e. food and retail). The technology and healthcare industry are growing at a strong rate.

What challenges or obstacles do you think Northwest Arkansas will face in the coming years to maintain its growth rate, and continue to be a business destination?

Leveraging NWA as a desirable place to do business.  We are a diamond in the rough, people don’t realize all this area has to offer.  We need to sell/leverage all the incredible resources such as our education, industry and growing cultural experiences, along with the workforce that is available.

What is the best advice you would give to someone wanting to start a business in Northwest Arkansas?  

Be prepared.  Understand both the risks and rewards that are associated with owning your own business.  Leverage the great resources that are available to you to learn as much as possible before moving forward with the process.

                                   

Trish, thank you for taking time to chat with us this week!  We are very grateful for your insight and all you do the the Northwest Arkansas community!



kibitz: (chat) with Kerry Jensen, Executive Director for Main Street Rogers

This week we had the opportunity to chat with Kerry Jensen, Executive Director at Main Street Rogers.  Many thanks to Kerry for taking time to kibitz with us about all the amazing things going on in Downtown Rogers.

Kerry, we hear Downtown Rogers has some exciting things in store this season - what can you share?

Well, there are many exciting things, but one of the most exciting is something we as an organization are rolling out in January, our new slogan/campaign for 2012: 

Shop, Dine, & Explore

We have spent the past couple years working on how we wanted to identify our "downtown" in the community.  We aren't a "typical" downtown.  We are a historic district that offers amenities, shops, and attractions that are totally different than anything else in the nation.  This past year we have been making sure that we make small improvements to things such as making sure all our sidewalks are stroller-friendly, revamped some of the intersections, preserving some of the original infrastructure of brick and mortar in the roads, and historic preservation through economic rebuilding.

We now feel we are ready to share our district in a much more deliberate way with the rest of this region and state.

What have you seen in terms of businesses opening in downtown this year?

We have a great business mix, with well over 93% of all buildings being occupied with a variety of unchained merchants.  I often joke with members in the community, that if something were to happen and everything west of 8th Street (71B) was suddenly gone, we would still have a fully functional town in the downtown district.  With twenty-five restaurants, a pharmacy, a grocery store, gas stations, clothing, hardware, etc. the list goes on and on.  In 2010 alone, we had twenty-six new businesses open, and many more have opened already this year with eight more businesses on the drawing board to open before year's end.

We are a walkable area and we are very dense.  One of the other benefits that I really enjoy is the fact that we are not a square.  We are a lot bigger than a little downtown square.  We are truly a historic district, which allows us to add much more unique and diverse businesses, attractions, and residence options.

What are some of the fun-facts about Downtown Rogers that are worth spending some time exploring?

Well, there are several really great things that are worth spending days exploring.  Let me first say, the thing we want to encourage most is that everything we do in Downtown Rogers is aimed at being family-friendly and many things are pet-friendly also.  I would love to invite you to come and spend a day leisurely exploring with your family. 

Some of the things you may not have known is that we in fact have three museums here in Downtown Rogers:  Rogers Historic Museum, the Daisy BB Airgun Museum, and most secretive a Fireman's Museum (where kids can actually touch and take pictures with the fire truck - something that I do not know of any other museum to allow). 

We also have approximately 125 events each year for the entire family from Twilight Walks, to the Goblin Parade, to Picnics in the Park, Car Shows, International Festivals, etc.  We also have our annual Christmas Parade coming up December 5th that you will not want to miss!


________________________________________

Many thanks to Kerry for taking time to chat with us this week.  We also want to congratulate him for receiving the honor of being selected to host "Destination Downtown" for 2012.  This is a big honor as it is only hosted in Arkansas once every three years and members from "Downtown's" all over Arkansas, Mississippi, Texas, and beyond will travel to Northwest Arkansas for an annual summit.  Congrats, Kerry!  Keep up the wonderful work!

kibitz: (chat) with Kathy Deck, Director, Center for Business and Economic Research, Sam M. Walton College of Business, University of Arkansas

This week we were honored to kibitz: chat with Kathy Deck, Director, Center for Business and Economic Research, Sam M. Walton College of Business, University of Arkansas

Kathy, a nationally recognized Economist, was very gracious in sharing her insight on what we can expect to see in the coming months and years here in Northwest Arkansas.





What economic trends are you seeing here in NWA (as far as business development, job creation)? 


Job creation has been the story of the economic success of Northwest Arkansas since the 1990s.  However, since the onset of the most recent recession, Northwest Arkansas has struggled to regain its job creation momentum.  From January 1990 to the onset of the recession in November 2007, employment growth averaged just over 500 jobs per month.  Since November 2007, however, the region has lost 8,900 jobs and except for a brief period at the beginning of 2011, there have been continuing modest year-over-year employment losses.


How does Northwest Arkansas compare nationally in terms of growth? 


Northwest Arkansas continues to outshine the rest of the United States in terms of unemployment rate, having a rate that has consistently been around 2 full percentage points lower than the nation. Employment losses were larger on a percentage basis for the nation, but Northwest Arkansas is being a bit slower to see employment gains on a year-over-year basis than the United States as a whole. 


What is your prediction for the coming 1-2 years in terms of economic development in NWA? 


Northwest Arkansas will struggle with weak national macroeconomic conditions over the next year or two, but should begin to see modest job gains on a year-over-year basis.  The implementation of the Northwest Arkansas Council’s economic development strategic plan will provide some positive impetus to the economy.  Also, modestly improving national conditions will help with consumer confidence, which is vital to Northwest Arkansas’ economic health.



Many thanks to Kathy for taking time to chat with us this week.  We wish you all a very Happy Thanksgiving!  Stay tuned for next week's kibitz!

kibitz: (chat) with Chung Tan, Manager of Economic Development for the Fayetteville Chamber of Commerce

This week we had the wonderful opportunity to "chat" with Chung Tan, Manager of Economic Development for the Fayetteville Chamber of Commerce.





Chung has been a tremendous resource for us, and we are SO impressed by all she does to make Fayetteville a wonderful place to live, work, and play.

We are happy to share her expertise on Fayetteville with you.


What growth have you seen in Fayetteville in 2011?

Growth in number of cars registered, growth in number of jobs, growth in number of new students enrolled in U of A, growth of multi-family residential projects.

What growth do you expect to experience for 2012 and beyond?

The economic recession is supposedly over but there continues to be a hangover.  Once consumer confidence comes back, growth will follow.  As for Fayetteville, the University of Arkansas will continue with its trend of having an increase in student enrollment.  Cosmopolitan Hotel is about to be sold to new owners who planned to tear down the building to the foundation and build back up.  Once this is done, we will have an additional of about 200 rooms and space for meetings and conventions.  This will drive the conventions and hotel business in Fayetteville. 

The AMP is getting ready to spend over $3 million for renovation and expansion.  When this is completed, we are expected to draw new programs and concerts to Fayetteville where in the past was not possible because of inadequate space.  Walton Arts Center is still in the development stage for a 600 seat theater.  This new building will be an asset to attract more shows to Fayetteville and the overflow effect is an increase in food and entertainment revenues.  The City of Fayetteville is in planning now for a multi-story parking garage around the entertainment/downtown area.  Once this is up and running, it will be another asset that will resolve our current problem of lack of parking.  Subsequently, it will make the district more attractive to new businesses and patrons.


With many improvements being made to parks, trails, and recreation - what added value does this give Fayetteville businesses and residents?

This is a great value to the quality of life in Fayetteville.  The parks, trails, and recreational facilities are assets for us when we attract new workers to Fayetteville.  The US population especially the Gen Ys, in general, is moving towards sustainability, better health, balance of work-play, and going back to nature.  Fayetteville and NWA can offer all these to new and existing residents.  These assets are used by local employers when they try to hire workers especially professionals from outside to be willing to work in Fayetteville.


What role does the University of Arkansas play on long-term business growth in Fayetteville?

The U of A is one of the most important economic engines for Fayetteville.  Increasing students means more needs for housing, automobiles, gas, food, and other essentials.  The sporting events, graduations, move-in days, etc. bring visitors from out of towns.  Again, more hotel nights, entertainment, gas, and food.   Because of Chancellor Gearhart’s foresight, he challenges, drives, and provides the necessary infrastructure so that professors work with students and other partners to move innovative products and services to market.  The research technology park is the incubator for turning ideas to commercially viable products and services.  The result in new start-up companies.  U of A is the pipe-line for new companies. 


Would you attribute the growth in Fayetteville this past year to an increase in small business openings or an increase in large industry and their vendor supporters?

Growth in Fayetteville is fueled by both home grown and out of town businesses.  In general, more than 85% business openings have less than 10 employees. 


What challenges or obstacles do you think Fayetteville will face in the coming years to maintain its growth rate, and continue to be a business destination for the region?

The lack of space will be our challenge.  Fayetteville is pretty much built out.  We are looking into infill now and later redevelopment will become more important.

Many thanks to Chung and the Fayetteville Chamber of Commerce for all they do for Northwest Arkansas!  Stay tuned to next week's kibitz.

kibitz: (chat) with Jill Wager, Corporate Relations Manager of Crystal Bridges Museum of American Art

This week we had an opportunity to visit with Jill Wager, Corporate Relations Manager of Crystal Bridges Museum of American Art.  Like many in Northwest Arkansas, we are thrilled about its' opening this week, and were very grateful for the opportunity to "kibitz" with them this week:


With the opening of the long-awaited Crystal Bridges right around the corner, what can Northwest Arkansas expect opening week?

We are delighted to open the doors of Crystal Bridges this week to share the remarkable art, architecture, and nature.  Those who have joined as Original Members have the opportunity for a sneak peek on November 9th, two days before our public opening.   On November 11, we will celebrate our opening with a ceremony on the downtown Bentonville Square at 11:00 am and welcome all to join us.  We are asking the community to reserve timed tickets through the end of the year and, as always, there is no entry cost as admission is sponsored by Walmart.  Many guests are thinking ahead to the holidays and reserving tickets for their visiting families.


How many jobs were created with the opening of Crystal Bridges?

Crystal Bridges expects to employ 130 persons plus security staff.  Any person interested in employment may view job postings on our website.

With the announcements of the 21c Hotel and expansion of the Walton Arts Center to Bentonville, do you feel that this will soon become an arts hub for our state and region?

The opening of Crystal Bridges and the expansion of Walton Arts Center augments the cultural resources in our region and state.   Northwest Arkansas will be part of a large regional arts community including Tulsa, Kansas City, and Little Rock.  21c Museum Hotel will be an integral part of the art experience and is certain to offer outstanding guest experiences.  While plans are still underway, the Children's Museum of Northwest Arkansas will also add interest for our youngest residents and guests.

Crystal Bridges features a Community Showcase which is a unique exhibition space showcasing important colleague institutions and their permanent collections.  This transitional space shares the story of Northwest Arkansas and its history with regional residents and out-of-region guests.  When the Museum opens it will be displaying objects from:  University of Arkansas Museum, Museum of Native American History, Shiloh Museum of Ozark History, Pea Ridge National Military Park, Rogers Historical Museum, and Walmart Visitor Center.


What collections can we look forward to this year?

Crystal Bridges has acquired a stunning collection of American art spanning five centuries that is premiering as the inaugural exhibition, Celebrating the American Spirit.  Approximately 450 works are arranged chronologically and thematically so that guests can, in a sense, walk through the history of the United States as they peruse our galleries.  The experience begins in the Colonial period with portraits of our founding fathers and ends with current modern and contemporary works.  Celebrating the American Spirit is sponsored by three American iconic companies - General Electric, Coca-Cola, and Goldman Sachs.

Guests will also want to visit Wonder World, an exhibition of contemporary works from our permanent collection.  Wonder World brings together twenty-five contemporary works by established, mid-career, and emerging artists from Crystal Bridges' collection in a special exhibition organized around the themes of perception, representation, illusion, nature, and history.



Many many thanks to Jill for taking time to chat with us this week.  We know this is an extremely busy time for them, and we are excited for what is to come!

Their website - http://www.crystalbridges.org/

kibitz: (chat)

We are excited to launch our first "blog series":  kibitz: (chat) 1.0




The word kibitz in the Jewish community means to chat.  In recent "chats" that we have had with various leaders in Northwest Arkansas, the idea grew that we needed to share their expertise with all of you.  We needed to offer a platform where anyone in the world could search, learn, and understand the beautiful dynamics of the Northwest Arkansas region.

Where many areas nationally are struggling in the midst of economic crisis, Northwest Arkansas has still continued to show growth and flourish. 

For the next twelve weeks, we will be sharing our "chats" and give you a firsthand look at the economic development and continued business growth here in Northwest Arkansas.  Over the coming weeks, expect to learn insight from area leaders and developers on what makes Northwest Arkansas a great place to live, work, and play. 

We have assembled a great list of leaders, including: 

- Alice Murphy, Public Relations Director with Crystal Bridges
- Kerry Jensen, Executive Director of Main Street Rogers
- Mike Harvey, COO of the Northwest Arkansas Council
- Chung Tan, Economic Development Manager of Fayetteville Chamber of Commerce
- Kathy Deck, Director at Center for Business and Economic Research
- and many more!!

We look forward to kibitzing with all of you in the coming weeks!  Stay tuned!

Walmart U.S. Apparel office relocates to Bentonville


In today's Walmart Memo -

In Walmart U.S., we're getting back to the basics of our business, and our customers and associates are noticing. Over the past year, we've renewed our focus on Every Day Low Costs and Every Day Low Prices in order to really deliver, and today we're taking another step in that effort.

Many of you will remember in early 2009 we announced that to make a play in fashion we moved our Apparel office to New York City in order to be at the "center of the fashion industry." What we've found since that time is our customers expect from us high-quality basics and fashion basics at great prices every day.

With the leadership of Lisa Rhodes, Senior Vice President, - Walmart U.S. Apparel Merchandising, we have been working on this strategy the past year and our customers are responding.  In fact, our sales trend in apparel is the best it's been in two years.

With that as a backdrop, we have decided to move the Apparel office from New York City back to Bentonville. When you consider our core strategy centered in basics and fashion basics, in order to execute, our offices do not need to be located in New York. Also roughly 40 percent of our apparel planning, replenishment and modular execution associates are in Bentonville today.

It just makes sense to unite our apparel efforts in one location.

The function will transition to Bentonville over the next few months, with the goal to be complete by Feb. 1. During this time, we are working with the associates in New York and hope to relocate as many as possible to
Bentonville.

A Differentiation of Triple Net Leases and Gross Leases

Written by:  Ida Fineberg, Broker & Co-Owner of Steve Fineberg & Associates

The Commercial Lease – it conjures images of clauses, conditions, timelines and COSTS.  The stipulations and conditions that ultimately become part of a lease are as varied and numerous as there are active leases.  One of the most important parts of a lease is costs/fees and who pays what – the lessor/owner or the lessee/tenant – either way this part of the lease is one that deserves a look.  Let’s look at the Tripe Net Lease.

All property owners have, for the most part, three costs which are part of owning property.  These costs are taxes (the government will always take its “fair share”), insurance (what? -  you want to own without protection?), and Common Area Maintenance (known as CAM and just think lobbies, elevators, landscape, maybe restrooms used by all tenants, etc.) .  

Gross Lease:  On the other side of this lease coin is  the gross lease wherein the owner/lessor  receives a bigger check from the lessee/tenant that includes costs of  taxes, insurance and CAM.  In the real world a majority of tenants prefer the Gross Lease rather than a Triple Net Lease because for them just writing one check takes care of the whole business rather than writing various checks for the cost of taxes, insurance, and CAM.  In other words, someone else takes care of the details. 

Triple Net Lease:  In a Triple Net Lease the owner receives a rent check that does  NOT  include the cost of taxes, insurance, and CAM.  In this scenario it is the tenant who would be responsible for the payment of these costs.  When an investor is looking to purchase income producing property, a preference is given to a building with triple net leases because the investor can more easily determine what the net income is in relation to the purchase price.

At the end of the day, it’s all about the structure of the lease.  Monetarily it is the same outcome for the owner/lessor. The bottom line is that the owner wants to cover the costs of these fees.  Not too difficult – its just common sense and good planning by all the parties.

Corporate Responsibility: Fighting Hunger in Northwest Arkansas

This past year we took some time to reflect and prioritize some issues that we felt were at the heart-strings of our organization.  Each day we have an opportunity to work alongside businesses and individuals who help make our community a better place - a place that continues to grow and flourish.  It is easy sometimes to forget that there are still many people in our community who really struggle, and although the agents and staff here at Steve Fineberg & Associates all contribute so much of their time and resources privately for various causes in our community, we realized we needed to do better organizationally.

As part of our committment to raising awareness and resources for the disadvantaged in our community, we have created a "Corporate Responsibility Mission Statement":

It is the mission of the agents and staff at Steve Fineberg & Associates Real Estate to participate in efforts to  become a  part of the energy  that  makes the communities  of Northwest Arkansas great places in which to live and prosper.  Steve Fineberg & Associates is committed to giving time and effort  through  involvement in various civic and charitable organizations in order to further contribute to making  Northwest Arkansas an exceptional area in which to live and work..

This year we have chose as an organization to give back to that we feel has a strong reputation in the community as a safe place where people can be loved and supported through fundamental resources that we all need that fights hunger and offers sustainable care - Samaritan Community Center.

For the month of October, our staff is committed to helping raise support through a "Food Drive to Benefit Samaritan Community Center".  We hope that by serving as a drop-site in Bentonville that we can increase awareness for their cause, and also help provide the physical resources of food through collecting at our office.

We plan to engage our neighbors and clients in helping support this great cause, but we need your help also.  Please help us stock the shelves by providing canned foods.  We will accept donations through the month of October - Monday through Friday from 8am-5pm.  Our office is located at 1400 S.E. Walton Blvd. in Bentonville (behind Krispy Kreme).

Every dog has its' day: Multi-family tips and trends in today's market

The multi-family market seems to be a hot topic in commercial real estate these days.  Why do you think this is?

Because of the difficulty associated with the purchase of single family homes, many cannot buy, and this creates opportunity for multi-family investors, and those generally interested in acquiring income producing real-estate..

Tell us about your experience in the multi-family market.

Many years ago, in another lifetime, I was in the business of syndicating limited partnerships where we acquired t apartment buildings.  At that time I had a property management company that  physically managed the apartments, and I in the capacity of the general partner fiscally managed the properties’ finances.  I did this for ten years.

What would you say is the greatest opportunity for current multi-family managers or owners in today’s market?

For those who own multi-family properties, opportunity exist because of the single family housing market decline.  It is an opportunity in two different ways:

1)    It is an opportunity to raise the level of rents which will allow for improved maintenance, better curb appeal, therefore creating a higher value for the asset

2)  It is an opportunity to sell.  The proceeds resulting from the sale can be used  as leverage to purchase real estate  in maybe a different, sector  or to purchase multi-family real estate from owners who are still experiencing  a high level of stress.

What would you say to those looking to invest or purchase in the multi-family sector?

If you want to  acquire , ,because of the single family housing market situation, it is a good time.  With low interest rates, where they are today, and with prices being depressed, it is the first time in a long time that this sector has the potential to be a very lucrative opportunity.  

Conversely and on  the other hand if you are a seller, it can be a very good time to sell because a legitimate  case can be made to a new purchaser that lease rates and occupancy will in all probability rise.  The sale proceeds can create a new purchasing opportunity.

What trends are you seeing in multi-family housing?

Rents are starting to rise.  Multi-family is the only sector overall, across the board in commercial real estate with very few exceptions, that seems to be experiencing higher occupancy and higher rents, and that is probably going to be the case for an extended period of time.  You can predict that there probably are not going to be many new properties on the market - who can get financing?  Even if they wanted to, how will people build them?  With a static supply and an increased demand that is an opportunity for those investors who are targeted at looking at this sector. 

Every dog has its’ day, and this day may be coming for the multi-family market.  It has been in the doldrums for a long long time.  

What is the best advice you could give to someone who owns multi-family properties?  Keep or sell?

That is a difficult question, because that decision should not be made solely on what they hold and what they don’t hold.  It should be made on their bigger picture:  What other opportunities are out there for them?  What is there financial situation?  What is there age?  What’s their health like?  What is  their life like?  All those things have a bearing on what  and where you purchase and  where and what you sell.

I did talk to an apartment owner recently about his multi-family portfolio.  I presented the  case to him in regard to selling, and what opportunities that might bring, and  he said “you made a great case, but I am ready to retire and my building is almost paid off.  I don’t want to sell because I just want to collect the rents and live.”

So, he put that in context of his life, and I understand that.  That is exactly what I would do.  It is the same with any purchase or sell you make with real estate.  When you buy house, you don’t just buy it because you love the house.  You have to take all of these things into consideration:  How your job outlook is?  How your relationship status is?  How your financial status is?  The list goes on, but it is always part of a much bigger picture.

Suggestions or Take-Aways

I would say to maximize your value, and this is so fundamental, but it is amazing how it’s difficult to do for those owners who do not have professional management companies, but if you want to sell or just maximize your value: 

-          keep good records of your tenants, of when their lease is up, when it starts, what they are paying per foot, watching your leases when they expire

-          keep up with your buildings – keep them clean, keep the parking lots clean, pay for landscaping, keep the curb appeal

-          Respond to your tenants when they have problems – and if someone has an air conditioner go out – fix it!  Otherwise, you are going to have a tenant move out, and then you are going to have to pay to clean it, paint it, carpet it, advertise it, and pay a commission.

These little nuts and bolts seem so silly, but they are what make ALL the difference when you are creating added value.   

ALPFA - Northwest Arkansas Non-profit Makes Waves

This week we wanted to take a moment to share about a non-profit that is making waves in business development here in Northwest Arkansas.  We, at Steve Fineberg & Associates, have had an opportunity to recently become members in ALPFA.  Please take a moment to read the below article, written by Ida Fineberg, Principal Broker at our office.  We are encouraged by their work, and look forward to become more and more involved with their initiatives.

Northwest Arkansas can now add another trophy to its case as it was recently announced that the Sam Walton School of Business will be the home of the ALPFA Institute.  Why is this important?  And wait – what is ALPFA, anyways?  Why is it important?  Well, anything having to do with the School of Business brings bigger and better educational opportunities to the area by developing a better educated and more capable workforce.  Local companies know that they have the people that they need here in order to grow and prosper and that, my friends, means that real estate can grow and prosper.  Now read on about ALPFA and organization that we, at Steve Fineberg & Associates are proud to call ourselves a member.

The value of any area can be measured in many ways – business opportunities and growth, educational institutions, industries, natural resources, real estate, entertainment and sports – are among some that can be factored into the equation.  One of the most important components adding to the value of any area is its people and their investments of their time and effort to have a better community.  

Evidence of this in the Bentonville/Rogers area is the Northwest Arkansas ALPFA Chapter.  For those not familiar with ALPFA – Association of Latino Professional in Finance and Accounting, is a professional organization established in 1972 and currently boasts a membership of about 15,000 nationwide.  The Northwest Arkansas ALPFA chapter was established a mere three years ago and like its counterparts throughout the nation its mission is to provide access to its members via educational opportunities and relationships with mentors who can impact their careers.  The Northwest Arkansas ALPFA group is one hot ticket and has taken off like wildfire.  This group has been so active, so involved and so committed to its membership and the ALPFA goals that at the last national ALPFA convention in Anaheim, California in August of 2011, they were named the top chapter IN THE NATION!!  Quite the honor considering they are only getting started.  It is a testament to the quality of the people here who are part of this group.  

This local ALPFA group seems to be in constant motion working closely with the many professional and educational resources found in the Northwest Arkansas area such as Walmart, Tyson Foods, J.B. Hunt Trucking, Northwest Arkansas Community College, and the University of Arkansas and its renown Sam Walton School of Business where the just named ALPFA Institute will be housed just to name a few.  By the way, this new ALPFA Institute will be teaching leadership to candidates from the high school level to the CEO level.  Additionally these meetings avail themselves of the resources provided by the numerous people, from many other companies and varied professions, and self made entrepreneurs, who come to the meetings to learn and/or offer their expertise to the many students just starting their careers or seeking networking opportunities and business advice.  Attending and ALPFA meeting is a nonstop event, with opportunity to network, socialize, meet a new mentor or two, or become a mentor, hear a tremendous speaker with pertinent information, and, above all, learn something new.  Whether a seasoned professional or a student just starting out on a new career path, it may be worth a moment or two to check out ALPFA, because something will be gained from the experience, meet terrific people, learn something new  and probably offer some knowledge to others – ultimately it’s all good.

Link to ALPFA's site:  http://nwarkansas.alpfa.org/

September 13th - Bond Election

As an office, Steve Fineberg & Associates, refrains from taking any sort of political stance in elections.  However, on September 13^th the City of Rogers is planning a bond election that will directly impact economic development in our area.  We felt that this was a good opportunity to highlight what the bond is, and what it could mean for our region in way of growth and opportunity.

The Rogers/Lowell Chamber of Commerce has provided the below listed information to further answer questions:

When is the election?

Election Day is Tuesday, September 13. Early Voting will begin Tuesday, September 6.

Who can vote in the election?

Anyone registered to vote inside the City of Rogers.

What is the election for?

This election will provide funding so that we can continue making investments in major quality of life, public safety, and infrastructure improvements for Rogers. The city may only use this money to focus on four specific areas:

·         roads, sidewalks, drainage and other similar infrastructure;

·         public parks, recreational facilities, ball fields, and a water park;

·         fire department vehicles and apparatus; and

·         police department vehicles and other equipment.

Why was this election called?

The citizens of Rogers have, for decades now, made investments in public priorities that have made Rogers the incredible city that it is today. Rogers was recently named one of the 10 best small cities to live in by CNN.

Building on the momentum and expanding on the accomplishments that we have made as a city is important, and voting FOR these bond projects will allow us to do just that.

Our police and fire facilities, new land and improvements for our city parks, and much of our street, sidewalk and drainage infrastructure were made possible by investments that were made starting 20 years ago.

The vision of our leaders and the ability to create the needed infrastructure has helped to produce more than $1 billion of capital investment in and around the Promenade, bringing hundreds of jobs and attracting families to our city.

What is included in the election for infrastructure?

Due to tremendous growth that Rogers has seen in recent years, our city streets, sidewalks drainage and other infrastructure are in need of improvements to handle that growth and to prepare for our future.

To attract new jobs and private investment in Rogers we must ensure that our infrastructure is “ready for business.”

These improvements will allow for better access to our neighborhoods and sidewalks for our kids to play on.

Some examples of specific infrastructure projects for improvement include:

·         1st Street – widening, adding a turn lane and adding sidewalks

·         21st Street – adding drainage, curbs, and sidewalks

·         Bellview Road South – improving turn lanes, intersections and adding sidewalks

·         Bellview Road North – adding turn lanes and adding sidewalks

·         Monte NE & 1st Street – connecting both streets to ensure better access

·         Perry Road – widening to four lanes

·         Pleasant Grove Road - widen

What is included in the election for parks and recreation?

Parks have been an area of investment from the bond election almost 10 years ago. Providing ample green space, ball fields, playgrounds, the Senior Center, and other recreational areas have played a large part in our city’s growth.

Some specific examples of park construction and improvement include:

·         Veterans Park – constructing a moving tribute to our local heroes who have served in the military

·         Lake Atlanta – modernize and improve the safety of the facilities to return the Lake to a gathering place for Rogers’ families.

·         Rogers Sports Park – fulfilling the vision of previous investments, the park will include Championship soccer/football fields, Championship softball/baseball fields, playgrounds and fishing ponds. The park will connect in with Rogers city trail system.

·         Rogers Aquatics Park – building an exciting water park for kids and families to use with water slides, a lazy river, toddler play area, and a 25 meter swimming pool, with room for expansion and growth of the park in the future. The park will connect in with Rogers city trail system.

What is included in the election for our Fire Department?

This election will expand on the investments that we have made in public safety, providing funding for Fire Department vehicles and apparatus.  This will ensure that our Fire Department is able to protect all of our neighborhoods as our community continues to expand.

These improvements give us the best possible opportunity to protect or even lower our ISO rating to keep homeowners insurance rates from going higher.

What is included in the election for our Police Department?

This election will expand on the investments that we have made in public safety, providing funding for Police Department facility upgrades, equipment, and other needs.  Our city continues to grow as more people come to realize what we already know, Rogers is a great place to live and raise a family. We must ensure our police department has the resources, facilities and equipment to keep our city safe and protect all of our neighborhoods as our community continues to expand.

Will this raise our taxes?

No. The city’s tax rate will not go up at all. This only continues the investment that our community has made over the past 20 years.

What all is on the ballot?

There will be five separate votes on the ballot. All five of these votes work together to keep Rogers moving forward:

·         The first vote is a housekeeping vote to pay off the small remainder of previous bond funding that provided for numerous projects in the city.

·         Street Improvement bonds will provide $102 Million for street, sidewalks, drainage and other infrastructure needs in the city.

·         Park and Recreational Improvement bonds will provide $26.8 Million for park improvements as well as new ball field and water park construction.

·         Fire Department Facilities bonds will provide $4.6 Million for vehicle replacement and other upgrades for our firefighters.

·         Police Department Facilities bonds will provide $2 Million for police facilities, equipment and other public safety needs.

What accountability measures are included in this election?

The Rogers City Council and Mayor Hines have made it a point to include Rogers’ citizens in the planning and use of this revenue to improve the quality of life and public safety of our city.

Any revenue collected may only be used for repayment of the bonds.

If the bond issue passes, it will be a component in getting new businesses to come to this area because of the roads, the parks, the infrastructure, and the added amenities when the economy turns around. 

“The end game is to get more businesses to come to Northwest Arkansas, and the pitch is “look at our schools, look at our roads, and look at the economy that you can move into.

The most important thing is to vote. In local government every vote counts, and can make a difference to our community,” Steve Fineberg.