Commercial-Land-Off-I95-for-Sale

321-Walker-Drive

321 Walker Drive, Warrenton, VA 20186


3300 N. Fairfax Street, Arlington, VA

Affordable space on Wilson Blvd Corridor

For Sublease

3300 N. Fairfax Street, Arlington, VA  22201

2,460 sf

$24.50 full service

Term through March 2025

  1. Fully furnished
  2. Move in ready
  3. Surrounded by shops and restaurants
  4. Two blocks to Clarendon or Virginia Square Metro

 

629 King Street – ONCE in a Blue Moon


“ONCE IN A BLUE MOON”
DOES A RETAIL BUILDING ON “KING” BECOME AVAILABLE
FOR SALE
Former Nine West space
629 King Street
3200 GSF 2 level
Building is ready for finishes!

10 QUESTIONS ANY TENANT SHOULD BE PREPARED

TEN LANDLORD QUESTIONS ANY TENANT SHOULD BE PREPARED TO ANSWER WHEN LEASING COMMERCIAL REAL ESTATE

For a business to lease commercial office space, or any commercial space, successfully, it helps immensely if the tenant realizes the landlord will base much of its decision on the credit worthiness of the tenant.  I usually tell my tenant clients to view the process much like applying for a bank loan.  Towards that end, below are ten landlord questions/concerns a tenant should be prepared to address along with some tips on handling them.

1.  Will the tenant be able to pay rent as specified in the lease?

  • The gold standard in answering this question is to provide the landlord with two to three years of audited financial statements if available.  This may be easy for established businesses with a long-standing track record. If audited statements are not available, the tenant needs to provide whatever financial information it does have which can include unaudited statements, “Quickbooks” profit and loss statements and balance sheet, and tax returns.  However, addressing this issue for young companies or start-ups is more problematic but not insurmountable.  Providing information on the source of funding and bank statements should enable the start up to overcome this obstacle.  Work with your broker for guidance as he/she often has past experience with the particular landlords involved.

2.  What are the tenant’s strengths, what are its primary sources of revenue, and are these services likely to continue to benefit the company?

  • Marketing/promotional materials should usually be submitted to the landlord to help with this.  The tenant’s website can also be instrumental here.  For non-profits, it is important to explain how the non-profit generates its revenue:  dues, grants, contracts, or a combination along with some history of its revenue from these sources.

3.  Are there any key individuals in the tenant’s company that it could not afford to lose without losing revenue?

  • If the company or organization is in the news or generating press releases on staff changes, the tenant can explain the plan to replace such key people.  Curriculum vitaes of those currently in charge or soon to replace such people is also helpful.

4.  What type and amount of security is the tenant willing to provide; what type and amount of security should be required?

  • The landlord’s decision on this issue will depend on the financial capability and stability of the tenant and the concessions the landlord makes to get the tenant to sign the lease:  free rent, build out allowances, the current market for commercial space, and rent to be paid by the tenant.

5.  Does the tenant have a reputation for dealing honestly and fairly with the business community?

  • Constant attention to the firm’s social media profile is very important here.  The tenant should expect the landlord to Google the tenant.  If there is negative material on the internet, the firm should make sure it is addressed and explained.

6.  What are the tenant’s economic requirements of the transaction (e.g., minimal rental and improvement allowances versus higher rent and larger concessions)?

  • In searching for space, it is very helpful if the tenant can find space that meets its needs as close as possible to the “as built” condition of the premises.  For example, if the space needs only new paint and carpet as opposed to a complete build out from “shell” condition, there will be more landlord dollars available to the tenant for things like free rent, lower rental rates, or lower rent escalations.

7.  Are there any unusual requirements that need to be addressed?

  • This can be anything.  We once had a tenant that insisted on the right to smoke cigars on the balcony adjacent to its space.  Unusual is ok; unreasonable is not.

8.  What type of tenant improvement work will be required?

  • The landlord is concerned not only with the cost of the tenant improvements it pays for, but also that the dollars it spends have some benefit to the residual value of the landlord’s building.  If the build out required is one that would be attractive to follow on tenants after expiration of the existing tenant’s term, the landlord may be able to refill the space with a new tenant with minimal improvement costs rather than demolishing the existing build out and starting over from shell condition.  Also, trends in design and décor change over time, but  outlandish or bizarre design will not help to keep the landlord flexible and open to the deal.

9.  Does the tenant grow its business from within or by acquiring other companies; has it incurred significant debts as it has expanded its operations?

  • Debt will be a key line item in the landlord’s financial review of the tenant.

10.  What are the long and short-term projections for the tenant’s business operations?

  • About fifteen years ago, we were involved in a lease where the tenant was an association representing phone booth manufacturers.  Even then, the association’s members were dying due to the growth of cell phones.  Whether the landlord is a single individual, a partnership, a large equity firm, a life insurance company, pension fund or real estate investment firm, they are business people.  Landlords will look at the tenant’s business with an experienced critical eye, often with a battery of paid experts to assist in the analysis.  The tenant must be prepared to answer some tough questions.

VOTED – “Best Real Estate Firm”

FOR IMMEDIATE RELEASE!

Alexandria Real Estate Award winners

Alexandria, VA January 10, 2018

ELKINS LANE REALTY ADVISORS, LLC named “Best Real Estate Firm
After receiving over 3400 ballots, the results of Zebra Magazine’s annual Reader’s Choice poll are now in and posted in the January 2018 issue of the magazine. In it, Elkins Lane Realty Advisors at Weichert Realtors was named the readers’ favorite commercial realtors. Elkins Lane is the leading commercial real estate team for Weichert Realtors throughout the D, strict, Maryland and Virginia.

Principals Scott Elkins and Rick Lane launched their commercial real estate practice nearly 20 years ago. The firm’s core business is comprised of commercial tenant representation, sale and purchase of commercial buildings, commercial real estate portfolio acquisition, IRS 1031 transaction management, and asset repositioning.

They may be contacted at:
Rick Lane, Esq.
Cell: 703.626.6691; Office: 703.549.8700
Scott Elkins
Cell: 703.725.8901; Office 703.549.8700
www.elkins-lane.com

Old Town Alexandria, Virginia 1601 Duke St – SOLD

For Immediate Release:
Alexandria, VA August 2017
ELKINS LANE REALTY ADVISORS
Weichert Commercial

Completes Second Old Town Alexandria, Virginia Purchase for VInci


Completes Second Old Town Alexandria, Virginia Purchase for VInci

Elkins Lane Weichert Commercial recently represented Vinci School in the purchase of 1001 North Fairfax Street, Alexandria. This 5000 SF facility will serve as complementary classrooms for the 1601 Duke Street location and traded for $1,450,000.

1601 Duke, an 11,000 SF building, formerly the headquarters for The Society of American Florists, was purchased last year for $4,450,000.

With schools in China and Ottawa, Vinci curriculum is based on a strong art-infused STEM format using Montessori methods for children 18 months through elementary.

Elkins Lane Realty Advisors, LLC, a multi-service CRE firm. works exclusively with the Weichert Commercial Brokerage for transaction

ELKINS LANE REALTY ADVISORS
Weichert Commercial
Completes Second Old Town Alexandria, Virginia Purchase for VInci

SOLD – 1101 Queen Street, Alexandria, Virginia

For Immediate Release:
Alexandria, VA August 2017

ELKINS LANE REALTY ADVISORS
Weichert Commercial

Completes sale of
1101 Queen Street,

Alexandria, Virginia.

Elkins-Lane Real Estate Advisors
Review our office video
Elkins Lane Weichert Commercial announces the sale of 1101 Queen Street, Alexandria, VA, a 6800 SF multi-use building in Old Town Alexandria for $2,550,000.

The fully leased 2-level building received a base-building renovation in 2008 and is home to ARC Document Solutions (NYSE), Pilates ProWorks, and a Salon & Spa.

The property was purchased by local investors.

Elkins Lane Realty Advisors, LLC, a multi-service commercial real estate firm, works exclusivity with Weichert Commercial Brokerage for transactions.


For Immediate Release:
Alexandria, VA August 2017

ELKINS LANE REALTY ADVISORS
Weichert Commercial
Completes Second Old Town Alexandria,
Virginia Purchase for VInci

NEW Hotel – Old Town Alexandria, 1600 Block

For Immediate Release:
Alexandria, VA August 2017

ELKINS LANE REALTY ADVISORS
Weichert Commercial


Represents Seller in the proposed

Hyatt Centric in Alexandria



Elkins Lane

?

Elkins Lane worked with the Association of the United States Navy as part of the assemblage for the new hotel in the 1600 block of King Street in Old Town Alexandria.


The 135 room 4-Star facility is slated for completion in late 2018. Donohoe Hospitality Group represented the buyer, Magna Hospitality Group headquartered in Rhode Island.


Elkins Lane Realty Advisors, LLC., a multi-service CRE firm, works exclusively with Weichert Commercial Brokerage for Transactions.

Elkins Lane worked with the Association of the United States Navy as part of the assemblage for the new hotel in the 1600 block of King Street in Old Town Alexandria.

Financing Commercial Real Estate Purchases – Two Important Ratios

This is the next in a series of posts directed to non-institutional buyers of commercial real estate. By “non-institutional” I mean individuals, families, partnerships, limited liability companies and corporations that own or are seeking to buy small to medium-sized commercial real property.

Buyers of commercial real property fall into two broad categories: users or investors. A “user” buyer intends to use the commercial property purchased to conduct its business. This could be office, retail, or warehouse/industrial in nature. “Investor” buyers purchase the commercial property purely for the rental income the property will generate and for the appreciation on resale thus providing a return on the investor’s investment in the property.

Whether an investor or user loan, commercial real estate lenders are “cash flow” lenders. The value of the real estate is a secondary source of repayment—foreclosure is a last resort. On an investor loan, cash flow from the operation of the asset (net income above expenses) is the key factor in the lender’s evaluation of risk. This is usually expressed as a ratio known as “debt service coverage”. Typically, lenders will want to see a minimum debt service coverage ratio of 1.2 to 1.4 to provide sufficient confidence to make the loan.

Although there is no income on a user loan, a similar analysis of income v. expenses on the part of the borrower will be made. Personal financial statements, personal and business tax returns, and business income and balance sheets will provide the lender the information it needs to make this evaluation.

Loan to value is another important ratio in the decision to lend or not to lend. Loan to value is a simple ratio or percentage expressed by the amount of the loan divided by the value (appraised value) of the property. Note it is the appraised value, not the sales price. This percentage is not dissimilar to residential loan to value analysis. However, in the residential world, loan to value can be as high as 97-100% under government programs provided by FHA and the VA. Not so for a commercial real estate loan. Lenders typically will look for a loan to value of 65-75%. Borrowers with good credit and/or substantial balance sheets will do better, but as a general rule, the lender will be looking for a greater down payment than in the residential arena. One exception is the SBA 504 loan program that can provide up to 90% financing provided the purchaser will use at least 51% of the property for its own business.

In poor economic conditions, banks are less willing to provide pure investor real estate loans resulting in lower loan to value ratios. Banks are a little more flexible on user loans as the owner is directly involved with the asset on a day to day basis.

The commercial real estate purchaser should be prepared to address these issues with the lender when loan application is made.

Rick Lane is a top realtor with Weichert Realtors in the Washington, DC Metropolitan market. He has 20 years’ experience in real estate brokerage and real estate law and construction. He is a winner of a Weichert National Sales Award (top 5% nationwide). He is a former partner in the law firm of Thompson and Waldron and a former Vice President with the Trammell Crow Company in Washington, DC. Rick is a graduate of the University of Virginia and William and Mary Law School. He may be reached at:

Richard F. Lane, Esquire
Weichert RealtorsCommercial
Elkins Lane Realty Advisors
121 N. Pitt Street, First Floor
Alexandria, VA 22314
Direct: 703.888.5106
Cell: 703.626.6691
Office: 703.549.8700
Email: ricklane@elkins-lane.com
www.elkins-lane.com






This is the next in a series of posts directed to non-institutional buyers of commercial real estate. By “non-institutional” I mean individuals, families, partnerships, limited liability companies and corporations that own or are seeking to buy small to medium-sized commercial real property.