A Little History of the OMAR Baking Company Building

Erected in 1923 for the Omar Baking Company, the bakery and building still remain a memory for a few old timers as a friendly bakery that served its community well.   In its prime, the Omar Baking Company had bakeries in Omaha, Milwaukee, Columbus and Indianapolis. There were seventeen branches within a 100 mile area covering 1,346 communities.  Many of those who still remember the bakery can recall when the “Omar Man” made his routes and a few can even recite the Omar jingle.

“I’m the Omar man, (tap,tap,tap)

knocking at your door (rappa tap tap).

When you taste my bread (mmmm boy!),

you’re gonna want more (rappa tap tap).

Yes, everyone loves those cookies and cakes

and the wonderful bread the Omar bakes!

Get it from your Omar man!”

The baking company had been given the name by Mr. Coad, its president, inspired by Omar Khayyam’s famous lines, “A book of verse, a loaf of bread…”  The building was sold to a company who dealt in used fixtures that were acquired mostly from department stores. It was during this period that the property was allowed to go into decline.

Nearly  a century from its beginnings, the Omar is restored to a new purpose and a new future for its community.  The present Owner/Developer acquired the building in 2008 with the vision to create a center for non-profits that facilitates improved delivery of essential services to constituents — within a workable budget.  The mission included brining all the necessary components together into one setting: off street parking, public transportation, desirable access and identity, and functional space .  The developer felt that, in addition to all the requisites for a functional facility, the character of the OMAR property  brings with it a strong sense of intent and purpose that offers beauty and dignity for tenants and their clients; some call it just good energy.

LOCATION & TRENDS:  The intersection of Saddle Creek and Cuming Street places the Omar on the fringes of Destination Midtown and at the end of the Saddle Creek Realignment project.  Public transportation is within one and one half blocks of the property and two of Omaha’s largest and most respected medical centers and universities Creighton are book ends for the property. The Omar Building is located on one of Omaha’s major arterials, a connector to the CenturyLink Center (formerly Qwest Center), Downtown Omaha, and Eppley airport.

To see oportunities to lease in this building visit: http://www.realestateomaha.org/properties.html

Growth in Commercial Real Estate Markets Expected in 2012

Nationally the commercial real estate markets have been relatively flat this year, but improving fundamentals mean a more positive trend is expected in 2012, according to the National Association of Realtors®.

The commercial real estate market is expected to follow the general economy. “Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year.

Vacancy rates in the office sector are expected to fall from 16.7 percent in the current quarter to 16.1 percent in the fourth quarter of 2012.

Annual industrial rent should decline 0.5 percent this year before rising 1.8 percent in 2012. Net absorption of industrial space nationally should be 62.0 million square feet this year and 41.2 million in 2012.

Retail vacancy rates are likely to decline from 12.6 percent in the 4th quarter of 2011 to 11.8 percent in the fourth quarter of 2012.

Average retail rent is seen to decline 0.2 percent at the end o 2011, and then rise 0.7 percent in 2012.

 

 

A special Networking event

Mark your calendar for Wednesday, February 8^th.  You have been invited to a very special

Order of Beer Thirty co-hosted by Impact CB!

Barley’s Bar

114 West Broadway, Council Bluffs

5:00 pm

Thank You Mike Donovan with PropertyBanc Commercial Real Estate for providing appetizers!

At this meeting of The Order of Beer Thirty we will be taking pre-orders for the American Cancer Society Daffodil Days! Daffodil Days is one of the American Cancer Society’s oldest and most beloved fundraising programs. As the first flower of spring, the daffodil represents hope and renewal. To the American Cancer Society, the daffodil symbolizes the hope we all share for a future where cancer no longer threatens those we love.  Suggested donation of $10.

The Order Of Beer Thirty

Rules:

• You are NOT allowed to talk about business while the meeting is in session.
• If you tell someone what you do for a living, ask someone what they do for a living, or talk about business in any capacity you must buy a drink for the person(s) with whom you’re speaking.
• Contact information for all attendees will be emailed the following day.  Please be sure to drop your business card in the mug.
• Have FUN!  Beer Thirty is a great way to make connections and build relationships in the Council Bluffs  and East Omaha Business Community.

Attention Landlords: Don’t Miss These2011 Tax Deductions

I thought this was good and had some helpful information:

Attention Landlords: Don’t Miss These 2011 Tax Deductions

Source: http://www.investinganswers.com/personal-finance/tax-center/attention-landlords-dont-missthese-2011-tax-deductions-4001

As tax season begins, here are seven deductions rental property owners can look forward to:

1) Travel Expenses

Keep tabs on any time you travel to the property to make improvements or collect rent, as that can be deducted. On your taxes, you can either take a standard mileage rate (55 cents per mile in 2012) outlined here, or deduct actual expenses including gas, upkeep and repairs.

2) Mortgage Expenses

Similar to homeowner mortgages, rental property owners can write off the interest paid on their mortgage. The mortgage company will send you a Form 1098 that tells how much interest you paid the previous year.

Unfortunately, one-time expenses at closing — such as commission and appraisal — aren’t fully deductible in the year that you pay them. Instead, you can amortize them over the life of the loan, still leaving you with a hefty deduction.

3) Lawn Care or Association Fees

If you own a home and have a lawn service cut the grass or manicure gardens, those expenses can be written off as well. Association fees that condo associations often use to cover lawn care, exterior maintenance and the upkeep and maintenance of other common areas are also deductible.

4) Repairs

Property owners know the drill — when something breaks, you have to fix it. From furnaces to dishwashers, the landlord foots the bill. The good news is that repair and maintenance costs are tax deductible.

The distinction is a repair that keeps your property in good working order. If something breaks or could potentially break and you spend the money to replace or update it, the cost is considered tax deductible.

However, it does mean that you write off strictly cosmetic updates, like adding granite countertops to a kitchen, unless the previous counters were faulty. For cosmetic improvements, you have to depreciate the expense over the life expectancy of the property.

5) Taxes and Preparation Fees

The funny thing about taxes in investment properties is that you are allowed to deduct them. If you have someone else prepare your taxes, like attorneys or accountants, those expenses can also be written off.

6) Insurance and Losses

The cost of insuring the property can be written off along with any losses from casualties, like burglaries or natural disasters such as tornados, hurricanes or floods.

7) Depreciation

The IRS allows rental property owners to deduct depreciation of the value of a rental property. The assumption is that since property is useful for a long time, over that time, it wears out and is worth less money. Thus, you shouldn’t be taxed on the same value as when the property was purchased.

You calculate depreciation by adding up the total costs of the property and dividing it by the useful life of the property Anchor. For residential rental real estate, the useful life expectancy is 27.5 years. So, you would take the total value and divide it by the useful life to discover the depreciation.

For example, if you purchased a rental property for $150,000, you would divide that number by 27.5 for a depreciation of $5,455 per year.

A Word of Warning

As with all tax-related details, it is vital to keep excellent records to back up all your newfound tax deductions. If you are audited, the last thing you want to do is get penalized and pay more tax than you really should just because you don’t have the proper documentation. For further peace of mind, consult a tax professional to help you get the most tax deductions you deserve and organize your documentation.

The Investing Answer: Rental property can be a great investment and the tax deductions you can receive can make it even more appealing. Do a little research and hire a professional to ensure that you get the most deductions possible on your rental property.

Highest and Best Use

What does highest and best use mean in commercial real estate? Generally, it means “the most probable use of land or improved property that is legally possible, physically possible, financially feasible from the market, and which results in maximum profitability.” Highest and best use can be described informally as a probable and legal use that will result in the maximum value for a parcel of real estate.

An attempted analysis of  highest and best use involves two considerations:

1 the most likely and profitable use of the site “as if vacant” under the requirements set forth above and,

2 if a property is  improved, it is the use that should be made of the property to maximize value for non-income producing properties or, maximize net operating income on a long range basis for investment properties.

In cases where capital expenditure is necessary to renovate or improve an income producing property, these costs must provide a sufficient rate of return for the total amount invested in the site and building improvements.

A highest and best use analysis should consider all legally permissible uses. While it is often simple to exclude uses that are not physically possible, determining which use is financially feasible and generates the highest value for the property often requires obtaining voluminous data and performing extensive series of analyses.

Research and analysis by seasoned real estate professionals can help identify highest and best use to maximize returns.

 

New IRS regulations impact owners of rental, investment properties

Daily Real Estate News.

How can you increase the value of your commercial property?

How can you increase the value of your commercial property? Just some thoughts to get you thinking.

The value of a commercial real estate property is primarily driven by the cash flow that the property generates. With each additional dollar that your property pulls in each month, the value of your commercial property increases.

Cosmetic improvements, maintain the properties grounds, good landscaping and rehab of the property can help allow you to increase the rent (or lease amount), reduce vacancies and turn over.

Decrease the expenses by improving the property with more energy efficient technology, reviewing all costs and finding innovative ways to improve your cash flow.

Consider a change in the property’s usage.  Sometimes, changing the use of a commercial property can improve the value of the property. You may want to consider subdividing a large building into smaller units.

Properly managed real estate may result in greater income and profits. Property managers maintain and raise the value of real estate investments by handling the logistics of running a property. Construction managers can help you with those improvements and changes you want to make. Consider using their help.

Storage REITs Enjoy a Boom

According to the WSJ, One of real estate’s least-exciting businesses—warehouses that allow people to store their unused sofas, lamps and other household goods—have become a hit with investors.

Self-storage has long been viewed as a stable business because it is an expense borne out of necessity. “We are a solution to a problem or a challenge that has been life-changing for an individual,” said Spencer Kirk, chief executive of Extra Space. “It’s not glamorous, but it’s stable,” he said. “It’s recession-resistant. and if properly managed, it can produce a great return for an investor.”

Mr. Kirk says the business will continue to benefit from higher rents in part due to the absence of new competition. “There has been virtually no new supply added over the last few years. As an existing operator for self-storage, it bodes well for the future,” he said.

Tenant representative

What is a tenant rep? A tenant representative is a licensed real estate agent that represents the tenant’s interests, not the landlords, in the lease transaction process. As your tenant representative, PropertyBanc will provide the tools and knowledge to capitalize on current trends and market conditions. We will simplify the process and help you make the best decision for your business. Tenant representation is at no cost to the tenant in most cases because the landlord will pay the fee to the real estate broker representing the tenant.

1031 Exchange

A 1031 exchange is a simple method of selling a property and the acquisition another property in a descent time frame. The property does have to pass certain standards.

 

In its simplest form, a 1031 exchange is defined as an exchange of property. It is a strategy used to defer the payment of taxes on capital gains. In general, this only applies to the sale of “like-kind” property for use in trade, business or investment. However, there are exceptions.