|
|
 |
|
|
| |
|
November 3, 2009
|
|
| |
|
|
Association Real Estate: Time to Buy
|
|
| Curious about the non-profit scene in New York? Our great sponsor Arent Fox is hosting a talk on that very topic. Tues. Nov 10. Info. |
|
| |
| Akridge VP Gene Kenney's sign below sums up what a dozen real estate experts had to say about associations buying office condo property at a Bisnow lunch at BLT Steak Friday. We learned that only 14% of area associations own their own property. But with interest rates down and costs at a rare low, condos are becoming the hottest new trend in non-profit real estate, especially in DC. |
| |
 |
|
Gene pointed out that the best time to buy anything is when a market is about to “emerge from the doldrums.” For owner occupied office condos, vacancy and balloon payments are taken out of the downside risk. (We don't quite understand balloon payments but feel good assuming it has to do with productivity lost watching balloon boy on CNN.) Also, with modest appreciation and the pay-down of the mortgage, it’s possible that the initial investment could increase by four or five times over 10 years.
|
|
|
 |
|
À la Vanna White, Gene shows off DC's latest office condo at 1522 K Street. The 91,000 sq-ft renovated building is seeking LEED silver accreditation. He believes sustainability and energy savings will be a focus for associations going forward.
|
|
|
 |
|
Reed Smith’s Olivia Shay Byrne is encouraged by low LIBOR and SIFMA indexes, plus lower costs of a letter of credit. An expert at structuring tax exempt transactions, she mentioned the use of enterprise zone and recovery zone bonds. The Jesuit Conference, she notes, was able to buy an additional floor using tax exempt financing, with the bonus of having other non-profits in the building who share common experiences. She says owning comes with many benefits (provided one can manage the debt): become more diversified, capture appreciation, and be in a stronger position than if renting when inflation hits. (Not to mention Mr. Roper isn’t snooping by every 10 minutes.)
|
|
|
 |
|
The most-desired real estate for associations is near the Hill, says West, Lane & Schlager's Eric West. He's seen a trend of more associations moving from Rosslyn and Alexandria back to the District, where proximity to the Capitol and White House is seen as lobbying power. Another trend: aggregation of like-minded organizations in the same space. Organizations looking to buy should plan to be in the space for at least 20 years. He says savings typically start after year eight, and those who outgrow the space before 11 years will likely lose money.
|
|
|
 |
|
Our experts agreed that owning can often be a tough sale to out-of-District board members, who see the cost of a couple floors near the Capitol equal to an entire building in a city like Des Moines. Half the battle is overcoming fear of the down payment. Olivia suggests putting together an advisory committee of no more than four people. She says groups of 10 or more will never agree on real estate, and the organization may end up missing opportunities as a result.
|
|
|
30 AND LOOKING GOOD
|
| |
 |
|
The Center for Nonprofit Advancement, which represents 800 local non-profits, celebrated its 30th anniversary at an annual meeting last week. Latino Economic Development Corporation's Manny Hidalgo, New Hope Housing's Pamela Michell, and Washington Tennis & Education Foundation's Eleni Rossides were all recognized for their leadership. And for those who want to balance out their weekly dose of MTV, the Center announced that it's launching a new non-profit channel with DCTV. Programming begins today.
|
| |
 |
|
Rep. Jim Moran was one of four local legislators honored for dedication to area non-profits. Jim promised the audience that Congress would pass a health care bill by the end of the year. He added that bill will likely include a provision requiring employers to offer insurance for all employees, which may be a struggle for smaller non-profits. He lamented that non-profits have not been given a proper place at the table in the health care debate but said he hoped to get some financial assistance for non-profits who might have a hard time covering the costs.
|
|
| Countdown to Fight Night |
| |
 |
|
Just 48 hours to one of the great cultural rituals of DC business: the 20th annual Fight Night. It benefits Fight For Children, a non-profit that since 1990 has raised $82 million to promote quality education for low-income children in DC. Just ask Gen. Jim Jones, right, about the good things that Fight Night brings. We snapped this photo at last year's event, and now he's National Security Advisor. (Also pictured: legendary real estate investor Joe Robert, second from right, son Joey Robert, former DC Mayor Tony Williams, former Marine Corps Commandant Michael Hagee, and United Arab Emirates ambassador to the US Yousef Mana Al Otaiba.)
|
| |
 |
| No, it’s not just men who flock (see our photographic evidence above from last year—former Discovery Enterprises chief Michela English and Crystal City BID prez Angie Fox join then Deputy Mayor Neil Albert. As usual, Hilton Washington’s the place, tix are $1,000 and up. Boxing legends (Joe Frazier, Sugar Ray Leonard, Jake LaMotta, Gerry Cooney, Ken Norton, etc.) join local business stars. This year's entertainment: Joan Jett and The Blackhearts and Patti Austin. And as always, the Redskins Cheerleaders. Info for Fight Night and Knock Out Abuse. |
|
| Special Notice to All Bisnow Readers |
| |
| Fight Night founder Joe Robert and Park at Fourteenth owner Marc Barnes invite all Bisnow readers to their invitation-only Pre-Fight Night party (ie, the night before Fight Night), tomorrow, Wed, Nov. 4 at the Park at Fourteenth, 920 14th St, NW. Free food and open bar between 8-9pm. This event is free but you must register: Click here! |
| |
| Send story ideas to Jessica Sidman, jessica@bisnow.com |
|
|
|
|
| |
|
|
|
|
|
| |
This newsletter is a journalistic news source which accepts no payment for featured interviews. It is supported by conventional advertisers clearly identified in the right hand column. You have been selected to receive it either through prior contact or professional association. If you have received it in error, please accept our apologies and unsubscribe at bottom of the newsletter. © 2009, Bisnow on Business, Inc., 1323 Connecticut Avenue, NW, Washington, DC 20036. All rights reserved.
|
|
|
