CORY REDDING

CD REDDING CONSTRUCTION

CORY REDDING
CD REDDING CONSTRUCTION

CHAD FREEMAN
INDUSTRIAL MARKET UPDATE

INDUSTRIAL MARKET UPDATE

CHAD FREEMAN

Industrial sales were significantly higher in 2012 compared to 2011 Major component of this was the Sumco South Building ($5.9M) Trend is that we are seeing movement in the distressed property type and that inventory is decreasing SEDCOR is seeing increased interest in existing building stock with large footprints

INDUSTRIAL MARKET UPDATE

CHAD FREEMAN

Volume of leasing dramatically improved More than half of this volume was in two short-term leases Transaction size and volume has increased over the last two years New expansion may be slow 2009 was the last time an industrial user signed a 40,000 SF lease in a new building (to the user), for more than a year Low cost of capital may be attractive to build in 2013-2014

INDUSTRIAL MARKET UPDATE

CHAD FREEMAN

Vacancy factor, which finished at 12.8% in 2011, finished 2012 at 12.3% The average asking rent for leases closed in 2012 was $.33/SF per month

Final effective rents were likely far below that amount because of continued concessions
Leasing activity still well below pre-recession levels Landlords reducing asking rents to attract the limited tenants that are in the market

INDUSTRIAL MARKET UPDATE

CHAD FREEMAN

SEDCOR is currently working with a portfolio of companies evaluating projects to: Potentially invest over $144m in local economy Add approximately 1,600 jobs to the region
Low Cost of Capital

Recruit and expand within the Salem region

Decreased competitors
Modest increases in market demand Uncertainty continuing to slow growth

INDUSTRIAL MARKET UPDATE

CHAD FREEMAN

INDUSTRIAL MARKET UPDATE

CHAD FREEMAN

Sold to: Gilgamesh Campus, LLC Price: $1,075,000 Notes: 17,476 SF on 2.78 acres

Leased to: Kettle Foods Size: 118,000 SF Notes: Expansion from 60,000

Sold to: Local Investor Price: $5,967,500 Notes: 189,376 SF on 10.5 acres

INDUSTRIAL MARKET UPDATE

CHAD FREEMAN

More market activity than 2012 based on local growth and low cost of capital Uncertainty is key

CHAD FREEMAN
cfreeman@sedcor.com
CHAD FREEMAN

DON COLEMAN
WELLS FARGO

Salem Commercial Real Estate

WHAT AREA DOES THE SALEM STAGECOACH COVER?

We cover that Greater Oregon Market which includes: Salem Medford Bend And Everything in Between! For those Investor/Developers in the Tri-County area of Multnomah, Washington and Clackamas, our Portland office is ready to serve your financing needs.

14

Salem Commercial Real Estate

LOAN STRUCTURE

All construction loans are typically full recourse to the sponsor with pricing based on 30 day LIBOR. Loan to cost and loan to value are indicative of the debt yield. Debt yield is defined as stabilized NOI divided by loan commitment. A 10% debt yield will typically drive equity of 15% with the loan to value in the range of 70%. As debt yield increases so does the equity.

PROPERTY TYPE Multi-Family Self Storage Retail/Office/Industrial Hospitality

DEBT YIELD 10% 10% 11% 12%

Wells Fargos underwriting can be defined as People, Credit and Real Estate. We are relationship driven and our vision is We want to satisfy all our customers financial needs and help them succeed financially. For the right person and project, Wells Fargo is your source for a consistent supply of capital to help you accomplish your vision.

15

Salem Commercial Real Estate

Hilfiker Square - 42,320 sq ft, Acquisition and Renovation, Commercial St, Salem

16

Salem Commercial Real Estate

Vista Place 11,204 sq ft, Construction and Permanent, Commercial Street, Salem

17

Salem Commercial Real Estate

ODOT Building - 82,055 sq ft, Permanent Loan, Fairview Industrial, Salem

18

Salem Commercial Real Estate

ODFW Building - 110,000 sq ft, Renovation, Fairview Industrial Drive, Salem, TomCor Construction and Dalke Construction

19

Salem Commercial Real Estate

Baxter Ridge Apartments - 96 Units, Construction Loan, Baxter Road, Salem

20

Salem Commercial Real Estate

WaterPlace 37,349 sq ft, Office with Restaurant, Construction and Permanent Loan, Liberty Street, Salem

Salem Commercial Real Estate

25,106 sq ft, Flex Industrial Buildings, Permanent Loan, Vista Ave, Salem

Salem Commercial Real Estate

Fairview Business Park 113,211 sq ft, Industrial Commercial, Permanent Loan, Fairview Industrial Drive, Salem

23

Salem Commercial Real Estate

Hampton Inn 86 Rooms, Construction Loan, Hawthorne Ave, Salem

24

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE
t

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

4.5%

6.5%

1%

10%

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

Interest rate future Weak economic recovery Housing recovery impact Inflation . . .

Changing tax structure Fiscal Cliffs Euro Debt Crisis

INVESTMENT & MULTIFAMILY MARKET UPDATE

CHRIS FISCHER, CCIM

Current interest rates are still low Strong buyer presence is creating a competitive market 1031 Transactions are back up Multifamily is still the darling investment Low cap rates + low interest rates = excellent rates
Understanding that there is both uncertainty and opportunity is essential moving forward.

MARK SHIPMAN
SAALFELD GRIGGS PC

Two Significant Land Use Projects that will Launch in 2013

one public, one private. . .

Public UDC Rewrite of Salems Development Code

Chapter 157
IP - INDUSTRIAL PARK 157.010. Classification of Uses 157.020. Permitted Uses 157.010. Classification of Uses. Most permitted, special, and conditional uses are classified with reference to the Standard Industrial Classification (SIC) Manual, (See 113.090). Numbers in parenthesis following a use designation indicate that the use is listed and described under the number in the SIC. Where particular activities otherwise included under a SIC category are excluded from the permitted, special, or conditional use, those particular activities are listed, preceded by the words "BUT EXCLUDING" following the more general category from which they are excluded. Particular activities thus excluded may or may not be listed in other sections of this chapter. 157.020. Permitted Uses. The following uses, when developed under the general development standards in this zoning code applicable to the IP district and to all such uses, generally, are permitted in the IP district: (c) Manufacturing: (1) Beverages (208); (f) Retail trade: (1) Eating and drinking places (581);

UDC 400
400.100. Manufacturing. Manufacturing consists of the production, processing, fabrication, packaging, or assembly of goods. Natural, man-made, raw, secondary, or partially completed materials may be used in the manufacturing process. Products may be finished or semi-finished and are generally made for the wholesale market, for transfer to other plants, or to order for firms or consumers. Goods are generally not displayed or sold on site, but if so, they are a subordinate part of sales. Relatively few customers come to a manufacturing site. (a) General Manufacturing. (1) Characteristics. General Manufacturing is characterized by the production, processing, fabrication, assembly, or packaging of primarily finished products for entry into the stream of commerce for ultimate sale to the end user. Materials used generally include semi-finished products produced in Heavy Manufacturing industries; and may include some small amounts of natural and/or raw materials. Products produced can be of any size, but are generally smaller than those produced in Heavy Manufacturing. Production does not involve significant impacts on adjacent properties due to noise, vibration, dust, smoke, fumes, or noxious odors; and is not dangerous or polluting. General Manufacturing uses may require large, medium, or small scale facilities and the work, and the storage of product, may be conducted either inside or outside. Products are generally not displayed or sold on site, but if so, they are a subordinate part of sales. (2) Examples. Breweries, wineries, distilleries, and cider houses where on-site food and/or beverage consumption is not the primary activity; commercial or industrial catering kitchens where food is prepared and delivered off-site; manufacturing of apparel; food, beverage and related products; pharmaceuticals; production or assembly of equipment, machinery, and fabricated products; wood, plastic, metal, ceramic, rubber, textile, and leather products; chemical products manufacturing that does not involve, or that does not have, significant impacts on adjacent properties due to noxious odors, noises, dust, smoke vibrations, or potential danger; computer and electronic products. (3) Exceptions. (A) The production of printed materials is included in Manufacturing: Printing. (B) Wineries, breweries, distilleries, or cider houses that are accessory to establishments for on-site retail food and/or beverage consumption are classified under Retail Sales and Services: Eating and Drinking Establishments.

Private Boise Redevelopment

Waterfront Parcel North Block Parcel

Private - Boise Redevelopment

Waterfront Parcel

Private - Boise Redevelopment

Waterfront Parcel

Private - Boise Redevelopment

Waterfront Parcel

Private - Boise Redevelopment

North Block Parcel

Private - Boise Redevelopment

North Block Parcel

Private - Boise Redevelopment

CURT ARTHUR, SIOR

OFFICE MARKET UPDATE
t

OFFICE MARKET UPDATE

CURT ARTHUR, SIOR

OFFICE MARKET UPDATE

CURT ARTHUR, SIOR

OFFICE MARKET UPDATE

CURT ARTHUR

OFFICE MARKET UPDATE

CURT ARTHUR

TONK FISCHER

FISCHER HAYES & ASSOCIATES, P.C.

TONK FISCHER
FISCHER HAYES & ASSOCIATES, P.C.

CONCLUSION: The changes werent nearly as bad as they could have been. Federal Capital Gains went up as much as 60%. Married couples with estates under $10 million and 1031 facilitators are the big winners with these changes.

JENNIFER MARTIN, CCIM

RETAIL MARKET UPDATE
t

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

180+ properties surveyed 4.3+ million SF 35 better/14 worse others full/same vacancy

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

CBD- Six & Metropolitan

North- Roths, Office Depot, Circuit City

South- GI Joes & Safeway East- Big Lots, Borders, St. Vincent, Home & Dining

7.9% 5.4%

8.4% 5.4%

7.5%

5.1%

Central Business Dist.

North South Salem East Salem West Salem Salem/Keizer

Total w/o Malls

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

RETAIL MARKET UPDATE

JENNIFER MARTIN, CCIM

JOBS, JOBS, JOBS

Industrial Single & Multi Family Office Daily needs retail Discretionary retail