Newest articles on The Sacramento Press tagged as "real estate"

Its still warm enough to enjoy Folsom lake

2012-01-31T00:01:49Z

I had a picnic at Folsom Lake on Sunday. Who would believe we’re still having sunny days to enjoy our beautiful lake. We walked in at the levee entrance at Sophia Parkway and GreenValley Road in El Dorado Hills and found we weren’t the only ones with the same idea.

Boaters, families, individuals with dogs, Whipperwils, Seagulls, Geese and a lone Loon populated the lake. Hikers, Cyclists, Equestrians, and nature enthusiasts alike enjoy the many trails.

One of the popular trails leads to Brown’s Ravine in Folsom Lake State Recreation Area that is home to the Folsom Lake Yacht Club and Folsom lake Marina, also located on Green Valley Road in El Dorado Hills.

Although only the brave would go swimming Sunday, the peacefulness of the day drew so many. The water level s low and provided wonderful opportunities to explore what
may typically be hidden such as foundations of old Gold Rush buildings. There is also the hope of catching a hungry fish or just laying back to enjoy the warmth of the sun.

Whatever appeals to you, El Dorado Hills and Folsom Lake can offer Recreation,relaxation and qualify of life. Come to our area and check it out.

courtesy of local Real Estate Broker, Jill Berni, El Dorado Hills, CA

Disclosure: I bought my home in 1981 in El Dorado Hills within walking distance to Folsom Lake. I started selling Real Estate here shortly thereafter because I believe and love this community.

HGTV show looking for homeowners, realtors

2011-02-26T01:45:51Z

HGTV's home remodeling show "Bang For Your Buck" is coming to Sacramento for the first time.

And if you're a homeowner who's recently renovated your master suite or an outgoing Realtor who'd like to appear on the show, a TV production company wants to talk to you.

High Noon Entertainment is searching for three homeowners who've had their master bedrooms and bathrooms overhauled within the last three years. Applicants must send photos, renovation costs and applications by March 11.

Executives with HGTV and High Noon Entertainment decided to take the show to Sacramento after all the attention the city and the region have been getting lately. Some of that attention has come from local efforts to live sustainably, including building and designing in environmentally friendly or "green" ways, said High Noon Casting Producer Denielle Johnson.

"There are a lot of interesting things going on in Sacramento right now, as far as design and building," Johnson said.

The Sacramento area has also gotten a lot of recent attention from national reality TV shows, production companies and cable channels.

Last year, the Food Network show "Diners, Drive-ins and Dives" shot a segment at The Golden Bear in Midtown, and the Travel Channel's “Man v. Food” filmed at downtown landmark Jim-Denny's. Other eateries have been featured on the shows in recent years.

The Idea Factory, a TV production company based in Sacramento, has been spotlighting the Camellia City on "Yard Crashers," "Turf War" and two other DIY Network shows over the last few years.

A crew from High Noon Entertainment, which is based in Denver, will be in town in April to film "Bang For Your Buck."

Johnson said she's looking for fun, enthusiastic and energetic homeowners from a wide range of backgrounds and ages.

"We really strive to have a good time on this show," she said. "We are definitely looking for a diversity of spaces, a diversity of people."

The renovations should cost $20,000 and up and include both bedroom and bathroom. Additions qualify as renovations. The production company will choose three renovations with similar budgets.

Individual homeowners and couples in the Sacramento area can apply. Single homeowners should recruit a friend, relative or design expert to interview and appear on the show with them so they can play off each other, she said.

"I think it's more fun for them anyway," she said. "They're less likely to feel intimidated if they have company."

On the show, the homeowners lead a tour of their renovated spaces. Then a local real estate expert and a design expert walk through discussing the renovations and the returns that could be expected on the investments.

The homeowners watch the experts talk about their home on a closed-screen TV.

Interested homeowners should send in photos of themselves, before and after photos of the master suites, and the cost of the projects as soon as possible. Realtors who can appear as guest experts are also being sought.

Johnson will set up calls to interview people by phone after getting two-page applications that discuss the renovations.

The whole process should be easy and fun, she said.

"The application is not meant to be brain surgery. You're meant to have fun with it," she said.

To apply, e-mail Denielle Johnson at djohnson@highnoontv.com or call her at 303-872-8721.

Suzanne Hurt is a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.

Philipp's Bakery sold

2011-01-11T01:40:20Z

Sacramento developers Ken Fahn and Mark Cordano are searching for tenants after buying the shuttered Philipp's Bakery Monday.

Fahn and Cordano are looking for one to three businesses to lease space at the historic East Sacramento building, which operated as a bakery-cafe for about 80 years.

"Mark and I are both native Sacramentans and are very much into design and preservation," Fahn said. "We love older buildings. It's a beautiful building. It's a terrific location."

The 3,256-square-foot building was last listed at $699,000. Fahn didn't want to comment on the purchase price.

The building closed escrow Monday after being on the market for at least three years. The sale proved difficult despite multiple offers. An environmental issue involving a fuel tank on the site may have discouraged some buyers. The tank was inspected and removed, and the site was tested and found to be free of contaminants, said broker Jay Richter of Cassidy Turley BT Commercial, who handled the sale.

"It turned out it was a clean property," Richter said.

The bakery was most recently run by Cindy Philipp, who was married to the grandson of the bakery's founders. Philipp ran the business from 2003 to 2007 but closed the neighborhood bakery at 3300 Folsom Blvd. due to needed repairs.

Fahn said they plan to preserve the building's architectural integrity. They will replace the roof, repair the back parking lot and make other improvements, such as fixing basement leaks from the sidewalk. The brick exterior is in good condition, but they may restore more of the building's original look by removing portions of brick façade that covered original doors and windows.

Philipp's Bakery was opened in 1925 by Julius and Angelina Philipp. The German immigrants moved to Sacramento from Calistoga, where they'd also operated a bakery. Philipp's Bakery was one of three tenants who first leased space at the building. The bakery was so popular that they expanded into the entire building, then bought the property and remodeled it into one space.

"At that time, Folsom Boulevard was the freeway to get to the mountains. That's how you got to Tahoe," Fahn said.

The couple ran the bakery until 1955. They were famous for their cakes, but they also sold food. They sold Thanksgiving turkeys, sandwiches and other food ideal for picnics. The family lived in a house behind the bakery that was later moved to Oak Park to make way for a parking lot.

Son Julius ran the bakery from 1955 to 1982. The bakery was then run by two other operators. But the Philipp family continued to own the building.

Fahn is known for developing the Park Downtown at 15th and L streets. The complex originally held the Park Ultra Lounge, Mason's and Ma Jong's. Mason's was rebranded as Cafeteria 15L. He also developed UC Davis medical office buildings on Stockton Boulevard and turned Posey's at 11th and O streets into a multi-tenant building now home to a La Bou, Posey's General Store, The Dragon House and Vallejo's.

Fahn and Cordano have developed two other multi-tenant properties. The Firestone Building at 16th and L streets, which won the Downtown Sacramento Partnership 2010 V.I.B.E. award, houses de Vere's Irish Pub, Mix Downtown, Sapporo Grill Japanese Steakhouse and California Pizza Kitchen. Their other building at 38th and J contains a Peet's Coffee and Time to be Fit.

The Philipp family wanted the next tenant to be a restaurant that could carry on the building's heritage as a neighborhood eatery. That may not happen. However, Fahn and Cordano are looking for a good fit for the busy area.

"We want to make sure whoever goes in would be a positive addition to the neighborhood," Fahn said.

Photos provided by Cassidy Turley BT Commercial. Suzanne Hurt is a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.

Editorial Note: Drew Wheatley of Cassidy Turley BT Commercial also worked as a broker on the sale.

Ask the County Law Librarian — Air Rights

2010-12-11T20:42:17Z

Hello-

Recently I was watching the movie Burlesque starring Christina Aguilera and Cher and a legal issue was raised that piqued my curiosity. In the movie (spoiler alert!) Cher and Xtina are able to save the burlesque club from foreclosure by selling a nearby developer the "air rights" over the club so that the view for the developer's skyscraper will remain unimpeded. Is there such a thing as "air rights" for the space above a building and can one purchase them, or is this just an example of "movie magic"?

Thanks,
Becky

A: Believe it or not, “air rights” are for real, and the deal you describe is entirely plausible. The owner of land generally owns not just a particular bit of the surface of the Earth, but the ground beneath it and the air above it, too. Your neighbor can’t drill sideways into your yard for oil; likewise, he can’t build a deck that hangs over the yard.

Back in the olden days, a land owner owned everything on his plot of land, from the center of the Earth to the outer reaches of the universe. As the English common law classic Blackstone's Commentaries put it, “Land hath also, in its legal signification, an indefinite extent, upwards as well as downwards.” This infinite ownership caused no real problems, since no one could actually get up all that that high, but that changed when airplanes were invented. Technically, airplanes were trespassing whenever they flew above land without permission, regardless of how high they flew.

In United States v. Causby 328 U.S. 256 (1946), the Supreme Court noted that “It is ancient doctrine that at common law ownership of the land extended to the periphery of the universe… [b]ut that doctrine has no place in the modern world.” Instead, the Court ruled that land owners own only the airspace they can “reasonably use,” and that the airspace above that is a public highway.

So, airspace isn’t infinite, but it can be very valuable in the right circumstances. In some places (mostly dense cities), there is a thriving market for air rights. For instance, railroads frequently sell air rights above their tracks, so that people can build on platforms above them. Owners of buildings that use solar energy may purchase air rights from their neighbors to preserve their access to the sun. These are perfectly valid sales; if the railroad or neighbor ever sells its land, the new owners have no rights to the airspace.

I haven’t seen Burlesque, but it sounds like the club found a creative solution to raise money out of “thin air.” The low-rise burlesque club has no use for its air space, while the neighboring developer wants to prevent any future high-rise buildings on the club site. The neighbor now literally owns the air space above the club, guaranteeing that no one can ever build a building tall enough to block the view.

Do you have a question for the County Law Librarian? Just email sacpress@saclaw.org. If your question is selected your answer will appear in next Thursday's column. Even if your question isn't selected, though, I will still respond within two weeks.

Coral Henning, Director
@coralh & @saclawlibrarian
www.saclaw.org

There’s a New Real Estate Brokerage in Town

2010-10-06T20:54:03Z

Better Homes and Gardens Real Estate moved into the Sacramento region’s residential real estate market last week when Pleasanton, Calif.,-based Mason-McDuffie partnered with the company. Better Homes and Gardens Mason-McDuffie Real Estate’s (formerly Prudential California Realty) brand switch brings a broad array of comprehensive real estate services to residents in Sacramento, El Dorado and Placer counties.

“Better Homes and Gardens Mason-McDuffie Real Estate’s emphasis on being a lifestyle real estate brand means that we now provide consumers in Northern California with all of the real estate-related services they need, from brokerage representation for homebuyers and sellers to consumer ‘how-to’ content about everything related to the house and home,” said Pat Shea, president.

Better Homes and Gardens Mason-McDuffie Real Estate is among the nation’s top 20 real estate brokerages with a sales volume of $2.8 billion in 2009. The franchise agreement is the largest in the industry to date, as Mason-McDuffie adds 1,900 real estate agents and 36 offices to Better Home and Gardens Real Estate.

“Owned by Meredith Corp., Better Homes and Gardens has been a staple in American life since 1924. The brand represents a true passion for the home with a deep commitment to homeownership that builds quality of life for individuals, families and communities,” said Mason-McDuffie Chairman of the Board Ed Krafchow. “For 123 years, Mason-McDuffie has succeeded through many cycles of growth and challenge in the real estate industry and with this partnership, we expect to thrive and vastly grow our presence in all of our markets.”

Four offices and 175 real estate agents in the Sacramento area are immediately impacted by the switch, according to Shea.

***Disclosure: I work for Mansfield Communications Inc. on behalf of Better Homes and Gardens Mason McDuffie Real Estate***

Tapestri Square: a Good Sign?

2010-09-03T02:23:53Z

Quick Update

Workers are back on the job at the Tapestri Square brownstone-style homes at 2002 T Street.

58 single-family brownstone-style homes will retain the neighborhood’s historic charm and style while catering to an upscale buyer. They range from 1,300 to 2,800 square feet, starting from the high $300,000's.

A donation to the Sacramento Children's Home will be made on behalf of Tapestri Square for each home sold.

email info@tapestrisquare.com

tapestrisquare.com

SacPress Photos | Kati Garner

Introduction to Ask Broker Cyndie

2010-05-05T16:08:57Z

Welcome to my new column. I have been a Real Estate Broker and brokerage owner for six years in Midtown and now in East Sacramento. For the past three years I have primarily sold foreclosures for banks and institutions. Before I became a Real Estate Broker I “flipped” older distressed homes in the greater downtown Sacramento area.

I am a member of four professional associations and attend several conferences and workshops a year where I have direct contact with the real estate industry’s leaders and experts. This insight helps me greatly with the understanding of real estate’s future.

As most people are well aware the real estate market is not going to recover soon and the foreclosure market will persist. The good news is that lenders are putting systems in place in order to expedite the approval process for short sales. A short sale is when the bank is willing to take less money for a home sale than what is currently owed on the loan.

Please feel free to ask me any real estate related questions at cyoung@saccityre.com. I will answer one question per week and post the answer to the Sacramento Press on Wednesdays.

Voyage Home Loans and Angelwish's Giving Spree to Benefit Children Living with HIV/AIDS

2010-03-05T20:41:15Z

Voyage Home Loans and Angelwish, an international non-profit organization that empowers busy people to grant the wishes of children infected and/or affected with HIV/AIDS, have partnered to sponsor a giving spree to benefit Angelwish kids.

The giving spree will take place at the G. Willikers Toy Emporium at 8:00 AM on Saturday, March 6. Local Sacramento children will be purchasing $3,200 worth of toys, books, games, and other gifts for the Angelwish children and their families. The event was made possible through the generous contributions of Voyage employees, whose donations were matched by the company.

"Angelwish is thrilled to be working with the employees of Voyage in engaging the next generation of philanthropists in helping children living with HIV/AIDS," said Shimmy Mehta, Founder/CEO of Angelwish. "The legacy of their donation will have an extremely positive impact on the children picking the toys as well as the ones receiving them.”

Voyage and Angelwish teamed up to coordinate an essay contest for a group of interested Sacramento area children, where they were asked to, “describe the perfect day for you and a sick friend. What would you do? Where would you go?” The winning essay writer and about 20 Sacramento children will shop for gifts to donate to the Angelwish children.

FOX 40 Live Reporter Bethany Crouch and several players from the Sac City Rollers participated as judges in the contest, including Purdy Girl, Rosie GiveittoHer, Trippin' Billie, Pity da Foo, London Britches, and Passion Bye-Ya.

Voyage employees said they were inspired by Angelwish’s mission to give children living with HIV/AIDS and their families the opportunity to celebrate their childhood and they are excited to be part of such a great cause.

“We are very proud that our team has embraced this event. Ryan Lucia and our employees have dedicated both their time and money to such a great cause,” said Josh Harmatz, CEO Voyage Home Loans. “We were excited to partner up with Angelwish; they are a tremendous organization and we are looking forward to even bigger future events. We just hope that our efforts will set a positive example for the mortgage industry to reach out to their respective communities."

About Voyage Home Loans

Voyage Home Loans strives to offer the best loan services available, while working hard to make a difference in local and national communities and the environment through community and charity outreach. Last year, the company was honored to receive an A+ Employees’ Choice Award, from the Sacramento Business Journal, in the small business category. This year, the company hopes to increase its participation, involvement and partnerships with various non-profits, not-for-profits, and individual causes to at least four events a month throughout 2010.

http://www.voyagehomeloans.com/

About Angelwish

Angelwish, a nonprofit organization dedicated to brightening the lives of children with HIV/AIDS, plays a vital role in allowing children to experience childhood. Founded in 1999, Angelwish works with more than 130 HIV/AIDS care centers around the world and harnesses the power of online donations to provide gifts to children. In doing so, Angelwish makes it efficient and effective for a donor to help a child and their family in need. Unlike other methods of donating, 100% of an individual donation made to Angelwish goes directly to the child with HIV or AIDS waiting for a gift.

http://www.angelwish.org/

For more information, contact info@voyagemtg.com

Bankers to Replace Lawyers in Lab Experiments

2009-12-01T21:30:14Z

You have likely heard the old joke that lab rats are being replaced by lawyers because the lab workers do not get emotionally attached to lawyers. Or the one about a thousand lawyers being chained together at the bottom of the ocean being a “good start”. As these jokes (and the hundreds of others) show, lawyers have a bad reputation. Personally, I have never had the need for one and only know a few, and I have worked pretty hard at maintaining the status quo on both of those points. It seemed to me that lawyers are for people who live near secret toxic waste dumpsites.

Recently, my work helping small businesses with marketing led me to a local Law Firm and Real Estate company where I’ve learned several things (including the fact that there is such a thing as a combination Law Firm/Real Estate company, and that combining those services is a huge benefit to their clients- more on that later).

The people I met there are well aware of the reputation Lawyers have; working with them I quickly picked up on the company jargon that “nobody likes a lawyer until they need one”. With the recent happenings in the Real Estate market, there’s not a whole lot of popularity on that front, either. I have always advocated integrity and personal responsibility, which I feared would not mesh well in a Law Office. I kept these thoughts to myself and focused on my responsibilities, to build awareness of their services and to market a loan modification program.

Surprisingly, I discovered a deep seeded passion in the Attorney and his staff. Ted Greene, the owner and Attorney, is an affable but direct communicator. In one intense conversation with Ted four days into my work he stopped me and said, “You don’t talk to these people. You don’t understand the fear and hopelessness that these people feel. They want assurance, they want an advocate, to speak with an Attorney who knows the law.” I was taken aback and humbled at his perspective and his passion for the distressed home owners that his company had been serving. Integrity and responsibility in a Law office? The list of things I was learning continued to grow.

Every day that I work with the law office I encounter another story of distressed home owners in desperate need of help. These stories have forced me to re-examine another long-held belief. I consider myself to be a savvy consumer and I’ve long followed conventional consumer wisdom, which made me wonder: Why do these people think they need us? Everybody should know that they can do their own loan modification. Call your bank, fill out some paperwork, and get a loan mod. Anybody who has taken in an afternoon of Clark Howard could tell you that. Besides, the larger banks are receiving government money to help us all out of this mess and it only stands to reason that they’d rather agree to a lower house payment that can be paid every month than get nothing, right? Somehow this has proved not to be the case for many people. My conventional wisdom is not serving me well.

The clients at UpsideDownCA.com, the joint venture of Ted Greene Law Offices and JCL Realty, are not lazy people who can’t fill out forms. They have tried all of the options available to them and they have nowhere left to turn. Many are home owners who have already been denied their modifications. Some have come home to trustee sale notices posted on their front door after never hearing from their lenders. Others have had their paperwork lost by the bank or have received rejections despite overwhelming hardships. All of these customers received reprieve through the services of UpsideDownCA.

Working with this team has been an incredible experience- fulfilling, even, to earn a living while helping people who are saving their homes. They might not be doing the work that is typically thought of as community service, like feeding the hungry or giving toys to needy kids. No movies will be made featuring the team at UpsideDownCA.com. Still, I do think that this team is doing some pretty heroic work. There are dozens of families who will go to bed tonight in their house because UpsideDownCA went to bat for them. It feels good to be a part of that.

I’ve also been thinking about the lenders who are refusing service to the under-employed, the furloughed State workers, and the suddenly single-income households. I believe that they are doing our society an extreme disservice, and I’m not alone in noticing. People have a long memory for companies who turned a blind eye to the needs of their customers. Maybe it’ll be the bankers offered up for lab experiments in the coming days. Lest the employees of these companies wish to become the butt of longstanding jokes, I hope they take heed and change their tune.

And remember- you never know. Next time you meet a lawyer, they may turn out to be one of the good guys.

* Photo from above - “Furlough Friday” – 12:30pm – taken by Josh Bruno at the corner of 5th Street & Q Street just a few blocks from the Law Offices of Ted Greene.

Sacramento Office Market Favoring Tenants

2009-10-14T21:35:30Z

Sacramento's office space market will continue to favor tenants as vacancy rates increase and businesses consolidate existing office space. That combination is allowing prospective tenants to negotiate deals that may not have been possible before the economic downturn.

According to Reid Boggiano of Sacramento Tenant Advisors, companies looking for class B or C office space will be able to get deals and allowances that weren't possible during the economic boom.

"It hasn’t been this much of a tenant’s market in Sacramento for a good many years," said Boggiano. "Right now we are negotiating rent reductions and generous tenant improvement allowances that we wouldn't have imagined only a few years ago."

Even businesses that aren't looking to expand might be able to save money by renegotiating an existing lease. Companies that leased space when rates were at their peak, can cut their costs by up to $0.15- $0.25 per square foot depending on their requirements and landlord's willingness to deal. It is generally cheaper for building owners to keep existing tenants so many landlords will be receptive to negotiating new deals.

Below is a list of major submarkets in Sacramento with asking rates for office space. These prices do not necessarily represent the lowest rate in each market, rather they show the general asking rates for their respective markets and may be higher or lower depending on your company's requirements.

Arden
Starting Rates: $1.20/Sqft/Month NNN
Class A Starting Rates: $1.85/Sqft/Month Full Service

Auburn
Starting Rates: $1.00/Sqft/Month Modified Gross
Class A Starting Rates: $1.83/Sqft/ Month Full Service

Cal Expo - Point West
Starting Rates: $1.20/Sqft/Month NNN
Class A Starting Rates: $1.90/Sqft/ Month Full Service

Carmichael
Starting Rates: $1.20/Sqft/Month Modified Gross
Class A Starting Rates: $1.80/Sqft/ Month Full Service

Davis Office Space
Starting Rates: $1.30/Sqft/Month Modified Gross
Class A Starting Rates: $1.90/Sqft/ Month Full Service

Del Paso Office Space
Starting Rates: $1.25/Sqft/Month Modified Gross
Class A Starting Rates: $1.80/Sqft/ Month Full Service

Downtown
Starting Rates: $1.25/Sqft/Month Modified Gross
Class A Starting Rates: $1.87/Sqft/ Month Full Service

East Sacramento
Starting Rates: $1.20/Sqft/Month Modified Gross
Class A Starting Rates: $1.90/Sqft/ Month Full Service

El Dorado Hills
Starting Rates: $1.10/Sqft/Month NNN
Class A Starting Rates: $1.87/Sqft/ Month Full Service

Elk Grove
Starting Rates: $1.20/Sqft/Month NNN
Class A Starting Rates: $1.90/Sqft/ Month Full Service

Fair Oaks
Starting Rates: $1.15/Sqft/Month NNN
Class A Starting Rates: $1.80/Sqft/ Month Full Service

Fairfield
Starting Rates: $1.35/Sqft/Month Full Service
Class A Starting Rates: $1.90/Sqft/ Month Full Service
Folsom
Starting Rates: $1.30/Sqft/Month Modified Gross
Class A Starting Rates: $1.90/Sqft/ Month Full Service

Fulton
Starting Rates: $1.20/Sqft/Month Modified Gross

Howe
Starting Rates: $1.30/Sqft/Month Modified Gross
Class A Starting low as $1.80/Sqft/ Month Full Service

Laguna
Starting Rates: $1.20/Sqft/Month NNN
Class A Starting Rates: $1.85/Sqft/ Month Full Service

McClellan
Starting Rates: $1.00/Sqft/Month NNN

Midtown
Starting Rates: $1.25/Sqft/Month Modified Gross
Class A Starting Rates: $1.80/Sqft/ Month Full Service

North Natomas
Starting Rates: $1.30/Sqft/Month Modified Gross
Class A Starting Rates: $1.80/Sqft/ Month Full Service

Placerville
Starting Rates: $1.15/Sqft/Month NNN

Rancho Cordova
Starting Rates: $1.15/Sqft/Month NNN
Class A Starting Rates: $1.75 Sqft/ Month Full Service

Rocklin
Starting Rates: $1.30/Sqft/Month Modified Gross
Class A Starting Rates: $1.90/Sqft/ Month Full Service

Roseville
Starting Rates: $1.25/Sqft/Month Modified Gross
Class A Starting Rates: $1.85/Sqft/ Month Full Service

South Natomas
Starting Rates: $1.40/Sqft/Month Modified Gross
Class A Starting Rates: $1.75/Sqft/ Month Full Service

South Sacramento
Starting Rates: $1.10/Sqft/Month NNN

Vacaville
Starting Rates: $1.25/Sqft/Month NNN
Class A Starting Rates: $1.85/Sqft/ Month Full Service

West Sacramento
Starting Rates: $1.10/Sqft/Month NNN
Class A Starting Rates: $1.80/Sqft/ Month Full Service

Woodland
Starting Rates: $1.00/Sqft/Month NNN
Class A Starting Rates: $1.80/Sqft/ Month Full Service

Yuba City
Starting Rates: $1.20/Sqft/Month NNN
Class A Starting Rates: $1.75/Sqft/Month Full Service

Foreclosures staying off the Grid

2009-06-30T01:48:19Z

Walk through some of the region's newest neighborhoods and you'll discover hundreds upon hundreds of houses lying empty. Their owners, victims of foreclosure, have long since moved on.

While only some of those are currently on the market, you'll find it next to impossible to come upon a foreclosed home for sale in Sacramento's central city. That's because there's currently only one.

The desirability of living in the grid and of its housing stock have kept prices fairly stable and made the area nearly immune to the foreclosure crisis, unlike outlying areas of the city and fast-growing suburbs like Natomas and Elk Grove, according to local real estate agents.

"Downtown has held its value, because what we have downtown, you can't replicate in new construction areas," said David Kirrene, a real estate broker with Windermere Dunnigan Realtors.

"You've got the character of the old homes -- every house is different. You've got the tree-lined streets. And look at just how long these homes have lasted; the quality of the homes," he said. "I think with new construction areas -- you can get that in 'Any City, USA' ."

In addition, homeowners in the grid -- the area bounded by the Sacramento River on the west, the Union Pacific railroad tracks/B Street on the north, Alhambra Boulevard on the east and Broadway to the south -- are mostly more experienced, established buyers who bought their homes before this decade's new housing boom and who got fixed-rate mortgages, said Elizabeth Weintraub, an agent in Lyon Real Estate's Midtown office and a home-buying columnist for About.com.

Right now, only one foreclosed home -- a house on 25th Street in Midtown -- is currently on the market in the grid, according to Weintraub and Tabetha Holyfield, a real estate agent for Century 21 All Professional near Arden Fair Mall. That's out of 74 homes currently for sale in Midtown in the 95816 zip code and downtown in 95814 and 95811.

It's another story in the fastest-growing nearby towns. Natomas has 145 bank-owned homes for sale and Elk Grove has 139, said Weintraub. In the city, Del Paso has 44 on the market, Oak Park has 41, South Sacramento has 16 and Rosemont has seven, according to MetroList Services numbers provided by Weintraub and Holyfield.

Those numbers don't tell the whole tale. The actual number of foreclosed homes -- not just foreclosed homes on the market -- in the city and in particular, the grid, isn't kept by any government agency or a one-stop service accessible to real estate pros or consumers.

However, numbers are kept for the entire county. After a dip in foreclosures in recent months, Sacramento County is seeing a resurgence in the number of trustee's deeds filed when banks foreclose on homes. June already has 1,067, while May had 869, April had 897 and March had 919, according to figures from the Sacramento County Assessor's Office.

Before that, the monthly numbers of houses slipping out of owner's hands hadn't fallen below 1,071 (the figure for January 2009) since December 2007.

Two other problems with ferreting out the actual number of foreclosures are the "short sales" homes that are on the market to technically avoid foreclosure and all the foreclosed homes the banks are now holding back from the market, real estate agents said.

A short sale is an agreement between the homeowner and bank that allows the homeowner to avoid foreclosure. Short sales involve homeowners who need to sell either because they're undergoing hardship and can't afford the mortgage payments, or because the house is upside down and the owners owe more than the house is worth.

Banks can be negotiated with to allow owners to sell houses -- sometimes at half the price the owners paid -- if the bank gets all the money from the sale. The bank will then release the loan. These short-sale homes aren't listed as foreclosures, said Weintraub, who may be the city's top short-sales agent. She currently has 20 short-sale homes listed.

Currently, 58.6 percent in of the homes listed in Sacramento County are short sales, she said, adding, "Short sales are replacing foreclosures as the hot commodity."

In addition, banks are selling foreclosed houses in bulk at 50 cents on the dollar to investors, who turn around and list those properties at twice what they paid; yet those houses aren't advertised as foreclosures when they go back on the market.

Also, housing prices have gotten so low due to the glut of foreclosed homes that banks are not putting them on the market, real estate agents said.

"They're really controlling the market. So it's giving us a false sense of what's really going on," said Holyfield.

At the start of 2009, the number of bank-owned homes that were active real estate listings in Sacramento County and parts of nearby Yolo and Placer counties totaled 2,500. As of June 15, the number was only 909, she said.

"They're hoarding them. It's what's known as shadow inventory," Weintraub said. "Yet we all know the number of foreclosures are continually going up."

Most people who've lost their homes to foreclosure in other areas were first-time owners who bought between 2002 and 2006 in a time when home loans were too easy to get, and so the number of buyers skyrocketed. The demand inflated housing prices for both tract houses in brand-new subdivisions and lower-end houses in established neighborhoods and fueled a construction boom that created new neighborhoods.

At the same time, these people purchased with "100 percent financing," so they didn't put down any -- or at least not significant -- down payments. They also got adjustable-rate mortgages, which greatly increased their payments after the first few years.

"There were so many first-time home buyers. It didn't matter who you were. They were giving away homes like lollipops," said Holyfield.

Weintraub agreed, saying, "A lot of the people in trouble out in the suburbs are really people who never should have qualified to buy."

After the bottom fell out of the housing market, house prices plummeted and many people owed more than their houses were worth.

In the central city where there's no room for new home construction, seasoned owners have held onto their homes for a long time. The housing market has remained far more stable and prices have stayed relatively flat in comparison.

"We don't have the roller-coaster prices like we have in other areas," said Holyfield. "We didn't have those big explosions coming into Midtown, buying those properties and now selling those properties. You have established people living in the inner city, instead of having a whole neighborhood of people who just moved there in the last 10 years."

House prices never went up as high in the grid as they did in new areas, and now they've gone down only about 25 percent, contrasted with a 50- to 60-percent decrease in other areas, said Kirrene.

"I've always heard these are the first to go up in value and the last to go down in value," he said. The median sales prices of a 1600-square-foot, three-bedroom, single-family home is currently $308,000 in the grid, he said.

In 2008, 27 percent (13 out of 49) of the single-family homes sold in the 95816 zip code and 37 percent in 95814 and 95811 were foreclosures, while 70 to 80 percent of those sold in other regions were foreclosures, said Craig Dunnigan, who owns Prudential Dunnigan Real Estate.

From Dec., 27, 2008, a total of 670 foreclosed homes have sold in Elk Grove and 733 in Natomas, said Weintraub. Fifteen sold downtown and in 95816, which may include East Sacramento in this figure.

Real estate agents cited many reasons why people want to live in the central city and buy the houses that are here. Most of the homes were built before 1940. A sizable number were built before 1900. In the last six months, 20 of the active, pending and sold houses were built before 1900 and two before 1880, Kirrene said.

These homes were built better, with charm and quality craftsmanship that makes them higher-end properties. People also love being close to vibrant Midtown and downtown, with all the restaurants, shops, clubs, open park space and access to both the Sacramento and American rivers. People who work there don't want to commute, and they enjoy easy access to freeways, real estate agents said.

"People gravitate toward homes with character, and this is where people are going to find them," said Weintraub. "It's a desirable place to live."

Sacramento housing: putting a lid on the grid

2009-05-29T05:33:50Z

Special to Sacramento Press

By Dena Kouremetis

It may seem like an anomaly, but it really comes as no surprise to REO expert and Re/Max agent Ray Ponce. Housing in Sacramento’s ‘grid’ – surrounded by freeways in all directions, has simply not become a casualty of foreclosure crisis.

“It’s just a matter of supply and demand,” says Ponce. “There has always been, and will continue to be a demand for housing in this area. Most of the homes in this area were built during the 30’s, 40’s and 50’s during a period of time when quality of craftsmanship and individual style were important for homeowners. These homes are built well and possess charm and character that today’s modern homes simply do not have.”

Ponce adds, “Since there is no more open space for builders to come in and throw up massive subdivisions of homogenous tract houses, the supply has remained relatively stable, even in these hard times. You may have noticed that the areas of Sacramento with the largest number of foreclosures are the areas that grew the fastest during the boom years -- places like Elk Grove, Natomas, and Lincoln. Most of this was caused from over-building and over-pricing.”

Another factor protecting grid homes from the foreclosure glut is the fact that many of the homeowners in East Sac and downtown are original owners or are heirs of original owners, according to Ponce, making them debt-free and lien-free as well. Fewer liens mean fewer foreclosures.

A snapshot of foreclosure activity, in mid April from Foreclosure Radar,for example, reveals approximately 115 active foreclosures in the Elk Grove area as compared to only four in the grid area. The contrast has not changed significantly since then.

According to Ponce, other types of home owners in the grid tend to be young professionals; doctors, attorneys, and business owners, who could afford to put 20-50% down when they bought these homes. “They purchased homes within their means and probably took out fixed rate loans. The buyers who purchased in the new subdivisions may have been the victims of variable rate loans, since homebuilders’ in-house lenders tended to make qualifying easier for cash-strapped buyers.”

The grid area holding its own is consistent, judging by a story reported several years ago in the Sacramento Business Journal. In it, staff writer Michael Shaw found that homes in East Sacramento were selling handily while homes in other areas three times the size of the diminutive East Sac footprints were sitting on the market for at least six months at the time. “Homes located in East Sacramento, one of the city's venerable neighborhoods, along with others such as midtown, Land Park and Curtis Park have in many ways resisted the ravages of the housing downturn,” reported Shaw.

Rapid growth areas are traditionally hit hardest, reminiscent of the saying, ‘the bigger they come, the harder they fall ‘ The 2007 Sacramento Business Journal investigation revealed that Sacramento's strongest neighborhoods, however, have been landlocked for years, resulting in little new construction. This makes them a smaller commodity, forcing prices to stay stable or even increase over time when other areas suffer.

The beauty of downtown-close neighborhoods isn’t all about economics, however. The proximity to the downtown job core is a big draw for buyers, along with the area’s tree-lined streets, neighborhood shops and eateries and entertainment venues.

Instead of three car garages, you get charm,, instead of strip malls you get sophisticated Downtown Plaza, and instead of freeway gridlock, you get light rail, a few bus stops or a 10-minute drive.

Even though the grid area is resilient, however, it is certainly not immune. “Just as in Sacramento as a whole, the inventory of homes for sale in core neighborhoods has crept up over the past two years,” reported Shaw, adding that multiple offers are not commonplace. But homes within Sacramento’s coveted grid have been and always will be a draw, no matter how you slice it.

The true unemployment picture...

2009-05-23T00:23:46Z

Unemployment figures that we hear, as bad as they are, are not the entire picture of todays unemployment. Tens of thousands of people have lost their (self employment) jobs within the real estate and finance fields within the last year alone. Real estate fosters many different self employment opportunities. When the markets were good, the California Association of Realtors held their tests in locations that would hold thousands of applicants at a time. Tests were given monthly and often times several times a month. Within the field of real estate alone, you have Appraisers, Loan Officers, Home Inspectors, Realtors, and Notories. In addition to real estate, the financial markets also have been hit hard with self employed job losses.

Given how the mainstream media loves blockbuster headlines I am surprised how this has gone unnoticed and unreported.

Sacramento Embraces Coworking Trend at Capsity Offices

2009-02-23T20:21:10Z

Shared Office Space Equals Greater Networking Potential

As the definition of work has changed, so has the destination. Entrepreneurs not content to serve a sentence isolated at home or ready to take on the overhead of an office staff are joining forces in new coworking spaces where they can network with other creative types while sharing resources. The growing trend is visible at 3rdward in New York City where desk space starts at $300 per month with access to a digital media lab, wood shop and dance studio. It also pops it’s well-groomed head up at Conjunctured in Austin, Texas, where a team of four technologists share space and ideas with creative entrepreneurs in a remodeled old house. And in Sacramento, the solution born of economic necessity is called Capsity Offices.

The Capsity perch at the corner of P and 23rd streets in Midtown Sacramento is the brainchild of founders Ricardo Robles, Captain Visionary; and Jeff Louie, Chief Operations Dynamo. The goal for the duo was to mix dynamic entrepreneurs in a warm, informal space to facilitate the growth of new projects. That is why they turned a Midtown office complex on into Sacramento’s first rent by the hour, day or space studio geared for entrepreneurs who want to get out of the house and coffee shop into a cost-effective professional space that gives them access to a conference room, reception services and other motivated professionals.

“Capsity Offices is designed to be comfortable, professional, and entrepreneurial,” Robles explains. “What started as simply providing open office space blossomed into a community of entrepreneurs, thinkers, leaders, organizers, catalysts, freelancers, teachers, technologists and activists.”

Some of the first young business owners to flock to the art-filled space include Room to Breathe, PDC Technology, MidtownGrid.com, America's Youth United, Clear Printing and Graphics, Art Peace Massage and The Purnell Partnerships.

A January 2008 Christian Science Monitor article traces the coworking trend back to a lonely San Francisco software programmer who, with a few friends in similar circumstances in the heady days of 2005, leased an office space, installed printers, fax machines and wireless Internet and called it coworking. The article pegged the number of similar setups across the country at 29. A more informal version of the 1990s incubators, the collaboration can be spontaneous and powerful.

Robles and Louie are more than creative landlords, however. They see themselves as entrepreneurial boosters. The two have led in such community-building efforts as Global Entrepreneurship Week, Bikeramento and the first-ever Sacramento Tweetup – a physical meeting of networkers who connected on the growing Twitter micro-blogging site. Capsity hosts classes on effective networking and has become a hub in the live-work neighborhood. Their energy has not gone unnoticed. Louie was named Ambassador of the Year by the Sacramento Asian Pacific Chamber of Commerce.

About Capsity: Capsity Offices is an Entrepreneurial Fueling Center located at 2321 P Street in Midtown Sacramento, providing virtual offices and executive suites in a comfortable, yet professional, setting. Affordable virtual offices feature access to conference rooms, meeting spaces and professional business services such as shared receptionists and office equipment. Paired with the creative power of networking with fellow entrepreneurs, Capsity is the perfect first space for technology and business services start-ups as well as executives looking for a local home base or downsizing from a large footprint. Capsity was also the launching pad for Global Entrepreneurship Week and Bikeramento. Learn more at www.capsityoffices.com.