November 2012 Sequoia Market
Update
Contents
Want Exceptional Cash
Flow? - Rick Ferris
Recent Deals
by Sequoia Realty Corp.
-
9354 Mentor Ave., Mentor - 23,000 Sq. Ft. - PENDING SALE
New on the
Market at Sequoia Realty Corp.
-
168 N. St. Clair.,
Painesville - 13,434 Sq. Ft. - For Sale @ $695,000
Tax Tips: New credits encourage business
expansions, by
Peter A. DeMarco
November 2012 Sequoia Market
Update
Want Exceptional Cash
Flow?Greetings Friends,Now is an advantageous time for earning outsized cash returns
on new real estate investments. What is so unique about this
time? There are two major components. The first is
historic low interest rates. The lowest in 70(?!) years!
Rates on quality investment properties are about 4.75%-5.5%.
That is amazing.What amplifies the cash flow from
borrowing at these historic low rates, is CAP rates of 6.5% to
9%. Basically that means that if you choose to pay all
cash for a property, the return to you will be 6.5% to 9%. So,
if instead of paying all cash, you borrow some of the money--often
70-75% of it--then your return on your cash invested is
increased. Often, you can achieve 10% or even more with your
Cash-on-Cash return!At the same time, you are paying
down the mortgage and probably, the property is increasing in market
value.With the stock market so volatile and
the returns from bonds and savings, pitiful, it is an excellent time
to be putting funds into commercial real estate before the market
fully recovers. Every indication that I have is that
the market has already recovered about 15% from its bottom (probably
in 2009). It still has another 15% ahead to come back to typical
investment returns. In addition, construction costs continue to
increase, so the advantage of existing properties over new
construction is often 2:1. That is, new construction can be
twice as expensive as buying existing.We have
identified the opportunities. Call me to review how we can
increase your cash flow and take advantage of this market
aberration.I look forward to talking with
you!
PS. If you have money out there at 2%, let's look at
pumping up that return to 10% or 12%! Call me!
Sincerely,
Recent Deals by
Sequoia
Property Address - Sq. Ft. -
Leased/Sold
9354 Mentor Ave,
Mentor - Enterprise Plaza - 23,000 Sq. Ft. - PENDING
SALE
4304 Maple St, Perry
- Industrial Building - 24,000 Sq. Ft. - PENDING
SALE
38264 Willoughby
Parkway - Industrial Building - 18,000 Sq. Ft. - PENDING
SALE
Justing Way - Vacant
Land - 7.40 Acres - PENDING SALE
268 Richmond St., Painesville -
Retail - 800 Sq. Ft. - Leased
9952 Johnnycake Ridge Rd.,
Concord - Retail - 2,721 Sq. Ft. - Leased
9952 Johnnycake Ridge Rd.,
Concord - Retail - 5,284 Sq. Ft. - Leased
9411 Mentor Ave., Mentor - Dental
Office - 2,400 Sq. Ft. - Leased
891 E. 222nd., Euclid - Retail -
740 Sq. Ft. - Leased
7757 Auburn Rd., Concord -
Industrial - 1,500 Sq. Ft. - Leased
38014 Euclid Ave., Willoughby -
Retail - 874 Sq. Ft. - Leased
9417 Mentor Ave, Mentor - Retail
- 4,800 Sq. Ft.- Leased
29176 Euclid Ave, Wickliffe -
Retail - 500 Sq. Ft. - Leased
1155 E. Wyandot Ave, Upper
Sandusky - Retail - 1,811 Sq. Ft. - Leased
9393 Mentor Ave,
Mentor - 8,000 Sq. Ft. - Leased
26471
Center Ridge Rd, Westlake - 4,800 Sq. Ft. - Leased
New on Market/
Price Reduction
Property Address - Sq. Ft. -
Type - Lease or Sale Price
9258 Chillicothe Rd., Kirtland - 2
Commercial Buildings
12,000 Sq. Ft. on 1.44 Acres
PRICE REDUCTION!! $750,000 to $535,000!!!!
28928 Euclid Ave, Wickliffe
Wine
Barrel Restaurant & Convenient Store
7,440 Sq.
Ft. on 0.55 Acres
PRICE REDUCTION!! $390,000 to
$298,500!!!
38878 Mentor Ave., Mentor- Commercial Land
2.58 Acres - For Sale @
$395,000
168 N. St.
Clair., Painesville -
Commercial Property
13,434 Sq.
Ft. - 0.60 to 2.24 Acres - For Sale @
$695,000
7338 Mentor Ave., Mentor -
Coffee Shop w/ Drive Thru
1,050 Sq.
Ft. - For Lease @ $1,500/mo
28831 Euclid Ave., Wickliffe - Auto
Related Shop
5,748 Sq. Ft. - For Sale @
$319,000
38010 Euclid Ave., Willoughby -
Imagine Building
29,074 Sq. Ft. - Retail - For Sale @
$1,700,000
3,200 Sq. Ft. - Retail/ Office - For Lease @ $10.00/
Sq. Ft.
S/L 18 & 19 Euclid Chardon
Rd., Kirtland - Land
2 Acres - For Sale @
$300,000
30440 Lakeland Blvd., Wickliffe
- Office/ Retail
2,588 Sq. Ft. - For Lease @
$9.95/ Sq. Ft. 
22199 St. Clair., Cleveland -
Auto Related Shop
3,010 Sq. Ft. - For Sale @
$169,000
894 E. 222nd St., Euclid - Office/
Retail
650 Sq. Ft. - For Lease @ $600/mo
8666 Tyler Blvd., Mentor -
Industrial Space
2 Units w/ 1800 Sq. Ft. - For Lease @
$750/mo
181 Erie St., Conneaut -
Commercial
2,340 Sq. Ft. - For Sale @ $155,000
368 Blackbrook Rd., Painesville Twp.
Professional Office
2,129 Sq. Ft. - For Lease @
$10.00/Sq Ft
9010 Tyler Blvd., Mentor - Well
Kept Office Space
875 Sq. Ft. - For Sub-Lease @
$650/mo
8810 Tyler Blvd., Mentor - Office
Condo w/ Warehouse
1,910 Sq. Ft. - For Lease @
$1,250/mo
Euclid Ave., Euclid -
Land
3 Parcels w/ 0.38 Acres - For Sale @
$12,900
902 High St., Fairport Harbor - Retail/
Office
4,800 Sq. Ft. - For Sale @ $200,000
750 Sq. Ft. - Retail/ Office - For Lease @ $350/mo
Tax Tips: New credits encourage business
expansionsBy PETER A. DeMARCO4:30 am, July 9, 2012
In a valiant effort to address Ohio's persistent
unemployment, the state has given business owners some good cause to
reconsider their growth prospects.
The state Legislature has approved and Gov. John Kasich
signed into law tax breaks and other incentives meant to reward
companies for creating jobs.
Those of greatest interest to small businesses include a tax
credit for companies that put vacant commercial properties to work and
another credit for companies that employ more
telecommuters.
House Bill 18 provides a tax credit to any business that
chooses to put to good use an otherwise abandoned or vacant property.
The law authorizes a grant equal to $500 per employee to a company
that occupies a building or piece of property that has been vacant for
a year.
The bill rewards companies that increase their payroll by
hiring new full-time employees or that employ either 50 employees or
50% of its Ohio employees at the vacant facility. To qualify for the
$500 grant, an employee must be employed full time at the vacant
commercial space and must have caused the company's total payroll to
increase as a result of leasing or purchasing the space.
They will not qualify if they are employed more than 60 days
before the company secured the property, but they must be employed for
a full year and must earn at least minimum wage. An employer may
qualify for the grant only once, but there is no limit to the number
of qualified employees for whom the employer can claim the
grant.
In a separate law, House Bill 327, the Legislature
established a refundable job creation income tax credit for companies
with telecommuting or home-based employees.
The credit can be claimed against commercial activity tax,
corporate franchise tax, personal income tax and the insurance
premiums tax, with some restrictions about how each type of tax can be
credited.
The bill establishes a six-year trial period during which the
Ohio Tax Credit Authority may grant job creation tax credits to
employers based on employees who work from their Ohio-based homes and
whose pay rate is at least 131% of the federal minimum wage. That
means an hourly wage of $9.50.
Employers are not eligible for the credit until the total
number of employees they have added after the law is enacted reaches
200. Employers applying for the credit must not address both
home-based employees and other employees in the computation of income
tax revenue for the purposes of the same tax credit
agreement.
The company would need to apply separately to receive credit
for a given project that includes both home-based and non-home-based
employees.
The law also requires state officials to study the effect of
the at-home tax credit over the six years, no doubt to determine if it
has the intended effect of stimulating job growth.
In addition to the credits for expansions involving vacant
properties and telecommuters, the Legislature also passed a motion
picture tax credit to inspire film-makers to consider Ohio locations
for their productions and an incentive to inspire private-sector
projects in local communities to spruce up and occupy vacant
properties.
It remains to be seen whether the incentives will have a
meaningful impact on Ohio's economy, but it demonstrates the
creativity that Ohio's leaders are applying to try to jumpstart the
economy.
Any small business owner that was perhaps teetering on an
expansion plan should take note of the incentives and consider their
potential impact.______________________________________________________________________________Peter A. DeMarco is vice president and director of tax
services for the regional accounting and business consulting firm of
Meaden & Moore, headquartered in Cleveland.
Melt Bar & Grilled is continuing construction in the Points East Plaza to open their restaurant early this fall. Channel 3 News did a story on the new Mentor location and their big Zagat rating. Below is a link to the story and a look inside the construction! 
