The Junction - Exciting Re-Development Continues...

Great things are going on in downtown Ogden.


Today I went down to take some photos of what is being finished. Just walking around down there had a very cool "Town Square" type of feel to it. Soon, retail stores and new residents will be moving in. Its going to be a great mixed use development.

Its reminds me in someways of the town center in Southlake, TX which is a Dallas-Ft. Worth suburb. Check out Southlake's Town Square and make the comparison for yourself. I visited there last year and was completely impressed. I am excited to see our own downtown follow a workable mixed use economic model.


The Sonora Grill and Iggy's are open and doing well. I spoke to the owner of Sonora Grill a couple week ago and he indicated that they have seen a steady increase in business since opening. It happens to be one of my favorite places to eat. Great atmosphere and great food.


The idea of mixed use is to combine several elements of a community (residential, shopping, entertainment) into one centralized location. In the above photo you can see retail space on the main floor and lofts for living on the upper two floors. People have been complaining about not having enough places to shop in downtown for quite some time. That will all change very soon.


Above is the Larry Miller Megaplex, the Solomon Center, and the Earnshaw Condominium building.
The Junction is almost 80% completed. There are a couple parcels left to develop like the big patch of dirt in the right of the above photo. However, due to the economic and financing issues facing new construction, those parcels will probably take a few years to be built out.

Ogden will be well prepared for the next uptick in the economic cycle when it happens. With attractive new office space, amenities close by, and affordability, we should see a spike in economic growth once we get through the national economic funk we are entering.

$35,000 - Victorian Gem Giveaway!

Many of you have inquired about purchasing this beautiful home. See below to learn more about how to purchase this fantastic historic gem.


Here are the requirements:



Pre-Purchase Phase

· Buyer inspects the property. Contact Jeremy Peterson at 801-390-1480

· Buyer submits application to Ogden City. Deadline is Monday, December 1, 2008.

· Ogden City screens applications and conducts a drawing on Tuesday, December 2, 2008.

· Buyer has ten days after notification to provide verification to Ogden City of ability to provide cash, in-kind, or financing of at least $235,000.

· Buyer’s architect or approved designer prepares preliminary work specifications.

· Buyer’s contractor prepares cost estimate. Buyer may not act as their own general, unless the buyer is a licensed general contractor.

· Buyer obtains an after-rehab property appraisal.

· Buyer and Ogden City will negotiate a deadline for submittal of preliminary plans and estimates.

Purchase Agreement Phase

· Buyer and Ogden City negotiate final rehabilitation work plan.

· Builder prepares final specifications and cost estimate.

· Buyer provides Ogden City verification of ability to obtain financing package.

· Buyer and Ogden City enter into purchase contract. Purchase price will be $35,000. Of that amount, $15,000 will be paid to Ogden City at closing, and $20,000 will be carried back by Ogden City as a second mortgage with monthly payments over 10 years with 3% annual interest rate.

Construction Phase

· Buyer closes purchase of home.

· Buyer closes construction loan.

· Buyer obtains approval of work by Ogden Landmarks Commission.

· Buyer enters into construction contract. Buyer may not act as their own general, unless the buyer is a licensed general contractor.

· Builder completes the rehabilitation contract.

Owner-Occupancy Phase

· Buyer closes permanent, long-term financing.

· Buyer completes rehab work plan items not required for occupancy, according to the negotiated construction schedule.


Contact me with inquiries. 801-390-1480

Riverdale Gloom

General Growth Properties, the owner of the Newgate Mall in Riverdale and numerous other malls in Utah, has announced today that it may be teetering on the edge of bankruptcy. It is near defaulting on substantial loans. In another stroke of bad luck, Mervyns, one of the Newgate Mall's anchors, announced it is closing all stores. Circuit City also declared bankruptcy this week.

This is substantial news for our area. Many retail jobs will be lost. I am unsure at the moment what a bankruptcy would do to operations at the mall. I imagine existing tenants would continue to pay rents even if a bank assumed control of the property. However, services may be negetively impacted and those tenants may not want to do business with a bank that isn't an expert at running a mall.

It looks like shoppers will soon have a few less options to choose from in Riverdale.

More Businesses Coming to Ogden

Redevelopment in Ogden continues.

The Standard Examiner is reporting that the city council, in its RDA role, is contemplating assisting in the redevelopment of the new commercial areas at 12th St. and Wall Ave. This area was housing originally and the homes and miscellaneous buildings have since been torn down. The plan is to put a grocery store and accompanying retail stores. I imagine it will be something like the center at Albertson's at 20th and Harrison Blvd but much much better. The location at 12th St. is much more conducive to shopping.

It was also reported today that a 3rd indoor rock climbing facility will be coming to Ogden. The facility will be located in the AmeriCan Building that also houses DiVinci High School and Solomon Ski Headquarters.

This is great news. Despite the general economic slow down, the basic demand for goods and services is still enough to spur redevelopment. This is interesting because as more businesses move to Ogden, more demand for services is created. Therefore, more businesses move to Ogden to provide their services...and round and round we go.

October Sales Data

October was another rough month for sales. Inventories are creeping up and sales volume continues to slow down. The market is definitely in the buyer's camp right now.

Here is our 13 year chart:


The black line is our 12 month moving average. We are still in the midst of sales contraction. My thoughts are that we are now overshooting on the low side of what would be the normal market equilibrium for sales volume on an annualized basis. With winter coming there won't be much improvement with these numbers until springtime. The downward trend of the moving average means there is tremoundous competitive pressure on Realtors in the workforce.

Here is our 3 year chart:


Each consecutive year has seen a decrease in sales volume. I thought that we had hit equilibrium but it looks like we are in store for more contraction in the marketplace. I called the board to find out how many Realtors there were in our area. They indicated rolls of 2276. Fees were due October 31st. I will find out at the end of this month how many are left. My hunch is that there will be a lot less Realtors out there. The last time the marketplace saw this kind of sales volume there were only 1100 Realtors on the board. Wow! The purge is coming.

Picture of the Day

Here is a picture of my daughter Hannah in front of someone's front porch. It looks like they ran out of closet, attic, basement, shed and garage space for their storage. Its a good thing they put tarps on it so you don't really notice its there.

Back In Action

The elections are over...whew! In the race for District 9 of the Utah House of Representatives, my opponent defeated me 56% to 44%. As is always the case in a representative republic system of government, the voters get what they deserve.

I look forward to the future and the opportunities ahead.


Lets talk about Real Estate.

More posts to come.....

Perils of Landlording: Pyromaniac Tenants

My clients just barely closed on a fantastic bargain triplex along the River Project. There had been some problems with house fires recently as supposed vagrants began to find shelter in a group of homes across the street set for demolition. Well, it turns out that it wasn’t transients responsible…its my client’s brand new tenant! By the way...it’s a second-degree felony to start a home on fire. Looks like its time to start marketing for a new tenant. Here is a link to the news article and video the tenant talking to news crews before her arrest.

http://www.ksl.com/?nid=148&sid=4582059

Cleaning Up Ogden: Jefferson Historic District Demolition

Great before and after photos. This beautiful Victorian home has been a five-plex since 1905. Its a former listing of mine. The city recently purchased the home from my clients in an effort to prepare it to become a single family home and return it to owner occupancy after over a century of being a rental property. One of the issues at hand was the awful home next door. It was a "cat lady" house with filth galore. You could smell the home from the street. Definitely a case for the Health Department. This property also came landscaped with 100 year old Siberian elms as a special bonus. The city purchased this awful property as well.

BEFORE

AFTER

Awe...doesn't that look better. Now there is room for a garage or yard for the victorian home.

My wife and I actually looked at purchasing this home back in 2004 but decided it was way to big of a project for us at the time since it would have been our first. I would feel comfortable taking it on now.

NOTE: This home is now for sale for only $35,000! This is not a typo. This is a great opportunity to restore an Ogden treasure. If you are interested in this home give me a call and I will walk you through the hoops.

Here is a montage of the interior and neighborhood.

A Brief Reprieve

Due to some personal business that is very pressing at the moment, I will be away from the blog for the next several weeks. There are lots of topics to cover and information to share when I get back. Plan on drinking from the fire hose when I return after November 4th.

Kudos!