1031 Tax Update (IRS disaster relief)

From our friends at Atlanta Deferred Exchange, Inc. (ADE):

The following counties in Georgia qualify for IRS disaster relief following the recent floods: Bartow, Catoosa, DeKalb, Fulton, Gwinnett, Heard, Newton, Rockdale and Walker counties. If a taxpayer who is living in one of these counties is doing a tax deferred exchange with a relinquished sale that took place before September 18, 2009 and their 45-day identification period falls between September 18th and December 17th, they should be entitled to a 120-day extension. For example, if the taxpayer closed on their relinquished sale on September 12, 2009, their 45-day identification deadline would be October 27, 2009 (which is between September 18th and December 17th). Therefore, they would be entitled to a 120-day extension which falls on February 24, 2010. It is also our understanding that the taxpayer would then get their pre-requisite additional 135 days (45 days plus 135 days equals 180 days) to complete the transaction. Of course, they would have to file an extension because you get 180 days or the date your tax return is due, whichever comes first, and April 15th would have come sooner. But if they do file an extension, it is possible they would have up until July 9, 2010 to complete the exchange. If the taxpayer's 180-day deadline falls between September 18th and December 17th, they would also get a 120-day extension from their original 180-day deadline. What is somewhat unclear is if the 45-day identification period has ended before September 18th and the 180-day acquisition period falls after December 17th as to whether or not the taxpayer would get an extension of 120 days from their original 180-day deadline. To view a copy of the IRS Notice visit: http://www.irs.gov/newsroom/article/0,,id=213657,00.html

To view Revenue Procedure 2007-56 (see Section 17) which addresses time sensitive acts, visit http://www.irs.gov/irb/2007-34_IRB/ar13.htmlA strict interpretation of this guidance would lead one to believe that you would also get a 120- day extension in this circumstance. If the taxpayer's 180-day deadline falls between September 18th and December 17th and they have decided not to complete the exchange, it might be beneficial to consider taking the 120-day extension. Under this approach, the taxpayer would not receive their proceeds from the qualified intermediary until after the beginning of the new tax year and based on the installment sale reporting approach, the tax recognized on this disbursement would not have to be reported until the 2010 tax year - just something to consider. As always, our goal is to bring you accurate and timely information that will help you make better decisions.

All the best,Ron Raitz
For more information please contact Ron Raitz, President of ADE. Email: rraitz@ade1031.com

Forbes magazine says Georgia is the No. 6

Forbes magazine says Georgia is the No. 6 state for doing business.

The magazine ranks all 50 states based on costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Business costs, which include labor, energy and taxes are weighted the most heavily.

Source: Atlanta Business Cronicle http://atlanta.bizjournals.com/atlanta/stories/2009/09/21/daily86.html

Mild" decline shows up in Moody's commercial property index

"Mild" decline shows up in Moody's commercial property index


After two consecutive months of 7% drops in commercial real estate values, June experienced a "mild" 1% decline, Real Estate Analytics said. "This month is not unexpectedly bad news like the two previous months," said Neal Elkin, the firm's president. Still, the Moody's/REAL National All Property Type Aggregate Index for June marked a 35.5% plunge in prices during the past two years...article

Source: GlobeSt written by Paul Bubny

No meaningful CRE recovery until 2010?

The National Association of Realtors said the commercial real estate market slowed to its lowest level in 15 years during the second quarter. "The reduction in commercial real estate activity is expected to last at least through the first quarter of 2010. Any meaningful recovery is not likely to occur before the second half of next year," NAR chief economist Lawrence Yun said. Reuters (8/19) Full article

International Farmer's Market Sold as Investment Sale

Al McConkey, Sally Tennant and Robert Aaron sold the International Farmer's Market located at 5193 Peachtree Industrial in Chamblee. The 5.94 acres may have redevelopment plans in the future.

Second Quarter 2009 King Facts

While some are playing golf or hanging their hats, we continue to see industrial activity increase. Evidence? We are still averaging a deal a day.

From January 1995 to June 2009, King Industrial Realty has negotiated in the Metro Atlanta area:

• *5,552 lease and sale transactions totaling 85 million square feet
• *532 land transactions totaling 4,813 acres
• Completed a total of 365 deals in 2008
  
  22 years of property management experience

Industry Rankings

• Top 5 Brokerage Network by Commercial Property News
• Top 10 Brokerage by Real Estate Forum
• Top 10 Commercial Real Estate Brand by the Lipsey Company
• Top 5 Property Management Network

King Industrial Realty is a founding member of CORFAC International. In 2007, CORFAC firms completed 9,594 commercial real estate transactions, encompassing 340 million square feet and valued at $30 billion.

Serving our clients’ needs anywhere with over 3,500 real estate professionals worldwide in 150+ markets.

King Industrial Realty, Inc. 404-942-2000 www.kingindustrial.com

Second Quarter 2009 Commercial Real Estate Outlook

Ken Riggs: Second Quarter 2009 Edition of the ITQ
The outlook for commercial real estate is just plain bleak. The economic downturn that hit the nation is the “worst downturn since the Great Depression.” And, this so-called “tsunami” is so pervasive and struck so quickly that even the most seasoned commercial real estate professionals asked: “How did this happen, and how did this happen so fast?” Listen as Ken Riggs paints a sobering picture on the market and provides more insight from the Second Quarter 2009 edition of the RERC/CCIM Investment Trends Quarterly. Riggs predicts a recovery may be four quarters away, given the lag time involving commercial real estate sales and rents. But he’s optimistic that there are opportunities, and he predicts the industry will be stronger in the long-term.





Source: podcast.ccim.com

2,800 SF for Lease in Paulding County

FOR LEASE
63 Duncan Circle
Hiram, GA 30141

2,800 Square Feet
(3) 16' x 12' Drive In Doors
Outside Storage
Racking Available
Agents: Todd Harrell tharrell@kingrealty.net & Brandon Huft
flyer

For lease: 2,800 SF Warehouse/Office in Hiram

63 Duncan Circle, Hiram, GA 30141
2,800 Square Feet
(3) 16' x 12' Drive In Doors
Outside Storage
Racking Available
Agents: Todd Harrell & Brandon Huft
Flyer

The decline in commercial property values is likely to continue into 2012

a congressional panel has been told. "We believe the bottom is several years away," ...said a mortgage analyst for Deutsche Bank Securities.
Full Article (source: Nasdaq.com/Dow Jones Newswires)

$700 billion of commercial mortgages called a ticking "time bomb"

The maturing of $700 billion of commercial mortgages at a time when capital to refinance the debit is largely unavailable is a "looming crisis" that can't be ignored.... The problem is a ticking "time bomb" that coudl tough off an entirely new crisis, hitting the biggest US banks with huge losses.
Full Article (Source: REIT.com)

13,650 SF Warehouse/Office Bldg Sold at Airport Plaza

Sally Tennant and Robert Aaron sold the building located at 475 Plaza Drive, College Park, 30349

73,300 SF Leased in Commonwealth Industrial Park

Mike Boone leased the warehouse/office spaced located at 4837 Newton Terrace, Buford, GA 73,300SF

9,800 Sq. Ft. Leased at Express Industrial Park, Forest Park

Sally Tennant and Robert Aaron lease 9,800 SF warehouse/office located at 135 Lake Mirror Road, Forest Park, GA 30297

10,553 SF Leased in Empire Industrial Park, Atlanta

Sally Tennant and Robert Aaron Leased 10,553 SF at 3540 Empire Blvd., Atlanta, GA 30354

85,045 on 5.94 Acres in Chamblee SOLD as Investment Sale

Al McConkey, Sally Tennant and Robert Aaron sold The International Farmer's Market located at 5193 Peachtree Industrial Blvd, Chamblee as an Investment sale.

25,000 SF Warehouse/Office Fairburn Industrial Park

For Sale or Lease
301 Fairburn Industrial Boulevard, Buildings A & B
Fairburn, GA 30213

· 25,000 Sq. Ft. Total
· 10,000 - 25,000 Sq. Ft. Available For Lease
· On 2.51 Acres
· Fenced Outside Storage
· (2) Oversized Cranes
· (2) Oversized Drive - In Doors
Flyer

Agents: Bob Stephens
404.942.2076

46,200 SF Available in Cumming, GA

46,200+/- Sq. Ft. Sublease Located At:

6025 Parkway North Drive
Cumming, GA 30040

9+/- Acre Site
5,000 sq. Ft. Office
24' Ceiling Height
Outside Storage
6 Dock High Doors 2 Drive-In Doors
Sprinklered
Flyer: http://216.24.170.137/listings/flyers/15D735.pdf

Agents: Bob Stephens 404-942-2076 & Bill Johnston, SIOR

10,000 Sq. Ft. Building Sold in Auburn Business Park

The "King of Loganville", Jason McCart represented his buyer in the purchase of 10,000 SF Building located at 150 Auburn Park Drive, Auburn, GA

Sale or Lease: 38,194 SF in Cumming

FOR SALE Or LEASE
38,194+/- Sq. Ft. Located At:

2705 Northgate Court, Cumming, GA 30041

2,194 Sq. Ft. Office
5 Dock Doors
3 Drive-In Doors
18’ – 24’ Ceiling Height
Outside Storage
Zoned M1 Industrial
Additional Land Available

Agents: David Richardson Sim Doughtie, CCIM, SIOR, MCR
404-942-2029 tel. 404-942-2002 tel.

For Sale 1.6 Acres in Cumming, GA

FOR SALE

1.6+/- Acres Located At:

Land Adjacent to: 2705 Northgate Court, Cumming, GA 30041

Utilities Available to the Site Include Water, Gas & Electricity
Zoned M1 Industrial
Legal Description – District 2, Land Lot 373, Section 1, Parcel 77, Tract B


Agents: David Richardson Sim Doughtie, CCIM, SIOR, MCR
404-942-2029 tel. 404-942-2002 tel.

Welcome Charles to the King Family

Charles Hardin has been active in commercial and industrial real estate since 1994. Prior to joining King, Charles represented tenants, landlords, buyer and sellers of industrial facilities as an industrial agent with Southport Commercial and Wilson, Hull and Neal. Charles started his real estate career with Lanier Worldwide, Inc. as a Corporate Real Estate Representative. Charles experience in corporate real estate, brokerage sales, and 17 years sales experiences gives Charles a unique perspective in understanding his client’s needs and be an advisor helping client’s uncover the complexities, pitfalls and opportunities in the real estate transaction.

Joining King in 2009, Charles specializes in buying, selling, and leasing of industrial property primarily in the South Atlanta and I-20 West markets. With Charles’ experience and successful track record, client’s have a competitive advantage in the market place.

University of Georgia, Bachelor of Business Administration -- Finance

Welcome Robert to the King Family

Mr. Graham joined King Industrial Realty, Inc in 2009. Robert specializes in buying, selling, and leasing of industrial property, primarily in the Northwest Atlanta (I-75/I-575) corridors. Robert has been actively involved with Atlanta’s real estate market since 2003. Robert has worked in the homebuilding and development industries, having held positions with Centex Homes and most recently Scenic Homes. Robert worked in their respective Marketing and New Business Development Groups. For over four years, he managed marketing activities for these leading builders. His responsibilities included marketing and advertising products and services, growing new business throughout the market, generating sales leads and maximizing prospect traffic.

Prior to his tenure with these respected builders, Robert was attending Georgia Southern University, where he received his Bachelor’s degree in Marketing with an emphasis in Sales and Sales Management. Robert was an active member of Pi Kappa Phi Fraternity while at Georgia Southern University. Robert and his wife currently reside in Roswell, GA.

4,980 SF Industrial Facility Sold in Douglasville

Wilson Covington and Brad Bays sold
7575 Owl Creek, Douglasville to Quinco Electric
4,980 Sq. Ft.

18,130 Sq. Ft. Lease in Atlanta Industrial Park

Randall Bryan and Wilson Covington leased 3070-F Olympic Industrial Dr., Smyrna, GA
18,130 Sq. Ft.

7,634 SF Warehouse/Office Leased in Alpharetta

Ed Smith and Sim Doughtie, CCIM,SIOR,MCR
LEASED THE SPACE LOCATED AT
6755 SHILOH ROAD EAST, STE 106, ALPHARETTA
TO BBQ'S GALORE

General Mills 1.5 Mil.SF Distribution Center

General Mills Breaks Ground on New 1.5 Million Square-Foot Metro Atlanta Distribution Center, Creates over 100 New Jobs

Sim F. Doughtie of King Industrial Realty, Inc. represented General Mills in the closing
June 10, 2009 08:03 AM Eastern Daylight Time

ATLANTA--(EON: Enhanced Online News)--On Monday, June 8, 2009, General Mills held a groundbreaking ceremony to celebrate the announcement of a proposed $42 million built-to-suit distribution facility that will create 112 new jobs in neighboring Walton County.

General Mills, the world’s sixth-largest food company and makers of products such as Cheerios, Betty Crocker products and Häagen-Dazs, was represented by Sim F. Doughtie, CCIM, SIOR, MCR and President of King Industrial Realty, Inc./CORFAC International of Atlanta, in partnership with William P. Nichols, SIOR and Jim Schnur, CCIM of Corporate Services Consortium, Inc.

The site selection process was an 18-month search that covered approximately 175 miles across more than two dozen counties. Doughtie, Nichols and Schnur also assisted General Mills in the selection process to identify the best partner for the construction of their new home in Social Circle. Ultimately, the Rockefeller Group won the development assignment.

“I am honored to have been included as part of a great team to represent General Mills in selecting their new site for their relocation to Georgia and in assisting them with the selection of the development team as well,” Doughtie said. “The Rockefeller Group will be a great developer, owner and manager for this project.”

The purchase of the 130-acre property was closed last Friday, June 5, 2009 in anticipation of constructing a new 1,508,765 square foot rail-served distribution facility that will be constructed to meet LEED certification standards.

“It is my understanding that this new built-to-suit facility will be one of the largest distribution centers ever built in the United States that meets the LEED certification standards for a Green building,” said Doughtie. “It is certainly the largest LEED certified distribution building ever built in the Atlanta market and in the Southeast.”

Jason McCart and Bill Randolph of King Industrial Realty, Inc./CORFAC International represented the Sellers of the 130-acre land parcel located on East Hightower Trail as the Listing Broker.

The City of Social Circle, Walton County, and the State of Georgia worked together to help make this new project a reality. With new construction down and unemployment numbers continuing to rise, General Mills has made a commitment to create new jobs and to make a significant investment in the state of Georgia.

About King Industrial Realty, Inc.
Founded in 1980, King Industrial Realty, Inc. is built upon superior local knowledge of the Atlanta industrial real estate market, broker professionalism and relationships. With its proprietary database, PinPointSM, King Industrial Realty tracks over 600 million square feet of industrial space. As a result, King is Atlanta’s #1 local industrial real estate expert with global reach. With the area's largest concentration of active industrial agents and collective experience, King Industrial Realty negotiated 5,471 leases and sales of more than 83.8 million square feet of warehouse, office, manufacturing, showroom, high tech, retail, and service center space since January 1995.

For more information on King Industrial Realty/CORFAC International, please contact Sim F. Doughtie at 404.942.2000 or visit http://www.kingrealty.net/.

King Industrial Realty, Inc. MEDIA CONTACT: Tammy Bush, 404-942-2037 tbush@kingindustrial.com

101,250 SF Distribution Center Leased South Fulton

Bill Johnston, SIOR and Greg Dickerson, SIOR Leased
the 101,250 square foot building located at 4750 Bakers Ferry Road
Atlanta, GA 30336 to AAA World Floors and Savannah Flooring

Atlanta Industrial Market Trends - 1st Quarter 2009

This, Too, Shall Pass

Unfortunately, the problems that engulfed the Atlanta industrial market in 2008 have spilled over into the first quarter of 2009. The Atlanta industrial market continues to struggle with a lack of demand and tenant turnover continues to erode its tenant base. Likewise, new business ventures remain scarce and landlords are facing an increasingly difficult leasing environment.
During the first quarter, widespread tenant turnover, along with diminished leasing activity, caused eleven out of twelve metro Atlanta submarkets to post negative net absorption. The 8,593,127 square feet of activity Atlanta managed to generate was washed away by a torrent of outflows, resulting in -3,898,734 square feet of negative net absorption. In a historical milestone, the Atlanta industrial market recorded -10,063,236 square feet of negative net absorption over the last four quarters.

In the first quarter of 2009, the Fulton Industrial district and Peachtree Industrial corridor bore the brunt of this downswing combining for -1,625,428 square feet of negative net absorption. Likewise, the I-85 North distribution market continued to struggle with tenant turnover. This submarket churned out 1,981,916 square feet of activity; however, this productivity was overshadowed by outflows, resulting in -249,135 square feet of negative net absorption.
Consequently, Atlanta’s availability rate moved upward six tenths of a percent to 18 percent in the first quarter, matching its highest point since the second quarter of 2005. Furthermore, the uncertain financial environment has caused developers to shelve spec construction projects and focus on build-to-suit development. Over the last year, 65 percent of the new construction projects launched in metro Atlanta have been build-to-suit.

The market’s surplus of available space has created tremendous opportunities for tenants looking to negotiate leases and lease renewals with favorable terms, which bring much needed cost reductions. Yet in contrast, landlords are feeling the pinch with deals and credit tenants in short supply. It is also important to note that a significant portion of the leasing activity over the last year can be attributed to lateral movement by companies downsizing and consolidating operations as opposed to new business ventures.

It was a difficult first quarter for the Atlanta industrial market. A sharp decline in consumer spending, along with the banking crisis, stymied business growth and caused many businesses to fail. Nevertheless, Atlanta will weather this storm as it has done in the past and emerge stronger and healthier from this challenging time.

Stephen C. Ratchford, SIOR
Senior Vice President

Submarket overview can be viewed here

McConkey mesmerized by variety of industrial deals

Published in Atlanta Business Chronicle - by Giannina Smith Staff Writer

Working in Atlanta real estate since 1967, Albert McConkey has seen the industry go through several ups and downs and admits he isn’t sure how long this downturn will last.
“Going through these slow times, which we’ve had about three of them, some are worse than others, but luckily we were in a good position and went right through them,” said McConkey, senior vice president at King Industrial Realty Inc. “This one is entirely different and I don’t know how long it will take.”

Born in Knoxville, Tenn., McConkey attended Georgia Tech and worked in Philadelphia following his graduation. Moving back to Atlanta in 1964, McConkey took a job at Georgia Power Co. and soon became interested in the industrial real estate industry.
“It’s just so varied and interesting; every deal is so different. It just does a good job of mesmerizing you,” McConkey said.

One of McConkey’s most notable deals took place more than 30 years ago when he sold a 35-acre site, formerly known as the Carling Brewery, to The Coca-Cola Co. for its syrup manufacturing operation. Valued at about $5 million, McConkey said the 250,000-square-foot deal was “not big by today’s standards, but was huge back in those days.”

Atlanta Industrial Real Estate Worst in Years

Atlanta Business Chronicle, February 13, 2009

Atlanta's industrial market just completed the worst single quarter in nearly a generation.
A surge in tenant turnover led to almost 4.1 million square feet in negative net absorption, or the amount of industrial space that was not occupied, according to King Industrial Realty.
"A combination of overwhelming tenant turnover and sluggish leasing activity led to unprecedented negative net absorption and further fueled economic uncertainty to finish the year," King said in a report released Feb. 12. "This downturn represents the worst single quarter for absorption since King Industrial Realty began tracking the Atlanta Industrial market more than 25 years ago."
Ten out of the 12 metro Atlanta submarkets recorded negative net absorption in the fourth quarter. The Interstate 85 North distribution market finished 2008 on an erratic note. It led all metro Atlanta submarkets with almost 1.9 million square feet of activity in the fourth quarter, but it was also hit hard with tenant turnover.
Only two areas fared well: the airport submarket, which managed to record 344,851 square feet of positive net absorption, and the Peachtree City submarket, with a modest 3,473 square feet of positive net absorption.
Atlanta’s industrial vacancy rate jumped 1 percent to 17.4 percent in the fourth quarter.
On a more positive note, the industrial market surrounding the airport recently landed another large tenant

Atlanta industrial real estate market worst in years

Published in the Atlanta Business Chronicle

Atlanta's industrial market just completed the worst single quarter in nearly a generation.
A surge in tenant turnover led to almost 4.1 million square feet in negative net absorption, or the amount of industrial space that was not occupied, according to King Industrial Realty.

"A combination of overwhelming tenant turnover and sluggish leasing activity led to unprecedented negative net absorption and further fueled economic uncertainty to finish the year," King said in a report released Feb. 12. "This downturn represents the worst single quarter for absorption since King Industrial Realty began tracking the Atlanta Industrial market more than 25 years ago."

Ten out of the 12 metro Atlanta submarkets recorded negative net absorption in the fourth quarter. The Interstate 85 North distribution market finished 2008 on an erratic note. It led all metro Atlanta submarkets with almost 1.9 million square feet of activity in the fourth quarter, but it was also hit hard with tenant turnover.

Only two areas fared well: the airport submarket, which managed to record 344,851 square feet of positive net absorption, and the Peachtree City submarket, with a modest 3,473 square feet of positive net absorption.

Atlanta’s industrial vacancy rate jumped 1 percent to 17.4 percent in the fourth quarter.

On a more positive note, the industrial market surrounding the airport recently landed another large tenant.

J.M. Smucker Co. (NYSE: SJM) said it's locating its new Southeast distribution hub near Hartsfield-Jackson Atlanta International Airport. Smucker, based in Orrville, Ohio, will lease DCT Industrial Inc.'s entire Southcreek IV building, a 557,000-square-foot distribution center.