The 2023 Parade of Homes tour is in full swing with another weekend this Saturday and Sunday for anyone interested in the newest trends and unique floorplans available in the Bell County area.
The annual event, put on by the Central Texas Home Builders Association, showcases 21 homes from Copperas Cove, Killeen, Nolanville, Belton, Salado and Temple.
Published: April 30, 2023 at 7:06 p.m. ET
That’s Charlie Munger, the 99-year-old vice chair of Berkshire Hathaway Inc. BRK.A BRK.B, in an interview with the Financial Times published Sunday, in which the newspaper said he warned that U.S. banks are “full of” bad loans on commercial property.
Munger observed that banks were already retreating from commercial property, telling the FT that “every bank in the country is way tighter on real-estate loans today than they were six months ago.”
Munger…
That’s Charlie Munger, the 99-year-old vice chair of Berkshire Hathaway Inc.
BRK.A
BRK.B
,
in an interview with the Financial Times published Sunday, in which the newspaper said he warned that U.S. banks are “full of” bad loans on commercial property.
Munger observed that banks were already retreating from commercial property, telling the FT that “every bank in the country is way tighter on real-estate loans today than they were six months ago.”
Munger will again appear with Berkshire Chairman and Chief Executive Warren Buffett at Berkshire’s annual meeting on Saturday,
Related: Why First American Trust’s chief investment officer sees no quick end to regional-bank turmoil
The failure of Silicon Valley Bank and Signature Bank in March sparked worries over the banking sector, particularly regional banks, as investors pulled deposits. SVB’s collapse put a spotlight on potentially painful losses lurking at banks from trillions of dollars in commercial-real-estate loans on their books.
Meanwhile, the focus over the weekend was on First Republic Bank
FRC
,
which has struggled to recover from a sharp drop in deposits. News reports said a winning bid for the bank could be accepted by the Federal Deposit Insurance Corp. as early as Sunday evening.
See: FDIC asks banks for final bids for First Republic by Sunday
Stock-market investors last week largely brushed off banking jitters. Major U.S. stock indexes
DJIA
rose Friday, while the Cboe Volatility Index
VIX
,
sometimes referred to as Wall Street’s fear gauge, ended at a nearly 18-month low.
U.S. stock-index futures ticked slightly lower Sunday evening. Futures for the S&P 500
ES00
,
Dow industrials
YM00
and Nasdaq-100
NQ00
were down 0.1%.
Rishi Sunak’s decision to scale back housing targets could cost renters an extra £200 a year by 2030, Labour has claimed as it ramps up its pitch as “the party of home ownership”.
The Opposition promised to never treat tenants “like second-class citizens”, as it suggested the Prime Minister’s approach to planning will lead to the lowest rate of housebuilding since the Second World War.
Last year, Mr Sunak caved in to pressure from Tory backbenchers to make the target of building 300,000 homes a year in England advisory rather than mandatory.
Changes to the national planning policy framework will cost an extra £208 a year by 2030 if current trends continue, according to Labour analysis of industry data.
Labour has pledged to reverse the changes in Government and introduce a “renters’ charter” which will include a national register of landlords, longer notice periods and a ban on no-fault evictions.
The party said the figures came from analysis of data from planning and development consultancy Lichfields.
Data for March showed the biggest fall in housebuilding activity since the first Covid lockdown, Labour said, with housebuilding predicted to drop to the lowest rate since the Second World War.
Shadow housing secretary Lisa Nandy said: “Rishi Sunak’s reckless decision to roll over to his own MPs doesn’t just mean he’s abandoned a whole generation of young people’s dreams of homeownership – it’s also hitting renters right now who are already facing a cost-of-living crisis.
“The next Labour government will never treat renters like second-class citizens. We will tilt the balance of power with a new renters’ charter that will deliver powerful new rights and protections for tenants, including longer notice periods, a ban on no-fault evictions, and the right to make changes to your home.
“We will also build more homes to both rent and buy, including social and affordable homes, and we will restore social housing to the second largest form of tenure.”
It comes after Labour leader Sir Keir Starmer announced a raft of measures aimed at getting more people on the property ladder.
These include the introduction of a target of 70% home ownership and pushing power back to communities by allowing local authorities to regain control, he said.
Labour has accused the Government of “abandoning” first-time buyers, suggesting only a third of children born in England this year will own a home by the time they reach their 50s.
“Labour is proudly the party of homeownership,” Ms Nandy said.
Meanwhile, Sir Keir used an interview with Sky’s Sophy Ridge On Sunday to claim Mr Sunak has “killed” the dream of owning a property by bowing to pressure from Tory members.
Sir Keir said: “That shows a fundamental weakness. It is he who accepts he gave into them. He’s killed that dream of homeownership.”
The Tories hit back, describing Labour’s policy as a “mess” and insisting they could not be trusted to deliver.
“The last Labour government built the lowest number of houses since the 1920s and the Labour-run Welsh government completed just 5,000 new homes last year,” the minister for housing and planning, Rachel Maclean, said.
“The reality is you can’t trust Labour to deliver homes and deliver them in the right places.
“In contrast, we have built over two million homes since 2010, are clamping down on rogue landlords and have a plan to halve inflation to help millions of people with the cost of rent. Our priorities to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats will help everyone feel better off.”
Westpac Banking Corp recently disclosed that it has reduced its position in American Homes 4 Rent by 6.2%, according to the company’s most recent filing with the Securities and Exchange Commission. The sale of 20,699 shares during the fourth quarter brought Westpac’s total holdings to 314,255 shares worth $9,472,000 as of the end of the reporting period. This move comes as American Homes 4 Rent announces a boost in its quarterly dividend from $0.18 to $0.22 per share, representing a $0.88 annualized dividend and a yield of 2.67%. The announcement also reveals that Director Douglas N. Benham acquired over 1,000 shares on two separate occasions earlier this year. Mr. Benham is now directly responsible for roughly 25,000 shares valued at over $600,000.
This news raises several important questions about the state of American Homes 4 Rent and the trajectory of real estate investment trusts (REITs) in general as we look to mid-2023 and beyond.
Firstly, why did Westpac choose to reduce its holdings in AH4R? What factors were involved in this decision? Were there financial concerns or simply a desire to diversify their portfolio?
Secondly, what does AH4R’s higher dividend mean for shareholders? Does it signal greater trust in the stability and growth potential of REITs as an asset class? How will investors react?
Thirdly, are we seeing a trend towards increased insider buying of REITs like AH4R, or is Benham’s purchase merely coincidental?
Only time will tell how these developments play out within the broader economic context but they undoubtedly bear watching for those interested in real estate investment and development strategies moving forward.
As always with such investments however – caveat emptor!
American Homes 4 Rent Attracts Attention of Large Investors and Brokers
American Homes 4 Rent (AMH), a real estate investment trust, has recently caught the attention of several large investors who have increased or decreased their stakes in the company. MetLife Investment Management LLC acquired a new stake worth $236,000 in the first quarter of this year, whereas other institutional investors such as Great West Life Assurance Co. Can and Yousif Capital Management LLC grew their holdings by 5.6% and 5.1% respectively during the same quarter.
Dimensional Fund Advisors LP and Sei Investments Co. also contributed to AMH’s total ownership percentage – according to official reports, institutional investors now own an overwhelming 84.29% of AMH’s stock.
Brokerages have been closely following AMH’s performance and expressing their thoughts through target price reductions or raises and ratings adjustment from ‘buy’ to ‘hold’ and then back to ‘outperform’. The latest rating report shows that one research analyst has rated the stock with a sell rating, while eight have issued a hold rating, and nine have issued a buy rating to the stock.
Despite these varying opinions on AMH’s prospectus for future growth, it is noteworthy that having opened at $32.95 last Friday, stocks closed trading at $41.33 ten days later – its highest for 12 months – marking considerable progress given its previous twelve-month low of $28.78.
For those unfamiliar with American Homes 4 Rent as an organization, they are predominantly focused on providing residential properties for lease across the US market; boasting over 53 thousand homes for renting purposes in over four dozen markets spread across twenty-two states within America.
It should be noted that a fundamental factor driving demand for leasing accommodation comes from demographic changes taking place in America where an increasing number of millennials opt-in to rent instead of settling down with mortgage payments typical among older generations.
As such from both an economic standpoint and sociocultural perspective, the organization’s strategic direction towards residential property leasing represents a strong opportunity for sustained growth going forward.
A Casco man is facing charges after he allegedly stole a commercial vehicle that was carrying grave stones and cemetery monuments Saturday night from the Hall Funeral Home on Quaker Ridge Road in Casco.
The vehicle, which has a crane attached to it, is used to move cemetery markers, according to Naldo Gagnon, Chief Deputy for the Cumberland County Sheriff’s Office. Hall Funeral Home, in a post on its Facebook page, said the truck contained gravestones and monuments.
“This truck was loaded and prepped to deliver family stones and monuments so those have all been stolen as well. We are heartsick and heartbroken,” Hall Funeral Home wrote on Facebook, prior to the vehicle being found.
In a news release issued Sunday, the Sheriff’s Office identified the suspect as Steven Locke, 32, of Casco. Locke has been charged with felony unauthorized use of a motor vehicle, violating his conditions of release, and operating with a suspended driver’s license. At the time of his arrest, Locke had 10 outstanding arrest warrants stemming from prior incidents with police as well as 10 sets of pre-conviction bail conditions.
Deputies from the Sheriff’s Office responded around 9:53 a.m. Sunday to a report of a vehicle that had apparently been stolen from the funeral home. Deputies were informed that the vehicle was taken in the last 12 hours.
At 12:24 p.m. Sunday, a citizen, who was familiar with the stolen commercial vehicle, contacted authorities about an unknown male operating the vehicle on Roosevelt Trail – also known as Route 302 – in Casco. The tipster gave police a “clear direction of travel” that allowed deputies to locate the stolen vehicle on Heritage Hill Road in Naples.
The Sheriff’s Office said Locke was arrested without incident and transported to the Cumberland County Jail in Portland where he was being held Sunday night on $10,000 bail for the outstanding warrants and without bail on the felony theft charges. There was no reason given by the Sheriff’s Office for why Locke stole the funeral home vehicle.
Hall Funeral Home thanked the Casco community with assisting police in locating the stolen truck and its contents.
“We cannot thank you all, our community, family, neighbors and friends for their support. With the help of the Cumberland County Sheriff’s Department, who immediately jumped into action this morning and a gentleman who thought he saw the truck and called the police, everything has been found safely with no damage to anything at all,” Hall Funeral Home said in a statement. “Thank you is not enough. We are so grateful to our neighbors and friends, out entire community for helping find the individual and assisting in getting our property returned.”
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Selling and moving home is associated with a menagerie of emotion and costs, both foreseen and unforeseen.
With many variables in the process, sellers need to make a few informed decisions and consider all their options based on what will work best for them in their unique situation. Sellers need to be informed enough to decide what would suit their situation best when considering selling through an agent or privately.
Droeks Malan, Stellenbosch iAgent at Meridian Realty says many agents do not like to discuss the pros and cons of selling through an agent versus selling privately. While he is a strong advocate of selling through an agent, he says, “That is not to say that private selling has never worked. There are instances where it is successful.”
Market conditions conducive to private sales:
Malan says the number one instance where a private sale can work is where you have what he calls a “soft sell” situation.
“For instance, if someone you know personally has shown interest in buying your property and has asked you to inform them when you intend on selling, or if you had a tenant in your property who would like first option to buy, the sale may be easy,” he says.
“Other instances (conducive to selling privately), is if you are in a very strong, forgiving sellers’ market, where buyers are falling over their feet to buy property. Demand is higher than supply and despite any mistakes you could make, the momentum of the market can push you through the door (to conclude a sale),” he says.
However, a “soft sell” situation and a forgiving market are not always the reality and an inexperienced seller can potentially end up in a difficult legal situation – this is where an agent’s skills start to shine. The current market is fraught with economic pressures and many buyers are tightening their belts and astutely considering buying property.
Malan says, “You (sellers) must ask yourself – Do you have the skills and equipment easily on hand to facilitate a smooth sale?”
Virtual shopping necessitates stand out listings:
Malan lists several skills that agents might possess in tougher markets that an individual selling privately might not have.
Firstly, he mentions an agent’s database and knowledge of potential buyers in the market. This includes knowing buyers’ requirements, area preferences and price ranges. “
“An agent can bring serious buyers to the table quickly, by matching buyer needs to what a property has to offer,” he says.
Those considering selling privately must therefore give themselves more time to conclude the sale process.
Virtual shopping and in some cases, even buying, are now the norm. Property Portals are the go-to for buyers and the way a property is presented virtually is of the utmost importance.
Malan stresses the importance of professional photography, drone videos and virtual tours to ensure properties stand out. This applies more so as you move up the property price ladder, with some international sales concluded purely virtually in this market. He adds that succinct and professional copywriting that will entice buyers to look at a property is also important. This includes a catchy caption and an appealing, accurate description of the house within property portal parameters.
A virtual listing needs to stand out, and the added touch of professional photography and videography can attract more potential buyers. If you are skilled in this field, then this will stand you in good stead. Many private sellers do not have a database of potential buyers so their listing must stand out both visually and textually.
Getting the price right:
Private sellers might arrive at a price for their property based on purchasing a report from Lightstone, looking at properties for sale on property portals and calculating a figure from there, says Malan.
However, arriving at the best price often requires experience in the market and knowledge of actual properties in the area. Agents gain this experience after years of working in an area and have knowledge of the interior and exterior of previously sold houses as well as the trajectory of sales.
Private sellers must do their homework to arrive at the most competitive price for their property.
This is not impossible – but things like location, safety, redone bathrooms and kitchens and general upkeep, must be considered and compared between properties in the area.
Divergent needs:
Malan points out that there is an inherent tension between the buyer and seller, each wishing to advance their own needs and wants. This is natural, as each party wants to get the best deal out of the sale. Malan adds that although he is an estate agent by trade, when he sold his own properties, he used an agent to facilitate the process. He says some people considering selling privately might be put off by having to deal with tension, drive negotiations and possibly deal with conflict.
The private seller wants to save commission. The buyer, on the other hand, will be cognisant that the seller is saving commission and might,want to pay a lower price for the property, possibly less than it is worth.
Malan says, “So you’ve got the buyer that wants to be discounted on a private sale, and you’ve got the seller that wants to gain more out of a private sale. And that’s where you get that clash of expectations that makes the negotiation process very difficult.”
Transfer of ownership:
Malan highlights that knowledge of the transfer process is also of the utmost importance from sale to the actual transfer of ownership.
“Is there a bond, for example? Here we (agents) connect to a bond originator and connect with the buyer and monitor the process,” he explains.
Typically, the seller should appoint the conveyancer (according to common law). If a knowledgeable estate agent is involved this will be pointed out to the seller. The buyer doesn’t usually get a say in who the transfer attorney is, unless agreed otherwise. This could be the case in a private sale, where a buyer wants to use their own transfer attorney. The danger here is also that the transfer attorney could be a friend or colleague of the buyer and will favour the buyer in the transaction.
“If you’re selling privately, you generally don’t have access to a bond originator and transfer attorney, at best the buyer is going to have his own bond originator, and the seller will not have tight control over the process,” Malan says.
Regulatory bodies and consumer protection:
A private seller is also not registered with the Property Practitioners Regulatory Authority (PPRA), so a buyer is not protected by the body as they would be if they dealt with an estate agent who is registered with the PPRA. Private sellers may also not be compelled to adhere to any of the Consumer Protection Laws or to do property condition reports, like a registered agent is required by law to do. So, a buyer will not have the protection that they normally would when dealing with an agent.
A long-term relationship:
“A private seller typically has no interest in a long-term relationship with a buyer, like an agent would have. They just want to get the best possible price for their property and are acting in their own interest.” says Malan.
He concedes, “Yes, agents work in the interests of a seller, but the agent is also governed by rules and regulations. And, as an agent, someone who bought property through me will in turn become a seller. Nurturing good relationships means continual business and a good reputation in the market. This is something all agents want to achieve to ensure their long-term livelihood.”
In conclusion, market conditions must be right for private sales and sellers must be willing to take on a certain amount of risk in the process, to save on agent commission. Experience in selling will certainly help those wanting to sell privately. There are also some industry disruptors in the market who are assisting with property listings and the transfer process, with varying degrees of success, at present. It really is up to the seller what their preference would be and how much time and effort they have to dedicate to the process.
Antonie Goosen is principal and owner of Meridian Realty.
AGNC Investment Corp. (NASDAQ:AGNC – Get Rating) EVP Bernice Bell sold 2,600 shares of the firm’s stock in a transaction on Friday, April 28th. The stock was sold at an average price of $9.90, for a total value of $25,740.00. Following the completion of the sale, the executive vice president now directly owns 255,500 shares of the company’s stock, valued at approximately $2,529,450. The transaction was disclosed in a document filed with the SEC, which is available through this link.
Bernice Bell also recently made the following trade(s):
- On Wednesday, April 26th, Bernice Bell sold 5,100 shares of AGNC Investment stock. The stock was sold at an average price of $9.86, for a total value of $50,286.00.
AGNC Investment Trading Up 1.3 %
Shares of NASDAQ:AGNC traded up $0.13 during trading on Friday, reaching $9.91. 12,896,745 shares of the company’s stock traded hands, compared to its average volume of 11,653,630. AGNC Investment Corp. has a fifty-two week low of $7.30 and a fifty-two week high of $12.89. The company has a debt-to-equity ratio of 0.02, a current ratio of 0.24 and a quick ratio of 0.24. The company has a 50-day simple moving average of $10.25 and a 200-day simple moving average of $10.08.
AGNC Investment (NASDAQ:AGNC – Get Rating) last issued its earnings results on Tuesday, April 25th. The real estate investment trust reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.05. The business had revenue of $351.00 million for the quarter, compared to analysts’ expectations of $419.83 million. AGNC Investment had a positive return on equity of 29.26% and a negative net margin of 49.78%. The business’s revenue for the quarter was down 21.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.72 EPS. On average, equities research analysts predict that AGNC Investment Corp. will post 2.32 EPS for the current fiscal year.
AGNC Investment Announces Dividend
The company also recently declared a apr 23 dividend, which will be paid on Tuesday, May 9th. Stockholders of record on Friday, April 28th will be given a dividend of $0.12 per share. This represents a dividend yield of 14.5%. The ex-dividend date of this dividend is Thursday, April 27th. AGNC Investment’s payout ratio is presently -92.31%.
Analysts Set New Price Targets
A number of brokerages recently issued reports on AGNC. Barclays reduced their target price on AGNC Investment from $11.00 to $10.00 in a research note on Wednesday. Royal Bank of Canada lifted their price objective on AGNC Investment from $9.00 to $12.00 and gave the company an “outperform” rating in a research note on Tuesday, February 7th. Maxim Group lifted their price objective on AGNC Investment from $9.00 to $12.00 and gave the company a “buy” rating in a research note on Wednesday, February 1st. StockNews.com began coverage on AGNC Investment in a research note on Thursday, March 16th. They set a “hold” rating for the company. Finally, Argus lowered AGNC Investment from a “buy” rating to a “hold” rating in a research note on Monday, February 6th. Two equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $10.69.
Institutional Trading of AGNC Investment
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Dupont Capital Management Corp purchased a new stake in AGNC Investment in the first quarter valued at approximately $37,000. SG Americas Securities LLC acquired a new stake in shares of AGNC Investment in the first quarter valued at $1,644,000. Janney Montgomery Scott LLC raised its stake in shares of AGNC Investment by 26.7% in the first quarter. Janney Montgomery Scott LLC now owns 138,791 shares of the real estate investment trust’s stock valued at $1,399,000 after acquiring an additional 29,285 shares in the last quarter. Autumn Glory Partners LLC increased its holdings in AGNC Investment by 30.0% in the first quarter. Autumn Glory Partners LLC now owns 13,000 shares of the real estate investment trust’s stock valued at $131,000 after buying an additional 3,000 shares during the last quarter. Finally, Arizona State Retirement System increased its holdings in AGNC Investment by 12.3% in the first quarter. Arizona State Retirement System now owns 165,630 shares of the real estate investment trust’s stock valued at $1,670,000 after buying an additional 18,130 shares during the last quarter. Hedge funds and other institutional investors own 40.87% of the company’s stock.
AGNC Investment Company Profile
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs).
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ESTATE agents would be banned from selling new builds to anyone who has previously owned a home under controversial plans drawn up by Labour.
First time buyers to be given “first dibs” on new properties, but the plans have been questioned as unworkable and unfair.
Yesterday Sir Keir Starmer said “giving first time buyers first dibs on developments – will support the aspiration of hard working young Brits and make their dream of home ownership a reality.”
But quizzed about the policy on TV yesterday, Labour’s Election boss Shabana Mahmood was unable to explain how it would work in practice.
She was asked by the BBC’s Laura Kuenssberg: “Why would a first time buyer, maybe with no kids, no dependents, or nobody they’re caring for, get priority over a family that might be crammed into a tiny flat and desperately needs a bigger house?”
And the presenter also said: “So, if you go to the estate agent as a first time buyer, do they say, ‘oh, yes, sure, you’re going to be able to buy this house more easily than someone who might be offering £5,000 more’?”
But Ms Mahmood merely replied that “it’s about ensuring that people can actually get on the housing ladder. And first time buyers, as we know, are particularly struggling. So, the point around the first dibs policy is actually to try and tilt the system in favour of those who simply cannot get a home.”
She insisted “it’s a big intervention” that would require a change to the law.
Last night the Tories branded the plans muddled and unworkable.
They hit back: “Labour are taking the latest political opportunity to shout from the sidelines on housebuilding – forgetting their record on building homes is abysmal and the hypocrisy of their own shadow levelling up secretary who called for housing targets to be scrapped in her own constituency.
“The Conservatives have built over two million homes since 2010, delivering the opportunity of homeownership to millions of young people.”
AMSTERDAM — The Amsterdam Industrial Development Agency plans to market the former Chalmers Knitting Mill site for sale after a purchase option on the property held by a developer expired without being exercised, due to rising construction costs.
The AIDA Board of Directors on Thursday approved a motion authorizing Antonio Johnson, the realtor for the agency and a commercial real estate agent at Berkshire Hathaway, to market the vacant site for sale to developers. A formal listing agreement must still be signed before promotion of the property begins.
Johnson previously helped facilitate the $340,000 purchase option on the Chalmers site with Five Corners Development of Saratoga Springs. Sumeet Gupta is the managing partner of the commercial real estate development and asset management company, which has no connection to the infamous Amsterdam intersection of the same name.
The developer was pursuing a possible mixed-use project at the South Side location, but Johnson informed the board those plans were at a standstill, due in part to escalating construction costs and interest rates. The purchase option expired last week without being exercised.
“It’s very difficult to get new construction deals done,” Johnson said.
Plus, the going rental rate for retail space in Amsterdam is just $10 per square foot, according to Johnson, who said building a 10,000-square-foot space would cost around $10 million.
“From a developer’s standpoint, even a retail project doesn’t make sense,” he added.
Under the circumstances, board members said they would welcome any future proposals from Gupta, but they weren’t interested in extending the purchase option. Instead, officials favored openly marketing the site for the first time since it was acquired by the AIDA in 2020.
“We can’t undervalue that space. If anything, land in Amsterdam is getting more expensive,” board member Matthew Moller said. “There have been so many ideas that people toss around for that area.”
The 3.3-acre site at the corner of Bridge Street and Gilliland Avenue has seemed primed for redevelopment since the decrepit former knitting mill was razed from the property and environmental remediation was completed in 2012.
Most recently, KCG Development planned to build a $34 million workforce housing complex and banquet hall at the site. The developer held a $297,000 purchase option on the property for more than two years before finally buying it from the city when officials declined to extend the option in late 2019. KCG sold the property to the AIDA for $300,000 the following year when local support for their plans faded, stifling attempts to secure tax credits.
Subsequent plans by the Lanzi Family to open a brewery on a portion of the property stalled after the project was awarded a $250,000 state grant in late 2021. The sum was only a third of the aid requested to advance plans.
While agency members are interested in aiding further efforts to secure grant funding to support redevelopment of the property, Charles Schwartz, attorney for the AIDA, noted that a developer needs to be brought on board before any applications can be filed.
Hopes of spurring redevelopment with the boardwalk project planned by the city along the edge of the property are still on hold, due to rising costs. Amsterdam has approximately $650,000 in grants for the project, but recent construction estimates came in around $4 million.
Officials are seeking additional funds to cover the gap, trying to proceed with construction next year. The boardwalk featuring public amenities will be built beside the levy wall on the Mohawk River and connect to the Mohawk Valley Gateway Overlook Pedestrian Bridge.
“That’s going to enhance the property and hopefully that would stimulate even more ideas to come forward,” AIDA Board Chairman Joseph Emanuele said.
Despite recent setbacks and unfavorable economic conditions, Emanuele is optimistic the site’s potential will attract interest from developers when it is actively marketed. He said the agency is open to new concepts for the site, but any plans will need support from residents and city officials before receiving the green light.
“The Chalmers site is a prime area and the South Side is really turning the corner for the better,” Emanuele said. “We’re going to try to make this a great place.”
Reach Ashley Onyon at [email protected] or @AshleyOnyon on Twitter.
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The derelict Chalmers mill complex in Amsterdam is shown in December 2010, several months before its demolition.
AMSTERDAM — The Amsterdam Industrial Development Agency plans to market the former Chalmers Knitting Mill site for sale after a purchase option on the property held by a developer expired without being exercised due to rising construction costs.
The AIDA Board of Directors on Thursday approved a motion authorizing Antonio Johnson, who is the realtor for the agency and a commercial real estate agent at Berkshire Hathaway, to market the vacant Chalmers site for sale to developers. A formal listing agreement must still be signed before promotion of the property begins.
Johnson previously helped facilitate the $340,000 purchase option on the Chalmers site with Five Corners Development of Saratoga Springs. Sumeet Gupta is the managing partner of the commercial real estate development and asset management company, which has no connection to the infamous Amsterdam intersection of the same name.
The developer was pursuing a possible mixed-use project at the South Side site, but Johnson informed the board those plans were at a standstill due in part to escalating construction costs and interest rates. The purchase option expired last week without being exercised.
“It’s very difficult to get new construction deals done,” Johnson said.
Plus the going rental rate for retail space is just $10 per square foot in Amsterdam, according to Johnson, who said building a 10,000-square-foot space would cost around $10 million.
“From a developer’s standpoint even a retail project doesn’t make sense,” he added.
Under the circumstances, board members said they would welcome any future proposals from Gupta, but they weren’t interested in extending the purchase option. Instead, officials favored openly marketing the site for the first time since it was acquired by the AIDA in 2020.
“We can’t undervalue that space. If anything, land in Amsterdam is getting more expensive,” board member Matthew Moller said. “There have been so many ideas that people toss around for that area.”
The 3.3 acre site at the corner of Bridge Street and Gilliland Avenue has seemingly been primed for redevelopment since the decrepit former knitting mill was razed from the property and environmental remediation was completed in 2012.
Most recently, KCG Development planned to build a $34 million workforce housing complex and banquet hall at the site. The developer held a $297,000 purchase option on the property for over two years before finally buying it from the city when officials declined to extend it in late 2019. KCG sold the property for $300,000 to the AIDA the following year when local support for their plans faded, stifling attempts to secure tax credits.
Subsequent plans by the Lanzi Family to open a brewery on a portion of the property stalled after the project was awarded a $250,000 state grant in late 2021. The sum was only a third of the aid requested to advance plans.
While agency members are interested in aiding further efforts to secure grant funding to support redevelopment of the property, Charles Schwartz, attorney for the AIDA, noted a developer needs to be brought on board before any applications can be filed.
Hopes of the boardwalk project planned by the city along the edge of the property spurring redevelopment are still on hold due to rising costs. Amsterdam has approximately $650,000 in grants for the project, but recent construction estimates are coming in around $4 million.
Officials are seeking additional funding to cover the gap, trying to proceed with construction next year. The boardwalk featuring public amenities will be built beside the levy wall on the Mohawk River and connect to the Mohawk Valley Gateway Overlook Pedestrian Bridge.
“That’s going to enhance the property and hopefully that would stimulate even more ideas to come forward,” AIDA Board Chairman Joseph Emanuele said.
Despite recent setbacks and unfavorable economic conditions, Emanuele is optimistic the site’s potential will attract interest from developers when it is actively marketed. He said the agency is open to new concepts for the site, but any plans will need support from residents and city officials before receiving the green light.
“The Chalmers site is a prime area and the South Side is really turning the corner for the better,” Emanuele said. “We’re going to try to make this a great place.”
Reach Ashley Onyon at [email protected] or @AshleyOnyon on Twitter.