I've been poking around seeing whos renting what.. this sums it up nicely. I thought I might share.
Western Properties.
"Western is a management company on behalf of the individual property owners of each of the 25 building we manage and lease. Some of those properties have upwards of 10 individual owners. In some cases Western is one of those Owner’s, but generally not the “Managing Owner”. The Managing Owner of each property makes decisions on behalf of the other partnerships, is responsible to those partners for “damages” as result of his/her decisions, and instructs Western on how to manage the property to suit their collective desires. At this time, the various Managing Owners of “all” Western managed properties believe that there is an unacceptable risk to his/her minority partners should they allow an occupancy such as this, and thus risk to themselves. The risks are multiple, but the main ones come from the Lenders who hold notes on the properties, and the insurance companies that insure them, as is require by the Lender on the loan documents. Because it is still a federal offense, the insurance companies could waive or cancel the policies, and the banks could call the loans, because the building’s occupants are operating in violation of Federal Law. If a bank were to “call” a $1,000,000.00- $12,000,000.00 loan on a property because of a managing members decision to allow an occupancy they knew was illegal under federal law, they would be in large scale trouble with their partners…thus the policy.
That was the Long version. The short version is “yes” until it is legal on a Federal level, or we have guarantees from the banks and insurance companies, our Owners will not allow us to rent to that industry type.
I have begun some conversation’s with some investor groups based around the idea of purchasing some I-1 zoned property for cash, adding substantial fencing and security systems, then installing the Insulated Canopy type structures with base utilities (water, Sewer, and Electric) and overhead doors. If something was owned free and clear, and set up correctly, you’d have no bank loan issue, so then it comes down to if you can get insurance to cover risk of theft injury or damage…
I know the industry is in a tough spot right now, but there is lots up upside potential if the government get out of the way.
Hopefully this helps in your understanding of “our” situation. As for now, I would think you would need to find stand alone buildings that are owned free and clear by a single owner. "
-End quote.
Just some heads up for the growers out there..
Western Properties.
"Western is a management company on behalf of the individual property owners of each of the 25 building we manage and lease. Some of those properties have upwards of 10 individual owners. In some cases Western is one of those Owner’s, but generally not the “Managing Owner”. The Managing Owner of each property makes decisions on behalf of the other partnerships, is responsible to those partners for “damages” as result of his/her decisions, and instructs Western on how to manage the property to suit their collective desires. At this time, the various Managing Owners of “all” Western managed properties believe that there is an unacceptable risk to his/her minority partners should they allow an occupancy such as this, and thus risk to themselves. The risks are multiple, but the main ones come from the Lenders who hold notes on the properties, and the insurance companies that insure them, as is require by the Lender on the loan documents. Because it is still a federal offense, the insurance companies could waive or cancel the policies, and the banks could call the loans, because the building’s occupants are operating in violation of Federal Law. If a bank were to “call” a $1,000,000.00- $12,000,000.00 loan on a property because of a managing members decision to allow an occupancy they knew was illegal under federal law, they would be in large scale trouble with their partners…thus the policy.
That was the Long version. The short version is “yes” until it is legal on a Federal level, or we have guarantees from the banks and insurance companies, our Owners will not allow us to rent to that industry type.
I have begun some conversation’s with some investor groups based around the idea of purchasing some I-1 zoned property for cash, adding substantial fencing and security systems, then installing the Insulated Canopy type structures with base utilities (water, Sewer, and Electric) and overhead doors. If something was owned free and clear, and set up correctly, you’d have no bank loan issue, so then it comes down to if you can get insurance to cover risk of theft injury or damage…
I know the industry is in a tough spot right now, but there is lots up upside potential if the government get out of the way.
Hopefully this helps in your understanding of “our” situation. As for now, I would think you would need to find stand alone buildings that are owned free and clear by a single owner. "
-End quote.
Just some heads up for the growers out there..
All kinds of roadblocks to finding a place looks like. Not many Alaska posters on here either.
