The Flying Wallenda’s were tightrope daredevils who performed without a safety net. Having perfected the 7 person human pyramid over 50 years of performing they became the most famous high wire circus act of the 20th century. In a 1963 performance two of the family fell to their deaths.

Some people were surprised.

In the middle of this decade the availability of no-doc, 45 year, 105 % cash back at closing, adjustable rate home loans made the market prices soar. Having perfected the art of packaging tens of millions of loans by stuffing in the junk with the good stuff, shares of junk bonds backed by homes spread all over the world. The American savings rate is down to zero.

In 2008 the realization dawned that this meant some people had “already sold their house to the bank” and they were “upside down”. Irrational panic followed and several large companies fell to their deaths.

Some people were surprised.

Human nature is to follow the lemming in front of you and don’t ask any questions. Safety in numbers. We have a media which tends to make news where there isn’t any. And don’t even mention talk radio. They would make you think the boom times were normal and would never end. Now we have gone the other way and are talking ourselves right off the cliff. You read stats saying this or that is “36% Down”. Of course it is, we were on an all time high. Now we are going down. It’s a simple rhythm, like the tide. Up then Down.

Some lost sight of cycle when it was at the top. Now they are losing sight of the cycle when it’s at the bottom. From Irrational Euphoria to sheer Adrenaline Panic.

Those of us beyond gen x and y have seen worse than this. What’s different this time is the media carnival overplaying the situation. Remember Y2K ? It was brought to you by the news media. Remember how they said the electricity, the banks and all computers would fail at midnight on December 31, 1999 ? Remember what happened ? Nothing. Next time you read a Newsweek comparison to the Great Depression keep that in mind.

We also remember Robert Vesco, Michael Milliken and the junk bonds, the crash of 1987, the crash of 1999 (most have forgotten that one) and of course the dip after 911. We are still here and those of us who didn’t try to perform the 7 person human pyramid on a tightrope are doing fine.

This is the prediction of a seasoned observer - the media that magnifies and spins so well will turn from obsessing on the negative to finding the positive some time after the new President gets in. They will fulfill their own prophecy which they spun before the election. We will rally, once again, as we always have.

Chuck Carey is the principal of Carey Commercial, a Hyannis, MA based business and investment property brokerage firm serving Cape Cod, MA. Through his more than twenty years of professional involvement in the local marketplace, he is widely regarded as one of a small number of commercial brokers offering the level of experience and pragmatic perspective clients require as they address the dynamics of changing market cycles.

Sandpiper Insurance has been operating on Cape Cod since 1991. Following the merger, the firm relocated from 12 Enterprise Road in Hyannis to Dowling & O’Neil’s nearby office located at 973 Iyannough Road. Key Sandpiper employees will now work under the Dowling & O’Neil banner.

“It’s the perfect complement of staff and expertise,” said Rob Miller, Principal of Dowling & O’Neil Insurance. “With the additional staff, we now have 22 customer service representatives dedicated to providing quality service.”

“The merger will benefit our customers,” said Christian Barber, Sandpiper Insurance. “The combined buying power from insurance carriers means more options and competitive pricing for consumers,” he added.

Dowling & O’Neil Insurance Agency has been serving clients in the Cape Cod, South Coast and South Shore regions since 1841. They represent more than twenty insurance carriers and offer personal and commercial insurance.

Mashpee, MA

The well known Tinder Box store located in Mashpee Commons next to Starbuck’s Coffee, sold for $175,000.  The acquisition also included a satelite location at a local golf course. The transaction was facilitated by Greg & Cindy Holmes of Kinlin Grover GMAC Commercial who represented both the buyer and seller.

The Tinder Box is a national franchise operating as Tinder Box International and currently includes a network of 148 stores located throughout the United States. In 1928, company founder Edward Kolpin opened the first Tinder Box store in Santa Monica CA.

The 1,200 square foot retail store (known as Tinder Box #399) specializes in the sale of cigars, pipes, lighters, humidors, gifts and an interesting assortment of smoking-related accessories.  In addition to offering traditional and exclusive cigar lines, the Mashpee store features a 30 foot humidified cigar wall and an 8′ x 12′ walk-in humidor, along with its popular smoking room with a large screen television, wet bar (BYOB) and convenient humidified lockers for its customers.

The Sullivan’s intend to continue The Tinder Box tradition of providing their growing number of loyal customers the finest in smoking products, gifts, accessories and expertise available on Cape Cod.

FALMOUTH, MA - Nearly one year to the day after it closed for business, the former Lighthouse Ford property at 343 Dillingham Road in Falmouth changed hands. According to a deed filed on November 11, 2008 the sale price was $1,150,000. or approximately $114/SF of gross building area. The buyer was listed as 1 Lewiston Street LLC, 278 Scranton Avenue, Falmouth, MA. The main business located at this address is Falmouth Marine. Ford Motor Company was represented by CB Richard Ellis. The asking price was in the range of $1.6 Million.

Lighthouse Ford closed in November 2007 as part of a dealership consolidation program spearheaded by the Big Three automobile manufacturer. The dealership was operated as Falmouth Ford for many decades up until 2004 when it became Lighthouse Ford. The property conveyed to Lighthouse Ford Inc. in July 2004 for $1.5 Million.

The special purpose property consists of the 10,080 square foot automotive building on a level 1.73 acre site. The structure was erected in 1967 and was extensively remodeled about the time it became Lighthouse Ford.

Ford dealerships continue to be operating in Hyannis and Chatham as well as in Wareham and Plymouth.

The widely reported troubles in the automotive sector have resulted in the closing of many dealerships in the past year. Quite coincidentially is the recent closing of a Long Island, NY dealership similarly named Lighthouse Ford which also opened its doors in 2004. A message on the NY dealership’s website sums up the situation this way, “Unfortunately as a result of the ever changing market and the stark economic reality facing this country Lighthouse Ford has decided to close its doors on October 31st 2008.”

The first major change permits new SBA loans to be made with an alternative base interest rate, the one month LIBOR rate, in addition to the prime rate, which was previously allowed. In recent months, both the prime and LIBOR rates have not yet returned to their historical relationship of roughly 300 basis points. The change seeks to correct the mismatch between the rates which are apparently squeezing SBA lenders out of the lending market, since their costs are based on the LIBOR rate.

The second change allows a new structure for assembling SBA loans into pools for sale in the secondary market. The enhanced flexibility in loan pool structures can help affect profitability and liquidity in the secondary market for SBA guaranteed loans. In turn, by using the average interest rate loan pools are easier to create, providing more investors with an incentive to bid on these loans.

“The challenge small businesses face today is not the cost of capital, it is access to capital,” said SBA’s Acting Administrator Sandy K. Baruah. “Interest rates are at historically low levels meaning money is inexpensive, yet lenders aren’t lending and borrowers aren’t borrowing. This indicates markets are frozen due to liquidity concerns. This interim final rule is an important step to re-energize the lenders to make SBA-backed loans and will help open the gateway of capital for entrepreneurs.”

To learn more about SBA’s guaranteed loan programs visit www.sba.gov.

Although food centered activities such as chocolate making and gourmet cooking seem to be among the most prevalent, the range of entertaining offerings is wide and interesting. 

The Waldo Emerson Inn in Kennebunk offers quilting events which reportedly generate about half of the inn’s winter receipts. The Camden Harbour Inn in Camden now offers historical walks as part of their Thanksgiving package. 

At the Kendall Tavern Inn Bed and Breakfast in Freeport, spiritual retreats and calligraphy, scrapbooking and quilting events have filled the inn at times when vacancies are otherwise high. Alpaca and fiber arts workshops are offered at The Royalsborough Inn at the Bagley House in Durham.

The special packages do more than fill time for guests and from a marketing and financial perspective appear to make good sense. For one thing, the activities insure guests will have something interesting to do while visiting in the dead of winter. Innkeepers offering group type special events such as murder mystery weekends, report such events tend to attract group travelers. The events also promote repeat visits, provide an opportunity to turn a causal inquiry into a booking, and support continued employment for the most well-trained staff.

Cape Cod innkeepers already offering or planning to offer off-season special packages with a niche theme are encouraged to comment or share interesting insights.

To read the full Portland Press Herald article, INNovative Lodging Ideas click here.

Harwichport, MA - The former Thompson’s Farm Market in Harwichport, MA changed hands in mid October 2008. According to a filed deed, the purchase price was $2,250,000 and the buyer was Building Down the Road, LLC. In a recent report published in the Cape Cod Chronicle the buyer was indicated to be affiliated with South Harwich based Back Office Associates, an information technology firm specializing in SAP data solutions. This notable piece of Cape Cod commercial real estate was vacant at the time of sale and was previously listed for sale on the open market for approximately two years.

The property is located on the north side of Route 28, across from Saquatucket Harbor and Brax Landing.  The 33,000 square foot building, situated on a 1.92 acre parcel of land, was erected in 1989 originally as Thompson’s Farm Market. The first floor contains approximately 16,500 square feet of retail and merchandise storage space. The layout of the 16,500 square foot second floor includes about one-half office space and a bakery/commissary in the remainder. Following the closing of the independent market, in recent years the ground floor space was occupied by various local retailers and the upper level was utilized as the offices of the Wychmere Harbor Club.

The upscale market was erected by Dr. J. Richard Fennel as a later offshoot to the original Thompson Brothers Clam Bar, a popular Cape Cod eatery formerly located at the end of Snow Inn Road on Wynchmere Harbor. Despite generations of loyal patrons since the 1950’s, the original clam bar closed in about 1996. Although a new Thompson’s was subsequently established at the corner of Bank Street and Route 28, the eatery eventually transitioned and the Thompson Brother’s Clam Bar legacy essentially ended here. Many will also remember Thompson Brothers Clam Bar from the famous “Hey Where Ya Going?” radio jingle found in this YouTube video.
 

Postcards by Hannau-Robinson, NY, NY; Joseph P. Egan Collection

Dennisport, MA - The former Wings property located at 438-444 Route 28 in Dennisport is scheduled to take flight and this time it looks for real.

A.J. Lukes Liquors of Dennisport, with an established liquor store at the nearby Benny’s plaza has put into motion their plan to relocate to the former Wings property. As a key first step, in mid September 2008 Dennis Selectman approved both the change of location request and name change to A.J. Luke’s Super Liquor Store. On October 24, 2008 the company took the next major step and acquired this Cape Cod commercial real estate for $719,000 according to Registry of Deeds filings.

The new location offers 8,300 square feet of building area for the annual all alcohol package store. The building was previously occupied by Wings, a speciality retailer and a Dunkin Donuts. In recent years the property had been vacant and began to reflect the lack of regular maintenance. Following the recent acquistion of this commercial property located directly across from the Dennis Town Hall Annex, the liquor store owners plan to complete the much needed interior and exterior renovations. Reportedly, if all goes according to plan, the actual store relocation is likely to occur in about one year from now.

The Wings property was listed for sale for over three years originally at $1.2 million with reports of firm deals being struck but never making it to the closing table for one reason or another. Following a series of price reductions, the one-story retail property was most recently listed at $895,000 according to veteran Cape Cod broker Bob Winn with Century 21-Professional Realty LLC in Harwichport, MA. 

Regarding the recent sale, Bob Winn commented, “I presented the property to an extremely wide range of prospective users, each with an equally wide range of contemplated uses. I have no doubt A.J. Luke Liquor’s intended plans are among the best I have seen. It’s an excellent use for this property.” Mr. Winn is also impressed by the buyer’s investment and positive outlook for the Cape Cod economy. “I am 100% certain A.J. Luke Liquors will complete a top quality renovation and provide a great enhancement to the the Village of Dennisport. They are a top notch organization,” he said.    

In addition to stores in Harwich and Hyannis, A.J. Luke Liquors has operated the Dennisport store since 2003. It appears the new store location will mesh well with this local family-owned company’s goals and commitment to the Dennisport business community.

“The new A.J. Luke’s Super Liquor Store location provides more visibility along Route 28. This key investment will also enable us to better serve our customers by providing more convenience and a larger selection of merchandise,” said Mr. Luke, President of A.J. Lukes of Dennis, Inc. “Along with storefront and curb cut revisions, we also plan to extensively remodel the inside which will include a large fine wine room. Overall, it is an exciting project for us and the Dennisport community, and we are looking forward to bringing new life to this highly visible property.”

A total of 145 qualified commercial real estate sales transpired on Cape Cod from January - September 2008. The latest figures amount to a 23.3% decline from the level achieved in the same nine month period in 2007. The 2008 drop is also about 42% below the 12-year average of 250 sales and the lowest period to period total since 1997.

Quarterly figures reveal the deceleration in the number of sales was evenly spread out among each quarter. The quarterly data also shows in both in 2007 and 2008, first quarter activity once again fell below Quarter II sales volume. This is significant in that, except for 2006, at no time since 1997 has the number of sales in Quarter II been lower than the prior Quarter I total.

Excluding the Outer Cape sub region (Provincetown, Truro and Wellefleet) which achieved a small gain, the remaining three Cape Cod sub regions posted moderate decreases in the number of commercial property transactions. The greatest fall off, however, was in the Upper Cape sub region which experienced a sharp 49% decrease in year over year transaction volume, nearly double the countywide percentage decline.

The Mid Cape sub region once again posted the highest number of transactions (63) for the nine month period. According to the data, the Mid Cape sub region has held the top ranking in each consecutive three quarter period since 1997, until being closely edged out by the Upper Cape sub region in 2007 with 72 qualified sales.

Joseph P. Egan is a MA Certified General Real Estate Appraiser with over 25 years of professional valuation experience. Through a specialization in commercial real estate and closely-held businesses, since 1991 he has completed over 600 appraisal, brokerage and consulting assignments concerning all types of commercial real estate assets and going concerns located on Cape Cod, Nantucket, and Plymouth County, MA. Clients served generally include attorneys, banks, corporations, developers, investors, and owners of closely-held and family businesses. Prior to relocating to Cape Cod, Joe worked in the New York Metro Area and throughout CT with leading regional and national appraisal firms such as Cushman & Wakefield. Please contact Joe here.

Note: Qualified sales generally include arms length commercial real estate sales and exclude transactions such as those involving governmental agencies, conveyances among related or affiliated parties, partition or other court ordered sales, and at least for the time being foreclosure sales in most cases (although they are separated tracked). Excluded property types generally include small multi-family dwellings, agricultural properties, multi-unit residential developments, nursing homes, and lodging properties with fewer than four guest units.

HYANNIS, MA - The Wall Street Journal reported today Circuit City Stores, Inc. is considering a plan which will shutter at least 150 stores and result in the loss of thousands of jobs. Reportedly, the nation’s No. 2 electronic retailer has engaged various legal and industry experts as the firm explores alternatives to filing for bankruptcy protection. (WSJ)