Tips for Purchasing Your Own Stake in the Commercial Real Estate Industry

While most people know and widely understand the residential real estate investment approach, the commercial end of the industry sometimes gets overlooked due to the nuanced nature and opportunity of the sector. Having said that, the diverse opportunities within the commercial division should drive investors toward it. You have options, and before you dive into a residential rental property, you may want to consider different, often times larger fish with a bigger profit opportunity. Sound interesting, but don’t know where to get started? You aren’t alone, so I decided to put together a few tips for dipping your feet in the commercial real estate pool.

Ask Questions

Like the age-old saying, there’s no such thing as a stupid question so don’t be afraid to ask them. The more you know, the more likely you are to make a sound investment. If you find yourself asking what questions you should be asking, Kyle Pennell compiled a few questions to get you started like what kind of property and do you have a location in mind? You can find the full list here.

Find Professionals

This is where commercial real estate professionals like myself and the staff at SVN Northco come in. Because the industry is so varied, you want to find a realtor or advisor that has experience with your type of property. One usually doesn’t assume that because someone can sell a house Minneapolis, they can sell a house in New York City or Dubai. They need to have an understanding of the industry, property type and location. Large real estate firms have diversified portfolios that often span the globe, and as a result, they have more experience with major transactions like selling a resort or even a private island.

As described by Inc., you don’t have to know everything. That’s why you seek help from others who make it their mission to know the ins and outs of the commercial real estate sector. “They can help you determine the right time to buy or sell, the right locations to consider, and the nuts and bolts of closing the deal.” Don’t be afraid to seek counsel from a lawyer, broker, accountant or all three.

Do Your Due Diligence

After you asked the questions and determined the property with help from your team of professionals, you now need to check the bones of the deal. Even if a property seems picture perfect, you want to ensure that it is a sound investment. If there are problems – you want to find them now rather than six months down the line when you already bought into the venture.

Once it passes inspections and your own personal expectations – it’s time to take the plunge.

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Northco Golf & Hospitality Golf Course & Resort Activity Heats Up

Minneapolis, MN (March 12, 2014) – Frank Jermusek, President of Northco Golf & Hospitality announces the sale/acquisition of 4 golf courses in last couple of weeks.   Timber Creek Golf Course (18-hole) located in Watertown, MN, Utica Golf Course (18-hole) located in Oshkosh, WI, Riverwood National Golf Course (18-hole) located in Otsego, MN, and Vintage Golf Course (18-hole) located in Otsego, MN.

 

Frank Jermusek says that “Northco has seen a similar increase in activity on resorts as well.”  Last fall Frank Jermusek’s team sold Izaty’s Golf and Yacht Club located on Mille Lacs Lake in MN, and Elbow Lake Lodge located in Cook, MN.  Frank Jermusek’s team is currently working on a number of golf and resort listings, including the historic Gunflint Lodge located on the Gunflint Trail and Superior Shores Resort and Conference Center, located on the North Shores of Lake Superior.

 

Frank Jermusek says that, “Sale / acquisition activity has definitely picked up.  The combination of available debt/equity sources coupled with reasonable pricing has been driving activity.   The barrier to entry for a golf course or resort acquisition is just not what it used to be.  We have a number of deals where individuals or groups have been able to acquire golf courses and resorts on very reasonable terms with excellent debt/equity options.”

 

A year or two ago buyers for golf and resort properties had to show up with 100% cash in order to close a deal.  Frank Jermusek says that has changed, “We recently closed a deal with 50% bank financing + 35% SBA financing + 15% cash down payment, those debt/equity terms coupled with reasonable acquisition pricing opens the buyer pool up immensely.”  We work with a number of lending and equity sources that like this product again, which Frank Jermusek says “drives activity.”

 

Frank Jermusek is President/Owner of Northco Real Estate Services, LLC and Northco Golf & Hospitality, LLC.  Frank Jermusek is also the founding partner of the Jermusek & Davies law firm.   For more information about Frank Jermusek, Northco Golf & Hospitality, Northco Real Estate Services, and Jermusek & Davies law firm, Please visit — www.northco.com   / www.northco.com/ngh  / www.jerdav.com   /   www.frankjermusek.net  — OR call/email Frank Jermusek at 952-820-1615, fjermusek@northco.com

 

 

Northco – 5353 Wayzata Boulevard, Suite 400, Minneapolis, MN 55416

Changes Coming To Sawmill

Link to Article in Stillwater Gazette HERE

 

Changes are coming to Sawmill Golf Club, just not the kind that were long rumored.

The Nicholson family, which owns the course and has leased it for 30 years to a group led by Dan Pohl, will allow the lease to expire at the end of October and turn course management over to a Wayzata-based company.

“On Nov. 1, we’ll be owning it and I will hire a manager to run it,” said Marian Nicholson.

“It’s going to be run by the family. It will continue to be a golf course,” added Howard Nicholson.

The Nicholsons said Northco Golf and Hospitality Co. has a five-year contract to manage the course. The company currently manages more than 120 golf courses.
The Sawmill management change does not affect Logger’s Trail Golf Course, also run by Pohl, according to Howard Nicholson.

Northco President Frank Jermusek said the company is excited about Sawmill’s future.
“There’s an incredible amount of potential at Sawmill,” he said. “It’s a great piece of property.”

The property was so attractive Nicholson said rumors started that his family was going to sell the 140-acre course to a developer.

“A lot of people are under the understanding that this is going to be a housing development,” he said.

Jermusek added that a golf publication mentioned the possibility of Sawmill’s sale to developers.

“The fact of the matter is the family has no intention in selling it for development. Right now, there are no plans to do anything like that,” Jermusek said.
The only immediate change planned at Sawmill is changing its name, according to the Nicholsons and Jermusek.

“It’s no longer going to be named Sawmill. We’re pretty sure we know what we’re going to do, but it’s not official,” Marian Nicholson said.

“I would say it would be a couple of months before you hear what the name is,” Jermusek added.

Other than rebranding Sawmill, Jermusek said Northco will take a more long-term approach to changes at the course that include clubhouse improvements such as a kitchen and dining facility.

“It will be a full-fledged golf course and he wants to enlarge it (clubhouse) and bring in food service,” Marian Nicholson said.

Sawmill was constructed 40 years ago by Marian Nicholson’s husband. Pohl and three partners leased the course for 30 years before the two groups agreed to let the lease run out Oct. 31. Jermusek said Northco had been contacted by the Nicholsons earlier this year about managing the course.

“They approached me probably about nine months ago. I know they talked with a number of management companies nationally,” Jermusek said.

Marian Nicholson said Sawmill has seen large numbers of golfers play the course this season.

“Every day this summer when I drove in here there wasn’t a place to park,” she said. “People were penned up earlier this year and ready to play.”

Jermusek said Northco wants to build on Sawmill’s popularity among St. Croix Valley golfers.

“It’s going to take a couple of years to bring it up to a high standard,” he said.

Marian Nicholson is confident in Northco’s plans for the soon-to-be renamed Sawmill.

“It’s going to be a golf course you can be proud of,” she said.

&

FYI
Sawmill Golf Club
11177 McKusick Road North near the intersection with Dellwood Road (MN 96)
18-hole, par 70
Contact Erik Sandin at erik.sandin@ecm-inc.com

Northco Golf & Hospitality Plans Expansion Across Midwest

For the Link to this article on Yahoo Finance click HERE

MINNEAPOLIS, Feb. 13, 2014 /PRNewswire/ — Frank Jermusek, President of Northco Real Estate Services, LLC, a leading Midwest based full service commercial real estate firm, announced the expansion of its golf & hospitality division – Northco Golf & Hospitality, LLC.   Northco Real Estate Services was originally founded in 1975 and formed a team to specialize in the golf and hospitality industry in 2008.   Northco Golf & Hospitality has worked on over 150 golf and hospitality projects in the last 6 years mainly focusing in Minnesota and Wisconsin.  Frank Jermusek says that, “We have been asked to expand our geographical reach and plan to start working on additional projects in Iowa, Michigan and Illinois.   We also continue to grow our service lines within the industry.  We have historically focused on buy & sell brokerage, consulting, and management.  We plan to expand our capabilities in those areas as well as add investment, property tax appeals and legal services to the mix.

Frank Jermusek says that, “Sale / acquisition activity has definitely picked up in the last year.  The combination of available financing and equity sources coupled with reasonable pricing has been driving lots of activity.   The barrier to entry for a golf course or resort acquisition is just not what it used to be.  We have a number of deals where individuals or groups have been able to acquire golf courses and resorts on very reasonable terms with excellent debt/equity terms.”

With a golf season as short as we have in the Midwest, it is important to drive revenue and to watch expenses like a hawk.  “It is so important to create an environment that encourages golfers of all skill levels to the facility.  The days of filing the tee sheet with single handicap golfers are over.  Everyone in the industry needs to work hard to encourage a broader scope of patrons to the facility.”  The management and consulting services that Northco Golf & Hospitality offers include analyzing all expense and revenue categories to make sure you are maximizing EBITDA / NOI.

For more information about Frank Jermusek, Northco Golf & Hospitality and Northco Real Estate Services.  Please visit — www.northco.com   —- OR call/email Frank Jermusek at 952-820-1615,fjermusek@northco.com

Northco – 5353 Wayzata Boulevard, Suite 400, Minneapolis, MN 55416