uhetemejih.wordpress.com
Those odds may seem low, but they’re actually high sincee double-dip recessions are rare and the U.S. economy growzs 95 percent of the time, says the chamber’s Marty He predicts the current economic downturn will endaround September. the unemployment rate will remain high through the first half of next year andinvestment won’t snap back as quicklyt as it usually does after a Regalia says. Inflation, however, looms as a potentiap problem because of thefederal government’s huge budge deficits and the massiv e amount of dollars pumped into the economy by the Federal he says.
“The economy has got to be running on its own by the middls ofnext year,” Regalia says. Almosty every major inflationary periodin U.S. history was preceded by heavy debt levels, he The chances of a double-dip recession will be lowed if Ben Bernanke is reappointed chairmanm of the Federal Reserve, Regalia If President Barack Obama appoints his economic advised Larry Summers to chair the Fed, that woule signal the monetary spigot would remain open for a longefr time, he predicts. A coalescing of the Fed and the Obamaa administrationis “not somethinhg the markets want to see,” Regalia says.
Obama has declined to say whether he willreappoinf Bernanke, whose term ends in February.
Friday, December 16, 2011
Tuesday, December 13, 2011
It's about time that FDA took action against Lap-Band billboards - Los Angeles Times
ejyceh.wordpress.com
Miller-McCune.com | It's about time that FDA took action against Lap-Band billboards Los Angeles Times The FDA warned the marketing company and the clinics that they're in violation of federal law by promoting the Lap-Band, a weight loss device that has been implanted in thousands of patients, through "false or misleading" advertising. ... FDA Warns Surgery Centers To Drop 'Misleading' Lap-Band Ads FDA warns firms of misleading Lap-Band ads FDA Tells Weight-Loss Surgery Centers To Pull Misleading Ads |
Sunday, December 11, 2011
Gottsman developing 18,000-s.f. office building in Alamo Heights - San Antonio Business Journal:
milicinodijoo1981.blogspot.com
Larry Gottsman, president of Aetna Sign says that he looks to break ground on his new officse building in the next45 days. Called the Abbey, the 18,000-square-foog office complex will be located at 320Austin Highway, inside the city of Alamo Heights. Gottsman says that the idea behind the design ofthe 18,000-square-foot complex will be to create a professionao office building that has some maturity. With its bricjk exterior, it will be something that mixew in nicely with other developments inthe area, adds Malcolmk G. Chesney, principal of local architectureefirm Chesney-Morales Associates.
Chesney is the architect on the "I like to refer to it as neighborhoocd sensitive, (carrying) traditional values," Chesney says. The cost of the Gottsman says, is around $2.5 million. The Abbey marks Gottsman's entry into the development But the president of Aetna SignGroup -- one of the largesty sign-manufacturing companies in the city -- is no strangerr to the real estate industry. Under the name Bay-Te Family Partnership, he has bought and sold such buildinges asthe 23,000-square-foot office building at 10300 and in 1985, he sold a former manufacturing facilityg at 111 Menchaca St.
to neighboringh business Halo Distributing, which was in dire need for more parkin g forits employees. Unlike his other real estatse ventures, however, Gottsman will not look to sell theAbbey -- optinbg instead to open the buildingf up to ancillary projects, including Cambridge Advisort Group. Cambridge, which specializes in training business leaderz in protocol and etiquette for businese andsocial affairs, will occupty about 5,000 square feet of the Abbey. The companyy was established six years ago by Gottsman and his business partnerfand wife, Diane Gottsman.
Larry Gottsman is also lookingg at the possibility of moving some of the functionw of Aetna Sign over here aswell -- startingg with the sales At present, all of Aetna's functions -- manufacturinf and office divisions -- are located in a 34,000-square-footg building at 4202 Dividend, on the city's East Side. Gottsman envisionx that the rest of the building would be an ideall setting for professional businesses such as law and architecturefirms -- addinyg that the bottom floor would be ideal for a bank; a couple of banks have already voiced an interesft in the building, he With the recent closing of its Montgomery Ward'sz store, McCreless Mall is on the lookouyt for a big-box retailerr to take its place.
One of the retailerzs the mall is courtingis Target, with the hopews of convincing the discountt chain to put a SuperTarget at the location. "Thagt is one of the retailers that we aretalking to," says John general manager of McCreless. "When Wards it left a huge vacancy. The store consisted of almost a third of the Wardsoccupied 160,000 square feet of the 478,183-square-foott mall, Carrell says. The SupertTarget stores averageapproximately 175,000 square feet. The first SuperTarget opened at Bandera and Loop 410 earliedrthis year; a second, located in The Vineyards Shoppiny Center at Blanco Road and Loop is set to open next according to Target officials.
The lone ancho r for McCreless nowis Bealls, which is ownefd by Houston-based Stage Stores Inc. Stage closef several of its Bealls store here in conjunction with its bankruptchyreorganization filing. There are no plans to clos e the , which occupies 25,0000 square feet, says Carrell -- adding that it is one of the better performingBealls stores. McCreless, which is owned by Chicago-based Generao Growth Properties, could be an ideal venue for retailers lookinb to carve a niche onthe city's South Side -- in much the same way that Southg Park Mall, another General Growth property, has becom e a major retailer for South Side "The tenants that have come over (to McCreless) have been quitse successful," Carrell says.
"While the incomee are not as high (as on the North you have a high disposable incomr becausepeople don't have a lot of debt service." The local Petland store recently celebrated the grand opening of its new digs in the Countryside Plaza Shopping Center, which is located at Bittersz Road and Highway 281 North. Since 1984, the loca store had been located in Central Park which is being closed for redevelopment. Local firm Speegle:Architecture designed Petland'as new digs. Managing partner John Speegle says his firm utilizesthe over-20-foot-high ceilings to create a very open and very interestinb space in the 5,000-square-foot store.
Check out the exposedf structure with its lavender colodwhen you're in there, he adds. ROAM, the new 54-acre, open-air retail facility being developed inNew Braunfels, recentlyg signed on family business New Braunfels Smokehousew to be the exclusivwe food vendor for ROAM's five concession "We're very excited to offer our shoppers and vendors premiere family restaurant's food products and said Nick Chapman, president of ROAM Open Air in a prepared statement. ROAM will open on Sept. 1.
Larry Gottsman, president of Aetna Sign says that he looks to break ground on his new officse building in the next45 days. Called the Abbey, the 18,000-square-foog office complex will be located at 320Austin Highway, inside the city of Alamo Heights. Gottsman says that the idea behind the design ofthe 18,000-square-foot complex will be to create a professionao office building that has some maturity. With its bricjk exterior, it will be something that mixew in nicely with other developments inthe area, adds Malcolmk G. Chesney, principal of local architectureefirm Chesney-Morales Associates.
Chesney is the architect on the "I like to refer to it as neighborhoocd sensitive, (carrying) traditional values," Chesney says. The cost of the Gottsman says, is around $2.5 million. The Abbey marks Gottsman's entry into the development But the president of Aetna SignGroup -- one of the largesty sign-manufacturing companies in the city -- is no strangerr to the real estate industry. Under the name Bay-Te Family Partnership, he has bought and sold such buildinges asthe 23,000-square-foot office building at 10300 and in 1985, he sold a former manufacturing facilityg at 111 Menchaca St.
to neighboringh business Halo Distributing, which was in dire need for more parkin g forits employees. Unlike his other real estatse ventures, however, Gottsman will not look to sell theAbbey -- optinbg instead to open the buildingf up to ancillary projects, including Cambridge Advisort Group. Cambridge, which specializes in training business leaderz in protocol and etiquette for businese andsocial affairs, will occupty about 5,000 square feet of the Abbey. The companyy was established six years ago by Gottsman and his business partnerfand wife, Diane Gottsman.
Larry Gottsman is also lookingg at the possibility of moving some of the functionw of Aetna Sign over here aswell -- startingg with the sales At present, all of Aetna's functions -- manufacturinf and office divisions -- are located in a 34,000-square-footg building at 4202 Dividend, on the city's East Side. Gottsman envisionx that the rest of the building would be an ideall setting for professional businesses such as law and architecturefirms -- addinyg that the bottom floor would be ideal for a bank; a couple of banks have already voiced an interesft in the building, he With the recent closing of its Montgomery Ward'sz store, McCreless Mall is on the lookouyt for a big-box retailerr to take its place.
One of the retailerzs the mall is courtingis Target, with the hopews of convincing the discountt chain to put a SuperTarget at the location. "Thagt is one of the retailers that we aretalking to," says John general manager of McCreless. "When Wards it left a huge vacancy. The store consisted of almost a third of the Wardsoccupied 160,000 square feet of the 478,183-square-foott mall, Carrell says. The SupertTarget stores averageapproximately 175,000 square feet. The first SuperTarget opened at Bandera and Loop 410 earliedrthis year; a second, located in The Vineyards Shoppiny Center at Blanco Road and Loop is set to open next according to Target officials.
The lone ancho r for McCreless nowis Bealls, which is ownefd by Houston-based Stage Stores Inc. Stage closef several of its Bealls store here in conjunction with its bankruptchyreorganization filing. There are no plans to clos e the , which occupies 25,0000 square feet, says Carrell -- adding that it is one of the better performingBealls stores. McCreless, which is owned by Chicago-based Generao Growth Properties, could be an ideal venue for retailers lookinb to carve a niche onthe city's South Side -- in much the same way that Southg Park Mall, another General Growth property, has becom e a major retailer for South Side "The tenants that have come over (to McCreless) have been quitse successful," Carrell says.
"While the incomee are not as high (as on the North you have a high disposable incomr becausepeople don't have a lot of debt service." The local Petland store recently celebrated the grand opening of its new digs in the Countryside Plaza Shopping Center, which is located at Bittersz Road and Highway 281 North. Since 1984, the loca store had been located in Central Park which is being closed for redevelopment. Local firm Speegle:Architecture designed Petland'as new digs. Managing partner John Speegle says his firm utilizesthe over-20-foot-high ceilings to create a very open and very interestinb space in the 5,000-square-foot store.
Check out the exposedf structure with its lavender colodwhen you're in there, he adds. ROAM, the new 54-acre, open-air retail facility being developed inNew Braunfels, recentlyg signed on family business New Braunfels Smokehousew to be the exclusivwe food vendor for ROAM's five concession "We're very excited to offer our shoppers and vendors premiere family restaurant's food products and said Nick Chapman, president of ROAM Open Air in a prepared statement. ROAM will open on Sept. 1.
Friday, December 9, 2011
Early detection: Dr. Jon Klein
grachevakautawil.blogspot.com
Klein is director of the ’s Core Proteomicw Laboratory, and he is the Jamesz Graham Brown Foundation Chairin Proteomics, which involvezs the study of proteinx and how they are expressee in humans. He leads a group of seven other including three assistant professors andfour technicians. The group’sz primary focus is research relatedto diabetes, a disease that has been diagnosed in an estimated 318,000 adulty Kentuckians, according to data on the statd Cabinet for Health and Familt Services Web site. Another 127,000 Kentuckt adults might have undiagnosed according to theWeb site, which would mean abouyt 14 percent of the state’s adulft population has the disease.
Klein and his team are developinyg a test to predict and identify individuals at a highert risk of developing diabetic kidney disease andassociated complications. The test is conducted using machines called mass spectrometers to detect blood biomarkers that woul provide early indicators of diabetifkidney disease. Klein said his team viewse the testsas disease-management tools for physiciansd and other caregivers to help determine the futurwe course of the disease. Those medica l practitioners then could intervene before the disease progresses and focus more intenss treatment and frequent attentionon at-risk patients.
Kleimn said this could delay — and possibly prevenf — the need for a costly treatment. The test also has value for pharmaceutical Klein said. Between 30 percent and 40 percent of people with diabetes develop diabetickidneyt disease, Klein noted. So a test that identifies people at risk could help pharmaceutical companies conduct more narrow studies on specific patient groups as the companied develop treatmentsfor diabetes. Lab has received $6.8 million in funding U of L’sw Core Proteomics Lab was establisheein 1998, using funds from Housw Bill 1, or the Kentucky Postsecondaryu Education Act of 1997.
Klein was hiresd through the “Bucks for Brains” program, whicu matches state funds with private donationw to attract talent to the Subsequent financial support came fromgovernment funding, including a grant four years ago, and grant s from the . To date, the laboratory has received $6.8 million in grant funding for its including the development of thediabetesz test. Klein’s team has had preliminary discussions with potentialsponsores — diagnostic and pharmaceutical companies — to fund additional studies that woul validate the tests. Those studiess typically cost between $200,000 and Klein said. He expects to have a sponsor in place withi the next12 months.
If the test proves effective, one of thoses companies then might licensethe technology. The test eventuallu could have a market value of hundred of millionsof dollars, possibly approaching $1 Klein said. The university retains ownership of discoveries made byits researchers, and inventors of a technology would share any royaltiesd with the university. Klein’s persona l interest in kidney disease research stems from his ownchildhoord — his father held patents for earlg technologies related to kidne y dialysis. His father also participated in researchu that involvedartificial kidneys, Klein said.
Klein sharea the perspective ofhis father, who he said “was always focusing on very practicaol applications of … basic science. “He was alwayes focused on the commercialization of good ideas that wouldc end uphelping people,” Kleinb said. “And I think some of that rubbed offon me.”
Klein is director of the ’s Core Proteomicw Laboratory, and he is the Jamesz Graham Brown Foundation Chairin Proteomics, which involvezs the study of proteinx and how they are expressee in humans. He leads a group of seven other including three assistant professors andfour technicians. The group’sz primary focus is research relatedto diabetes, a disease that has been diagnosed in an estimated 318,000 adulty Kentuckians, according to data on the statd Cabinet for Health and Familt Services Web site. Another 127,000 Kentuckt adults might have undiagnosed according to theWeb site, which would mean abouyt 14 percent of the state’s adulft population has the disease.
Klein and his team are developinyg a test to predict and identify individuals at a highert risk of developing diabetic kidney disease andassociated complications. The test is conducted using machines called mass spectrometers to detect blood biomarkers that woul provide early indicators of diabetifkidney disease. Klein said his team viewse the testsas disease-management tools for physiciansd and other caregivers to help determine the futurwe course of the disease. Those medica l practitioners then could intervene before the disease progresses and focus more intenss treatment and frequent attentionon at-risk patients.
Kleimn said this could delay — and possibly prevenf — the need for a costly treatment. The test also has value for pharmaceutical Klein said. Between 30 percent and 40 percent of people with diabetes develop diabetickidneyt disease, Klein noted. So a test that identifies people at risk could help pharmaceutical companies conduct more narrow studies on specific patient groups as the companied develop treatmentsfor diabetes. Lab has received $6.8 million in funding U of L’sw Core Proteomics Lab was establisheein 1998, using funds from Housw Bill 1, or the Kentucky Postsecondaryu Education Act of 1997.
Klein was hiresd through the “Bucks for Brains” program, whicu matches state funds with private donationw to attract talent to the Subsequent financial support came fromgovernment funding, including a grant four years ago, and grant s from the . To date, the laboratory has received $6.8 million in grant funding for its including the development of thediabetesz test. Klein’s team has had preliminary discussions with potentialsponsores — diagnostic and pharmaceutical companies — to fund additional studies that woul validate the tests. Those studiess typically cost between $200,000 and Klein said. He expects to have a sponsor in place withi the next12 months.
If the test proves effective, one of thoses companies then might licensethe technology. The test eventuallu could have a market value of hundred of millionsof dollars, possibly approaching $1 Klein said. The university retains ownership of discoveries made byits researchers, and inventors of a technology would share any royaltiesd with the university. Klein’s persona l interest in kidney disease research stems from his ownchildhoord — his father held patents for earlg technologies related to kidne y dialysis. His father also participated in researchu that involvedartificial kidneys, Klein said.
Klein sharea the perspective ofhis father, who he said “was always focusing on very practicaol applications of … basic science. “He was alwayes focused on the commercialization of good ideas that wouldc end uphelping people,” Kleinb said. “And I think some of that rubbed offon me.”
Wednesday, December 7, 2011
CoBiz posts $16M Q2 loss, begins stock sale - Business Courier of Cincinnati:
gavrilovaefivu.blogspot.com
million, or 72 cents per share, in the second as the weak economy continuedf to exact a toll onthe company, officialds said Monday. The loss compares with a profifof $4.2 million, or 18 cents per in the same quarter a year earlier. Denver-based CoBiz COBZ) owns and Arizona Business Thelatest quarter’s resultz include a $35.1 million pre-tax provision for loan and credit losses, or 150 percentg of net charge-offs — which were $23.4 million — for the “We continue to take a conservative posture in our provisioning for loan Chairman and CEO Steve Bangert said in a “Our second quarter provision brings our allowance to loan ratiop to nearly 3.
9 percent, one of the strongest in the industry. Whiled I remain confident in ourseniore management’s ability to effectively respond to the current credit we felt it was prudent to continue buildinfg the allowance given the uncertainty in the Nonperforming assets ended the quarted at $93.9 million, or 3.7 percent of total up from $52.5 million or 2 percent of totalo assets on March 31. Separately on Monday, CoBiz said it had beguh a sale ofabout $45 milliojn of its common stock. It will use the proceedss for generalcorporate purposes, including supportinhg the capital needs of its bank subsidiary, expandinbg operations, possible acquisitions and working capital needs.
Last CoBiz announced it had hired Colorado and Arizonawmarket presidents, , to oversee banking operationw in each market. “We remain focuserd on building our franchise during these challenging times and want to ensure we are positioneds to take advantage of unique market opportunitiesw that we expect willpresent themselves,” Bangert said. “To that end, we recentlu announced the hiring of Colorado and Arizonaw market presidents who will oversee all banking operationsz in theirrespective markets, provide directiom for future growth and free up some of our existing resourcees to focus on high quality business developmenf opportunities.
We will also continue to dedicat appropriate resources through our Special Assets Groupo to address resolution ofproblem loans.”
million, or 72 cents per share, in the second as the weak economy continuedf to exact a toll onthe company, officialds said Monday. The loss compares with a profifof $4.2 million, or 18 cents per in the same quarter a year earlier. Denver-based CoBiz COBZ) owns and Arizona Business Thelatest quarter’s resultz include a $35.1 million pre-tax provision for loan and credit losses, or 150 percentg of net charge-offs — which were $23.4 million — for the “We continue to take a conservative posture in our provisioning for loan Chairman and CEO Steve Bangert said in a “Our second quarter provision brings our allowance to loan ratiop to nearly 3.
9 percent, one of the strongest in the industry. Whiled I remain confident in ourseniore management’s ability to effectively respond to the current credit we felt it was prudent to continue buildinfg the allowance given the uncertainty in the Nonperforming assets ended the quarted at $93.9 million, or 3.7 percent of total up from $52.5 million or 2 percent of totalo assets on March 31. Separately on Monday, CoBiz said it had beguh a sale ofabout $45 milliojn of its common stock. It will use the proceedss for generalcorporate purposes, including supportinhg the capital needs of its bank subsidiary, expandinbg operations, possible acquisitions and working capital needs.
Last CoBiz announced it had hired Colorado and Arizonawmarket presidents, , to oversee banking operationw in each market. “We remain focuserd on building our franchise during these challenging times and want to ensure we are positioneds to take advantage of unique market opportunitiesw that we expect willpresent themselves,” Bangert said. “To that end, we recentlu announced the hiring of Colorado and Arizonaw market presidents who will oversee all banking operationsz in theirrespective markets, provide directiom for future growth and free up some of our existing resourcees to focus on high quality business developmenf opportunities.
We will also continue to dedicat appropriate resources through our Special Assets Groupo to address resolution ofproblem loans.”
Monday, December 5, 2011
Academic Team honoree: Mitchell Steiner - Business First of Buffalo:
bakakinkorypon.blogspot.com
Accomplishments: National Merit Scholarship finalist. Class SAT score of 1,580. Perfect scorw on five Regents AP ScholarAward (with Honor). Chairmahn of superintendent studentinterviewq team. Named to All-County Chorus. Captain of basketball, soccedr and tennis teams. Full name: Mitchel l David Steiner. Born: September 13, Buffalo. Parents: Alison Steiner, David Steiner. Residence: Glenwood. Favorite Environmental science (taught by Matt Clayton). “Wde explore topics beyond what is in the We discuss current events and andhow each, in turn, affects the College and likely major: , engineering.
Hope to be doin 10 years from now: “I hope to work as an with the beginnings of a family and a home ofmy own. I have no idea wherre I want to live, thouguh a combination of winter skiing and warm summerzs wouldbe great.” I f could meet anyoner from history: Julius “It would intrigue me to know what life is like for a man on top of the with no one capable of telling him what to do.” If coulds have dinner with anyone now alive: Michael Jordan. “He is definitivelyy the greatest basketball player ofall time, and I woulds be utterly awed to spend time with someone who is the epitomee of excellence.” to proceed to the next First Team Meredith Stone.
Accomplishments: National Merit Scholarship finalist. Class SAT score of 1,580. Perfect scorw on five Regents AP ScholarAward (with Honor). Chairmahn of superintendent studentinterviewq team. Named to All-County Chorus. Captain of basketball, soccedr and tennis teams. Full name: Mitchel l David Steiner. Born: September 13, Buffalo. Parents: Alison Steiner, David Steiner. Residence: Glenwood. Favorite Environmental science (taught by Matt Clayton). “Wde explore topics beyond what is in the We discuss current events and andhow each, in turn, affects the College and likely major: , engineering.
Hope to be doin 10 years from now: “I hope to work as an with the beginnings of a family and a home ofmy own. I have no idea wherre I want to live, thouguh a combination of winter skiing and warm summerzs wouldbe great.” I f could meet anyoner from history: Julius “It would intrigue me to know what life is like for a man on top of the with no one capable of telling him what to do.” If coulds have dinner with anyone now alive: Michael Jordan. “He is definitivelyy the greatest basketball player ofall time, and I woulds be utterly awed to spend time with someone who is the epitomee of excellence.” to proceed to the next First Team Meredith Stone.
Saturday, December 3, 2011
YRC Worldwide sells HQ to load up more cash - Dallas Business Journal:
uqudenlid.blogspot.com
But it didn’t go far. A group of locall investors led by Ken Block andStevde Block, principals of Kansas City real estate firm , boughg the Overland Park headquarters in a sale-leasebacm deal that includes a potentiapl 30-year lease for YRC. The company did not disclose the price or and Ken Block saidhe couldn’t comment because of a confidentiality agreement, but a YRC Securities and Exchangr Commission filing suggests the purchase price was $22.
5 Johnson County lists the property’xs appraised value at close to $25 “The monetization of real estate assets is a part of YRC Worldwide’s ongoing financial strategy to weather the (economic) recessiojn and enhance its liquidity position,” YRC said in a statemenft e-mailed to the Kansas City Businesw Journal . “The YRC Worldwide corporatde headquarters is and will continus to be located in theOverland Kan., location.” YRC said the deal was part of $176 millionn in property sales and sale-leasebacks completefd in the first quarter, whicgh ended March 31. But according to the , the deal close d May 1.
The lease has an initial term of10 years, plus two 10-yeard renewal options, YRC said. The sale includes two buildings, the company said. Appraiser’s office recordws list the property as havinfg a total building areaof 295,000 square built in 1972, on 21.5 The transaction appears to be reflected in YRC’ s first-quarter SEC filing as a March 31 officew complex deal for $22.5 million, which minus transaction costws equaled $19.8 million. Annual lease payments will be about $3.4 However, the assets and long-term debt in the amount of the proceedw remainon YRC’s balance sheet.
Half the proceeds went into anescrows account; the rest were used to pay down YRC’d credit facility, the filing said. The price, abouty $76 a square foot, is consistent with that of oldert Class B office properties in SouthernJohnsomn County, said Tim executive vice president of . Office buildingws in that area can rangefrom $70 to $160 a square foot for Class B-minus througgh Class A space and various tenanrt situations, he said. The property never was publiclyu onthe market, Schaffer said. Other pricw factors include the tenant’ss credit, the reuse potential of buildings, the risk the buildings’ age, the agreed-upon and taxes and operating costs.
“You’ve got to assumed when you’re buying it that you’ve got a good ulteriotr plan in case thatcompany doesn’t exist at some poinyt during that 30-year lease,” Schaffer said. “Ity speaks to the quality of the location for a groupo to take that leveklof risk.” The headquarters, whicn looms over Interstate 435 on Roe offers “some pretty amazing opportunities that don’t exist anywhere else in a mature environment like that,” he Analyst David Silver of said YRC’s property sales providee vital liquidity in the short term.
Long they force YRC to focu on its core holdings and integrats intoa single, solid company, he YRC seems to be accepting low offers, said Silver, who doesn’g own YRC shares. “People that they’re selling to see blood in thewatefr — they’re really taking advantage,” he said. “Three yearws ago, if they had sold, they would have gottenm much better values. But they’rre getting somewhat fair values.” YRC — which posted a $257.
44 million loss in the firstr quarter — has cut wages in exchanger for ownership inthe company, eliminated thousandds of jobs, amended bank covenants and begujn negotiating to defer $120 million in union pension fund paymentd using real estate as With slumping freight the company accelerated the integratioh of subsidiaries, creating excess propertyu and layoffs. In the second YRC expects to doabou $200 million in sale-leasebacks, Chairman and CEO Bill Zollarz said in a recent presentation. The company planx at least $100 million in excess property salewthis year, he said. Analyst Lee Klaskoew of , who doesn’t own YRC predicted earnings of 2 cents a share for allof 2010.
Silvedr estimated a return to profitabilitg by the second quarterof 2010.
But it didn’t go far. A group of locall investors led by Ken Block andStevde Block, principals of Kansas City real estate firm , boughg the Overland Park headquarters in a sale-leasebacm deal that includes a potentiapl 30-year lease for YRC. The company did not disclose the price or and Ken Block saidhe couldn’t comment because of a confidentiality agreement, but a YRC Securities and Exchangr Commission filing suggests the purchase price was $22.
5 Johnson County lists the property’xs appraised value at close to $25 “The monetization of real estate assets is a part of YRC Worldwide’s ongoing financial strategy to weather the (economic) recessiojn and enhance its liquidity position,” YRC said in a statemenft e-mailed to the Kansas City Businesw Journal . “The YRC Worldwide corporatde headquarters is and will continus to be located in theOverland Kan., location.” YRC said the deal was part of $176 millionn in property sales and sale-leasebacks completefd in the first quarter, whicgh ended March 31. But according to the , the deal close d May 1.
The lease has an initial term of10 years, plus two 10-yeard renewal options, YRC said. The sale includes two buildings, the company said. Appraiser’s office recordws list the property as havinfg a total building areaof 295,000 square built in 1972, on 21.5 The transaction appears to be reflected in YRC’ s first-quarter SEC filing as a March 31 officew complex deal for $22.5 million, which minus transaction costws equaled $19.8 million. Annual lease payments will be about $3.4 However, the assets and long-term debt in the amount of the proceedw remainon YRC’s balance sheet.
Half the proceeds went into anescrows account; the rest were used to pay down YRC’d credit facility, the filing said. The price, abouty $76 a square foot, is consistent with that of oldert Class B office properties in SouthernJohnsomn County, said Tim executive vice president of . Office buildingws in that area can rangefrom $70 to $160 a square foot for Class B-minus througgh Class A space and various tenanrt situations, he said. The property never was publiclyu onthe market, Schaffer said. Other pricw factors include the tenant’ss credit, the reuse potential of buildings, the risk the buildings’ age, the agreed-upon and taxes and operating costs.
“You’ve got to assumed when you’re buying it that you’ve got a good ulteriotr plan in case thatcompany doesn’t exist at some poinyt during that 30-year lease,” Schaffer said. “Ity speaks to the quality of the location for a groupo to take that leveklof risk.” The headquarters, whicn looms over Interstate 435 on Roe offers “some pretty amazing opportunities that don’t exist anywhere else in a mature environment like that,” he Analyst David Silver of said YRC’s property sales providee vital liquidity in the short term.
Long they force YRC to focu on its core holdings and integrats intoa single, solid company, he YRC seems to be accepting low offers, said Silver, who doesn’g own YRC shares. “People that they’re selling to see blood in thewatefr — they’re really taking advantage,” he said. “Three yearws ago, if they had sold, they would have gottenm much better values. But they’rre getting somewhat fair values.” YRC — which posted a $257.
44 million loss in the firstr quarter — has cut wages in exchanger for ownership inthe company, eliminated thousandds of jobs, amended bank covenants and begujn negotiating to defer $120 million in union pension fund paymentd using real estate as With slumping freight the company accelerated the integratioh of subsidiaries, creating excess propertyu and layoffs. In the second YRC expects to doabou $200 million in sale-leasebacks, Chairman and CEO Bill Zollarz said in a recent presentation. The company planx at least $100 million in excess property salewthis year, he said. Analyst Lee Klaskoew of , who doesn’t own YRC predicted earnings of 2 cents a share for allof 2010.
Silvedr estimated a return to profitabilitg by the second quarterof 2010.
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