Lee Hassman

Lee then started his real estate career 1984 with Bramalea, Ltd. a large developer of office, malls and apartment complexes. In 1997, Lee was sent to Corpus Christi by Great Oak Development a REIT to lease and dispose of Sunrise Mall. Lee has lived in Corpus Christi ever since.

In 2015, Lee started working toward his CCIM designation.

Lee Hassman brings to Cravey Real Estate many years of experience in the retail industry. "We were looking for somebody to add to our retail team and Lee has the knowledge and ability I was looking for. I am most impressed with his work ethic and attention to detail. That seems to be missing in our industry today," said Matthew Cravey, President of Cravey Real Estate.

Cravey Real Estate Services, Inc. is a full service commercial and industrial real estate company based in Corpus Christi, Texas. We specialize in the sale, leasing and management of Commercial, Industrial, Warehouse, Office, Retail, Shopping Centers, Land and Investment Properties in Texas.

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Richard (Dick) Perry

Dick holds a BBA in Finance from SMU. He serves as a Trustee and Business Manager of the Perry Foundation. Dick had experience in Banking where he served as Chairman of the Board at the Bank of Robstown for five years before it was sold. He also has performed numerous appraisals and has extensive experience in managing agricultural and commercial real estate such as farms, grain elevators, livestock feedyards, warehouses and office buildings.

We are very pleased with the addition of Dick to the Cravey team. Dick brings wisdom and knowledge that we are looking for in an adviser to our Company. "I am only looking for the highest caliber to join us and Dick definitely meets that criteria," said Matthew Cravey, President of Cravey Real Estate Services, Inc.

Cravey Real Estate Services is a full service commercial real estate company based in Corpus Christi, Texas.  We specialize in the sale, lease and management of Commercial, Industrial, Warehouse, Office, Retail, Shopping Centers, Land and Investment Properties in Texas.

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Scott is the type of person we have been looking for. He brings a strong work ethic and an optimistic attitude and most of all a willingness to serve the needs of our customers said Matthew Cravey, President of Cravey Real Estate Services.

Cravey Real Estate Services is a full service commercial and industrial real estate company based in Corpus Christi, Texas. We specialize in Commercial, Industrial, Warehouse, Office, Retail, Shopping Centers, Land and Investment Properties in Texas.

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Realizing his passion for Real Estate and Commercial Investments, Chandler joined Cravey Real Estate in 2014.

We have high hopes for Chandler. With his energy and education, I am sure he will be an asset to our company said Matthew Cravey, President of Cravey Real Estate Services, Inc.

Cravey Real Estate Services is a full service commercial and industrial real estate company based in Corpus Christi, Texas.  We specialize in Commercial, Industrial, Warehouse, Office, Retail, Shopping Centers, Land and Investments Properties in Texas.

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We are pleased to be adding Georgia to the Cravey team. We are very picky about who we choose to add to our Company. I would rather have an empty office than to have someone working with us who does not meet our standards said Matthew Cravey, President of Cravey Real Estate.

Cravey Real Estate Services is a full service commercial real estate company based in Corpus Christi, Texas. We specialize in Commercial, Industrial, Warehouse, Office, Retail, Shopping Centers, Land, and Investment Properties in Texas.

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This may be accomplished by the following:

• The developer sets up a master plan that sets forth the general scheme of development and submits it for the approval of the owner.

• The developer and owner enter into an agreement setting forth the acreage prices for the entire property.

• Owner and developer agree on the number of years over which the full development is to be completed.

• To protect the owner against freezing of his property, the developer firmly commits to buy a predetermined number of acres each year.

• If the developer fails to meet this schedule, the owner is released from his commitment.

A Development Agreement

Another way of handling the problem is for the developer to share the net profits from the land development with the landowner. This can be done by a “land development agreement” in which the developer agrees to perform the platting, the laying out, the installation of lot improvements, and the promotion of the subdivision. The landowner agrees to accept a percentage of the sales price of each lot, with a fixed minimum guaranteed. For example, the developer agrees to pay net to the landowner 25% of the sales price of each lot sold, with a minimum of $50,000 per lot.

With this kind of arrangement, it is important to protect the landowner from finding his land cluttered up with liens left by a subdivider who went broke. The landowner should consider confining the developer or subdivider to a small tract of land at a time and give him “rolling options” to acquire additional parcels at intervals over a period of time. Failure to keep up with this purchase program results in loss of future options. The land that has been optioned but not purchased is not subject to liens against the developer.

Benefits Of Developing On Leased Land

The bundle of benefits for the lessee and lessor in a development on leased land are remarkable. The separate owners, land owner and building owner, come together in one investment at the same location. The land owner has a good lease to the owner of the improvement. The owner of the building puts up less money since the ownership of land is not part of the expenses in the development.

What The Lessor Wants

An example could be the developer of upscale homes who wants to keep the ownership of the land as an investment. The use of the land lease can widen his market by reducing the purchase price of the
house. In certain parts of the country, the value of the land equals the value of the house. Leasing the land can cut the purchase price nearly in half. With this type of land lease, there is usually a provision for a rent increase halfway through the lease term in accordance with the results of a reappraisal of the land. The

Benefits To The Builder

The land lease results in the following benefits for a builder or developer:

• He/she can acquire a valuable parcel of land with very little cash investment.

• This leasehold that is acquired is an asset that can increase in value, and then could be used as security for a loan, or could be sold for a profit.

• The rental payments are fully deductible by the lessee.

• With a subordinated land lease, the lessee-developer gets the equivalent of a 100% loan on the land.

The Best Lease For Both

Usually, a developer-lessee will attempt to get the longest possible term in the lease because the shorter term land lease would have a smaller market for resale. A long-term land lease is generally a net lease under which the lessee pays the carrying costs, including real estate taxes.

When the land rental is a fixed amount, it is a percentage of the fair market value of the land when the lease is executed. This lease will often include a provision for reappraisal of the land at fixed intervals, with new adjustments in the rent. In some cases, for instance with a shopping center, the landowner might demand a share of the percentage rentals over and above the fixed land rent. (Much of the income in the shopping center will come from percentage overages from the sub-lessees.

Subordination Of The Lease

If the owner of the land will not subordinate the lease to a leasehold mortgage, the developer should get a reduction in rent because the unsubordination will cause his financing to be more expensive. Subordination could be the most important item in the terms of the lease. Even a short subordinated lease might be better than a longer unsubordinated lease, even though the longer lease is more salable.

The landowner may or may not allow his interest as owner-lessor to be subordinated to the interest of a leasehold mortgagee. When there is a subordination to the mortgage, the lender, in effect, gets a fee mortgage on the land rather than a leasehold mortgage.

When the lease is unsubordinated, the landowner-lessor has first rights over the lender in case the lessee-mortgagor should default. With these terms, the lessee could find that he cannot get a loan, or can get one only at a higher rate of interest. Without the subordination, the mortgage is, in effect, a second lien since the lessor’s claim on the rents takes precedence over payments on the mortgage.

The objections of an owner to subordination of the lease could be as follows:

• He could lose the property if the lessee defaults on the leasehold mortgage.

• Subordination reduces his possibility of mortgaging his fee interest in the land, which would be a logical move for the lessor. If the subordination is part of the terms, the landowner would record his right to receive any notice of default from the leasehold mortgagee and the right to cure the default. The expense would be reimbursed to the owner by adding the amount to the lessee’s rent obligation.

This article appeared in the September issue of The Commercial Real Estate Investment Newsletter.  One of the newsletters we offer to our clients. You can subscribe to the newsletter by going to NAI Cravey Real Estate Services website.

We are always looking for ways to serve you and would like to hear from you.

matt@craveyrealestate.com or 361-289-5168

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Since the economy has declined, real estate agents and specifically commercial real estate agents have reduced the size of their signs.  I recently noticed a for sale sign the size of a residential yard sign on a commercial property.  This might not have been such a big deal if it weren’t for the high weeds and the speed of the traffic passing the site.

With the current economy, it is vital that every detail be considered by the commercial real estate agent when marketing a property.  The owners are trusting a large and valuable asset to the agent.  The sad part is the owner probably didn’t put much effort into selecting the agent so why would I be surprised that the sign wasn’t even considered.

The size of the property, the location and type of property dictates the type of sign.  If the property sits on a major highway, even a typical 4’x8′ sign may be hard to see.  In many cases, even a large banner placed up high may be more appropriate than a sign on the ground.  However, a large banner may cost over a thousand dollars.  Not many agents are willing to spend that kind of money on a listing.  Maybe they don’t really believe in the listing in the first place.

Owners, please consider this issue when interviewing a prospective commercial real estate agent.  If the agent doesn’t think enough to have a proper sign, properly placed and maintained, why would you trust them with one of your more valuable assets.

Speaking of maintaining, how many times have you seen a sign hidden by weeds or leaning and about to fall down because your agent doesn’t care enough to have the sign maintained much less go by and visit your listing.  It’s not uncommon for an agent to acquire a listing, put up a sign and wait for the phone to ring.  Never to see the property again until their listing is about to come up for renewal.

A proper size sign for commercial real estate should be at least 4’x8′. It should contain bright colors and be noticeable.  At Cravey Real Estate Services, Inc., we also put up riders that contain additional information such as e-mail addresses and web sites to make it easier for people interested in the property to acquire additional information 24-7. The riders may add as much as 4′ to the sign so the sign may end up 8’x8′.

Size matters, especially in this economy when every possible tool should be used to help the owner sell or lease their property.

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The almost 2,000-square-foot building sits on about .321 of an acre. After some modifications, the agency will use it as one of its offices. Nueces County Community Action Agency is a nonprofit that provides a range of community services throughout the county.

Capital Farm Credit the seller of the building was represented by Josh Gaines of NAI Cravey Real Estate Services Inc.

This was announced in the Corpus Christi Caller times in the Biz Buzz section of the paper 3-28-10.

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