Archives: Real Estate

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Mortgage Lenders Beware: An HOA’s Subsequent Lien May Cause You To Permanently Lose Your Collateral

An interesting case was recently decided by the Washington Court of Appeals, reminding mortgage lenders that they can lose their collateral upon the lien foreclosure of a condominium homeowners’ association (“HOA”). An HOA’s lien for certain common expense assessments may take a “super priority” over an earlier recorded mortgage. And if the HOA forecloses such … Continue Reading

SNDA’s: Where Foreclosing Lender Meets Commercial Tenant

In a typical SNDA, the tenant agrees that its leasehold interest is subordinate to the mortgage. This means that if the mortgage is foreclosed, the leasehold may be extinguished. Because tenants are rightfully reluctant to agree to such an arrangement, in exchange for the subordination, the lender typically agrees not to disturb the tenant’s possession … Continue Reading

Year End Housing Numbers Reported

Oregon Public Broadcasting (OPB) reported this Thursday on the increased sales but lower prices year-over-year for single-family homes. The very small number of new home sales (lowest in 50 years) is most telling of investor confidence and lack of pricing power. Until the foreclosure backlog is cleared, builders just cannot compete on price.… Continue Reading

Court Grants Grace Period for World Wrapps’ Lease Extension With REI

Under certain circumstances, a tenant can miss a deadline for extending its lease and a judge will grant a special grace period. In the case of REI, Inc. v. World Wrapps Northwest, Inc, No. 66226-1-I (Dec. 19, 2011), the Washington Court of Appeals upheld the trial court’s determination that special circumstances warranted granting a grace period … Continue Reading

Real Estate Clock Cycle

In his financing presentation at the Oregon-Columbia River IREM annual forecast Scott Langley, President and CEO of Langley Investment Properties, presented the current market world as a clock of the day. While Multifamily is enjoying dinner, the “Happy Hour” is just starting for CBD Office and downtown developments.… Continue Reading

New Law Requires Certain Homeowner Associations to Prepare Reserve Studies and Fund a Reserve Account

Similar to requirements imposed on condominium associations, this year the Washington legislature passed a new law imposing reserve study and funding requirements on larger homeowner associations in which the members are required to maintain property that is commonly owned and used. Larger homeowner associations include those (1) with significant assets, (2) in which the cost … Continue Reading

Portland: Near Zero Growth

The PSU Population Research Center released its preliminary 2011 population growth estimate for Portland as only .35%, far below land-use and growth planning projections. Does this mean the employment data is finally kicking in or just that immigration has halted and new college grads are still living out in the suburbs with Mom and Dad? Extrapolated over … Continue Reading

Congress Questions EPA’s Bass-O-Matic Assumption

After requiring local businesses to spend over $90 million studying Portland Harbor, the EPA has learned that the river is remarkably clean, considering its historical use as a sewer and industrial dumping ground. There are some very contaminated places in the river that require remediation, but most of the study area is already cleaner than … Continue Reading

Landlords and Tenants: In the New Economy – Understanding How Your Office Footage is Measured

As the economy slowly improves, a lot of previously vacant office space is now being re-leased at historically low rental rates. This is giving both landlords and tenants the opportunity to modify the manner in which square footage is measured for purposes of determining the rent. In negotiating leases, the parties need to know what … Continue Reading