Weekend before last, we made the journey down to Houston for the 100th anniversary celebration of the USS TEXAS. Since I serve on the State Park Advisory Committee, I felt like it was the perfect time to go investigate the battleship’s present condition and discover what our options are for its future.  Other than some pesky showers, it was a grand day with tours of the ship, a WWII reenactment, exhibits, and a concert finished off by Robert Earl Keen and spectacular fireworks that silhouetted the great ship.

Many will remember that the TEXAS has had major leak problems in the recent past. Currently the State is spending $18,000,000  on the old ship to keep the engines from falling through the rotten keel.  In the very near future, Texans will have to decide if they want to spend huge dollars to save the ship, or spend huge dollars to scrap the one of a kind vessel. We were given a tour by the engineer in charge of the repairs and he provided an up close look at the corrosion problems  below the waterline. It is believed that the costs to do either may end up about the same.  The ship is so fragile that it cannot be towed for fear of sinking in the Houston Ship Channel.  It must either be dry docked where it is, or a salvage yard will have to be built in the park in order to cut it up.

Berthed in the San Jacinto State Park, the very location of the Battle of San Jacinto, it is often argued that the Battleship should have been placed elsewhere.  Of course it is too late in the game to alter that.  San Jacinto has many supporters who want the site to be returned to the condition it was at the time of the Battle. I would expect that much of that restoration will take place.  The big question is will it take place with the battleship standing majestically to the side, or will it be removed in pieces and sold by the pound.  Only time and the Legislature will tell.

Jeff Stewart, CCIM

Stanberry & Associates  jstewart@stanberry.com

By Jeff Stewart, CCIM

It would be difficult to imagine how a town could be more energized than Austin is right now. Austin is on quite a roll.  As I write this, we are in our second week of SXSW and the global attention it has drawn is beyond anything any of us could have imagined just ten years ago.

Austin continues to make everyone’s short list for all sorts of categories.  Last year Austin was ranked number one on the following lists according to Gracy Title:

Top Economies in the Country (The Business Journals, Oct. 2013)

Fastest Growing Cities (Forbes.com, Jan. 2013)

Best Cities for Job Growth (Forbes.com, Aug. 2013)

Top Cities to Be A Moviemaker (Moviemaker.com, Mar. 2013)

Biggest Boomtowns in the U.S. (Bloomberg.com, April 2013)

Best Cities for Twenty Somethings (creditdonkey.com, Oct. 2013

Best Cities for Small Business (nerdwallet.com, Aug. 2013)

Best Cities for Young Entrepreneurs (Under30CEO, Mar. 2013)

Those were top rankings.  We also were ranked in the top five of the following categories:

Best Cities for Veterans to Find Work (USAA, Oct. 2013))

Hardest Working Cities in the U.S. (Forbes.com July 2013)

Lowest Crime Rates in the U.S. (CQPRESS.COM, Feb. 2013)

Best Cities to Start a Business (NerdWallet.com, Aptil 2013)

Best Cities for Young Adults (BusinessInsider, Nov. 2013

Seattle and Portland, by comparison, made a few of the lists in the various polls but almost never ranked as high as Austin. Austin has had a good “buzz” around the country for years, but that buzz is now more of a roar.  I have been contacted twice this week by prospects wanting to move to Austin and NEITHER has ever even been here.  That is quite a buzz.

jstewart@stanberry.com   512-923-1669

By Jeff Stewart, CCIM   Stanberry Commercial

Recently we had representatives from Austin Community College (ACC) speak to our office about the new master plan for Highland Mall.  I think Austin is going to be very surprised with the grand vision  guiding this transformation . . . I know I certainly was.

A prime location with 80.8 acres, the failing mall is expected to be a premier development project for a number of years to come.  As I understand it, the existing mall building (which still has a few stores) will be steadily converted to ACC classrooms and offices as enrollment demands. The surrounding parking lot will be developed into a 200+ room hotel, 1200+ residential units, 800,000+ square feet of office space, and 150,000+ square feet of retail shops.  Instead of surface parking, the developer told me they will be utilizing parking garages in order to absorb the new buildings.

While the old anchor stores’ exteriors were unattractive, white boxes, the new exterior look features an extremely modern, expansive design with walls of glass. The grounds will feature acres of open space and 1000+ new trees.  This is going to be an exciting addition to North Austin!

jstewart@stanberry.com

512-923-1669

By Jeff Stewart, CCIM      Stanberry Commercial

Companies continue to relocate to Austin in astonishing numbers.  The Austin Business Journal (ABJ) had a great article in which they explored where the jobs are coming from.  The Austin Chamber of Commerce provided the ABJ with some startling numbers.  The past year (2013), 4,955 jobs have been relocated to Austin.  The Chamber breaks the jobs down by state and California has been the big loser.  Here is a sampling of where the jobs have moved from since 2011 according to the Chamber:

*  California                      9,354

*  New York                         960

*  Michigan                          728

*  Illinois                               404

*  Florida                              275

*  Maryland                          225

*  International                   249

*  Texas (other areas)     2,027

Jstewart@stanberry.com

By Jeff Stewart, CCIM

An old friend and client recently called and asked for a favor. He was concerned that his family would be unable to handle his real estate in the event something happened to him, and he wanted permission to state in his will that I was to assist them in deciding what to do with the properties. It is not an unusual request, and I am happy to help if needed.

Yet, my first thought was that it is better to develop a plan now, instead of forcing heirs to deal with it unexpectedly. Unfortunately, we postpone the uncomfortable. People’s reasons to avoid dealing with their changing real estate needs probably vary: “I do not want to pay capital gains taxes.” “My kids may want it someday.” “I promised Uncle Alfred I would never sell the farm.” “What do I tell the neighbors?” The circumstances are as different as the families and the properties. Perhaps you have been procrastinating because you have a few reasons of your own. Accumulating real estate required years of hard work and planning.  Doesn’t that justify having a well-thought-out plan for the future, too?

The first step in devising a plan for your holdings would be an open and frank discussion with your family and accountant. Some important questions might be:

• What are the likely tax scenarios involving this property?
• Who can manage it if I am unable?
• Will I need additional income in my later years?
• Do my heirs want the property, and can it be split easily among heirs?
• Is the property close to where my heirs live?
• Is the property being maximized? (Do we still use the lake cabin?)
• Have my needs or interests changed in regard to the property?
• Is the property well-maintained? (Is anyone caring for the lake cabin?)
• If I leave the property to my heirs, will they use it or sell it?
• Is anyone willing to step up and help me maintain/manage the properties?
• What is the current and future cost of maintaining a particular property?

A trained, experienced, caring real estate professional can assist you with discovering these answers and possible solutions. The key is listening to all the parties involved.

If a greater cash flow is needed, several options should be considered. A lease vs. sale analysis might be appropriate. If the property is essentially an unused asset, selling the real estate in a manner that minimizes capital gains taxes should be considered. If the heirs have expressed a lack of interest in a property, perhaps the time is right to explore alternative investments rather than saddle them with something they care nothing about.

The goal is to discover what works best for you . . . and the people you care about most. If you have the need to make changes and have been hesitant, now is the time to call a professional who can help you formulate a plan that works for you and your family.

Jeff Stewart, CCIM

Stanberry & Associates

512-923-1669