OPENING BIDS FOR WATERFRONT LOT IN JUNEAU RANGE FROM $4.7 MILLION TO $20 MILLION
Bids for the 2.9 Acre waterfront lot near downtown Juneau that is owned by the Mental Health Trust were opened September 9 in Anchorage. The successful bidder, Norweigan Cruiselines deposited $100,000 in order to submit its bid of $20 Million. Among others, the City and Borough of Juneau were not successful, with the lowest bid (by the CBJ) at $4.7 Million. Norweigan offered no information about their intended use for the property, but speculation suggests that a new cruise ship dock may be planned for the site. Many hurdles to development remain including amending the zoning for the site, approval by the planning commission and the CBJ, and amending the waterfront plan approved by the CBJ many years ago. The significance of this sale is the impact that this higher price level will have on the value of other improved waterfront sites in the borough.
INDUSTRIAL SUBDIVISION NEAR THE JUNEAU AIRPORT IS NOW SLATED FOR FINAL APPROVAL THIS FALL
A 14 lot industrial subdivision is slated to be platted and approved by the CBJ sometime in October/November according to City officials. The land, adjacent to the tarmac and situated on the south side of Egan drive is zoned Industrial when approval was granted by the CBJ several years ago. The site will likely see use by industrial users and airport-related uses. The last subdivision of Industrial land took place off of Concrete Boulevard in the early 2000s according to City planners. Once the subdivision plat is approved, the lots will be offered in sizes ranging from 1-2 acres. Additional phases are planned. Adjacent to the site is a large parcel that the developer sold in recent years to the Seal Trust, and nonprofit environmental organization concerned with preserving wetlands and habitat.
LOTS WITH INDUSTRIAL ZONING REPORTEDLY SET RECORD PRICE LEVELS
Commercial appraisers report that there have been recent sales in the Rock Dump area south of Downtown Juneau that range from $20-21 per square foot. This is a record high for industrially zoned land values areawide and reflects the shortage of property with this zoning classification. We see this trend continuing and buoyed by low-interest rates until more inventory becomes available in Juneau.
COMMERCIAL INTEREST RATES THROUGH AIDEA NOW IN THE LOW 3’S
AIDEA, the state-sponsored agency lender continues to offer the lowest commercial rates for builder/developers and those seeking to purchase Commercial Real estate. Posted weekly, these loans can be accessed through designated participating banks where up to 90% of the total loan amount can take the form of a subsidized investment vehicle. Participating banks must have at least 10% of the total loan amount, and the result is a “blended” rate which is typically far below the rates offered by conventional banks. During the week of September 09, rates for fixed loans up to 25 year terms were 3.38% Variable rates for the same range of loan terms were 4.13% While the application process and approvals typically take longer than conventional loans, the incentive is there for investors to take advantage of historically low rates not seen in recent history.