Wednesday, November 30, 2011

Banks Revising Foreclosure Procedures

The Office of the Comptroller of the Currency (OCC) has reported that all banks targeted for investigation and review into foreclosure and lending practices have submitted letters detailing their plans for auditing said practices, which the OCC demanded be completed before the beginning of the new year. Bank of America, Citibank, JPMorgan Chase, Citigroup, Wells Fargo and a handful of others have so far entered into OCC compliance, although auditing has yet to be completed. Independent auditing firms involved in the overhaul include Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers. For more on this continue reading the following article from TheStreet.

The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.

The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC), Citigroup (C) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM), MetLife (MET) unit MetLife Bank, PNC (PNC), U.S. Bancorp (USB) subsidiary U.S. Bank, and Wells Fargo (WFC), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.

The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."

The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit [were] furthest advanced."

In Bank of America's updated engagement letter from Sept. 6, Promontory Financial Group said it would "conduct an independent review of certain residential foreclosure actions regarding individual borrowers with respect to BAC's mortgage servicing portfolio," including Bank of America's foreclosure actions as a lender, servicer, within 423 days.

Promontory Financial Group is also conducting the servicing and foreclosure audits for PNC and Wells Fargo.

Other independent consultants include Deloitte & Touche for JPMorgan, Ernst & Young, for HSBC and MetLife Bank, and PricewaterhouseCoopers, for Citibank and U.S. Bank.

The OCC said that on Nov. 1, "an integrated claims processor began mailing letters to borrowers who were in any stage of foreclosure on their primary residences between January 1, 2009 and December 31, 2010," describing the process "borrowers should follow for requesting reviews of their cases if they believed they suffered financial injury as a result of servicer errors, misrepresentations, or deficiencies in the foreclosure process."

The reviews of borrower petitions are expected to take several months.

by Philip Van Doorn Nuwire Investor Nov 25, 2011


Banks Revising Foreclosure Procedures

Banks Revising Foreclosure Procedures

The Office of the Comptroller of the Currency (OCC) has reported that all banks targeted for investigation and review into foreclosure and lending practices have submitted letters detailing their plans for auditing said practices, which the OCC demanded be completed before the beginning of the new year. Bank of America, Citibank, JPMorgan Chase, Citigroup, Wells Fargo and a handful of others have so far entered into OCC compliance, although auditing has yet to be completed. Independent auditing firms involved in the overhaul include Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers. For more on this continue reading the following article from TheStreet.

The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.

The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC), Citigroup (C) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM), MetLife (MET) unit MetLife Bank, PNC (PNC), U.S. Bancorp (USB) subsidiary U.S. Bank, and Wells Fargo (WFC), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.

The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."

The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit [were] furthest advanced."

In Bank of America's updated engagement letter from Sept. 6, Promontory Financial Group said it would "conduct an independent review of certain residential foreclosure actions regarding individual borrowers with respect to BAC's mortgage servicing portfolio," including Bank of America's foreclosure actions as a lender, servicer, within 423 days.

Promontory Financial Group is also conducting the servicing and foreclosure audits for PNC and Wells Fargo.

Other independent consultants include Deloitte & Touche for JPMorgan, Ernst & Young, for HSBC and MetLife Bank, and PricewaterhouseCoopers, for Citibank and U.S. Bank.

The OCC said that on Nov. 1, "an integrated claims processor began mailing letters to borrowers who were in any stage of foreclosure on their primary residences between January 1, 2009 and December 31, 2010," describing the process "borrowers should follow for requesting reviews of their cases if they believed they suffered financial injury as a result of servicer errors, misrepresentations, or deficiencies in the foreclosure process."

The reviews of borrower petitions are expected to take several months.

by Philip Van Doorn Nuwire Investor Nov 25, 2011


Banks Revising Foreclosure Procedures

Banks Revising Foreclosure Procedures

The Office of the Comptroller of the Currency (OCC) has reported that all banks targeted for investigation and review into foreclosure and lending practices have submitted letters detailing their plans for auditing said practices, which the OCC demanded be completed before the beginning of the new year. Bank of America, Citibank, JPMorgan Chase, Citigroup, Wells Fargo and a handful of others have so far entered into OCC compliance, although auditing has yet to be completed. Independent auditing firms involved in the overhaul include Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers. For more on this continue reading the following article from TheStreet.

The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.

The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC), Citigroup (C) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM), MetLife (MET) unit MetLife Bank, PNC (PNC), U.S. Bancorp (USB) subsidiary U.S. Bank, and Wells Fargo (WFC), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.

The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."

The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit [were] furthest advanced."

In Bank of America's updated engagement letter from Sept. 6, Promontory Financial Group said it would "conduct an independent review of certain residential foreclosure actions regarding individual borrowers with respect to BAC's mortgage servicing portfolio," including Bank of America's foreclosure actions as a lender, servicer, within 423 days.

Promontory Financial Group is also conducting the servicing and foreclosure audits for PNC and Wells Fargo.

Other independent consultants include Deloitte & Touche for JPMorgan, Ernst & Young, for HSBC and MetLife Bank, and PricewaterhouseCoopers, for Citibank and U.S. Bank.

The OCC said that on Nov. 1, "an integrated claims processor began mailing letters to borrowers who were in any stage of foreclosure on their primary residences between January 1, 2009 and December 31, 2010," describing the process "borrowers should follow for requesting reviews of their cases if they believed they suffered financial injury as a result of servicer errors, misrepresentations, or deficiencies in the foreclosure process."

The reviews of borrower petitions are expected to take several months.

by Philip Van Doorn Nuwire Investor Nov 25, 2011


Banks Revising Foreclosure Procedures

Banks Revising Foreclosure Procedures

The Office of the Comptroller of the Currency (OCC) has reported that all banks targeted for investigation and review into foreclosure and lending practices have submitted letters detailing their plans for auditing said practices, which the OCC demanded be completed before the beginning of the new year. Bank of America, Citibank, JPMorgan Chase, Citigroup, Wells Fargo and a handful of others have so far entered into OCC compliance, although auditing has yet to be completed. Independent auditing firms involved in the overhaul include Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers. For more on this continue reading the following article from TheStreet.

The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.

The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC), Citigroup (C) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM), MetLife (MET) unit MetLife Bank, PNC (PNC), U.S. Bancorp (USB) subsidiary U.S. Bank, and Wells Fargo (WFC), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.

The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."

The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit [were] furthest advanced."

In Bank of America's updated engagement letter from Sept. 6, Promontory Financial Group said it would "conduct an independent review of certain residential foreclosure actions regarding individual borrowers with respect to BAC's mortgage servicing portfolio," including Bank of America's foreclosure actions as a lender, servicer, within 423 days.

Promontory Financial Group is also conducting the servicing and foreclosure audits for PNC and Wells Fargo.

Other independent consultants include Deloitte & Touche for JPMorgan, Ernst & Young, for HSBC and MetLife Bank, and PricewaterhouseCoopers, for Citibank and U.S. Bank.

The OCC said that on Nov. 1, "an integrated claims processor began mailing letters to borrowers who were in any stage of foreclosure on their primary residences between January 1, 2009 and December 31, 2010," describing the process "borrowers should follow for requesting reviews of their cases if they believed they suffered financial injury as a result of servicer errors, misrepresentations, or deficiencies in the foreclosure process."

The reviews of borrower petitions are expected to take several months.

by Philip Van Doorn Nuwire Investor Nov 25, 2011


Banks Revising Foreclosure Procedures

Banks Revising Foreclosure Procedures

The Office of the Comptroller of the Currency (OCC) has reported that all banks targeted for investigation and review into foreclosure and lending practices have submitted letters detailing their plans for auditing said practices, which the OCC demanded be completed before the beginning of the new year. Bank of America, Citibank, JPMorgan Chase, Citigroup, Wells Fargo and a handful of others have so far entered into OCC compliance, although auditing has yet to be completed. Independent auditing firms involved in the overhaul include Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers. For more on this continue reading the following article from TheStreet.

The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.

The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC), Citigroup (C) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM), MetLife (MET) unit MetLife Bank, PNC (PNC), U.S. Bancorp (USB) subsidiary U.S. Bank, and Wells Fargo (WFC), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.

The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."

The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit [were] furthest advanced."

In Bank of America's updated engagement letter from Sept. 6, Promontory Financial Group said it would "conduct an independent review of certain residential foreclosure actions regarding individual borrowers with respect to BAC's mortgage servicing portfolio," including Bank of America's foreclosure actions as a lender, servicer, within 423 days.

Promontory Financial Group is also conducting the servicing and foreclosure audits for PNC and Wells Fargo.

Other independent consultants include Deloitte & Touche for JPMorgan, Ernst & Young, for HSBC and MetLife Bank, and PricewaterhouseCoopers, for Citibank and U.S. Bank.

The OCC said that on Nov. 1, "an integrated claims processor began mailing letters to borrowers who were in any stage of foreclosure on their primary residences between January 1, 2009 and December 31, 2010," describing the process "borrowers should follow for requesting reviews of their cases if they believed they suffered financial injury as a result of servicer errors, misrepresentations, or deficiencies in the foreclosure process."

The reviews of borrower petitions are expected to take several months.

by Philip Van Doorn Nuwire Investor Nov 25, 2011


Banks Revising Foreclosure Procedures

Banks Revising Foreclosure Procedures

The Office of the Comptroller of the Currency (OCC) has reported that all banks targeted for investigation and review into foreclosure and lending practices have submitted letters detailing their plans for auditing said practices, which the OCC demanded be completed before the beginning of the new year. Bank of America, Citibank, JPMorgan Chase, Citigroup, Wells Fargo and a handful of others have so far entered into OCC compliance, although auditing has yet to be completed. Independent auditing firms involved in the overhaul include Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers. For more on this continue reading the following article from TheStreet.

The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.

The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC), Citigroup (C) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM), MetLife (MET) unit MetLife Bank, PNC (PNC), U.S. Bancorp (USB) subsidiary U.S. Bank, and Wells Fargo (WFC), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.

The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."

The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit [were] furthest advanced."

In Bank of America's updated engagement letter from Sept. 6, Promontory Financial Group said it would "conduct an independent review of certain residential foreclosure actions regarding individual borrowers with respect to BAC's mortgage servicing portfolio," including Bank of America's foreclosure actions as a lender, servicer, within 423 days.

Promontory Financial Group is also conducting the servicing and foreclosure audits for PNC and Wells Fargo.

Other independent consultants include Deloitte & Touche for JPMorgan, Ernst & Young, for HSBC and MetLife Bank, and PricewaterhouseCoopers, for Citibank and U.S. Bank.

The OCC said that on Nov. 1, "an integrated claims processor began mailing letters to borrowers who were in any stage of foreclosure on their primary residences between January 1, 2009 and December 31, 2010," describing the process "borrowers should follow for requesting reviews of their cases if they believed they suffered financial injury as a result of servicer errors, misrepresentations, or deficiencies in the foreclosure process."

The reviews of borrower petitions are expected to take several months.

by Philip Van Doorn Nuwire Investor Nov 25, 2011


Banks Revising Foreclosure Procedures

Banks Revising Foreclosure Procedures

The Office of the Comptroller of the Currency (OCC) has reported that all banks targeted for investigation and review into foreclosure and lending practices have submitted letters detailing their plans for auditing said practices, which the OCC demanded be completed before the beginning of the new year. Bank of America, Citibank, JPMorgan Chase, Citigroup, Wells Fargo and a handful of others have so far entered into OCC compliance, although auditing has yet to be completed. Independent auditing firms involved in the overhaul include Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers. For more on this continue reading the following article from TheStreet.

The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.

The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC), Citigroup (C) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM), MetLife (MET) unit MetLife Bank, PNC (PNC), U.S. Bancorp (USB) subsidiary U.S. Bank, and Wells Fargo (WFC), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.

The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."

The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit [were] furthest advanced."

In Bank of America's updated engagement letter from Sept. 6, Promontory Financial Group said it would "conduct an independent review of certain residential foreclosure actions regarding individual borrowers with respect to BAC's mortgage servicing portfolio," including Bank of America's foreclosure actions as a lender, servicer, within 423 days.

Promontory Financial Group is also conducting the servicing and foreclosure audits for PNC and Wells Fargo.

Other independent consultants include Deloitte & Touche for JPMorgan, Ernst & Young, for HSBC and MetLife Bank, and PricewaterhouseCoopers, for Citibank and U.S. Bank.

The OCC said that on Nov. 1, "an integrated claims processor began mailing letters to borrowers who were in any stage of foreclosure on their primary residences between January 1, 2009 and December 31, 2010," describing the process "borrowers should follow for requesting reviews of their cases if they believed they suffered financial injury as a result of servicer errors, misrepresentations, or deficiencies in the foreclosure process."

The reviews of borrower petitions are expected to take several months.

by Philip Van Doorn Nuwire Investor Nov 25, 2011


Banks Revising Foreclosure Procedures

Warehouse sales are booming

Investor interest in warehouse distribution-center properties in the Phoenix area continues to defy both the recession and the otherwise dismal real-estate market, with the closing of a $33.3 million sale on Monday in west Phoenix, brokers involved in the deal said.

The joint sale of two massive warehouses in Phoenix totaling about 640,000 square feet was the area's largest transaction involving industrial real estate since the second quarter of 2008, said Don and Payson MacWilliam, senior vice presidents at Colliers International in Phoenix who represented both buyer and seller.

The MacWilliams are brothers who have worked as a team brokering industrial real-estate deals in the Phoenix area for more than 20 years.

The seller was Alliance Beverage Distributing Co., a large alcoholic-beverage distributor, which occupies all 450,000 square feet of the larger of the two warehouse properties sold. The adjacent 190,000-square-foot property is occupied by Updike Distribution Logistics, which provides warehousing and supply-chain logistics services.

Aside from being the largest sale of its kind in years, the deal was significant because its sale price per square foot of about $52 was more than what it would cost to build a similar facility today, Don MacWilliam said.

Most types of commercial real estate in the Phoenix area have been selling recently for far less than their original construction costs, with warehouse distribution centers being the only significant exception.

The exceptionally high value of such properties, particularly those in the West Valley, is due primarily to a surge in demand among e-commerce providers and large, traditional retailers for relatively inexpensive warehouses situated within a day's drive of the Southern California coast, where a wide variety of Asian products are offloaded for U.S. consumption.

According to a recent report from Colliers, users of industrial real estate snapped up 1.6 million square feet of empty space in the third quarter, which marked the seventh consecutive quarter of rising demand.

The Colliers report said industrial tenants have absorbed about 9.3 million square feet of vacant space during the past seven quarters.

The surge in demand is likely to continue as large e-commerce providers continue to seek out additional space for order-fulfillment and distribution centers to serve Arizona, California and other Western states.

Seattle-based online retailer Amazon announced plans in July to open a 1.2 million-square-foot distribution center at 800 N. 75th Ave. in Phoenix, its fourth such facility in the Phoenix area.

Other retailers, including Home Depot, Macy's and Dick's Sporting Goods, either have signed leases on large existing warehouses in the West Valley this year or announced plans to build their own distribution centers.

The vacancy rate among industrially zoned properties has plummeted at an unprecedented rate, from nearly 18 percent in the first quarter of 2010 to 14.6 percent at the end of the third quarter this year, Don MacWilliam said.

High demand also is driving new construction, according to Colliers' third-quarter analysis, with nearly 3.7 million square feet of warehouse and distribution-center space currently under development.

Alliance Beverage had just recently purchased the two buildings it sold Monday, inside Papago West Business Park near 47th Avenue and Roosevelt Street in west Phoenix, from developer and former property owner RJB Development.

RJB had granted the beverage distributor first right of refusal on any attempted sale of the property as part of a 20-year lease agreement signed in 2007, Don MacWilliam said.

Alliance Beverage then sold the properties for an undisclosed profit to CreXus AZ Holdings I LLC, a New York-based real-estate investment trust. The buyer and seller also negotiated a new 17-year lease agreement, he said.

REITs pool money from a group of investors to purchase and hold commercial properties, using the lease revenue they generate to pay the investors regular dividends.

Local real-estate analysts say investor interest in Phoenix-area distribution centers could help spur economic recovery, put construction crews back to work and bring much-needed jobs to the region.

"This transaction further confirms the leasing strength and investor confidence in the southwest Valley submarket and in Phoenix as a whole," Don MacWilliam said.

by J. Craig Anderson The Arizona Republic Nov. 29, 2011 06:20 PM



Warehouse sales are booming

Warehouse sales are booming

Investor interest in warehouse distribution-center properties in the Phoenix area continues to defy both the recession and the otherwise dismal real-estate market, with the closing of a $33.3 million sale on Monday in west Phoenix, brokers involved in the deal said.

The joint sale of two massive warehouses in Phoenix totaling about 640,000 square feet was the area's largest transaction involving industrial real estate since the second quarter of 2008, said Don and Payson MacWilliam, senior vice presidents at Colliers International in Phoenix who represented both buyer and seller.

The MacWilliams are brothers who have worked as a team brokering industrial real-estate deals in the Phoenix area for more than 20 years.

The seller was Alliance Beverage Distributing Co., a large alcoholic-beverage distributor, which occupies all 450,000 square feet of the larger of the two warehouse properties sold. The adjacent 190,000-square-foot property is occupied by Updike Distribution Logistics, which provides warehousing and supply-chain logistics services.

Aside from being the largest sale of its kind in years, the deal was significant because its sale price per square foot of about $52 was more than what it would cost to build a similar facility today, Don MacWilliam said.

Most types of commercial real estate in the Phoenix area have been selling recently for far less than their original construction costs, with warehouse distribution centers being the only significant exception.

The exceptionally high value of such properties, particularly those in the West Valley, is due primarily to a surge in demand among e-commerce providers and large, traditional retailers for relatively inexpensive warehouses situated within a day's drive of the Southern California coast, where a wide variety of Asian products are offloaded for U.S. consumption.

According to a recent report from Colliers, users of industrial real estate snapped up 1.6 million square feet of empty space in the third quarter, which marked the seventh consecutive quarter of rising demand.

The Colliers report said industrial tenants have absorbed about 9.3 million square feet of vacant space during the past seven quarters.

The surge in demand is likely to continue as large e-commerce providers continue to seek out additional space for order-fulfillment and distribution centers to serve Arizona, California and other Western states.

Seattle-based online retailer Amazon announced plans in July to open a 1.2 million-square-foot distribution center at 800 N. 75th Ave. in Phoenix, its fourth such facility in the Phoenix area.

Other retailers, including Home Depot, Macy's and Dick's Sporting Goods, either have signed leases on large existing warehouses in the West Valley this year or announced plans to build their own distribution centers.

The vacancy rate among industrially zoned properties has plummeted at an unprecedented rate, from nearly 18 percent in the first quarter of 2010 to 14.6 percent at the end of the third quarter this year, Don MacWilliam said.

High demand also is driving new construction, according to Colliers' third-quarter analysis, with nearly 3.7 million square feet of warehouse and distribution-center space currently under development.

Alliance Beverage had just recently purchased the two buildings it sold Monday, inside Papago West Business Park near 47th Avenue and Roosevelt Street in west Phoenix, from developer and former property owner RJB Development.

RJB had granted the beverage distributor first right of refusal on any attempted sale of the property as part of a 20-year lease agreement signed in 2007, Don MacWilliam said.

Alliance Beverage then sold the properties for an undisclosed profit to CreXus AZ Holdings I LLC, a New York-based real-estate investment trust. The buyer and seller also negotiated a new 17-year lease agreement, he said.

REITs pool money from a group of investors to purchase and hold commercial properties, using the lease revenue they generate to pay the investors regular dividends.

Local real-estate analysts say investor interest in Phoenix-area distribution centers could help spur economic recovery, put construction crews back to work and bring much-needed jobs to the region.

"This transaction further confirms the leasing strength and investor confidence in the southwest Valley submarket and in Phoenix as a whole," Don MacWilliam said.

by J. Craig Anderson The Arizona Republic Nov. 29, 2011 06:20 PM



Warehouse sales are booming

Warehouse sales are booming

Investor interest in warehouse distribution-center properties in the Phoenix area continues to defy both the recession and the otherwise dismal real-estate market, with the closing of a $33.3 million sale on Monday in west Phoenix, brokers involved in the deal said.

The joint sale of two massive warehouses in Phoenix totaling about 640,000 square feet was the area's largest transaction involving industrial real estate since the second quarter of 2008, said Don and Payson MacWilliam, senior vice presidents at Colliers International in Phoenix who represented both buyer and seller.

The MacWilliams are brothers who have worked as a team brokering industrial real-estate deals in the Phoenix area for more than 20 years.

The seller was Alliance Beverage Distributing Co., a large alcoholic-beverage distributor, which occupies all 450,000 square feet of the larger of the two warehouse properties sold. The adjacent 190,000-square-foot property is occupied by Updike Distribution Logistics, which provides warehousing and supply-chain logistics services.

Aside from being the largest sale of its kind in years, the deal was significant because its sale price per square foot of about $52 was more than what it would cost to build a similar facility today, Don MacWilliam said.

Most types of commercial real estate in the Phoenix area have been selling recently for far less than their original construction costs, with warehouse distribution centers being the only significant exception.

The exceptionally high value of such properties, particularly those in the West Valley, is due primarily to a surge in demand among e-commerce providers and large, traditional retailers for relatively inexpensive warehouses situated within a day's drive of the Southern California coast, where a wide variety of Asian products are offloaded for U.S. consumption.

According to a recent report from Colliers, users of industrial real estate snapped up 1.6 million square feet of empty space in the third quarter, which marked the seventh consecutive quarter of rising demand.

The Colliers report said industrial tenants have absorbed about 9.3 million square feet of vacant space during the past seven quarters.

The surge in demand is likely to continue as large e-commerce providers continue to seek out additional space for order-fulfillment and distribution centers to serve Arizona, California and other Western states.

Seattle-based online retailer Amazon announced plans in July to open a 1.2 million-square-foot distribution center at 800 N. 75th Ave. in Phoenix, its fourth such facility in the Phoenix area.

Other retailers, including Home Depot, Macy's and Dick's Sporting Goods, either have signed leases on large existing warehouses in the West Valley this year or announced plans to build their own distribution centers.

The vacancy rate among industrially zoned properties has plummeted at an unprecedented rate, from nearly 18 percent in the first quarter of 2010 to 14.6 percent at the end of the third quarter this year, Don MacWilliam said.

High demand also is driving new construction, according to Colliers' third-quarter analysis, with nearly 3.7 million square feet of warehouse and distribution-center space currently under development.

Alliance Beverage had just recently purchased the two buildings it sold Monday, inside Papago West Business Park near 47th Avenue and Roosevelt Street in west Phoenix, from developer and former property owner RJB Development.

RJB had granted the beverage distributor first right of refusal on any attempted sale of the property as part of a 20-year lease agreement signed in 2007, Don MacWilliam said.

Alliance Beverage then sold the properties for an undisclosed profit to CreXus AZ Holdings I LLC, a New York-based real-estate investment trust. The buyer and seller also negotiated a new 17-year lease agreement, he said.

REITs pool money from a group of investors to purchase and hold commercial properties, using the lease revenue they generate to pay the investors regular dividends.

Local real-estate analysts say investor interest in Phoenix-area distribution centers could help spur economic recovery, put construction crews back to work and bring much-needed jobs to the region.

"This transaction further confirms the leasing strength and investor confidence in the southwest Valley submarket and in Phoenix as a whole," Don MacWilliam said.

by J. Craig Anderson The Arizona Republic Nov. 29, 2011 06:20 PM



Warehouse sales are booming

Warehouse sales are booming

Investor interest in warehouse distribution-center properties in the Phoenix area continues to defy both the recession and the otherwise dismal real-estate market, with the closing of a $33.3 million sale on Monday in west Phoenix, brokers involved in the deal said.

The joint sale of two massive warehouses in Phoenix totaling about 640,000 square feet was the area's largest transaction involving industrial real estate since the second quarter of 2008, said Don and Payson MacWilliam, senior vice presidents at Colliers International in Phoenix who represented both buyer and seller.

The MacWilliams are brothers who have worked as a team brokering industrial real-estate deals in the Phoenix area for more than 20 years.

The seller was Alliance Beverage Distributing Co., a large alcoholic-beverage distributor, which occupies all 450,000 square feet of the larger of the two warehouse properties sold. The adjacent 190,000-square-foot property is occupied by Updike Distribution Logistics, which provides warehousing and supply-chain logistics services.

Aside from being the largest sale of its kind in years, the deal was significant because its sale price per square foot of about $52 was more than what it would cost to build a similar facility today, Don MacWilliam said.

Most types of commercial real estate in the Phoenix area have been selling recently for far less than their original construction costs, with warehouse distribution centers being the only significant exception.

The exceptionally high value of such properties, particularly those in the West Valley, is due primarily to a surge in demand among e-commerce providers and large, traditional retailers for relatively inexpensive warehouses situated within a day's drive of the Southern California coast, where a wide variety of Asian products are offloaded for U.S. consumption.

According to a recent report from Colliers, users of industrial real estate snapped up 1.6 million square feet of empty space in the third quarter, which marked the seventh consecutive quarter of rising demand.

The Colliers report said industrial tenants have absorbed about 9.3 million square feet of vacant space during the past seven quarters.

The surge in demand is likely to continue as large e-commerce providers continue to seek out additional space for order-fulfillment and distribution centers to serve Arizona, California and other Western states.

Seattle-based online retailer Amazon announced plans in July to open a 1.2 million-square-foot distribution center at 800 N. 75th Ave. in Phoenix, its fourth such facility in the Phoenix area.

Other retailers, including Home Depot, Macy's and Dick's Sporting Goods, either have signed leases on large existing warehouses in the West Valley this year or announced plans to build their own distribution centers.

The vacancy rate among industrially zoned properties has plummeted at an unprecedented rate, from nearly 18 percent in the first quarter of 2010 to 14.6 percent at the end of the third quarter this year, Don MacWilliam said.

High demand also is driving new construction, according to Colliers' third-quarter analysis, with nearly 3.7 million square feet of warehouse and distribution-center space currently under development.

Alliance Beverage had just recently purchased the two buildings it sold Monday, inside Papago West Business Park near 47th Avenue and Roosevelt Street in west Phoenix, from developer and former property owner RJB Development.

RJB had granted the beverage distributor first right of refusal on any attempted sale of the property as part of a 20-year lease agreement signed in 2007, Don MacWilliam said.

Alliance Beverage then sold the properties for an undisclosed profit to CreXus AZ Holdings I LLC, a New York-based real-estate investment trust. The buyer and seller also negotiated a new 17-year lease agreement, he said.

REITs pool money from a group of investors to purchase and hold commercial properties, using the lease revenue they generate to pay the investors regular dividends.

Local real-estate analysts say investor interest in Phoenix-area distribution centers could help spur economic recovery, put construction crews back to work and bring much-needed jobs to the region.

"This transaction further confirms the leasing strength and investor confidence in the southwest Valley submarket and in Phoenix as a whole," Don MacWilliam said.

by J. Craig Anderson The Arizona Republic Nov. 29, 2011 06:20 PM



Warehouse sales are booming

Warehouse sales are booming

Investor interest in warehouse distribution-center properties in the Phoenix area continues to defy both the recession and the otherwise dismal real-estate market, with the closing of a $33.3 million sale on Monday in west Phoenix, brokers involved in the deal said.

The joint sale of two massive warehouses in Phoenix totaling about 640,000 square feet was the area's largest transaction involving industrial real estate since the second quarter of 2008, said Don and Payson MacWilliam, senior vice presidents at Colliers International in Phoenix who represented both buyer and seller.

The MacWilliams are brothers who have worked as a team brokering industrial real-estate deals in the Phoenix area for more than 20 years.

The seller was Alliance Beverage Distributing Co., a large alcoholic-beverage distributor, which occupies all 450,000 square feet of the larger of the two warehouse properties sold. The adjacent 190,000-square-foot property is occupied by Updike Distribution Logistics, which provides warehousing and supply-chain logistics services.

Aside from being the largest sale of its kind in years, the deal was significant because its sale price per square foot of about $52 was more than what it would cost to build a similar facility today, Don MacWilliam said.

Most types of commercial real estate in the Phoenix area have been selling recently for far less than their original construction costs, with warehouse distribution centers being the only significant exception.

The exceptionally high value of such properties, particularly those in the West Valley, is due primarily to a surge in demand among e-commerce providers and large, traditional retailers for relatively inexpensive warehouses situated within a day's drive of the Southern California coast, where a wide variety of Asian products are offloaded for U.S. consumption.

According to a recent report from Colliers, users of industrial real estate snapped up 1.6 million square feet of empty space in the third quarter, which marked the seventh consecutive quarter of rising demand.

The Colliers report said industrial tenants have absorbed about 9.3 million square feet of vacant space during the past seven quarters.

The surge in demand is likely to continue as large e-commerce providers continue to seek out additional space for order-fulfillment and distribution centers to serve Arizona, California and other Western states.

Seattle-based online retailer Amazon announced plans in July to open a 1.2 million-square-foot distribution center at 800 N. 75th Ave. in Phoenix, its fourth such facility in the Phoenix area.

Other retailers, including Home Depot, Macy's and Dick's Sporting Goods, either have signed leases on large existing warehouses in the West Valley this year or announced plans to build their own distribution centers.

The vacancy rate among industrially zoned properties has plummeted at an unprecedented rate, from nearly 18 percent in the first quarter of 2010 to 14.6 percent at the end of the third quarter this year, Don MacWilliam said.

High demand also is driving new construction, according to Colliers' third-quarter analysis, with nearly 3.7 million square feet of warehouse and distribution-center space currently under development.

Alliance Beverage had just recently purchased the two buildings it sold Monday, inside Papago West Business Park near 47th Avenue and Roosevelt Street in west Phoenix, from developer and former property owner RJB Development.

RJB had granted the beverage distributor first right of refusal on any attempted sale of the property as part of a 20-year lease agreement signed in 2007, Don MacWilliam said.

Alliance Beverage then sold the properties for an undisclosed profit to CreXus AZ Holdings I LLC, a New York-based real-estate investment trust. The buyer and seller also negotiated a new 17-year lease agreement, he said.

REITs pool money from a group of investors to purchase and hold commercial properties, using the lease revenue they generate to pay the investors regular dividends.

Local real-estate analysts say investor interest in Phoenix-area distribution centers could help spur economic recovery, put construction crews back to work and bring much-needed jobs to the region.

"This transaction further confirms the leasing strength and investor confidence in the southwest Valley submarket and in Phoenix as a whole," Don MacWilliam said.

by J. Craig Anderson The Arizona Republic Nov. 29, 2011 06:20 PM



Warehouse sales are booming

Warehouse sales are booming

Investor interest in warehouse distribution-center properties in the Phoenix area continues to defy both the recession and the otherwise dismal real-estate market, with the closing of a $33.3 million sale on Monday in west Phoenix, brokers involved in the deal said.

The joint sale of two massive warehouses in Phoenix totaling about 640,000 square feet was the area's largest transaction involving industrial real estate since the second quarter of 2008, said Don and Payson MacWilliam, senior vice presidents at Colliers International in Phoenix who represented both buyer and seller.

The MacWilliams are brothers who have worked as a team brokering industrial real-estate deals in the Phoenix area for more than 20 years.

The seller was Alliance Beverage Distributing Co., a large alcoholic-beverage distributor, which occupies all 450,000 square feet of the larger of the two warehouse properties sold. The adjacent 190,000-square-foot property is occupied by Updike Distribution Logistics, which provides warehousing and supply-chain logistics services.

Aside from being the largest sale of its kind in years, the deal was significant because its sale price per square foot of about $52 was more than what it would cost to build a similar facility today, Don MacWilliam said.

Most types of commercial real estate in the Phoenix area have been selling recently for far less than their original construction costs, with warehouse distribution centers being the only significant exception.

The exceptionally high value of such properties, particularly those in the West Valley, is due primarily to a surge in demand among e-commerce providers and large, traditional retailers for relatively inexpensive warehouses situated within a day's drive of the Southern California coast, where a wide variety of Asian products are offloaded for U.S. consumption.

According to a recent report from Colliers, users of industrial real estate snapped up 1.6 million square feet of empty space in the third quarter, which marked the seventh consecutive quarter of rising demand.

The Colliers report said industrial tenants have absorbed about 9.3 million square feet of vacant space during the past seven quarters.

The surge in demand is likely to continue as large e-commerce providers continue to seek out additional space for order-fulfillment and distribution centers to serve Arizona, California and other Western states.

Seattle-based online retailer Amazon announced plans in July to open a 1.2 million-square-foot distribution center at 800 N. 75th Ave. in Phoenix, its fourth such facility in the Phoenix area.

Other retailers, including Home Depot, Macy's and Dick's Sporting Goods, either have signed leases on large existing warehouses in the West Valley this year or announced plans to build their own distribution centers.

The vacancy rate among industrially zoned properties has plummeted at an unprecedented rate, from nearly 18 percent in the first quarter of 2010 to 14.6 percent at the end of the third quarter this year, Don MacWilliam said.

High demand also is driving new construction, according to Colliers' third-quarter analysis, with nearly 3.7 million square feet of warehouse and distribution-center space currently under development.

Alliance Beverage had just recently purchased the two buildings it sold Monday, inside Papago West Business Park near 47th Avenue and Roosevelt Street in west Phoenix, from developer and former property owner RJB Development.

RJB had granted the beverage distributor first right of refusal on any attempted sale of the property as part of a 20-year lease agreement signed in 2007, Don MacWilliam said.

Alliance Beverage then sold the properties for an undisclosed profit to CreXus AZ Holdings I LLC, a New York-based real-estate investment trust. The buyer and seller also negotiated a new 17-year lease agreement, he said.

REITs pool money from a group of investors to purchase and hold commercial properties, using the lease revenue they generate to pay the investors regular dividends.

Local real-estate analysts say investor interest in Phoenix-area distribution centers could help spur economic recovery, put construction crews back to work and bring much-needed jobs to the region.

"This transaction further confirms the leasing strength and investor confidence in the southwest Valley submarket and in Phoenix as a whole," Don MacWilliam said.

by J. Craig Anderson The Arizona Republic Nov. 29, 2011 06:20 PM



Warehouse sales are booming

Warehouse sales are booming

Investor interest in warehouse distribution-center properties in the Phoenix area continues to defy both the recession and the otherwise dismal real-estate market, with the closing of a $33.3 million sale on Monday in west Phoenix, brokers involved in the deal said.

The joint sale of two massive warehouses in Phoenix totaling about 640,000 square feet was the area's largest transaction involving industrial real estate since the second quarter of 2008, said Don and Payson MacWilliam, senior vice presidents at Colliers International in Phoenix who represented both buyer and seller.

The MacWilliams are brothers who have worked as a team brokering industrial real-estate deals in the Phoenix area for more than 20 years.

The seller was Alliance Beverage Distributing Co., a large alcoholic-beverage distributor, which occupies all 450,000 square feet of the larger of the two warehouse properties sold. The adjacent 190,000-square-foot property is occupied by Updike Distribution Logistics, which provides warehousing and supply-chain logistics services.

Aside from being the largest sale of its kind in years, the deal was significant because its sale price per square foot of about $52 was more than what it would cost to build a similar facility today, Don MacWilliam said.

Most types of commercial real estate in the Phoenix area have been selling recently for far less than their original construction costs, with warehouse distribution centers being the only significant exception.

The exceptionally high value of such properties, particularly those in the West Valley, is due primarily to a surge in demand among e-commerce providers and large, traditional retailers for relatively inexpensive warehouses situated within a day's drive of the Southern California coast, where a wide variety of Asian products are offloaded for U.S. consumption.

According to a recent report from Colliers, users of industrial real estate snapped up 1.6 million square feet of empty space in the third quarter, which marked the seventh consecutive quarter of rising demand.

The Colliers report said industrial tenants have absorbed about 9.3 million square feet of vacant space during the past seven quarters.

The surge in demand is likely to continue as large e-commerce providers continue to seek out additional space for order-fulfillment and distribution centers to serve Arizona, California and other Western states.

Seattle-based online retailer Amazon announced plans in July to open a 1.2 million-square-foot distribution center at 800 N. 75th Ave. in Phoenix, its fourth such facility in the Phoenix area.

Other retailers, including Home Depot, Macy's and Dick's Sporting Goods, either have signed leases on large existing warehouses in the West Valley this year or announced plans to build their own distribution centers.

The vacancy rate among industrially zoned properties has plummeted at an unprecedented rate, from nearly 18 percent in the first quarter of 2010 to 14.6 percent at the end of the third quarter this year, Don MacWilliam said.

High demand also is driving new construction, according to Colliers' third-quarter analysis, with nearly 3.7 million square feet of warehouse and distribution-center space currently under development.

Alliance Beverage had just recently purchased the two buildings it sold Monday, inside Papago West Business Park near 47th Avenue and Roosevelt Street in west Phoenix, from developer and former property owner RJB Development.

RJB had granted the beverage distributor first right of refusal on any attempted sale of the property as part of a 20-year lease agreement signed in 2007, Don MacWilliam said.

Alliance Beverage then sold the properties for an undisclosed profit to CreXus AZ Holdings I LLC, a New York-based real-estate investment trust. The buyer and seller also negotiated a new 17-year lease agreement, he said.

REITs pool money from a group of investors to purchase and hold commercial properties, using the lease revenue they generate to pay the investors regular dividends.

Local real-estate analysts say investor interest in Phoenix-area distribution centers could help spur economic recovery, put construction crews back to work and bring much-needed jobs to the region.

"This transaction further confirms the leasing strength and investor confidence in the southwest Valley submarket and in Phoenix as a whole," Don MacWilliam said.

by J. Craig Anderson The Arizona Republic Nov. 29, 2011 06:20 PM



Warehouse sales are booming

Sunday, November 27, 2011

After-tax return could alter look of investment

BOSTON - A surge of cash flow into a business can make it seem like a powerhouse. Yet its bottom line might be underwhelming after taxes and other expenses are figured in.

The same can hold true with investing. Enthusiasm about market-beating performance touted in a quarterly mutual-fund report can wither once an investor's after-tax return is calculated.

The gap between pre- and post-tax returns isn't an issue for mutual funds held in retirement accounts such as IRAs or 401(k)s, where investment earnings can grow tax-free. But the difference can be significant for funds held outside a tax-sheltered account, especially for an investor in a high tax bracket.

It's an especially timely consideration as the year draws to a close. In November and December, investors with taxable accounts should stay alert to disclosures about any capital gains distributions that mutual funds expect to make to their investors. A distribution may sound like a gift, but it's not -- it's a gain that Uncle Sam considers taxable income. Still, investors can limit their tax exposure with savvy end-of-year moves.

Investors can take some comfort in the stock market's lousy 2011 performance. The nearly 6 percent decline of the Standard & Poor's 500 index won't help investors meet long-term savings goals. But it does mean that relatively few stock funds have capital gains to pass on to investors. Foreign stocks have fared worse, so investors are even less likely to see tax bills from the international portion of their fund portfolios.

Diversified bond funds have returned an average of 2 percent this year, according to Morningstar. That makes taxable bonds -- a category that excludes municipal bonds, whose investors are exempt from federal taxes -- a logical place to begin when scrutinizing a fund portfolio for potential hidden tax hits.

But don't ignore the stock component. Dividend-paying stocks have generally fared better than the broader market, making them potential candidates to pass on capital gains. And stocks have been unusually volatile this year, which creates an opportunity for fund managers who frequently trade holdings in hopes of beating the market. If they succeed, an investor can get ahead. But the advantage could be minimal if an investor gets hit with capital gains. Here are tips and current considerations to make about mutual funds and limiting tax exposure:

Understand capital gains. When fund managers sell stocks or bonds that appreciated in value, they pass on the capital gains to investors each year. It can happen even if a mutual fund lost money. That's because it's the appreciation of the fund's individual holdings, rather than of the fund as a whole, that trigger capital gains.

Check the estimates. Fund companies are now giving investors a heads-up about which mutual funds they expect will generate short-term capital gains by the end of December.

Consider timing. If a fund expects to distribute a gain, wait until after the distribution date to invest any new cash in that fund, if it will be held in a taxable account.

Consider taking tax losses. To offset capital gains elsewhere in a portfolio, investors might want to consider selling some investments in their taxable accounts that have lost value.

by Mark Jewell Associated Press Nov. 27, 2011 12:00 AM




After-tax return could alter look of investment

After-tax return could alter look of investment

BOSTON - A surge of cash flow into a business can make it seem like a powerhouse. Yet its bottom line might be underwhelming after taxes and other expenses are figured in.

The same can hold true with investing. Enthusiasm about market-beating performance touted in a quarterly mutual-fund report can wither once an investor's after-tax return is calculated.

The gap between pre- and post-tax returns isn't an issue for mutual funds held in retirement accounts such as IRAs or 401(k)s, where investment earnings can grow tax-free. But the difference can be significant for funds held outside a tax-sheltered account, especially for an investor in a high tax bracket.

It's an especially timely consideration as the year draws to a close. In November and December, investors with taxable accounts should stay alert to disclosures about any capital gains distributions that mutual funds expect to make to their investors. A distribution may sound like a gift, but it's not -- it's a gain that Uncle Sam considers taxable income. Still, investors can limit their tax exposure with savvy end-of-year moves.

Investors can take some comfort in the stock market's lousy 2011 performance. The nearly 6 percent decline of the Standard & Poor's 500 index won't help investors meet long-term savings goals. But it does mean that relatively few stock funds have capital gains to pass on to investors. Foreign stocks have fared worse, so investors are even less likely to see tax bills from the international portion of their fund portfolios.

Diversified bond funds have returned an average of 2 percent this year, according to Morningstar. That makes taxable bonds -- a category that excludes municipal bonds, whose investors are exempt from federal taxes -- a logical place to begin when scrutinizing a fund portfolio for potential hidden tax hits.

But don't ignore the stock component. Dividend-paying stocks have generally fared better than the broader market, making them potential candidates to pass on capital gains. And stocks have been unusually volatile this year, which creates an opportunity for fund managers who frequently trade holdings in hopes of beating the market. If they succeed, an investor can get ahead. But the advantage could be minimal if an investor gets hit with capital gains. Here are tips and current considerations to make about mutual funds and limiting tax exposure:

Understand capital gains. When fund managers sell stocks or bonds that appreciated in value, they pass on the capital gains to investors each year. It can happen even if a mutual fund lost money. That's because it's the appreciation of the fund's individual holdings, rather than of the fund as a whole, that trigger capital gains.

Check the estimates. Fund companies are now giving investors a heads-up about which mutual funds they expect will generate short-term capital gains by the end of December.

Consider timing. If a fund expects to distribute a gain, wait until after the distribution date to invest any new cash in that fund, if it will be held in a taxable account.

Consider taking tax losses. To offset capital gains elsewhere in a portfolio, investors might want to consider selling some investments in their taxable accounts that have lost value.

by Mark Jewell Associated Press Nov. 27, 2011 12:00 AM




After-tax return could alter look of investment

After-tax return could alter look of investment

BOSTON - A surge of cash flow into a business can make it seem like a powerhouse. Yet its bottom line might be underwhelming after taxes and other expenses are figured in.

The same can hold true with investing. Enthusiasm about market-beating performance touted in a quarterly mutual-fund report can wither once an investor's after-tax return is calculated.

The gap between pre- and post-tax returns isn't an issue for mutual funds held in retirement accounts such as IRAs or 401(k)s, where investment earnings can grow tax-free. But the difference can be significant for funds held outside a tax-sheltered account, especially for an investor in a high tax bracket.

It's an especially timely consideration as the year draws to a close. In November and December, investors with taxable accounts should stay alert to disclosures about any capital gains distributions that mutual funds expect to make to their investors. A distribution may sound like a gift, but it's not -- it's a gain that Uncle Sam considers taxable income. Still, investors can limit their tax exposure with savvy end-of-year moves.

Investors can take some comfort in the stock market's lousy 2011 performance. The nearly 6 percent decline of the Standard & Poor's 500 index won't help investors meet long-term savings goals. But it does mean that relatively few stock funds have capital gains to pass on to investors. Foreign stocks have fared worse, so investors are even less likely to see tax bills from the international portion of their fund portfolios.

Diversified bond funds have returned an average of 2 percent this year, according to Morningstar. That makes taxable bonds -- a category that excludes municipal bonds, whose investors are exempt from federal taxes -- a logical place to begin when scrutinizing a fund portfolio for potential hidden tax hits.

But don't ignore the stock component. Dividend-paying stocks have generally fared better than the broader market, making them potential candidates to pass on capital gains. And stocks have been unusually volatile this year, which creates an opportunity for fund managers who frequently trade holdings in hopes of beating the market. If they succeed, an investor can get ahead. But the advantage could be minimal if an investor gets hit with capital gains. Here are tips and current considerations to make about mutual funds and limiting tax exposure:

Understand capital gains. When fund managers sell stocks or bonds that appreciated in value, they pass on the capital gains to investors each year. It can happen even if a mutual fund lost money. That's because it's the appreciation of the fund's individual holdings, rather than of the fund as a whole, that trigger capital gains.

Check the estimates. Fund companies are now giving investors a heads-up about which mutual funds they expect will generate short-term capital gains by the end of December.

Consider timing. If a fund expects to distribute a gain, wait until after the distribution date to invest any new cash in that fund, if it will be held in a taxable account.

Consider taking tax losses. To offset capital gains elsewhere in a portfolio, investors might want to consider selling some investments in their taxable accounts that have lost value.

by Mark Jewell Associated Press Nov. 27, 2011 12:00 AM




After-tax return could alter look of investment

After-tax return could alter look of investment

BOSTON - A surge of cash flow into a business can make it seem like a powerhouse. Yet its bottom line might be underwhelming after taxes and other expenses are figured in.

The same can hold true with investing. Enthusiasm about market-beating performance touted in a quarterly mutual-fund report can wither once an investor's after-tax return is calculated.

The gap between pre- and post-tax returns isn't an issue for mutual funds held in retirement accounts such as IRAs or 401(k)s, where investment earnings can grow tax-free. But the difference can be significant for funds held outside a tax-sheltered account, especially for an investor in a high tax bracket.

It's an especially timely consideration as the year draws to a close. In November and December, investors with taxable accounts should stay alert to disclosures about any capital gains distributions that mutual funds expect to make to their investors. A distribution may sound like a gift, but it's not -- it's a gain that Uncle Sam considers taxable income. Still, investors can limit their tax exposure with savvy end-of-year moves.

Investors can take some comfort in the stock market's lousy 2011 performance. The nearly 6 percent decline of the Standard & Poor's 500 index won't help investors meet long-term savings goals. But it does mean that relatively few stock funds have capital gains to pass on to investors. Foreign stocks have fared worse, so investors are even less likely to see tax bills from the international portion of their fund portfolios.

Diversified bond funds have returned an average of 2 percent this year, according to Morningstar. That makes taxable bonds -- a category that excludes municipal bonds, whose investors are exempt from federal taxes -- a logical place to begin when scrutinizing a fund portfolio for potential hidden tax hits.

But don't ignore the stock component. Dividend-paying stocks have generally fared better than the broader market, making them potential candidates to pass on capital gains. And stocks have been unusually volatile this year, which creates an opportunity for fund managers who frequently trade holdings in hopes of beating the market. If they succeed, an investor can get ahead. But the advantage could be minimal if an investor gets hit with capital gains. Here are tips and current considerations to make about mutual funds and limiting tax exposure:

Understand capital gains. When fund managers sell stocks or bonds that appreciated in value, they pass on the capital gains to investors each year. It can happen even if a mutual fund lost money. That's because it's the appreciation of the fund's individual holdings, rather than of the fund as a whole, that trigger capital gains.

Check the estimates. Fund companies are now giving investors a heads-up about which mutual funds they expect will generate short-term capital gains by the end of December.

Consider timing. If a fund expects to distribute a gain, wait until after the distribution date to invest any new cash in that fund, if it will be held in a taxable account.

Consider taking tax losses. To offset capital gains elsewhere in a portfolio, investors might want to consider selling some investments in their taxable accounts that have lost value.

by Mark Jewell Associated Press Nov. 27, 2011 12:00 AM




After-tax return could alter look of investment

After-tax return could alter look of investment

BOSTON - A surge of cash flow into a business can make it seem like a powerhouse. Yet its bottom line might be underwhelming after taxes and other expenses are figured in.

The same can hold true with investing. Enthusiasm about market-beating performance touted in a quarterly mutual-fund report can wither once an investor's after-tax return is calculated.

The gap between pre- and post-tax returns isn't an issue for mutual funds held in retirement accounts such as IRAs or 401(k)s, where investment earnings can grow tax-free. But the difference can be significant for funds held outside a tax-sheltered account, especially for an investor in a high tax bracket.

It's an especially timely consideration as the year draws to a close. In November and December, investors with taxable accounts should stay alert to disclosures about any capital gains distributions that mutual funds expect to make to their investors. A distribution may sound like a gift, but it's not -- it's a gain that Uncle Sam considers taxable income. Still, investors can limit their tax exposure with savvy end-of-year moves.

Investors can take some comfort in the stock market's lousy 2011 performance. The nearly 6 percent decline of the Standard & Poor's 500 index won't help investors meet long-term savings goals. But it does mean that relatively few stock funds have capital gains to pass on to investors. Foreign stocks have fared worse, so investors are even less likely to see tax bills from the international portion of their fund portfolios.

Diversified bond funds have returned an average of 2 percent this year, according to Morningstar. That makes taxable bonds -- a category that excludes municipal bonds, whose investors are exempt from federal taxes -- a logical place to begin when scrutinizing a fund portfolio for potential hidden tax hits.

But don't ignore the stock component. Dividend-paying stocks have generally fared better than the broader market, making them potential candidates to pass on capital gains. And stocks have been unusually volatile this year, which creates an opportunity for fund managers who frequently trade holdings in hopes of beating the market. If they succeed, an investor can get ahead. But the advantage could be minimal if an investor gets hit with capital gains. Here are tips and current considerations to make about mutual funds and limiting tax exposure:

Understand capital gains. When fund managers sell stocks or bonds that appreciated in value, they pass on the capital gains to investors each year. It can happen even if a mutual fund lost money. That's because it's the appreciation of the fund's individual holdings, rather than of the fund as a whole, that trigger capital gains.

Check the estimates. Fund companies are now giving investors a heads-up about which mutual funds they expect will generate short-term capital gains by the end of December.

Consider timing. If a fund expects to distribute a gain, wait until after the distribution date to invest any new cash in that fund, if it will be held in a taxable account.

Consider taking tax losses. To offset capital gains elsewhere in a portfolio, investors might want to consider selling some investments in their taxable accounts that have lost value.

by Mark Jewell Associated Press Nov. 27, 2011 12:00 AM




After-tax return could alter look of investment

After-tax return could alter look of investment

BOSTON - A surge of cash flow into a business can make it seem like a powerhouse. Yet its bottom line might be underwhelming after taxes and other expenses are figured in.

The same can hold true with investing. Enthusiasm about market-beating performance touted in a quarterly mutual-fund report can wither once an investor's after-tax return is calculated.

The gap between pre- and post-tax returns isn't an issue for mutual funds held in retirement accounts such as IRAs or 401(k)s, where investment earnings can grow tax-free. But the difference can be significant for funds held outside a tax-sheltered account, especially for an investor in a high tax bracket.

It's an especially timely consideration as the year draws to a close. In November and December, investors with taxable accounts should stay alert to disclosures about any capital gains distributions that mutual funds expect to make to their investors. A distribution may sound like a gift, but it's not -- it's a gain that Uncle Sam considers taxable income. Still, investors can limit their tax exposure with savvy end-of-year moves.

Investors can take some comfort in the stock market's lousy 2011 performance. The nearly 6 percent decline of the Standard & Poor's 500 index won't help investors meet long-term savings goals. But it does mean that relatively few stock funds have capital gains to pass on to investors. Foreign stocks have fared worse, so investors are even less likely to see tax bills from the international portion of their fund portfolios.

Diversified bond funds have returned an average of 2 percent this year, according to Morningstar. That makes taxable bonds -- a category that excludes municipal bonds, whose investors are exempt from federal taxes -- a logical place to begin when scrutinizing a fund portfolio for potential hidden tax hits.

But don't ignore the stock component. Dividend-paying stocks have generally fared better than the broader market, making them potential candidates to pass on capital gains. And stocks have been unusually volatile this year, which creates an opportunity for fund managers who frequently trade holdings in hopes of beating the market. If they succeed, an investor can get ahead. But the advantage could be minimal if an investor gets hit with capital gains. Here are tips and current considerations to make about mutual funds and limiting tax exposure:

Understand capital gains. When fund managers sell stocks or bonds that appreciated in value, they pass on the capital gains to investors each year. It can happen even if a mutual fund lost money. That's because it's the appreciation of the fund's individual holdings, rather than of the fund as a whole, that trigger capital gains.

Check the estimates. Fund companies are now giving investors a heads-up about which mutual funds they expect will generate short-term capital gains by the end of December.

Consider timing. If a fund expects to distribute a gain, wait until after the distribution date to invest any new cash in that fund, if it will be held in a taxable account.

Consider taking tax losses. To offset capital gains elsewhere in a portfolio, investors might want to consider selling some investments in their taxable accounts that have lost value.

by Mark Jewell Associated Press Nov. 27, 2011 12:00 AM




After-tax return could alter look of investment

Scottsdale Quarter development could include apartments, hotel, retail

Scottsdale Quarter

Michael Schennum/The Arizona Republic Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.


Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.

Glimcher Realty Trust has picked the Zaremba Group LLC of Cleveland to build 350 luxury apartments on the 28-acre site southeast of Scottsdale Road and Greenway-Hayden Loop, said Kent Chantung of Zaremba. An $80 million third phase of development would include ground-floor commercial space with an unidentified retail anchor, he said.

Glimcher officials did not return calls seeking comment, and the Scottsdale Quarter would not elaborate on its development strategy.


"There's not much I can share," said Richard Hunt, Scottsdale Quarter general manager. "Phase 3 plans are still being solidified but they include a hotel, residential and retail components."

Chantung said Zaremba and Glimcher would like to begin development by the third quarter of 2012 for the remaining 9 acres of the 28-acre site.

The front two-thirds of the property includes shops, restaurants, offices, a plaza and two parking garages.

Scottsdale Quarter apartments would join a list of more than 5,200 apartments approved or proposed for development in Scottsdale.

The list includes 960 units in two projects northwest of the Scottsdale Airport that Scottsdale City Council approved in October. Plus, an additional 605 apartments east of the airport on Hayden Road the council could consider Dec. 13.

Scottsdale's flurry of apartment projects has raised concerns about overbuilding in that housing sector and objections from aviation interests about building apartments too close to the airport.

The Scottsdale Airport Advisory Commission recommended denial of all three Scottsdale Airpark apartment projects. Commissioners expressed fears that Airpark residents would complain about aircraft noise and pressure the city to restrict airport operations.

This year, Scottsdale Airport has reported a monthly average of 11,855 operations - an aircraft takeoff or landing - through September and 83 noise complaints per month. Those complaints are coming from an average 12 people per month who file one or more complaints.

Renters instead of owners

Scottsdale Quarter's apartment project would be in lieu of condominiums that were envisioned for the development about six years ago.

Glimcher could build up to 410,000 square feet of residential space for apartments or condos, and there is not set number of units allowed, said Bryan Cluff, a city planner.

The city has approved multifamily residential space at the Quarter so the airport commission would not have any input on that project under the current plan, said Gary Mascaro, Scottsdale aviation director.

The commission met Monday to discuss Airpark land-use issues.

Most of the discussion involved a conference call with Anthony Garcia, a Federal Aviation Administration compliance specialist in Los Angeles.

FAA official weighs in

Garcia expressed his concerns about residential development near the Scottsdale Airport and explained how Los Angeles-area airports have been pressured to restrict flight operations because of noise complaints from adjacent neighborhoods.

"It's a limited number of people, but they're persistent," Garcia said of residents filing complaints with the airports.

Santa Monica's airport, which is similar to Scottsdale's, is under extreme pressure from residents, he said.

Michael Goode, airport commission vice chairman, expressed fears that apartment building owners would pressure the city to allow conversion of their units to condos.

Officials agree that condo and homeowners tend to register more noise complaints than apartment dwellers.

"I think we're headed for extinction," Goode said of the Scottsdale Airport.

The commission voted to request a work-study session with the Scottsdale City Council to discuss the Airpark land uses. Garcia of the FAA agreed to participate in the meeting via teleconference.

Mascaro, the aviation director, said no meeting has yet been set.

by Peter Corbett The Arizona Republic Nov. 25, 2011 08:53 AM


Scottsdale Quarter development could include apartments, hotel, retail

Scottsdale Quarter development could include apartments, hotel, retail

Scottsdale Quarter

Michael Schennum/The Arizona Republic Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.


Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.

Glimcher Realty Trust has picked the Zaremba Group LLC of Cleveland to build 350 luxury apartments on the 28-acre site southeast of Scottsdale Road and Greenway-Hayden Loop, said Kent Chantung of Zaremba. An $80 million third phase of development would include ground-floor commercial space with an unidentified retail anchor, he said.

Glimcher officials did not return calls seeking comment, and the Scottsdale Quarter would not elaborate on its development strategy.


"There's not much I can share," said Richard Hunt, Scottsdale Quarter general manager. "Phase 3 plans are still being solidified but they include a hotel, residential and retail components."

Chantung said Zaremba and Glimcher would like to begin development by the third quarter of 2012 for the remaining 9 acres of the 28-acre site.

The front two-thirds of the property includes shops, restaurants, offices, a plaza and two parking garages.

Scottsdale Quarter apartments would join a list of more than 5,200 apartments approved or proposed for development in Scottsdale.

The list includes 960 units in two projects northwest of the Scottsdale Airport that Scottsdale City Council approved in October. Plus, an additional 605 apartments east of the airport on Hayden Road the council could consider Dec. 13.

Scottsdale's flurry of apartment projects has raised concerns about overbuilding in that housing sector and objections from aviation interests about building apartments too close to the airport.

The Scottsdale Airport Advisory Commission recommended denial of all three Scottsdale Airpark apartment projects. Commissioners expressed fears that Airpark residents would complain about aircraft noise and pressure the city to restrict airport operations.

This year, Scottsdale Airport has reported a monthly average of 11,855 operations - an aircraft takeoff or landing - through September and 83 noise complaints per month. Those complaints are coming from an average 12 people per month who file one or more complaints.

Renters instead of owners

Scottsdale Quarter's apartment project would be in lieu of condominiums that were envisioned for the development about six years ago.

Glimcher could build up to 410,000 square feet of residential space for apartments or condos, and there is not set number of units allowed, said Bryan Cluff, a city planner.

The city has approved multifamily residential space at the Quarter so the airport commission would not have any input on that project under the current plan, said Gary Mascaro, Scottsdale aviation director.

The commission met Monday to discuss Airpark land-use issues.

Most of the discussion involved a conference call with Anthony Garcia, a Federal Aviation Administration compliance specialist in Los Angeles.

FAA official weighs in

Garcia expressed his concerns about residential development near the Scottsdale Airport and explained how Los Angeles-area airports have been pressured to restrict flight operations because of noise complaints from adjacent neighborhoods.

"It's a limited number of people, but they're persistent," Garcia said of residents filing complaints with the airports.

Santa Monica's airport, which is similar to Scottsdale's, is under extreme pressure from residents, he said.

Michael Goode, airport commission vice chairman, expressed fears that apartment building owners would pressure the city to allow conversion of their units to condos.

Officials agree that condo and homeowners tend to register more noise complaints than apartment dwellers.

"I think we're headed for extinction," Goode said of the Scottsdale Airport.

The commission voted to request a work-study session with the Scottsdale City Council to discuss the Airpark land uses. Garcia of the FAA agreed to participate in the meeting via teleconference.

Mascaro, the aviation director, said no meeting has yet been set.

by Peter Corbett The Arizona Republic Nov. 25, 2011 08:53 AM





Scottsdale Quarter development could include apartments, hotel, retail

Scottsdale Quarter development could include apartments, hotel, retail

Scottsdale Quarter

Michael Schennum/The Arizona Republic Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.


Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.

Glimcher Realty Trust has picked the Zaremba Group LLC of Cleveland to build 350 luxury apartments on the 28-acre site southeast of Scottsdale Road and Greenway-Hayden Loop, said Kent Chantung of Zaremba. An $80 million third phase of development would include ground-floor commercial space with an unidentified retail anchor, he said.

Glimcher officials did not return calls seeking comment, and the Scottsdale Quarter would not elaborate on its development strategy.


"There's not much I can share," said Richard Hunt, Scottsdale Quarter general manager. "Phase 3 plans are still being solidified but they include a hotel, residential and retail components."

Chantung said Zaremba and Glimcher would like to begin development by the third quarter of 2012 for the remaining 9 acres of the 28-acre site.

The front two-thirds of the property includes shops, restaurants, offices, a plaza and two parking garages.

Scottsdale Quarter apartments would join a list of more than 5,200 apartments approved or proposed for development in Scottsdale.

The list includes 960 units in two projects northwest of the Scottsdale Airport that Scottsdale City Council approved in October. Plus, an additional 605 apartments east of the airport on Hayden Road the council could consider Dec. 13.

Scottsdale's flurry of apartment projects has raised concerns about overbuilding in that housing sector and objections from aviation interests about building apartments too close to the airport.

The Scottsdale Airport Advisory Commission recommended denial of all three Scottsdale Airpark apartment projects. Commissioners expressed fears that Airpark residents would complain about aircraft noise and pressure the city to restrict airport operations.

This year, Scottsdale Airport has reported a monthly average of 11,855 operations - an aircraft takeoff or landing - through September and 83 noise complaints per month. Those complaints are coming from an average 12 people per month who file one or more complaints.

Renters instead of owners

Scottsdale Quarter's apartment project would be in lieu of condominiums that were envisioned for the development about six years ago.

Glimcher could build up to 410,000 square feet of residential space for apartments or condos, and there is not set number of units allowed, said Bryan Cluff, a city planner.

The city has approved multifamily residential space at the Quarter so the airport commission would not have any input on that project under the current plan, said Gary Mascaro, Scottsdale aviation director.

The commission met Monday to discuss Airpark land-use issues.

Most of the discussion involved a conference call with Anthony Garcia, a Federal Aviation Administration compliance specialist in Los Angeles.

FAA official weighs in

Garcia expressed his concerns about residential development near the Scottsdale Airport and explained how Los Angeles-area airports have been pressured to restrict flight operations because of noise complaints from adjacent neighborhoods.

"It's a limited number of people, but they're persistent," Garcia said of residents filing complaints with the airports.

Santa Monica's airport, which is similar to Scottsdale's, is under extreme pressure from residents, he said.

Michael Goode, airport commission vice chairman, expressed fears that apartment building owners would pressure the city to allow conversion of their units to condos.

Officials agree that condo and homeowners tend to register more noise complaints than apartment dwellers.

"I think we're headed for extinction," Goode said of the Scottsdale Airport.

The commission voted to request a work-study session with the Scottsdale City Council to discuss the Airpark land uses. Garcia of the FAA agreed to participate in the meeting via teleconference.

Mascaro, the aviation director, said no meeting has yet been set.

by Peter Corbett The Arizona Republic Nov. 25, 2011 08:53 AM





Scottsdale Quarter development could include apartments, hotel, retail

Scottsdale Quarter development could include apartments, hotel, retail

Scottsdale Quarter

Michael Schennum/The Arizona Republic Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.


Further development of the Scottsdale Quarter could include apartments, a hotel and additional retail on the eastern side of the property.

Glimcher Realty Trust has picked the Zaremba Group LLC of Cleveland to build 350 luxury apartments on the 28-acre site southeast of Scottsdale Road and Greenway-Hayden Loop, said Kent Chantung of Zaremba. An $80 million third phase of development would include ground-floor commercial space with an unidentified retail anchor, he said.

Glimcher officials did not return calls seeking comment, and the Scottsdale Quarter would not elaborate on its development strategy.


"There's not much I can share," said Richard Hunt, Scottsdale Quarter general manager. "Phase 3 plans are still being solidified but they include a hotel, residential and retail components."

Chantung said Zaremba and Glimcher would like to begin development by the third quarter of 2012 for the remaining 9 acres of the 28-acre site.

The front two-thirds of the property includes shops, restaurants, offices, a plaza and two parking garages.

Scottsdale Quarter apartments would join a list of more than 5,200 apartments approved or proposed for development in Scottsdale.

The list includes 960 units in two projects northwest of the Scottsdale Airport that Scottsdale City Council approved in October. Plus, an additional 605 apartments east of the airport on Hayden Road the council could consider Dec. 13.

Scottsdale's flurry of apartment projects has raised concerns about overbuilding in that housing sector and objections from aviation interests about building apartments too close to the airport.

The Scottsdale Airport Advisory Commission recommended denial of all three Scottsdale Airpark apartment projects. Commissioners expressed fears that Airpark residents would complain about aircraft noise and pressure the city to restrict airport operations.

This year, Scottsdale Airport has reported a monthly average of 11,855 operations - an aircraft takeoff or landing - through September and 83 noise complaints per month. Those complaints are coming from an average 12 people per month who file one or more complaints.

Renters instead of owners

Scottsdale Quarter's apartment project would be in lieu of condominiums that were envisioned for the development about six years ago.

Glimcher could build up to 410,000 square feet of residential space for apartments or condos, and there is not set number of units allowed, said Bryan Cluff, a city planner.

The city has approved multifamily residential space at the Quarter so the airport commission would not have any input on that project under the current plan, said Gary Mascaro, Scottsdale aviation director.

The commission met Monday to discuss Airpark land-use issues.

Most of the discussion involved a conference call with Anthony Garcia, a Federal Aviation Administration compliance specialist in Los Angeles.

FAA official weighs in

Garcia expressed his concerns about residential development near the Scottsdale Airport and explained how Los Angeles-area airports have been pressured to restrict flight operations because of noise complaints from adjacent neighborhoods.

"It's a limited number of people, but they're persistent," Garcia said of residents filing complaints with the airports.

Santa Monica's airport, which is similar to Scottsdale's, is under extreme pressure from residents, he said.

Michael Goode, airport commission vice chairman, expressed fears that apartment building owners would pressure the city to allow conversion of their units to condos.

Officials agree that condo and homeowners tend to register more noise complaints than apartment dwellers.

"I think we're headed for extinction," Goode said of the Scottsdale Airport.

The commission voted to request a work-study session with the Scottsdale City Council to discuss the Airpark land uses. Garcia of the FAA agreed to participate in the meeting via teleconference.

Mascaro, the aviation director, said no meeting has yet been set.

by Peter Corbett The Arizona Republic Nov. 25, 2011 08:53 AM





Scottsdale Quarter development could include apartments, hotel, retail

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