A Hit to the Foreclosure Rescue Companies

Today the North Carolina attorney general has just filed lawsuits against three Charlotte based foreclosure rescue companies.  The attorney general alleges that the three companies charged high fees but were unable to save their customers homes.  It is believed that upon collecting the fees from their customers, these companies took no real actions to try to prevent their clients from going into foreclosure.  Customers are complaining to agencies such as the Better Business Bureau, which is what spurred the investigation into the industry and specifically these companies.  Headed by Roy Cooper, his goal is to send a message to similar companies that taking advantage of customers in their time of need will not go unseen or unnoticed. 

 

What is truly unfortunate is how this lawsuit will affect similar companies whose business practices truly help those in need.  Companies such as US Consumer Solutions, another Charlotte based company that provides assistance to homeowners in foreclosure situations.  The company provides help to customers based on the HOPE organizations guidelines which list the procedures needed to complete a successful loan modification or loss mitigation.  Within these guidelines, US Consumer Solutions is able to provide the type of guidance and information home owners need in order to avoid foreclosure and get back on track.  It is sad that if the attorney general pushes forward with his lawsuit, the image of legitimate, hard working companies will be tarnished and home owners for the worse.

CATS, building for the Future

With the staggering gas prices that have hit Charlotte residents in the recent months, ridership on the city’s mass transit system has seen an enormous jump.  Comprised of both long and short distance busses as well as the light rail, Charlotte has begun to offer its residents true alternatives to during to and from work.  So much so, that in the last month, ridership has jumped 39 percent.  Previously, the department of transportation has had to look hard and sink into their pockets to get riders to ditch their cars and take mass transit.  Thanks in part to the gas crisis and the ever failing economy, CATS has found themselves in a predicament which will weigh heavily on their future plans for expansion.

With the influx of patrons to mass transit there has also been a high level of revenue pouring into the system.  Sadly with crude oil at high, as well as high costs for raw metal, the transit system has been forced to reevaluate whether it can expand by ways of new busses, new rail lines, and revised park and ride lots.  The predicament is trying to retain the amount of new ridership that we have seen over the past few months.  Long term wise, a high level of customers using the system is great but people will be looking for newer and more efficient lines of transportation.  Additional areas will need to be reached and customers will need to be satisfied.  These are a few of the problems that CATS faces in the upcoming months.  Plans to enforce several different tax programs are thought to help with revenue but whose end results are still unknown.  I believe that there is no better time than the present to grab new riders.  Without needing any press to do so, people are making the smart choice and switching over to public transportation.  The key is to get them used to it and keep new riders coming aboard. 

Murdock’s Vision Comes to Fruition

During the grand opening ceremony this morning of the new North Carolina Research Center, David Murdock announced that of the new companies joining the center, PepsiCo has agreed to come aboard.  Joining other companies like Dole Foods, UNC Nutrition Research, and other university research centers.  PepsiCo plans on occupying 4,000 square feet of space in the new building.  It has not been announced how many people will be hired as of yet, but previous employees of the Pillowtex Mill which closed in 2003.  Workers are being encouraged to begin pre-hire retraining to make assimilation into the new companies much easier. 

With the addition of this new center I can only imagine what great things this will do for the local population and economy.  With an influx of giant companies joining up to get space in the center, jobs are soon to follow.  With the economy in the state that it is, future hope of building local jobs and resources for the area are going to be huge.  Another aspect that will experience some evolution will also be a retail side to help offer services to the hundreds that are planned to be working in the future.  I look forward to seeing the development of the center and the surrounding area.

The Rebirth of Plaza Central

When Charlotte Residents think of a night out, several areas usually come to mind.  Places like NoDa or South End are the usual point of destination for those looking for an artsy place for dining out or perhaps a night of art shopping.   One neighborhood which is showing a promise for rebirth is the Plaza Central area located near Thomas and Elizabeth Ave.  This tight nit group of retail stores and dining establishments has been neglected for some time.  In the 1920’s Plaza Central was referred to as the “Miracle Mile” and was one of Uptown’s premier spots for retail business.  It wasn’t until the Depression era when Plaza Central began to get the negative press that stuck to it in recent years.  It wasn’t until the recent development of a “krawl” to the area that it has seen a recent rebirth.

 

Having personally attended the Gallery Krawl in both NoDa and South End, I know what benefit this type of large public advertising can do for an area.  In a place like Charlotte where each local area competes for rights to be “the cool spot to hang out”, Plaza Central is not one that comes to mind.  To be completely honest I can’t say that I have really heard of it until this article.  But after doing some research on the area I am intrigues to see what it has to offer to compete with its artsy brethren.  I love a good gallery krawl.  There is nothing better than on a nice night to get dressed up, drink some wine, and look at some art.  There is something that makes it so comfortable to be out and about with loads of people doing exactly the same thing.  Another aspect of the gallery krawl that I enjoy is the exposure to forms of art that I am usually not familiar with.  I love the relaxed atmosphere that comes from these krawls.  So I would love to think that Plaza Central would have a Krawl to keep up with the surrounding areas.  Hopefully I will have the opportunity to visit the Plaza Central Krawl in the next few weeks.  More to report on then.

Credit Cards, not an option for long

Credit card companies are now bracing themselves for what could be the next crisis to hit the financial market in recent years.  As we head into post recession times, we are finding that aside from a fallout in the mortgage industry and the stock market the next market that is being threatened is the giant Credit Card industry.  With Americans using their credit cards to help make ends meet, we are finding ourselves in more debt than this country has ever seen.  While some individuals may be able to make their minimum payment, others are quickly finding themselves in a crisis of debt and fees. 

 

Current legislation allows credit card companies to essentially charge whatever rate of interest as they see fit.  Their procedure introduces potential customers with a low rate or perhaps a modified deal that calls for six to twelve months of no interest or no payments etc…  It is once these terms have reached fruition do customers see the true intent of the credit card companies.  Raising rates from 14-20% with default rates going up to as high as 30%.  Hopefully with a bill going through senate early next year, credit card companies will have several new actions in place to help control raising interest rates and terms of the debt.

The true tragedy is the situation that so many Americans find themselves in today, default.  When a customer misses a payment, credit card companies enforce a set of actions which absolutely scares me. Most of the time they will raise interest rates to default levels and charge exorbitant fees.  Then month after month when customers still cannot make their payments a credit card company will then sell that debt to collection companies that hound the victim night and day. 

I guess what I mean to convey to everyone is to stay away from credit cards.  I know your mother probably told you the same thing when you were 16 and got your first GAP card, but what held true then still holds true today.   The credit card companies will soon be downsizing further in the anticipation of the foreboding crisis.  Hopefully the idea of living beyond your means is wearing thin and Americans will not be drawn in closer to this economic crisis. 

Asheville Gets New Urban Community

Modeled after Huntersville’s Birkdale Village, a new community is being developed just south of Biltmore Estates in Asheville, North Carolina.  The $200 million dollar 42-acre mixed use development is being constructed by Biltmore Farms LLC and Charlotte’s Crossland LLC.  Together they plan to create what will be the premiere location for mixed Office, Retail, and Residential in the Asheville area.  Already built into this area is a new YMCA that has a membership of over 9,000 people.  One of the first big retailers to join up will be REI who plans on building a giant 2 story location at the site.  Future tenants that have already committed to moving in include Barnes & Noble, P.F. Changs China Bistro, Brixx Pizza, and 131 Main. 

It is wonderful to see that developers are not afraid of markets such as Asheville’s where the primary amounts of residents are college students and second home buyers.  The plan is that the Urban Community will resemble the artsy town of Asheville with its 72,000 residents and prominent college scene.  It is believed that the 4,000 residents that live near the Biltmore Park Town Center will utilize most of the shops and retail coming to the area.  It is with they’re help that the community will thrive and be successful.

I find myself baffled by the amount of hope and foresight that developers are having these days.  Facing many perilous situations, developers have drawn a line in the sand and are refusing to slow down due to current conditions.  I think that the one element that keeps these companies pushing forward is a great amount of capitol they retain and they’re close relationships with the banks they use.  Even with the credit situation, I have found that the companies who are operating effectively these days are the ones who have developed and nurtured the relationships with their banks.  I guess a good lesson from this is to research and develop the relationships we have with our banks.

Billionaire David Murdock Brings New Country Club to Kannapolis

In a time where the economy is struggling and home buyers are having a tough run at getting a loan, the last thing you would expect would be a multi-million dollar development going forward.  But in Kannapolis, billionaire David Murdock has created a $3.96 million dollar investment in the future of Kannapolis and the surrounding area.  Murdock’s Company, Castle & Cook, has invested $1.5 billion dollars into its North Carolina Research Center which will provide hundreds of jobs and additional income for the residents of the city.  The focus of this new community is to target upscale buyers in the region and to attract buyers who are looking to travel no more than 2 miles to and from work.  A very attractive strategy considering Murdock will own and run both the residential property and the research center located just minutes away from the site.  The site which is named Irish Creek, will house several amenities not yet available to the surround area.  Some of these include a full 18 hole golf course, Club house, and pool facilities, all of which have been finished before the majority of buyers have reserved or paid for they’re lots.  Part of the reasoning behind this is that the amenities will attract buyers to the area.  With pockets as deep as Murdock’s, worries of a unstable economy are not as much as a concern as to most people.  Building will continue through the next few years with a total of 580 homes planned until completion.  With a total of $500 million to be invested in the community, Irish Creek should become one of the most prestigious locations for people of Kannapolis and the surrounding areas to be a part of.  I believe that in times such as ours, it is important that all development does not cease.  With new development comes hope and confidence that in the future, things will get better.  Even though we are in hard times…they will not be for long.

Retail Coming to Uptown, Finally

Retail Coming to Uptown, Finally

Skyscrapers, a football stadium, and some of the largest banks in the world are all located in the beautiful Uptown area.  It astonishes me that with the amount of foot traffic going through the city that there is absolutely NO retail.  Well this is all about to change now that there are several marketplaces developing enormous amounts of retail to breathe life into the city.  The Metropolitan will soon be the premiere location for Retail and the first retail complex to compliment the uptown scene.   The area is marketing itself as an “Urban Marketplace” with Retail, Commercial Office, and Condominiums for the area.  Residents have already moved in and are entertaining the thoughts that soon they will be able to stroll down to specialist grocery stores such as Trader Joes.  They will also soon be able to enjoy stores such as Target, Best Buy, Staples, Marshalls, and a Home Depot Design Center.  Additionally, a William Sonoma concept called West Elm will be opening on Oct. 15^th.

The Metropolitan is a joint venture between Birmingham based Colonial Property Trust and Charlotte’s Pappas Properties and Collett & Associates.  The property was developed based on a 2007 Survey which stated that to improve the retail situation of the city that it would be important to focus on 3 types of retail to integrate in to the city.  The three agreements were for soft goods stores that cater to office workers.  Convenient neighborhood stores such as grocery and hardware stores.  Additionally large corporate stores like Best Buy and Target who are scheduled to move in.  All of this could be good business and additional local tax revenue for local government. 

Surprisingly, with the upturn of real estate in uptown, Pappas and Associates has reported that they’re retail space is currently 70% occupied.  This means that competition will have some difficulty finding space in what will soon be a very popular part of local culture.  Even the CATS system is getting involved by providing direct bus service to the Metropolitan community.  This will also increase the amount of potential traffic to the area which will hopefully entice more retail shops to satisfy the public’s need for retail.  All and all I believe that there is nothing else that could help more that this project to attract a different crowd to the uptown scene. 

Rent Falls as Big Banks Move Out

Rent Falls as Big Banks Move Out

With the purposed sale of Wachovia to Citigroup or Wells Fargo in the upcoming months, uptown companies are finding a lot more space for a lot less buck.  Wachovia, which currently occupies over 2.8 million square feet in its uptown 48 story building, will soon be moving to its 1.7 million square foot building once construction has completed.  In turn, uptown will have an enormous amount of space to fill in order to keep profits in margin. 

Currently, uptown has a vacancy rate of about 2% which is comparable to other large cities like Chicago or Atlanta.  But with the purposed takeover of Wachovia’s main operations comes the worry of how much space will be available in the future.  Economists believe that by 2010 the Vacancy Rate will be as high as 10%.  With that much available real estate, it is plausible to expect a huge decrease in home/condo pricing as well as the competitive rental market which exists in Charlotte. 

Another worry with Wachovia leaving Charlotte is that the many purposed future building project which are in limbo with the uncertainty of Wachovia’s fate.   Wachovia planned to build a Cultural Center as part of their new building located at Tryon and Stonewall St.  This would include a theatre, two museums, and a cultural center which if the purposed merger goes through would be at great risk.  It is hoped that with the original contract between Wachovia and the city of Charlotte will preserve the integrity of the new construction of these additions to the Charlotte society and culture.

Citi and Wells Fargo Battle over Wachovia

Citigroup and Wells Fargo Battle over Wachovia

 

The Battle over Wachovia escalated to a new level this weekend when Citigroup Inc. filed a lawsuit against Wells Fargo seeking more than $60 billion in damages for interference with the takeover of Wachovia’s banking operations.

The lawsuit that Citigroup filed on Monday is essentially due to Wachovia’s bad-faith breach of the banks’ contract.  The $60 billion suit is comprised of $20 billion in compensatory damages and more than $40 billion in punitive damages for “tortuous interference”.  

In hopes of avoiding a long costly legal battle, the Federal Reserve has become involved in order to help Wells Fargo and Citigroup come to an agreement over how Wachovia is to be split if at all.  With Wachovia draining assets and devaluing stock, it is essential that an agreement is made soon to help protect investors and clients alike.

One belief is that Wells Fargo and Citigroup will reach a compromise by splitting Wachovia Corp.’s network of 3,346 branches along geographic lines.  Although this may help bring harmony between the two banks, it is unsure what effect it will have on the average consumer.  Perhaps a diversification of Wachovia’s branches may cause some to lose faith in what was once one of the great financial powers of this nation.

Another worry about the proposed Citigroup takeover of Wachovia has to do with Wachovia’s integral component to Charlotte’s local economy.  It is believed that if New York based company Citigroup fully takes over Wachovia’s operations, that it will move its corporate offices taking with it hundreds of jobs.  The effect of such a transition would be extremely detrimental to Charlotte’s local economy which has grown and been partly established with the previous success of Wachovia’s banking and loan procedures. 

The turn of events which led to this arbitration between Wells Fargo and Citigroup In began early last week when Citi agreed to buy Wachovia’s banking assets for $2.1 billion in a deal that was worked out by the FDIC.  Throwing a wrench into the deal, Wells Fargo announced Friday that it would acquire Wachovia in a deal worth $15.1 billion.  Unlike Citigroup, Wells Fargo would not require the assistance of the Federal government to facilitate in the purchase.

It is unsure what affect this entire deal will have on the local home market.  With a slew of Preforeclosure Homes on a rise in the Charlotte Metro area, what is truly needed is a system in place that will help home owners on a local level regain their confidence in our monetary system and bring back a period of growth and not recession.