EAGLESTAR.NET LAND AND PROPERTY REVIEW
http://www.eaglestar.net
Issue #29
August 11, 2008

IN THIS ISSUE:
Properties of the Week: Commercial Properties
Real Estate Roundup: Leasing a Shell or Box
Sponsor's Corner: Chez Euandus
Buyers List Update
Auction News:
- Brick Home, 12.5 Acres in KY
- The Missouri Manor
- The Lodge at Cedar Creek, MO
- Two Parcels, Farms and Timber, GA
Landterms.com Term of the Week: Paper road


"Let there be commerce between us." - from 'A Pact'
- Ezra Pound (American poet and critic, b. 1885 - d. 1972)


PROPERTIES OF THE WEEK
Commercial Land with Lake, Northeast Ohio
Listing ID: 20911
89.5+/- acres commercial land for sale in Seville, Medina County, Ohio. Zoned
local commercial, with a 12-acre lake. A large portion of the land is
park-like, wooded with mature trees and open meadows. The property is
currently being used as a campground; it has a bath house, recreation hall, and
outdoor pavilion. City water, sewer, power, and phone on property. Located
near Highway 76 and Highway 71. More land may be available to buyer if needed.
View photos and other information at http://www.eaglestar.net/dle4-.html.

Golden Valley, Arizona Commercial Land
Listing ID: 17531
2.35+/- acres on Highway 68, 1 mile west of U.S. Hwy 93. Every property around
this piece is zoned commercial. New commercial businesses in neighborhood.
Photos and additional information are available at
http://www.eaglestar.net/gvi3-.html.

Two-building Office, Westcliffe, Colorado
Listing ID: 20057
Two buildings on State Hwy 69, just off Main Street, Westcliffe, CO, with
1220+/- and 477+/- square feet on 0.3+/- acres. The larger building has a
reception area and conference room, two offices, and ample storage space in an
enclosed porch. The smaller building was remodeled 5 years ago, has its own
gas log stove, and room for two to three open plan offices. The 14,563+/-
square foot lot is fenced on three sides, includes a pleasant side yard for
picnicking or expansion, and has mature shade trees and plenty of parking.
Wonderful downtown location, easy access by foot or car, and high visibility
with frontage on a busy road. Photos and contact information at
http://www.eaglestar.net/wsmn29-.html.


REAL ESTATE ROUNDUP:
Leasing a Shell or Box
It is quite common for landlords to offer unfinished or partially finished
buildings for lease, especially in the commercial real estate industry. This
practice is known as "shell" or "box" leasing, both of which refer to the
building offered for lease. Shell buildings usually consist of a minimally
finished or unfinished exterior and a finished exterior facade that often
includes landscaping. A shell lease allows a tenant to design and construct
the interior space of the shell building according to his or her
specifications. Shell leasing thus benefits both landlords and tenants because
no money or other resources are wasted on improvements that the tenant does not
need or want. In addition, the completed space should suit the tenant as
perfectly as possible, since the improvements made under a shell lease are
tailored to his or her specific needs and desires.

Each shell lease is different from every other shell lease, and the terms and
concepts that are used to describe them cannot be used interchangeably in all
situations. One landlord's definition of a "vanilla shell" will not be exactly
the same as that of a prospective tenant or even another landlord. In fact,
the details of shell lease agreements tend to be dissimilar even within the
same geographic area. Two adjacent shell buildings may be available for lease
with completely different terms - even if both are owned by the same landlord.
Therefore, it is imperative that both parties to a shell lease agreement are
satisfied and familiar with its terms and conditions before signing it. This
document is the only way for both the landlord and tenant to be sure they are
getting what they want - and what they verbally agreed to. With that in mind,
we present this general guide to the different types of shell leases. Before
reading on, you may want to grab your shaker, because the following discussion
should be taken with at least one grain of salt.

TIA or FF&E?
The additional elements of construction that finish the interior of a shell
building and allow for tenant occupancy are known as "tenant improvements
(TI's)". The process of constructing and installing the TI's is called a
"build-out". In many cases, the landlord will offer a financial incentive to
prospective tenants to cover or partially defray the cost of TI's. This
incentive is known as a "tenant improvement allowance (TIA)", and is typically
offered in dollars per square foot. TIA's pay for things like interior walls,
wiring, plumbing, HVAC (heating, ventilation and cooling) systems, ceiling
tiles, carpeting, restroom fixtures, lighting, and so on. "Furniture,
fixtures, and equipment (FF&E)" or "trade fixtures" necessary for the tenant to
do business such as signs, shelving and storage, and computer systems are not
usually considered tenant improvements and so are not covered by the tenant
improvement allowance.

Whether or not the installation of a certain fixture or the construction of an
interior feature is paid for from the tenant improvement allowance or is
considered to be a trade fixture depends, of course, on the details of the
lease agreement. Also specific to each lease agreement is the question of who
is actually responsible for completing the tenant improvements and installation
of furniture, fixtures, and equipment. In some cases, the landlord will
complete these tasks. In others, the tenant is responsible. The parties may
also decide to allow the landlord to complete the TI's while the tenant
installs the FF&E. This flexibility in design, construction, and contract
terms has made shell leasing a very popular and attractive leasing option.

Vanilla Shell - That's a Tasty Dessert Crust, Right?
Real estate listings offering a vanilla shell are generally referring to a
commercial or residential building with a minimally finished interior, usually
with ceilings, lighting, plumbing, heating and cooling (HVAC), interior walls
(painted or unpainted), electrical outlets, elevators, rest rooms, and a
concrete floor. A vanilla shell is considered ready to lease and ready for
tenant improvements. Other common terms that mean more or less the same thing
as vanilla shell include "vanilla box", "lit shell", "lit box", "plain vanilla
shell", "plain vanilla box", "plain white box", "plain white shell", "tropical
shell", "warm lit shell", "warm lit box", "warm shell", "warm box", "warm
vanilla shell", "warm vanilla box", "warm white box", "warm white shell",
"white box", "white shell", and "white box shell".

Four Walls and a Roof: Grey Shell, Dark Shell, and Base Shell
Interior construction in a "grey shell" building is virtually nonexistent.
Grey shells usually have no HVAC system, lighting, plumbing, wiring, ceilings,
elevators, restrooms, or interior walls. A gray shell is ready for "vanilla
shell improvements (VSI's)", which will bring the building to a vanilla shell
state so that tenant improvements may then be constructed. VSI's, like TI's,
are completed once the lease agreement has been negotiated and executed. Grey
shell is essentially the same as "arctic shell", "bare shell", "base shell",
"cold dark shell", "cold dark box", "dark shell", "dark box", or "cold shell".

Lit vs. Dark, Cold vs. Warm
As can be seen, there are endless combinations of shell leasing terms, each
with a slightly different meaning. General rules, however, may be applied. If
a building is listed as "dark", rest assured that whatever else it lacks, it
has no interior, and possibly no exterior lights. On the other hand, a
building described as "lit" should have, at a minimum, interior and exterior
lights. Likewise, a "cold" building has no HVAC system, but a "warm" one does.

Just having these terms in the lease agreement, however, is not enough. The
details must be spelled out. In researching this article, we found many court
cases involving shell leases where the lease agreement described the building
to be leased using only terms like "cold dark shell", "warm lit shell", and
"vanilla shell". No specific details about the building construction were
included. Needless to say, it is difficult to defend one's legal position when
the lease contract lacks such details.

Residential Shells
One final note on this topic is that shell leasing has historically been
limited to retail and other commercial spaces, but is becoming increasingly
popular in residential real estate sales and leasing, especially of high-end
properties such as upscale condominiums and townhouses. The idea is to attract
either tenants or buyers, or both, by offering customizable living units.
Financial incentives in the form of tenant (or buyer) improvement allowances
afford new residents the opportunity to select nearly all aspects of interior
decor, including relatively large projects such as plumbing and fixtures,
wiring, and interior walls. Some locations in the West where this concept has
recently taken hold include Las Vegas, NV, and the Phoenix, AZ greater
metropolitan area.


SPONSOR'S CORNER
The Land and Property Review would like to thank this week's sponsor, Chez
Euandus:
Limousin Region of France, Luxury Villa For Sale
Listing ID: 20866
This elegant four-story stone manor, 4500+/- square feet, was built in 1843,
completely renovated in 1997, and upgraded in 2006. The property has been
meticulously maintained; only two families have ever owned this home. The
first floor features a sitting room, spacious dining room, breakfast room,
bathroom, wine cellar, and oversize kitchen. On the second floor are a large
master bedroom and bath, guest bedroom and bath, sitting room, laundry
room/kitchen, office, and powder room. The third level has three generous
guest bedrooms, each with a private bath, and a spacious lounge. The fourth
level contains two large guest bedrooms, a shared bath, and two walk-in
closets. The circular stairway winding from the first to the fourth floor is a
primary feature of this home, as are the eight fireplaces, the two first-floor
courtyards, and the two second-floor stone terraces, one with a 5-person spa.
Exterior features of the 6700+/- square foot lot include a garden, ivy-covered
pergola, and stone walkway. Most furnishings, workshop equipment, dishes, and
linens included. The home is located in the village of Forges, five hours
south of Paris, and is surrounded by cultural, historical, and natural
attractions. This property would make a truly wonderful vacation home or bed
and breakfast. Photos and additional information can be found at
http://www.eaglestar.net/dsn2-.html.


BUYERS LIST UPDATE
http://www.eaglestar.net/Land_Buyers_List/index.html

Buyer's Brokers, Agents, and Salespersons:
Looking for an edge in a tight market? Show your clients you are giving them
the extra service they deserve. Place unlimited free buyer's listings on
Eaglestar.net. It takes only minutes. Our advertisers of available properties
use the Buyer's List to contact possible buyers or their agents. Go to
http://www.eaglestar.net/pages/buyers.html to begin.

Looking in: North Carolina Mountains, Shining Rock Wilderness Area ideal.
Searching for 10-15 acres bordering a protected land reserve, between Blowing
Rock and Cherokee, NC, good recreation potential. Please refer to buyer
#17236.

Looking in: Western or south-central area of Kentucky, prefer Warren, Butler,
Ohio, Logan or Muhlenburg Counties. Seeking raw land or timberland in the
western or south central area of Kentucky; can be rough condition, but no
recent cut-over land. Please refer to buyer #2007243.

Looking in: Virgil, South Dakota Area
Wanted: 80-520 acres for hunting. Please refer to listing ID 17229.

Wanted: 50+ acres in upstate New York. Please refer to buyer #17235.

Looking in: Central or northern California in the pines at or above the snow
line.
Farm, ranch, or house with water rights and road. Must have river or stream
feature. 100-300 or so acres. Right at snow line best. Please refer to buyer
#17262.

The Retirement Conservancy Trust is looking to acquire liquidation-priced
vacant land in remote areas of California - particularly 29 Palms, Joshua Tree,
Yucca Valley, and Landers. Please refer to buyer #20903.


AUCTION NEWS
http://www.eaglestar.net/Land_Auction_Calendar/index.html

Ranch-Style Brick Home on 12.5+/- Acres
Russell Springs, Russell County, Kentucky
August 23, 2008
Listing ID: 20890
Absolute auction, 12.5+/- acres in three tracts. Nice ranch-style brick home
with basement, metal workshop with concrete floor, and large combination metal
barn. Property is located at 5713 Hwy 910 in the Green Acres Grocery Community
of Russell County, KY, just past the junction of Hwy 910 and Gosser Ridge Rd.
Auction banners posted. Further terms and details soon available. For
immediate info contact selling agents. Photos and contact information at
http://www.eaglestar.net/Detailed/20890.html.

The Missouri Manor, Columbia, Missouri
Elegant Historic Bed & Breakfast Live Auction
Saturday, August 23, 2008
Listing ID: 20846
English manor home built in 1927, adorned with classic features and charming
character. This property has a unique place in Missouri and University of
Missouri history. Features a cherry staircase, beautifully laid tile, indoor
and outdoor fountains and perennial gardens. Tucked off a winding road near the
Mizzou campus, the Manor enjoys a less hurried and quieter surrounding. Nearby
is the Katy Trail, the longest hiking and biking trail in the country. At
9,930+/- square feet on 1.48+/- acres, this home would make a great bed and
breakfast inn, a fraternity or sorority house, or a luxury estate. First floor:
formal entry, living room, dining room, kitchen, study, 2 sun rooms. Second
floor: 4 bedrooms, 4 baths. Third floor: Living quarters with bathroom and
laundry hookups. Preview tours from 2:00-4:00pm - 8/3/08, 8/10/08, 8/17/08.
Photos and additional information available at
http://www.eaglestar.net/hpr.html

The Lodge at Cedar Creek, Columbia, Missouri Live Auction
Saturday August 23, 2008
Listing ID: 20848
Surrounded by the natural beauty and wildlife of central Missouri, The Lodge at
Cedar Creek features beautiful stocked lakes, and over 100 acres of forests &
gently rolling hills. Auction includes all furnishings, equipment, boats,
gators, four-wheelers, etc. This 167+/- acre property will be auctioned with
all furnishings, equipment, boats, gators, four-wheelers, etc. included. This
is the perfect retreat destination – corporate, church, scouting, wedding, or
family.
Main A-frame lodge features:
* Fine dining room
* Banquet facilities
* Special events
* 3,500 sq/ft deck overlooking the water
Additional features:
* 6 private 2BR/2BA furnished cottages
* Bee’s Bunkhouse - 3 BR, full kitchen, and wood-burning stove
* Sally’s Lodge - 3 BR, full kitchen, 2 fireplaces
*Two world-class 5-stand trap ranges with electronic control tower
View photos and contact information at http://www.eaglestar.net/asn.html.

Two Parcels in Georgia, Farms and Timberland
Colquitt County and Brooks County, Georgia
Saturday, September 6, 2008
Listing ID: 20905
Parcel #1: 436+/- acres, including 236+/- acres cropland and 187+/- base acres.
This property features merchantable timber and plantation pines as well as a
large creek-fed pond. Includes 2800+/- square foot country home and excellent
fencing. This property offers hunting, fishing, and other recreation
opportunities. Great investment or farm income potential.
Parcel #2: 42+/- acres featuring pasture and woodland home sites with great
road frontage.
Both properties are conveniently located between Moultrie and Thomasville, one
hour north of Tallahassee, Florida and Interstate 10 and forty minutes west of
Valdosta, Georgia and Interstate 75. Photos and additional information
available at http://www.eaglestar.net/Detailed/20905.html.


LANDTERMS.COM TERM OF THE WEEK
http://landterms.com
Each issue we feature a real estate, forestry, natural sciences or other
land-related term from our partner site, Landterms.com.

This week's term: Paper road
A road or street that is planned and exists on maps or blueprints but does not
physically exist; a planned road that has not yet been constructed upon the
land.

Browse all categories of terms and definitions at
http://landterms.com/categories.html.


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