OCR Text |
Show 1,1 THE NATIONAL ENTERPRISE, SEPTEMBER 7, 1977 Developers enjoy combination of low, stable mortgage rates Mortgage rates on apartments and commercial projects remain frozen in a period of unusual stability, Citicorp Real Estate, Inc. reported in its monthly survey of benchmark rates. The rates have not rhaneed in four months and they have moved only 18 percent since last December. Such prolonged of long-terrates has been uncommon in recent history, says company president Philip pla-teaui- ng m Koz-lof- f. It has happened only twice before in the past 10 years in the second half of when rates were approximately the same as now, and for about six months in 1969-7when rates were high by the standards of that period, Kozloff said. He believes the current combination of stability and relatively low rates is a favorable environment for developers. Applications to lenders arc still increasing. And even in areas where rents are still considered too low to justify new construction, developers are busy planning projects for next year, he added. Lenders are showing 1973, 0, increasing willingness to consider speculative office or industrial projects, and will consider a lower perin centage of shopping centers, Kozloff continued, but most still draw the line at roadside pre-leasin- motels g recreation and buildings. Some shopping center and warehouse loans are hangbeing made with outs longer than the standard five years that is, the loan term extends more than five years, sometimes 10 years, beyond the lease of the major tenant. Some lenders still insert call provisions as insurance against future inflations, giving them the right to call the loan in 15 or 20 years and rewrite it at then-curre- medium-size- shopping d -14 8 8-3- 8-- 8 8-3- tenants AAA-cred- it end-of-Augu- (tele- phone company subsidiaries or the equivalent in financial strength). apartments 9-1- 8 -9- ing VanderWerffs has opened at Arrow Press Square. George Skordos, new owner of Konstan-tine's- , said he purchased VanderWerffs for $45,000 three weeks ago, and opened the restaurant named for his father. Formerly kitchen manager at Coachman's Restaurant, Skordos said this is his first attempt as a rest-auranteu- In r. partnership James, the two feature Greek food (lamb, grape leaves, sh- rimp) from breakfast to dinner, with average prices ranging from $2.75 to $4.50. Now employing eight people, Skordos said he expects to expand the business during the nyear. Although he is nowr open six days a week, he is considering opening his doors on Sunday, too. Perma-Se- al KEEPS ASPHALT ALIVE , v,,- ' Seals - Preserves - Beautifies Asphalt Pavement. " Most economical method of maintenance. Most asphalt pavement failure is caused from deterioration. When pavement is unsealed or improperly sealed the surface scales off and the pavement becomes brittle - subject to cracking I and potholes. Gilsonite seals in oils preventing oxidation and brittleness. income-propert- y is with hia brother. restaurant replac- Gilsonite st benchmark rates for all categories of mortgages were the same as in May, June and July. The rates for this period have been the lowest since spring of 1974. The current rate on new 34 8 Real Estate, Citicorp A new centers is percent and that for commercial or industrial projects secured by strong tenant credit is percent. The percent rate is available only to 8-7- interest rates. nt Inc.'s for Greek flavor spices Arrow Press No other material seats asphalt pavement effectively pernumently and economically as Perma Seat Perms Seat applied to asphalt m top of picture three vests ago No deterioration Raveled Untreated section shoes deterioration aggregate leads to water damage and cracking as GILSONITE PRODUCTS INC 2388 West 1500 South Salt Lake City, Utah 972-275- n 7 -38 percent. The rate on existing apartments is 18 to 14 percent lower in most regions. The benchmark rate well-rente- d Utahs average wage and jobless rate both low by Jim Schutz Utah continues to post the lowest unemployment rate and the lowest average hourly wage rate for the Western Twelfth District of the Federal Reserve tem. The Fed's Sys- bi-mont- "Western Economic cators Indi- says Utah's May 1977 jobless rate of 5.5 percent is well below the next lowest showing of 6.6 percent posted by Idaho. Utah workers received an average hourly wage of $5.08 in May, compared to the next lowest average wage of $5.44 reported in Idaho. The figures present an interesting picture regarding the correlation of wage rates and unemployment (sec table). It appears that, on the whole, as wage levels rise, the jobless percentage of the entire work force increases. Alaska, for example, the top state in both categories, shows an average hourly wage rate of $8.44 in April (May figures were unavailable), and an unemployment rate of 14.8 percent. Alaskas wage rate is ' a full 65 percent above Utahs rate and 27 percent above the second highest state, Washington, which reported an average hourly wage of $6.67. Significantly, the three lowest states in unemployment figures ivere also the three lowest states in the average wage category. of San Francisco J Arizona, Idaho, and Utah reported both the three lowest unemployment rates and lowest wage rates. WM s hMypHeme?" J fv i;1 Instead of holding on to escalating equipment prices and inflexibility switch. To phone equipment from Business Communication Systems, Utahs largest private telephone equipment company. duplicate with substantial savings over Join the hundreds of Utah companies, professional firms and institutions that have made the switch to lower cost BCS supplied phone systems. Wed be happy to show you the details. Business Communications Systems 487-474- 1 Utah s largest private telephone equipment company k |