Tag Archives: finance

Ten Outstanding Young Omahans

February 21, 2017 by
Photography by Contributed

On Feb. 8, the Omaha Jaycees honored the Ten Outstanding Young Omahans of 2017 during a banquet at The Paxton Ballroom. This award recognized individuals for their commitment to the community and their extraordinary leadership qualities.

“It’s pretty amazing that this award started right here in Omaha, and it truly is an award and recognition of the highest honor,” says Jennifer Anderson, president of the Omaha Jaycees. “The Omaha Jaycees continue to be impressed with the caliber of applicants we see each year, and we are happy that we can continue the tradition of honoring Omaha’s best and brightest.”

The judges for this year’s event were:

Mikaela Borecky
United Way of the Midlands

Jessica Feilmeier
Truhlsen Eye Institute, UNMC

Nicole Jilek
Abrahams, Kaslow, & Cassman LLP

Nick Langel
Union Pacific Railroad

Marjorie Maas
Blue Cross and Blue Shield of Nebraska

Maggie McGlade
CQuence Health Group

P.J. Morgan
P.J. Morgan Real Estate

Katie Triplett
Nebraska Methodist Health System

Michael Young
RSM US LLP

This year’s TOYO! recipients are…

Chinh Doan

KETV Newswatch 7
Doan studied journalism, Spanish, and international studies at the University of Oklahoma and graduated as the “Outstanding Senior.” She is Omaha Tri Delta alumnae president, Young Catholic Professionals’ Parish Ambassadors coordinator, and is the inventory manager for the Junior League of Omaha’s “Project Hope Pack” Committee. She is also a member of Vietnamese Friendship Association of Omaha, and Asian American Journalists Association. She participates in the Omaha Press Club Show and Omaha Fashion Week.

Megan Hunt

Hello Holiday
Hunt began her career as a bridal designer.
She is the co-founder of Hello Holiday and is also the founder of Safe Space Nebraska. In 2010 Hunt received Shout Magazine’s 30 Under 30 honor, and in 2011 she was recognized as one of Midlands Business Journal’s 40 Under 40. Her 2014 book, Fabric Blooms, sold out of its first printing in under 24 hours. Hunt has served on the boards of Omaha Area Youth Orchestras, Friends of Planned Parenthood of the Heartland, CHEER Nebraska, and Friends of the Nebraska AIDS Project.

Ryan Ellis 

P.J. Morgan Real Estate
Ellis began his career at P.J. Morgan Real Estate as an intern while attending Creighton University. He graduated from Creighton with a bachelor’s degree in finance. In 2007, Ellis was promoted to vice president and chief operating officer, and in 2009, Ellis was named
company president.

Ellis serves on the boards of Family Housing Advisory Services, Omaha Conservatory of Music, and Fashion Institute Guild. He is a 2014 Leadership Omaha graduate and was awarded the Midland’s Business Journal’s 40 Under 40 award in the same year.

Emiliano Lerda, J.D., LL.M.

Justice For Our Neighbors of Omaha
Lerda earned a B.A. in communication studies from the University of Northern Iowa and a J.D. from Drake University Law School. He holds certificates in Public Service Law, Food & Agriculture Law, and International Comparative and Human Rights Law from Drake. He is the executive director at Justice for Our Neighbors of Omaha and has taught “Immigration, Law & Latinos” as an adjunct professor at UNO. He participated in the Nonprofit Executive Institute and Leadership Omaha Class 36 and is currently enrolled in the Harvard Business School’s Executive Education Program.

Leslie Fischer

Together A Greater Good
Fischer graduated from Millard North High School in 1995, and with a degree in business administration, minor in marketing, from UNO in 1999.

She is the co-founder of TAGG, a social good app that received the “Excellence in Business Award—Community” from the Greater Omaha Chamber in 2016. Fischer also received UNO’s Young Achievement Award in 2015.
She co-founded Ladies Who Launch Omaha and serves on the board of Saving Grace Perishable Food Rescue and B4B Society.

Cliff McEvoy, MPA, MSL

Buford Foundation
McEvoy graduated from Saint Louis University and served as an Air Force officer for 6 1/2 years. He left with the rank of Captain and was awarded the Air Force Commendation Medal.

McEvoy also earned an MPA from the University of Akron and an M.S. from Creighton University. McEvoy serves on Nebraskans for Civic Reform, the Greater Omaha Chamber’s Young Professionals Council, the Greater Omaha Chamber Young Nonprofit Professionals Network, and is president of Omaha Professionals United in Service. He is the executive director of the Buford Foundation.

Sheena Kennedy Helgenberger

Live Well Omaha Kids
Helgenberger earned a Master of Arts in Educational Administration from the University of Nebraska-Lincoln in 2010. She wrote a thesis under the direction of Dr. Rachelle Winkle-Wagner about African American women’s experiences transitioning to college. The research resulted in an article in the NASPA Journal.

She is the coalition director for Live Well Omaha Kids, and she is particularly passionate about empowering and protecting youth. The greatest reward of Sheena’s volunteer experiences has been her relationship with her Little Sister, Allanah.

Emily Poeschl

University of Nebraska at Omaha
Poeschl is also a 2016 TOYO! recipient. She has a BSBA from UNL and an MBA from UNO, where she is the director of marketing. Poeschl is a member of the Susan G Komen Nebraska Board of Directors, and serves in two national volunteer roles: the Komen Advocacy Advisory Taskforce and Komen Advocates in Science. She is a member of Women’s Fund of Omaha Circles Group, and United Way Community Investment Review Team. She is also a Girls Inc. Pathfinders mentor, a Delta Gamma Omaha Alumnae Chapter past president, and an SID 502 past trustee.

Kasey Hesse

Gallup
Hesse leads Gallup’s dot-com team as a technology manager at Gallup. She majored in international studies and Portuguese at UNL, and earned an M.A. in mental health counseling from UNO. Hesse is a board member at Bluebarn Theatre, Omaha Friends of Planned Parenthood, and is on the Kent Bellows Mentoring Program’s education committee. She is a 2016 New Leaders Council Fellow and a member of Leadership Omaha class 34.

Tony Vargas 

Omaha Healthy Kids Alliance and Omaha Public Schools Board
Vargas is a State Senator for District 7 in the Nebraska Legislature, representing the communities of Downtown and South Omaha. He previously served on the Omaha Public Schools Board of Education. Vargas earned a B.A. from the University of Rochester and an M.Ed. from Pace University and is currently the director of marketing and communications for Omaha Healthy Kids Alliance. He is also serves on the advisory board for New Leaders Council-Omaha.

RBC Wealth Management

December 8, 2013 by
Photography by Bill Sitzmann

RBC Wealth Management  specializes in retirement planning and wealth management strategies, working with clients to anticipate current and future financial needs and to develop a plan to achieve their goals. From families looking for assistance with retirement to small business owners trying to find the best strategy for investing their money, RBC Wealth Management  works to develop wealth management strategies best suited to each client.

Financial Advisor, Vice President, and member of RBC Wealth Management’s Financial Advisor Consulting Group, Bob Kenny takes wealth management very personally and strives to exceed his clients’ expectations of what a financial advisor can do for them. “Successfully meeting my client goals and receiving positive feedback from the client gives me the biggest sense of accomplishment,” says Kenny.

Kenny’s career in the financial services industry began in 1996 with AG Edwards. He was recruited by U.S. Bancorp Piper Jaffray in 1998. After working in both private client and institutional investment divisions, Kenny joined RBC Wealth Management  in 2006 to service clients and provide successful wealth-management solutions. He currently lives in Omaha with his wife, Caris. Their two children, Bob Jr. and Courtney, live nearby. Kenny holds Series 7, 9, 10, 31, 63, and 65 investment and securities licenses.

With a team of eight wealth-management professionals, RBC Wealth Management  creates a customized plan for each client through one-on-one meetings and in-depth discussions about client objectives. RBC Wealth Management’s thorough process assures clients that they will be assisted with the most refined investment-planning tools and sound wealth management strategies. RBC Wealth Management  also works to continuously examine each client’s specific financial picture in order to keep clients up-to-date on their financial goals.

As a former president of the Downtown Kiwanis Club and an active member of the Omaha community, Kenny knows how important such personal interaction is. Kenny prides himself that RBC Wealth Management  continually provides a customized financial-planning process representative of the integrity and professionalism found in the Omaha 
business community.

RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC

Bob Kenny
RBC Wealth Management

1120 S 101 St., Ste. 300
Omaha, NE 68124
402-392-6105
866-519-5221 (toll free)
402-392-6130 (fax)
rbcwmfa.com/bob.kenny

Prep for College Now

October 28, 2013 by

With college tuition seeing double-digit hikes and student loan debt at an all-time high, affording college is a big concern for many parents and students. But there are plenty of options that can make higher education reasonable for people at all income levels—grants, scholarships, financial aid, or just a good savings account. It’s all in the planning. Here are a few tips from four local financial pros.

“Certainly, the amount they should save depends on each [person’s] financial situation, but I tell them to put aside something. Start out with a regular savings account and build from there.” —Beverly Hobbs

Start Saving ASAP

Beverly Hobbs, LPL Financial Advisor with SAC FCU Wealth Management located at SAC Federal Credit Union, says parents should ideally begin saving for their child’s college education when they’re born. “With college as expensive as it is and costs rising…the earlier, the better,” Hobbs says. “Certainly, the amount they should save depends on each [person’s] financial situation, but I tell them to put aside something. Start out with a regular savings account and build from there.”

“The key here is consistency,” adds Crissy Hayes, vice president of operations at SAC FCU. “Take what discretionary income you have and budget to pay yourself first, then pay your kids second.” Scheduling automatic checking account withdrawals or payroll deductions to make regular deposits to a college fund—a “set it and forget it” system—is highly recommended.

“…all earnings in the investment are tax-deffered and remain tax-free when funds are withdrawn for higher-education expenses.” —Deborah Goodkin

Consider Investing in a 529 College Savings Plan

Deborah Goodkin, managing director of college savings plans for First National Bank of Omaha, says 529 College Savings Plans are among the best tools for parents to save for their children’s education. Plans, of which there are more than 90 available nationally, are issued by individual states. Nebraska offers four 529 plans, commonly referred to as NEST (Nebraska Education Savings Trust) plans.

NEST plans offer three big advantages, Goodkin says. “First, all earnings in the investment are tax-deferred and remain tax-free when funds are withdrawn for higher-education expenses. Second, for those who pay Nebraska state income tax, up to $5,000 of NEST contributions are deductible in computing one’s state income tax, and that amount will rise to $10,000 as of Jan. 1, 2014. Third, for those who are not savvy investors, 529 plans offer an easy way to invest and offer flexibility to move funds from more aggressive to less aggressive investments as the child ages, much like an IRA with a target retirement date does. Most plans have no minimum monthly investment, and as much as $360,000 total can be saved in any single NEST plan.”

Community colleges, technical and culinary schools, four-year colleges, and even universities abroad all qualify under 529 plan guidelines. Covered college expenses include tuition, books, fees, computers (when required for coursework), and room and board. “Virtually everything except transportation to and from school is included,” Goodkin adds.

In addition, 529 plans allow grandparents and others to make deposits as well, and the funds are transferable to other family members seeking higher education if the plan beneficiary does not use them.

Goodkin warns there are penalties on earnings when funds are withdrawn for unqualified expenses. And like any investment, there are always financial risks to consider. “But NEST plans have some of the highest plan ratings in the country, based on their earnings performance, their ease of use with online management tools and customer service, and the plans’ history of giving back to the community.”

Nonetheless, Hobbs advises parents to sit down with an expert before making any investment decisions. “Prior to investing in a 529 plan or making any investment, you want to talk with a financial advisor and tax advisor to assess your individual needs, your goals, and your risk tolerance. There are so many options, restrictions, and regulations, you want to make sure you get all your bases covered.”

“Too many parents make the mistake of thinking their kids will get full college scholarships—either academic or athletic—and they’re ill-prepared when they don’t.” —Goodkin

Look to Scholarships for Help (But Don’t Depend on Them Entirely)

“Too many parents make the mistake of thinking their kids will get full college scholarships—either academic or athletic—and they’re ill-prepared when they don’t,” Goodkin says. “What they don’t realize is that federal scholarship income guidelines are too low for many to quality. In addition, more people today are in need of financial assistance, so more are applying for scholarships. There’s just less out there.”

That’s not to say there aren’t scholarships to be found, many of which can be researched and applied for online. A comprehensive list of college scholarships, application tips and more can be found at www.scholarships.com. Students don’t need to wait until their junior or senior high school years to begin the scholarship hunt, Goodkin adds. Hundreds of smaller scholarships are awarded each year to elementary and high school students who enter essay contests, music competitions, and so on.

A high school guidance counselor can also be a great resource for learning about small scholarships offered in one’s community (think VFW, local charities, the Chamber of Commerce, etc.) or school system.

“Make sure to find out from the school what their priority deadline for FAFSA forms is [for financial aid for the following fall], as they vary.” —Paula Kohles

Seek Financial Aid

If scholarships and college savings just aren’t enough to cover your expenses, then seeking student financial aid is your next step. “Begin by completing your FAFSA [Free Application for Federal Student Aid] form well in advance and submitting to your college’s financial aid department to see if you qualify for federal grants or other aid,” suggests Hobbs.

Paula Kohles, associate director of financial aid at Creighton University, says FAFSA forms are typically filled out online these days and sent electronically to a school’s financial aid department. The beginning of a student’s second semester of their senior high school year is suggested as a good time to apply. “Make sure to find out from the school what their priority deadline for FAFSA forms is [for financial aid for the following fall], as they vary. Creighton’s is April 1st, but other schools’ deadlines are even earlier.”

Once received, the school will evaluate a student’s financial situation and send them an award notification letter spelling out their aid eligibility, Kohles says. Federally subsidized Stafford Loans and Perkins Loans, which offer college students reduced interest rate loans and special repayment options, as well as Pell Grants (which don’t need to be repaid), are some of the options students may qualify for.

“We also look at their eligibility for campus-based SEOGs (Supplemental Education Opportunity Grants) and work-study programs, as well as unsubsidized loan programs,” Hobbs adds. “There are a lot of aid options out there.”

The final takeaway? College preparation requires sound financial planning and good ol’ resourcefulness. But if you fall short, there is help available. Now get to it!

Beverly Hobbs is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC.

Mark Hasebroock

August 26, 2013 by
Photography by Bill Sitzmann

Despite Mark Hasebroock’s success as an entrepreneur—he was a co-founder of prosperous e-commerce businesses Hayneedle and GiftCertificates.com, in addition to having experience as a small business owner and working in investment and commercial banking—he says he still wishes he’d had less time-consuming, back-and-forth discussion and more expedient, hands-on guidance when he was on the launching pad.

“We got strung along so many times by different investors who just took forever to get to a conclusion. Having been on the other side of the desk starting companies of my own, it was frustrating looking first for the capital, and second: ‘Can anybody help me? How can I get from here to here? Where is this resource? If you were in my shoes, what would you do?’ type of stuff,” Hasebroock says. “At some point I thought, ‘There’s just got to be a better way to do it, and I want to someday start a fund of my own—and do it my way, and do it right.’”

In 2011, Hasebroock did just that, kicking off Dundee Venture Capital (DVC) with an objective to be responsive to, decisive with, and supportive of entrepreneurs, he explains. “When we get an inquiry, we should review it and either we get back to you and say it’s a fit, or we say, ‘It’s not a fit and here’s who you should talk to.’ And let’s do that in a 24- to 48-hour period. The standard is two to four weeks.”

With his team of Michael Wetta, Nick Engelbart, and Andrea Sandel, plus two interns (“They’re all rock stars; I’m notoriously bad at giving direction, so they have to be self-starters.”), DVC operates out of offices in the Mastercraft Building on North 13th Street on the edge of downtown. The Dundee in the company’s name, and in the logo based on a pre-1915 annexation postal stamp, reflects the company’s first offices, as well as Hasebroock’s home neighborhood.

“We started in Warren Buffett’s grandfather’s grocery store—that’s where Dundee Bank is today—and I was an investor in Dundee Bank, so it all kind of tied in together with some of the history with where capitalism sort of started in Omaha and the heart of Dundee,” Hasebroock explains.

“…when somebody comes in with ‘here’s my business, here’s what I’m doing, here’s the problem, here’s my solution, and here’s why my team’s going to win’…we usually know within the first five minutes if this is someone we’re going to back.”

He also likes both the Omaha and Nebraska associations with the Dundee name. Hasebroock grew up in Omaha (he was once a Peony Park lifeguard), graduating from Westside High School, and earning his undergraduate degree at University of Nebraska-Lincoln and his MBA from Creighton University. He and his wife, Jane, who met in their youth and married in 1984, chose to raise their four sons and four daughters in their shared hometown. “No twins and, yes, the same spouse,” Hasebroock likes to say, adding that the family calls the older four the “Varsity” team and the younger half, the “JV.” The collective teammates are now ages 11 to 27 and have kept the family involved in numerous school and community-related sports, clubs, and activities for years. And Hasebroock himself plays hockey with a local adult league, the BPHL (Beer-and-Pretzel Hockey League) on Team Gold, stressing their three-time defending champion status.

“I haven’t really strayed too far,” he says. And his ties to the Heartland continue through his investments. With a preference for Midwest-based endeavors, DVC invests anywhere from $50,000 to a half-million dollars in growth companies that focus on e-commerce and web services.

“The next criteria is super-passionate, driven founders, so when somebody comes in with ‘here’s my business, here’s what I’m doing, here’s the problem, here’s my solution, and here’s why my team’s going to win’…we usually know within the first five minutes if this is someone we’re going to back,” Hasebroock says.

DVC is already seeing its investees take off and even soar under the guidance of Hasebroock and his team. Hasebroock says it was through mentor Mike McCarthy (founding partner of McCarthy Capital) that he saw firsthand how the simple principle of “treat people like you want to be treated” breeds success, and he emulates that culture of respect at DVC. Plus, there’s a multigenerational—and even simpler—principle Hasebroock follows: “Like my grandfather used to say, there’s four secrets to success: W. O. R. K.”

“It’s empathetic because we understand. And yet there are demands on the capital. We certainly want it back. We’d like more than we put in.  But we also know that these founders are being pulled in two hundred different directions. And to the degree that we can help keep them on the rails a little bit and not just chase that next great shiny penny idea; that’s what we want to do.”

Hasebroock, who’s also now involved with a new Omaha-based accelerator for technology startups called Straight Shot, sees nothing but growth ahead for DVC.

“I think the next step is another fund that invests in startups. I don’t think the supply is going to slow down,” he says. “We’re continually seeing really creative ideas out of a lot of markets.”

Visitors Spend a Record $1 Billion

Illustration by U.S. Travel Association

Imagine Omaha hosting 40 College World Series events every year—in essence, that’s what actually happens in our city. New economic impact research shows 5 million out-of-town guests visited Omaha in 2012, the equivalent of holding the CWS in our city dozens and dozens of times. But more importantly, the research shows Omaha is no longer a one- or two-trick pony, where people only visit to attend the CWS or Berkshire Hathaway’s Shareholders Meeting. Our city has developed into a year-round destination.

Research conducted by Tourism Economics shows more people are visiting Omaha and spending more in our city than ever before. In 2012, research shows visitors spent $1.025 billion dollars in Omaha, a 13 percent spending increase in two years. As expected, visitor spending is highest during the second and third quarter during the typical summer travel season; however, hundreds of millions of dollars are being spent during other times of the year as well—more proof Omaha’s tourism engine is running full time.

The fact that tourism is a year-round business also impacts each of us directly in the form of tax relief. When visitors eat in our restaurants, stay in our hotels, and shop in our stores, they are bringing new money into our local economy. Tourism Economics reports that visitor spending saves each Douglas County household approximately $655 a year in taxes.

These new numbers make it clear that the more visitors spend, the more we save—simple math that adds up to a big return all year long.

Questions or comments? E-mail us at info@visitomaha.com.

Dana Markel is Executive Director of Omaha Convention & Visitors Bureau.

Homes for Heroes

June 20, 2013 by
Photography by Bill Sitzmann

When mortgage loan officer Michael Petrovich with The Private Mortgage Group in Omaha was offered the chance to work with the national Homes for Heroes program, he says it seemed like a perfect opportunity to show his thanks to those we depend on.

The program—which uses the tagline ‘Service Deserves Its Rewards’—offers discounts on real estate-related services to active and retired military, police officers, firefighters, teachers, and other civil servants that serve our communities and our country.

“My dad was a fireman for years with the Omaha Fire Department, and a good friend of mine’s dad is a retired Omaha police officer,” Petrovich says. “I also have a lot of friends in the military. [The program] sounded like an opportunity to help out a lot of friends and family, and this was an area I felt I could really make a difference…saving them some money when buying a home.”

Petrovich says as a Homes for Heroes affiliate member, he offers “hero” homebuyers free home appraisals, which are often required for home purchases and refinances handled by his firm. Waiving the fee saves the homebuyer $400. Fellow Private Mortgage Group employees Pete Coen and Jeremy Wilhelm are also affiliate members.

“[The program] sounded like an opportunity to help out a lot of friends and family, and this was an area I felt I could really make a difference.” – Michael Petrovich, The Private Mortgage Group

“We can offer the discounts to any qualifying client in the Omaha/Fremont territory we cover. All they need to do is sign up on the Homes for Heroes website, and it directs them to all the affiliates in the area,” Petrovich explains.

Real estate agents make up a large number of HFH affliliate members nationally. Locally, Prudential Ambassador Real Estate agents Michelle Gustafson, Gary Gernhart, Mamie Jackson, and Matt Anderson are affiliates. “We know the agents [at Prudential], and we’ve worked together to offer clients the HFH discounts. It’s been a team effort,” Petrovich adds.

The Homes for Heroes program was first created in 2002 by a group of lenders and Realtors in Minneapolis in response to the tragic events of 9/11. Petrovich was among the first Homes for Heroes affiliate members in Nebraska, joining in November 2012 when the program first launched in Omaha. The 501(c)(3) nonprofit, comprised of Realtors, lenders, and other real estate-related service providers, now has approximately 750 affiliates nationwide serving homeowners in 44 states.

Steve Minino, a Realtor with NP Dodge Real Estate, is another Homes for Heroes affliate in Omaha. Along with Realtors Deb and Mark Hopkins (all part of the Hopkins Home Team), Minino got involved when he learned about the program on the local news.

“We saw the advantages right away and jumped on board…being able to help our local heroes while getting some great exposure for us,” he says. “It was definitely a win-win situation.

“My family also has a long tradition of members serving in the Marine Corps. We liked the idea of helping out family and friends who serve and who could really benefit.”

“We saw the advantages right away and jumped on board…being able to help our local heroes while getting some great exposure for us. It was definitely a win-win situation.” – Steve Minino, NP Dodge Real Estate

As an affiliate, Minino says he offers 25 percent of his sales commission back toward the purchase process for Homes for Heroes clients. “This money is typically applied toward the closing costs being paid by the homebuyer,” he says. “If the buyer is not responsible for closing costs, then the money is donated to a charity of their choice.”

Minino also donates another five percent of his commission directly back to the Homes for Heroes organization, which they use to fund other projects, including the rehabing of homes to accommodate injured veterans.

“We’re currently working with several Heroes clients, and we hope to grow that number in the next six months or so.”

Millard Public Schools teacher Stephanie Poltack and her fiancé, Aaron Mackel, recently purchased a home together in West Omaha and took advantage of discounts offered by several local Homes for Heroes affliliates. “My Realtor, Judy Kramer with Prudential, told me about [Homes for Heroes] and referred me,” Poltack says. “Through the program, we received closing-cost assistance and got a discounted home inspection, and The Private Mortgage Group gave us a free home appraisal. I believe we saved $1,325 in all.

“Being a first-year teacher and a first-time homeowner, I’m very appreciative of all the help we received…It meant everything to us,” Poltack adds. “We were able to use the money saved to go out and buy a washer and dryer. It’s a great program, and I think if more people were aware of it, more would take advantage of it.”

“Being a first-year teacher and a first-time homeowner, I’m very appreciative of all the help we received…It meant everything to [my fiancé and me].” – Stephanie Poltack, teacher

Nationally, several media outlets and Hollywood celebrities have helped publicize the good works being done by Homes for Heroes’ affiliates nationwide, including Sean Hannity with Fox News, actor Gary Sinise, and the Orlando Magic basketball franchise. However, the nonprofit has grown primarily through word of mouth via the internet and news media.

Petrovich says one of the goals of the Omaha-area affiliates is to raise awareness of the Homes for Heroes program in Nebraska and encourage participation by our local heroes.

“We’re getting together to discuss ways to advertise,” he said. “We’ve placed ads in the Fremont paper, hung posters in firehouses and around town…We want our civil servants and military to know we support them and say thank you for serving our country and our community.”

Apartment Construction

May 25, 2013 by
Photography by Bill Sitzmann, Thom Neese, and Malone & Co.

When it comes to looking for the perfect apartment, bigger is not always better…or affordable. And with the main demographic of apartment dwellers in Omaha being Generation Y—those ranging in age from 22 to 27 years-old—they are making their feelings known and developers are listening.

Christian Christensen, owner of Bluestone Development, has been working in commercial real estate for nearly two decades and owns several apartment buildings, including The 9ines and Joslyn Lofts. He knows intimately the wants and needs of those looking for their next space to live.

Christian Christensen, owner of Bluestone Development.

Christian Christensen, owner of Bluestone Development.

“We have done condos, townhomes, row homes, historic renovations…” says Christensen, “but our focus right now is on apartments…all urban. Part of that is due to the market and part of it is due to our passion for apartments.” While the Old Market has been for years the go-to location for urban living, Christensen says that things are changing, especially with the development of Midtown Crossing. “Basically, anything east of I-680 are projects that we look at.”

With his primary customers being Generation Y, Christensen says that price is a big concern. “To make [these spaces] affordable, you’ve got to work hard on floor plans.” He explains that most developers today are designing smaller floor plans because, not only are they more reasonably priced, but “people are heading toward a no-waste type of living.”

“When you look at how homes were developed 15 years ago, you really only utilize 60 percent of your home on a daily basis. The other 40 percent you’re paying for, but not really utilizing it. It’s the same thing with apartments.”

Combine this with the fact that fewer people are living with roommates, these highly sought-after urban apartments are becoming more accessible to people who, a few years ago, could only dream of living in these locations.31273_0279_Web

Jerry Banks, portfolio director of real estate for NewStreet Properties, LLC, also works with developing and remodeling apartments, as well as retail and office spaces. The Omaha-based company owns properties all over the country, including Tiburon View and Huntington Park Apartments in Omaha,. While NewStreet does not develop urban locations and his tenants tend to range from 20- and 30-somethings to empty nesters, Banks says that his tenants are also looking for scaled-down floor plans. “We’re seeing more and more trends toward smaller units, both in studios and one bedrooms.”

Safety and security is another big focus of his tenants, says Banks. “That’s always been and will continue to be a very important renter requirement…very high on the list.”

To meet the demands of his residents, Banks says that NewStreet has been actively addressing a variety of security concerns, including changing all exterior lighting to brighter, more efficient LED bulbs, as well as implementing new, fully automated locks for all their apartments.

Banks refers to the possible security breach of buildings that have master keys or by former residents who may have had copies of keys made in the past. “None of our apartments have a master key of any type…we’ve de-mastered 100 percent of all the locks on all of our properties.” Each key is also tracked by a bar code, allowing the property owner to know who has borrowed a key and when that key was returned.31294_0219_Web

“We put a real emphasis on safety and security for our residents,” says Banks. “These are just some things that most residents don’t see and think about but just take for granted.”

Both Christensen and Banks say that their tenants are looking for convenience and ways to make their lives easier. Fitness facilities, both indoor and outdoor, as well as pet-friendly spaces and amenities, fire pits, and plenty of grilling areas for entertaining are options that NewStreet is providing to their residents.

Bluestone is exploring the options of adding a hot yoga studio, as well as the possibility of shared gaming rooms and a community kitchen that may provide cooking lessons and opportunities for socializing.

Both Christensen and Banks say that customer service is their main priority. “Going forward, everyone is going to have to look at their operation and see how they can deliver outrageous service,” says Christensen. “Because that’s what our customers get when they go to other places. They go to Starbucks…they go to Urban Outfitters…they get outrageous service. They can expect that service where they live.”

Strict Banking Requirements

Photography by Bill Sitzmann and Great Western Bank

With interest rates having been at all-time lows for over a year and forecast to remain at record lows for the foreseeable future, it’s likely that either you or someone you know has refinanced their home recently. But does the same hold true for commercial building owners? Have business owners and those with commercial leases been able to take advantage of such low rates? Have entrepreneurs seeking new loans been able to set their dreams in motion, even in these tough economic times?

According to Gary Grote, Omaha group president for Great Western Bank, while commercial loans may not have been impacted by the low rates as much as residential loans have, there still has been a significant effect in the commercial market.

“The difference between residential and commercial is that in the commercial loans…there may be pre-payment penalties that apply until the maturity day,” explains Grote. “So you can’t always just pick up the phone and…refinance on a whim like with a residential mortgage.” He does add that though it may not be as “easy” to refinance a commercial loan, “many people have already taken advantage of the low rates…and we continue to see opportunities.”

Craig Lefler, senior vice president and manager of commercial banking with Mutual of Omaha Bank, agrees with Grote, saying while there may be a few more obstacles for commercial loans to be refinanced, there are still ample opportunities for businesses to seek lower interest rates on existing loans. “A lot of commercial real estate loans are done by banks on a five-year type of basis and some of those, depending on the bank, may have a penalty for early payoff. That would certainly be a consideration for [when it comes to the] cost of refinancing the loan.”

“The difference between residential and commercial is that in the commercial loans…there may be pre-payment penalties that apply until the maturity day.” – Gary Grote, Great Western Bank

Both Grote and Lefler say that although rates are at historic lows and there are many opportunities available for commercial loans to be granted as well as refinanced, the process and underwriting standards are higher than ever.

“After the financial crisis, credit certainly tightened up and [banks] returned to more prudent, conventional underwriting standards,” says Grote.

Lefler agrees that there are more stringent standards and more in-depth analyses today than in the past. However, those are countered by the benefit of lower interest rates. “It’s a mixed bag,” he says.

Interest rates for commercial spaces are different than those for residential mortgages. Grote explains that the typical five-year loan originated from the trouble that the Savings and Loans went through in the 1980s. The S&Ls offered CDs for two to four years at fixed rates. They then would loan money at fixed rates for 10- or 15-year loans. “When the rates went up, they got burned because their cost of money increased but their loans were at a fixed rate.”

He shares that banks typically keep five-year commercial loans on their balance sheets while traditional home mortgages are sold off to other organizations.

“A lot of commercial real estate loans are done by banks on a five-year type of basis and…depending on the bank, may have a penalty for early payoff. That would certainly be a consideration for [when it comes to the] cost of refinancing the loan.” – Craig Lefler, Mutual of Omaha Bank

As another option, Grote says that some banks, such as Great Western, may offer certain clients 10– and 15-year fixed rates. But he says that this is a unique situation.

Thirdly, he shares that the Small Business Administration has a popular product called the SBA 504 Program, in which a portion of the loan allows the borrower to do a 10- or 20-year fixed rate. “So there are options out there, and it just kind of depends on the property and the borrower and where they’re at in their life cycle and what makes the most sense for them.”

Depending on whether the loan is for owner-occupied real estate or investor real estate, Grote explains that the lender will underwrite the occupant’s financial statements or the investor’s ability to rent space. Both men recommend that businesses have their financial records in order and ready to be submitted for review.

“Be organized and be able to quickly produce their financial statements in an organized fashion,” says Grote. “That helps banks respond quickly and be able to give good guidance and good answers.”

Lefler adds that, in addition to the financial records, the lender will also consider “the projection, going forward, of how the space will be used and ultimately, from the lender’s point of view, will the debts get repaid.

“My sense is that there is a feeling that banks are not willing to lend money on new business ventures and to projects like this, but I would say that this is not true,” says Lefler. “In our market, which is stable, banks play an active role in these spaces on a daily basis.”

Retirement Planning To-Do

I know a doctor who is thinking about retirement. He’s not overly concerned about his future. But his retirement is five years away.

The No. 1 factor, in my opinion, affecting anyone’s retirement savings is inflation. Inflation is relatively tame at the time of this writing, but it can still be harmful—even if you plan to retire in five years. So, here’s what I suggest:

1. Don’t quit on stocks. “To achieve returns to sustain a 30-year retirement, you need to still be investing for growth,” states Money magazine in its “Retirement Guide 2013” series published last October. If stocks make you nervous, then finding a way around that concern could be difficult. According to Bankrate.com, one-year CDs offer a 0.76% pre-tax yield. Money market accounts pay 0.49% per year. Yields on two-year U.S. Treasury bonds are even worse: 25%. (Figures through November 13, 2012.) You’d lose out to inflation if all you had in your portfolio were low-yielding investments. So, if you’re near retirement, based on your risk tolerance time horizon, I’d likely recommended a stock investment allocation of 30-40%.

2. Wait before taking Social Security. In general, most individuals should delay receiving their Social Security benefits. Money states that your payments can be 76% higher if you begin taking them at age 70 instead of at age 62. “Your payment will increase by about 6% a year for every year you delay filing before your full retirement age (between age 66 and 67 for most folks),” Money claims. “After that, holding off earns you another 8% a year until age 70.” Of course, your decision as to when to retire is a personal one. What’s best depends on a number of factors, such as your current cash needs, your health and family longevity, whether you plan to work in retirement, whether you have other retirement income sources, your anticipated future financial needs and obligations, and, of course, the amount of your future Social Security benefit. See Publication No. 05-10147, “When To Start Receiving Retirement Benefits,” at socialsecurity.gov to learn more.

3. Consider taking spousal benefit Social Security income early. Assuming your spouse is 62 and has been the lower income earner, and you are 62, you could file for benefits and postpone collecting them until you turn 70. Your spouse can begin collecting 50% of your benefit right now. See “Retirement Planner: Benefits For You As A Spouse” at at socialsecurity.gov.

4. Plan your retirement health care. If you retire before Medicare kicks in at 65, you could have a big expense ahead. “For a 62-year-old couple with one spouse in ill health,” states Money, “premiums run up to $2,300 a month on the individual market.” Ask your financial planner about bringing in a health insurance specialist, or look for an independent agent at nahu.org. Check with your company’s human resources department. You may be able to buy health care coverage when you retire. Remember that long-term care insurance will run about $4,000 a year for a couple in their early 60s, states Money. But if your assets total more than $1.5 million, I say pay for your long-term care as you go.

5. Line up some income. Want to consult? Now’s the time to gather clients and stay abreast of your field. You could also buy an annuity, which is a contract between you and an insurance company that pays out income and is designed for retirement purposes. Finally, practice living within your retirement income budget today. Doing so grounds your retirement planning in reality.

Jerome “Joe” P. Bonnett, Jr., CFP®, ChFC®, is an Independent Wealth Manager and President of Bonnett Wealth Management, Omaha. He is a 1987 graduate of the University of Nebraska with a bachelor’s degree in business administration, finance, and banking. He is a Registered Representative of Securities America, Inc. Member FINRA/SIPC. Bonnett resides in Omaha with his wife, Susan (Engdahl), and their two children, Jake and Claire. Bonnett Wealth Management and Securities America companies are unaffiliated.

Ambassador Apartment Renovation

October 25, 2012 by
Photography by Scott Drickey

Dundee is one neighborhood in Omaha trying to continue an historic, authentic feel. One Dundee building in particular, brimming with charm and grandeur of old, has succeeded in that effort—the Ambassador Apartments.

The 20-unit Spanish Revival building, which sits just south of Dodge Street on 49th, has undergone serious renovations over the past three years. The Ambassador was recently recognized by a regional chapter of Commercial Real Estate Workshop, CREW Midwest, as the 2012 Renovation of the Year.

Dundee Apt Ambassador Remodel

The project was the result of the vision and work of local business people Randy Wheeler, Bob Sadler, Neil Willer, and Carol Jones, who combined their individual expertise to restore the Ambassador Apartments.

The parties are equal owners of the property and each add a unique talent. Wheeler’s experience is in landscaping, while Willer is a building engineer, Sadler is an electrician, and Jones’ experience is in real estate.

The renovations were unique in that they kept many of the aspects of the 84-year-old building while incorporating several new, modern upgrades. Each unit contains modern conveniences, such as a washer/dryer, air conditioning, and modern kitchen appliances. Yet what make this property such a Dundee gem is the Spanish tile roofing, scrolled ironwork, original tile, lighting fixtures, doors and hardware, and parquet floors, in addition to the spectacular entry ways and barrel ceilings.

Walking into one of the spacious units you will feel, if for only a quick moment, like you’ve stepped back in time in many ways.

“We wanted to maintain the flavor of 1928, in addition to having all of today’s modern conveniences, while creating a beautiful place where people can live,” Wheeler said.Dundee Apt Ambassador Remodel

During the renovations, the group combined their efforts with local architects from Alley Poyner Macchietto Architecture.

“They were a big help in how to configure and arrange the apartments, specifically in the kitchens and how we could modernize them and still maintain the historic aspects,” Wheeler explained.

Christina Jansen, who is a project designer with Alley Poyner Macchietto, served as a historic consultant on the renovations and said it was a great experience to work with such a rare property. The group also worked with the Omaha Historical Society in its efforts to preserve historical details.

“The building is very unique and any opportunity to preserve historic fabric is great,” Jansen said. “We focused on the historic aspects of the building with the goal of salvaging as many of them as possible.”

Dundee Apt Ambassador Remodel

Alley Poyner Macchietto also assisted the group with paperwork for tax credits and financing, which were extremely beneficial to the project, according to Wheeler.

The group was drawn to the property largely because of its architectural beauty, as they all share a passion—as do many in Dundee—to maintain an historic feel.

“It’s a great location in a great neighborhood and we are very proud and excited for the future of this property,” Wheeler said. “We all had worked on remodeling projects in the past, just nothing on this scale. You definitely had to have faith and a vision with something like this. I’m glad we were able to salvage the building and make the [new residents] living here happy.”