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January-February 2011 elationships. Relationships are something that people at times overlook, but they are the reason we all succeed. The people that surround us in our CCIM network are those that have made it through the hard times and are determined to keep fighting until we are rewarded with a blossoming market. 2011 is here and it has started with a bang! Have we reached the bottom? Is this it? Are we finally going to see something happen? I sure hope so. Things are not like they were five years ago when business was falling from the sky, but there is activity and deals are happening. As I have talked with other chapter members and affiliates it is very clear, the connections and relationships that have been made throughout our networking have been instrumental parts in the success we are all experiencing. I encourage everyone this year to partner and work with each other. Our group is made up of contractors, lenders, brokers, developers, attorneys, title compa- nies, insurance agents and many other dynamic and resourceful people. Use each other. Work with one another. This is a time to support the relationships created and all build to that next level. At the end of 2010, terms for five of our board members concluded and our board would like to recognize everything they have done for this chapter. Gary Banner, CCIM (Designee #11786) Gary served our chapter as a Board Member, Newsletter and Legisla- tive Chair. To date Gary continues to take care of our newsletter needs and we greatly appreci- ate Gary is this contin- ued assistance. I would also like to point out that he is the current President of Commercial Alliance. CONT’D ON PAGE 10 R Follow the Chapter on: & Gary Banner, CCIM Designee #11786 Bobbi Miracle, CCIM 2011 Southern Nevada CCIM Chapter President

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January-February 2011

elationships. Relationships are something that people at times overlook, but they are the reason we all succeed. The

people that surround us in our CCIM network are those that have made it through the hard times and are determined to keep fighting until we are rewarded with a blossoming market. 2011 is here and it has started with a bang! Have we reached the bottom? Is this it? Are we finally going to see something happen? I sure hope so. Things are not like they were five years ago when business was falling from the sky, but there is activity and deals are happening. As I have talked with other chapter members and affiliates it is very clear, the connections and relationships that have been made throughout our networking have been instrumental parts in the success we are all experiencing. I encourage everyone this year to partner and work with each other. Our group is made up of contractors, lenders, brokers, developers, attorneys, title compa-

nies, insurance agents and many other dynamic and resourceful people. Use each other. Work with one another. This is a time to support the relationships created and all build to that next level. At the end of 2010, terms for five of our board members concluded and our board would like to recognize everything they have done for this chapter. Gary Banner, CCIM (Designee #11786) Gary served our chapter as a Board Member, Newsletter and Legisla-tive Chair. To date Gary continues to take care of our newsletter needs and we greatly appreci-ate Gary is this contin-ued assistance. I would also like to point out that he is the current President of Commercial Alliance.

CONT’D ON PAGE 10

R

Follow the Chapter on:&

Gary Banner, CCIMDesignee #11786

Bobbi Miracle, CCIM2011 Southern Nevada CCIM Chapter President

SOUTHERN NEVADA CCIM CHAPTER 2011 SPONSORS

2 Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

2011 PLATINUM SPONSOR

3Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

4 Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

UPCOMING MUNICIPAL ELECTIONS UNDER THE SCRUTINY OF COMMERCIAL REAL ESTATE INDUSTRY PROFESSIONALS

LEGISLATIVE UPDATE

he first days in February have been nothing short of fascinating watch-ing the blooming announcements of candidates for the upcoming

municipal elections in June. The most exciting of which is arguably the widely contested campaign for Mayor of the City of Las Vegas, a seat that has not been challenged for 12 years. Southern Nevada CCIM Chapter’s Platinum Sponsor, Commercial Alliance Las Vegas (CALV) is right on the pulse of it all! CALV Board of Director members, alongside Sean Fellows and Joe Brezny of Carrara Nevada and GLVAR Directors, are conducting interviews vetting prospective candidates for Las Vegas Mayor, Las Vegas City Council and Henderson City Council. CALV will share the infor-mation they gather on candidates with CCIM members at the March 23rd CCIM luncheon. How does the work of CALV affect you? Through the diligent efforts of our Platinum Sponsor, we can mark two firsts for commercial real estate interests in southern Nevada. This election is the first time we will have a united front (residential and commercial) with candidates on behalf of all real estate practitioners. The interview

process not only serves as a clearing house to determine which candidates are sensitive to real estate issues, but perhaps more impor-tantly, it also demonstrates to would-be elected officials that we are an organized and engaged body of voters. A second first that we will realize in March is an added a seat to BORPAC (Board of Realtors Political Action Committee) to represent commercial real estate. The BORPAC endorsement is one of the most

coveted in Nevada politics because of the block of voters and financial support that follows it. This seat will allow commercial real estate to have a voice in the review of candidates, the endorsement discussions and the campaign contribution discussions as a full member of BORPAC. In the March/April newsletter we will have an update on the primaries which promise to be captivating. Stay tuned …

Hayim Mizrachi, CCIM, is Managing Director of NAI Las Vegas. He can be reached at (702) 853-1844 or [email protected].

T

By Hayim Mizrachi, CCIMNAI Las Vegas

LEGAL BRIEFS

ith the number of tenants defaulting in the payment of rent, commercial landlords are faced with more and

more decisions regarding evictions. At first, landlords generally ask: Should I evict this tenant or reduce the rent to avoid another vacancy? If the tenant is paying a reduced rent, can I ever recover the lost rent? What if our arrangement is not in writing? Then, when the landlord deter-mines to evict, the next questions come: What notice do I serve? What amount do I include, the reduced rent or the full amount due? What court will process the eviction? Do I have to bring a separate lawsuit to collect the unpaid rent? This article addresses the latter questions. JURISDICTION Jurisdiction must be examined prior to the preparation of a notice, as some notices require the jurisdiction of the court to be set forth in the body of the notice. For example, a 5 Day Notice to Pay Rent or Quit must identify which court has jurisdiction over the eviction so that the Tenant will know where to file an affidavit in response thereto. NRS 40.253. Unfortunately, the eviction statutes do not

define a precise method for determining jurisdiction. The Nevada Constitution provides district courts with “original jurisdiction in all cases excluded by law from the original jurisdic-tion of justices’ courts.” Article 6, Section 6. Under NRS 4.370, original jurisdiction over Landlord/Tenant disputes for possession of lands and tenements is vested exclusively with justice court. K.J.B. Inc. v. Second Judicial Dist. Court, 103 Nev. 473, 745 P.2d 700 (1987), cited in State v. Kopp, 118 Nev. 199, 43 P.3d 340 (2002). This law makes it appear that jurisdiction of all evictions rests with justice court. A problem arises when the amount of rent

in arrearage exceeds $10,000.00. Under NRS 4.370(1)(g), justices’ courts are given jurisdiction over actions for possession of lands or tenements “when damages claimed do not exceed $10,000.00 or when no damages are claimed.” When a Landlord seeks Summary Eviction for the non-payment of rent, the Landlord is not seeking dam-ages, rather, it is seeking possession of the property. Pursuant to NRS 4.371(1)(g), the district court would ostensibly have jurisdiction if the rent claimed

CONT’D ON PAGE 7

COMMON COMMERCIAL EVICTION QUESTIONS

W

By Avece M. Higbee, Esq.Marquis & Aurbach

5Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

6 Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

SOUTHERN NEVADA CCIM CHAPTER 2011 EDUCATION CALENDAR

Dana Berggren, CCIMEducation Director

702-688-6939

The CCIM Institute reserves the right to cancel or change any scheduled course at any time. Students enrolled in a course that is cancelled will be notified as far in advance as possible. Students have the option of getting a full refund or transferring into another course. Please note that the Institute is not responsible for any out-of-pocket expenses (lodging, airfare, etc.) students may incur when a course is cancelled.

Technical Requirements: • Hewlett-Packard financial calculator. HP-10BII model is highly recommended. • Laptop Computer is required with CD-ROM drive, Excel® 2000 or higher, and a web browser such as Internet Explorer 6.0 or higher version

Course Times:First Day Check-in: 7:30 - 8:30 a.m. Class: 8:30 a.m. - 5:30 p.m.

For more information on registering for a course, please contact a CCIM customer service representative at 1-800-621-7027 or visit www.ccim.com.

Course Locations: Greater Las Vegas Association of Realtors1750 E. Sahara AvenueLas Vegas, NV 89104

CI 104 - Investment Analysisfor Commercial Investment

Real EstateMarch 28, 2011 - April 1, 2011

Course Outline: • Apply key investor decision-making analyses to optimize investment returns. • More effectively forecast investment performance by quantifying real estate risk. • Leverage CCIM analytical tools to improve decision-making.

Similar to CI 103, this new and expanded course is case-study driven. Within each case study, you will encounter a key investor decision; this course provides you the knowledge, tools, and resources needed to make these decisions. You'll also begin to develop the practice of integrating the CCIM Communications / Negotiations Model into all real estate decisions with a focus on using this Model in presentations.Course Requirements: • CI 101 and Preparing to Negotiate; it is strongly recommended you complete CI 102 before moving on to CI 103 or CI 104.

Course Outline: • Solve investment problems using a financial calculator. • Understand basic real estate investment analysis tools. • Perform basic mortgage calculations using compounding and discounting techniques. • Know how to compare similar properties, project vacancy rates, and estimate absorption figures. • Identify other ways to make a profit in commercial real estate besides brokerage.

CI INTR - Introduction to Commercial Investment

Real Estate AnalysisJune 22, 2011 - June 23, 2011

Also offered:November 3 - 4, 2011

Course Outline: • Make better investment decisions by using the CCIM Cash Flow Model as a framework for real estate analysis. • Apply state-of-the-art real estate analysis tools to quantify investment return. • Measure the impact of federal taxation and financial leverage on the cash flow from acquisition, ownership and disposition phases of real estate investment.

CI 101 - Financial Analysis forCommercial Investment Real Estate

July 25, 2011 - July 29, 2011

Course Outline: • Apply key occupancy decision-making skills such as comparative lease analysis, lease versus purchase analysis, lease buyout analysis, and sale-leaseback analysis to optimize user space decisions. • Determine how financial reporting requirements for real estate influences the user decisions. • Integrate negotiation skills with financial analysis skills to maximize user outcomes.

CI 102 - Market Analysis for Commercial Investment

Real EstateAugust 29, 2011 - September 2, 2011

7Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

LEGAL BRIEFS CONTINUED FROM PAGE 5under the 5-Day Notice was in excess of $10,000.00 and justice court would have jurisdiction for rent under $10,000.00. The basis for this position is that NRS 40.253 was specifically amended in 1989 to include jurisdiction. The other school of thought is that since no damages are claimed in a Summary Eviction, the clear language of the general jurisdiction statute (NRS 4.370) governs. This position also implies that NRS 40.253 does not overrule the Nevada Supreme Court decision in K.J.B. Inc. There is no Supreme Court decision giving clear direction but in general, local justice and district courts follow the rule that justice court has exclusive jurisdiction over evictions regardless of the amount claimed in the notice to pay rent or quit. NOTICES Landlords must be certain to comply with notice require-ments under the applicable statutes. The notice must be explicit and positive, fulfilling strictly the requirements of the statute. Thus, failure to comply with the statute may render the notice void. Indeed, attacking the technical compliance with notice requirements is often a fertile field for attorneys defending Tenants. General requirements under Nevada case law exist for all notice types. A non-precise notice will be considered defective; hence Landlords must be certain that notices are specific. For example, the notice will be deficient if it does not make ultimate demand for either payment of rent or surrender of the premises. Additionally, proper notices

must be authored by or on authority of all co-lessors or owners. NRS 40.252(2). And, it is unlawful to shorten any notice period. NRS 40.252(1). Thus, the Landlord may not shorten any notice period. EVICTION FOR FAILURE TO PAY RENT The most common notice used especially in this economic climate is the 5-Day Notice to Pay Rent or Quit under NRS 40.253. The notice is used when a Tenant fails to pay the periodic rent required by the lease. The notice must contain the general information described above and must give the Tenant the alternative to pay or quit. The notice must also provide the amount of rent owed, the court that has jurisdiction over the matter, that the Tenant can file an affidavit in response within the 5 days and where the Tenant should file the affidavit. NRS 40.253. This notice is generally the basis for a Summary Eviction. Depending on the agreement between the landlord and tenant, the pay or quit notice will include all of the unpaid rent. If there is some agreement deferring payment of the rent to the end of the lease, chances are that those rents are not due and should not be included in the notice or pay or quit. If there is no writing as to the reduced rent, all amounts due should be included but the tenant may have some decent arguments that the full rent has been waived. Careful consideration should be given to the rental arrangement when preparing the notice to pay or quit.

CONT’D ON PAGE 8

8 Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

LEGAL BRIEFS CONTINUED FROM PAGE 7 EVICTION FOR CAUSES OTHER THAN NON-PAYMENT OF RENT 1. Eviction for Failure to Perform Obligations. Here, a Tenant may have failed to comply with obligations under the lease including failure to provide certificate of insur-ance, failure to maintain the premises, failure to use the premises as agree, etc. A 5-Day Notice to Perform Obliga-tions or Quit the Premises may be served. The notice must set forth the specific action required of the Tenant. 2. Eviction for Nuisance and Waste. If the Tenant has improperly assigned a lease, improperly subleased the premises, committed waste or a nuisance, or conducted an unlawful business, the Landlord may give a 3-Day Notice to Quit to the Tenant pursuant to NRS 40.2514. The statute does not specifically require a list of the actions taken by the Tenant but such a list may be helpful to the court, and thus to the Landlord’s chance for a successful eviction. For example, in the case of nuisance, if the actions constituting the nuisance are not set forth in the notice, the Tenant may not know the wrongful acts; a court could give the Tenant additional time for compli-ance. 3. Eviction After Foreclosure Sale. If the office building or retail center is sold at a foreclosure sale and a Tenant remains in possession of the property, eviction may be an

alternative depending on the language of the lease and the time frame in which the deed of trust was recorded. There has been some confusion about the new laws governing post foreclosure evictions. These new laws govern residential evictions – not commercial evictions. Thus, commercial owners are subject to the same laws. In the event eviction is appropriate, the new owner should utilize a 3-Day Notice to Quit. NRS 40.251. The trustee’s deed upon sale should be attached to the eviction notice. The Summary Eviction procedure is not available in the case of an eviction after a foreclosure sale. Thus, a com-plaint for a Writ of Restitution would be the normal course. 4. Eviction – No Cause. A Landlord may terminate tenancy by notice if the Tenant is leasing on a month-to-month or week to week basis. For a month-to-month tenancy, a 30-Day Notice to Quit should be utilized. NRS 40.251(1). A 7-Day Notice to Quit should be utilized if the tenancy is week-to-week. NRS 40.251(1). No reason for the termination of the tenancy need be given in the notice. If the tenancy is “at will,” a 5-Day Notice to Quit is appro-priate under NRS 40.251(1). An “at will” tenancy is one where the lease has expired but the Landlord allows the Tenant to remain on the premises.

CONT’D ON PAGE 9

9Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

LEGAL BRIEFS CONTINUED FROM PAGE 8 COLLECTION OF UNPAID RENT The collection of unpaid rent, common area main-tenance charges and other damages is generally by separate action. In the commercial setting, the unpaid rent is most often in excess of the jurisdic-tional limits of justice court and thus the complaint for breach of the lease is filed in district court. A claim for breach of guaranty should also be included so there will most likely be new defendants in addi-tion to the tenant. An investigation of the tenant’s and guarantor’s assets may be conducted in order to determine if there is anything to satisfy a judgment. A successful eviction action requires the use of correct documentation and correct notices appli-cable to the situation. Most often, the eviction action will be in justice court and the action to collect the unpaid monetary obligations will be in district court.

Avece M. Higbee is a Shareholder with the Las Vegas law firm of Marquis & Aurbach. She can be reached at (702) 382-0711 or visit the firm’s web site at www.marquisaurbach.com

10 Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

PRESIDENT’S MESSAGE CONTINUED FROM PAGE 1 Miriam Campos-Root, CCIM (Designee #11810) Miriam has not only served as our Chapter President in 2007 but has also been our Educa-tion Chair, Director and Insti-tute Liaison, she has served on the National Board of Direc-tors since 2008, is a graduate of the Jay W. Levine Leader-ship Academy and serves on many national committees. Recently Miriam was elected to the CCIM Tech Board, which is an honor. Garry Cuff, CCIM (Designee #11437) Garry served our chapter as a Board Member and our Candidate Guidance Chair. He has worked with many of our soon to be and recently pinned Designees on their CCIM required resumes. Garry still assists with Candidate Guidance for our chapter. He additionally is the past president of Com-mercial Alliance.

Christie Daugherty, CCIM (Designee #12900) Christie has served as not only our Director but also our Designation Promotion Chair. She was an instrumental part of working with sponsors and putting together our marketing material in various publications. Tedd Rosenstein, CCIM (Designee #13032) Tedd is not only serving as our current Wine Event Chair, he has served as our Chapter President in 2009 and Newsletter Chair. In addition to chairing the committees Tedd has helped revamp our newsletter and chapter bylaws. Additionally he serves as a Commercial Alliance Board of Director. From our board and membership thank you all for the time and commitment you have had to this Chapter. You are an integral part of its success and you will all be greatly missed at the board meetings, however please know we always welcome your opinions! In Closing, participation is a key to the success we are all experiencing. We are in for a very interesting year, full of new opportunities. Work together and lets all succeed! See you at the next meeting!

Miriam Campos-Root, CCIMDesignee #11810

Garry Cuff, CCIMDesignee #11437

Designee #12900Christie Daugherty, CCIM

Tedd Rosenstein, CCIMDesignee #13032

11Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

2011 PLATINUM SPONSOR

12 Southern Nevada Chapter News | January-February 2011Southern Nevada Chapter News | January-February 2011

LEGAL BRIEFS