Summary
When Madison, WI-based UW Credit Union, with $1.2 billion in assets and 150,000 members, purchased the AMCORE Bank building in the lively Mayfair Mall area of Wauwatosa, it did so because the existing building fit the credit union's strategic plan. More than 20,000 of its members lived in the area and would be well served by a branch there. This kind of long-term planning should be at the heart of any real estate purchase, says Sharon Spring, SVP of $2.9 billion, 253,000-member San Antonio Federal Credit Union, San Antonio. Buying an existing building has many advantages. For one thing, Spring points out, it takes a whole lot less time than new construction. But there are some disadvantages to buying an existing building, too. Be aware that when you're purchasing a building from a troubled institution, there's a possibility that there may be liens or other encumbrances on the property, or that there may even be an issue with obtaining clear title. Seek legal advice and research the property thoroughly.
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Buy or Build?
When you're choosing the location for a new credit union branch or administrative building, there are several ways to go. For instance, you can lease a space, you can buy a vacant lot and build on it, or you can buy an existing building. Lately, many CUs have chosen to buy buildings. While this route can be faster and easier than building from scratch, you still have to think it through just as carefully. The most important factor, as always, is location.
When Madison, Wis.-based UW Credit Union (www.uwcu.org), with $1.2 billion in assets and 150,000 members, purchased the AMCORE Bank (now Harris*) building in the lively Mayfair Mall...See the full content of this document
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