MUSCATINE, Iowa — Gone are the shopping days at the SunMart Food Store at 407 Sycamore St.

The building is a vacant reminder of more prosperous times for the commercial businesses that were sprinkled about the community. It’s not the only commercial property in Muscatine that sits empty, waiting for a buyer.

Local Realtors say commercial real estate sales are slowly gaining momentum.  But there is still a long road ahead before entrepreneurs and national companies will enter Muscatine’s market.

“I think the commercial retail market is depressed right now for several reason. The basic issue is that people have to spend money for a commercial retail to be successful,” said Karl Reichert, a Muscatine Real Estate Associates Realtor. “The whole thing comes down to jobs and pay. People have to be making money before they can spend it.”

He added that it doesn’t help that commercial businesses in Muscatine are being developed mostly north of town, making it harder to sell a property in other areas.

Trying to sell

SunMart closed about nine years ago and was sold in 2004 by Nash-Finch Co. to Muscatine attorney and property owner Terrence Mealy, according to public documents.

Before its dormant days and after SunMart went out of business, the

building —which is valued at about $280,000, according to the Muscatine Area Geographic Information Consortium (GIS)— briefly housed a Buy-n-Save.

Though Mealy is trying to sell the building, he’s had no luck — like many other commercial property owners hoping to get out from under ever-accumulating property taxes.

“I get calls on it so many times and do have someone interested, but we’ll see,” said Mealy, who holds the deed to more than 130 properties in Muscatine County, along with his wife, Loretta, and through their business,  Investment Enterprises Inc.

Since the recession began last year, buyers are reluctant to make any significant purchase, according to Realtor George Granberg of Muscatine’s Ruhl & Ruhl Realtors.

“The beginning of the first two quarters of this year were slow. It was bleak,” said Granberg. “People haven’t had the confidence, but we are getting inquiries and the year is improving.”

Confidence in the public’s willingness to buy, Granberg said, is what potential business owners are waiting for as the nation passes through this recession.

James Murty, 77, Davenport, tried to sell the former Pizza Hut building at 710 Grandview Ave., before he knew the economy was going to take a hit. He became an owner in the Pizza Hut franchise when he bought the building and business in 1999.

“It’s been vacant about two years. Corporate was requiring that we do a certain amount of remodeling and the number of customers didn’t justify the expenses of that,” Murty said.

Murty said the problem with finding a buyer for the $200,000 property is the economy and the fact that banks will not loan money as easily as they once did.

Tim Nelson, executive vice president of First National Bank of Muscatine, said that many people get confused by this falsehood.  His bank hasn’t changed loan standards to reflect the poor economy.

“There’s so much gloom and doom in the national press that it scared the daylights out of individuals and they quit spending,” Nelson said. “If there is any one thing that is driving the negative economy it is lack of consumer spending.”

He said demand for commercial loans is down substantially and that people are trying to pay off big-ticket items and credit card debt during this time of uncertainty in the marketplace.

He added that existing businesses are struggling to maintain.

Property taxes

As long as property owners are paying their taxes and maintaining the property, they are in compliance with city codes, according to city officials.

Some property owners may not be motivated to sell, while others have their commercial properties on the market but can’t find a buyer.

Granberg is the listing agent for the former Golden Corral Restaurant, 2300 Park Ave., which went out of business in early 2007 and was purchased by Heidi Rock and James R. Brauns. Rock and Brauns turned it into a floral and gift shop, Penny Lane Flowers and Gifts, which opened in August 2007 and lasted just a few months.

The contract was forfeited and the building returned to the previous owners, Glen and Ila Barrington, according to the GIS Web site.

The taxes for the property were $15,414 in 2008 and the owners have it on the market but haven’t found a buyer. They declined to comment  about the property.

In the meantime Granberg is hoping the market will improve, for his sake and the Barringtons.

“The interest rates are pretty competitive and buyers seem to be building confidence so I hope things continue to look up,” Granberg said.