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Thursday, 18 September 2014 00:19

Market Watch - September 2014

The 10 year treasury has bounced off its 6 month low of 2.33% in late August 2014 to over 2.60%, an aggressive shift upward in a 2-3 week period of time. Although the market doesn't want to hear it, The Federal Reserve has begun discussing a potential interest rate hike in the foreseeable future in light of the postiive and optimistic domestic outlook of unemployment and GDP data.

 

Unless the current geopolitical environment worsens or a new issue arises, this very well could finally be a pivot point for a raise in rates. 

 

Savvy investors recognize that rates are likely unsustainable at their current level and will act quickly in capitalizing on the marketplace's investment opportunities.

 

By: Gill Figueroa, First Commercial Capital

Last modified on Thursday, 18 September 2014 00:28

Question: My tenant has a dog which is a violation of his lease agreement. When I asked him to remove the pet, he showed me documentation that this is a service animal and due his disability the dog is a medical necessity. I understand the law, but the dog continually howls every time my tenant leaves the premises. This is disturbing the other tenants and I have received three letters regarding this situation. How should I handle this?

 

Answer: Under the American and California Disability Act, a landlord is required to make a reasonable accommodation where a service animal is a medical necessity. The key words are "reasonable accommodation". If you are receiving complaints from other tenants then this would not be considered reasonable. Send your tenant a letter that the howling must stop or he will be required to obtain a replacement service animal.

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Last modified on Wednesday, 03 September 2014 18:47

Closing Summary

The Formosa Apartments presented a true value-add opportunity. The Sellers owned and self-managed the asset for 10 years and were motivated to capitalize on their profits and complete a 1031 Exchange.

 

The Buyer was able to realize the value-add potential in the building through implementing new management, capital improvements and completing unit renovations to maximize rental upside.

 

The escrow process ran smoothly with only a 10 day due diligence period and 65 day close. 

 

We are pleased to be working with the Sellers on upcoming closings and continue to work with our Buyer by helping them expand their multifamily portfolio this year. 

Property Highlights

Beautiful 1920's charm | Attractive CPU | Unique building w/character | Significant rental upside | Excellent unit mix | Desirable location in West Hollywood

Thinking of selling?

Call us to sell your apartment building! 

From fast, direct offers from motivated and qualified buyers, to detailed listing and marketing proposals, we provide customized solutions to suit your precise needs.

We take a professional, full-service approach in representing you in the sale of your property, and we look forward to earning your business!

Last modified on Wednesday, 03 September 2014 18:26

Closing Summary

Within just four days of exclusively listing Barbara Ann apartments in North Hollywood, we generated several offers and put it under contract, closing escrow at 100% of list price. 

 

We are thankful to the Seller for trusting us to represent her in the sale of her down-leg property and help her to exchange into a less management intensive property.

 

Many thanks as well to the Buyer and his team of professionals with whom we're so happy to have had the opportunity to finally work with after 8 years of discussing different investment opportunities together. We look forward to doing lots more business together.

 

Finally thank you to Carey LaSalle, a Keller Williams Estate Specialist, who engaged our Team to co-list the property and leverage our service and expertise in multifamily assets to benefit her friend and client, the Seller.

Property Highlights

Upside in current rents| Pool, onsite laundry and parking | Excellent unit mix | Close to shopping and transit | Attractive cost per unit

Thinking of selling?

Call us to sell your apartment building! 

From fast, direct offers from motivated and qualified buyers, to detailed listing and marketing proposals, we provide customized solutions to suit your precise needs.

We take a professional, full-service approach in representing you in the sale of your property, and we look forward to earning your business!

Last modified on Thursday, 21 August 2014 22:11
Tuesday, 19 August 2014 20:44

Market Watch - August 2014

Record breaking day on the 10yr treasury recently; we broke a 12 month low at 2.345% and quickly bounced off the bottom. Geopolitical issues dominate the trend and will continue to do so until it stops, if it stops.

 

The bond market has enough domestic data for a strong sell-off. This is the time to capitalize on the lowest rates and highest leverage. The flight to quality tangible assets will continue. 

 

By: Gill Figueroa, First Commercial Capital

Last modified on Thursday, 28 August 2014 19:26

Closing Summary

This closing demonstrated that our specialization in apartment building sales created a winning scenario for all parties involved. 

 

The Seller, a residential real estate broker and sales manager of his residential brokerage company in Sherman Oaks had fallen in and out of contract several times with agents from his own office until one of his associates referred him to our AptBldgTrader Team.

 

He sent us the rent roll, explaining that he preferred to sell it off market, and within one day, we presented our Buyer's offer which met the Seller's expectations for pricing and terms. We closed escrow in 60 days without a glitch, and we're happy to report that we are continuing to work toward more closings with both the Seller and Buyer.

Property Highlights

Non rent controlled property| Solid unit mix | Large upside in current rents | Close to shopping and transit | True value-add oppportunity

Thinking of selling?

Call us to sell your apartment building! 

From fast, direct offers from motivated and qualified buyers, to detailed listing and marketing proposals, we provide customized solutions to suit your precise needs.

We take a professional, full-service approach in representing you in the sale of your property, and we look forward to earning your business!

Last modified on Monday, 11 August 2014 22:28

The apartment industry has been worried about a bubble forming, and then bursting, in this asset class since the recession. A case can be and will be in a moment made that building in this sector is reaching a saturation point in some markets. 

 

On the other end of the spectrum a new argument has emerged: Not only is a supply bubble not forming but current development pipeline is not sufficient to meet the real demand for apartments.

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Last modified on Wednesday, 06 August 2014 18:36

The level of commercial/multifamily debt outstanding increased by $11.1 billion in the first quarter of 2014, as three of the four major investor groups increased their holdings. That is a 0.4 percent increase over the fourth quarter of 2013.

 

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Last modified on Tuesday, 29 July 2014 00:15

Question: I have several clients that have bought apartment buildings, with existing tenants. In many instances, these tenants do not have security deposits. Can a new owner require an existing tenant to pay a security deposit? If so, what are the guidelines and restrictions?

 

Answer:  If this is a property not subject to rent control and the tenant is on a month-to-month tenancy, a security deposit can be demanded. It would be required that you serve a 30-day change of terms of tenancy, requesting a security deposit equal to two months rent. If the tenant is under rent control, or if this is a fixed term lease, then you would not be able to demand a security deposit.

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Last modified on Monday, 28 July 2014 23:54

New apartments and condominiums drove building permits up 8% in April from the prior month, to their fastest pace in nearly six years, the Commerce Department reported Friday. Housing starts, which measures the launch of construction climbed 13.2%

 

Most of the growth came in multifamily building, which is now back pre-recession levels and up 15% through the first four months of the year compared with the same period last year, even as permits for single family homes remain sluggish.

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Last modified on Tuesday, 29 July 2014 00:15
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