All Forum Posts by: Brian C.

Dave Foster in a 1031 improvement exchange, like you described above, who holds title to the replacement property during the 180 day construction period? The seller or QI? Also, where does the exchanger get a construction loan if the lender can't record a trust deed on the replacement property and with the possibility of the sale not closing? I can't imagine a bank would lend without the collateral and a private loan would be expensive. Thanks!

My partners and I (CA residents) are in the process of evaluating several multifamily properties in Oregon and have questions about the best legal entity structure. 

Our plan is to form an Oregon LLC to purchase the property. In addition, because we are CA residents, my understanding is that we will still be required to file a CA form 568 and pay the $800 minimum LLC tax because we as managers are located in CA.

Is this consistent with everyone's understanding of the rules? Also, do you recommend forming a Oregon LLC as compared to a Delaware, Nevada or Wyoming LLC, etc..?

Thanks!

@Jason Mak We only have one ground-up self-storage development in Southern CA. All of our conversions are outside CA at this point.

As @Scott Meyers mentioned, we also do a Supply analysis. The initial analysis can be as simple as identifying the existing self-storage facilities in a 3 and 5 mile radius from your proposed location using google earth pro. Then you measure and add up the total square footage of each competitor and divide it by the population in the 3 and 5 mile radius. This calculates the total self-storage SF per capita (or person). Typically, 7 SF per capita is a well served market, so we focus on locations under 5. 

After this step, we want to make sure our property has a better location (i.e. first property potential renters see leaving home) than other Class A climate controlled properties, our competitors have high occupancy rates, the local economy has above average job growth and a high ratio of renters.

Thanks!

Thanks everyone. Given that PDX prices are high, what other areas in Oregon do you recommend I explore? I've heard that Albany, Salem/Keizer, Monmouth, McMinnville, Newberg and Sheridan are good starting points.

Thanks.

I'm looking to invest in class C & B multifamily properties in Oregon. Can anyone recommend brokers or property managers in the area? Also, what areas should be target (or avoid)? We are considering the Portland MSA, Salem, Eugene and Medford (basically the larger cities along interstate 5). 

Thanks!

Offerings under Reg D 506(b) allow for up to 35 non-accredited investors, which has historically been the most common private offering. However, as part of the JOBS act, under the new 506(c) offering rules, sponsors can advertise but only offer to accredited investors. A lot of sponsors are moving to 506(c) for the benefits of advertising. Another option is to invest in a non-public REIT, which are now popular on several crowdfunding websites (Realty Mogul, Fundrise, etc.).

Any one have experience with mixed-use developments or redevelopments of office or retail space? We are looking to redevelop vacant/partially leased shopping centers into a mix of apartments, retail, restaurants and/or office space. Our goal is for the apartments to help support the existing/improved retail space. We've had success acquiring vacant big-box/grocery stores, below replacement cost, and converting them into class A self-storage facilities, but the cities are more supportive of mixed-use as it maintains or increases their sales tax revenue. We would appreciate any feedback from investors/developers, brokers and lawyers who have experience in this space and are open to exploring JV's. Thanks! Brian

Any recommendations for a good land use and zoning lawyer? Our Company is looking to redevelop vacant/partially leased shopping centers into mixed-use and need help navigating the local zoning laws. Thanks

Any recommendations for a good land use and zoning lawyer? Our Company is looking to redevelop vacant/partially leased shopping centers into mixed-use and need help navigating the local zoning laws. Thanks

Our Company has successfully converted 8 vacant big box/grocery stores into Self Storage Facilities. This business model allows us to purchase below replacement cost, reduce construction costs by up to 30% and acquire existing structures that are conveniently located in underserved ( self-storage SF per capita of 3 or less) MSA’s. In addition, most of our acquisitions include large parking lots that are not needed for self-storage, so we have the ability to sell off outpads (sections of parking lot) to developers resulting in a boost to our IRR. Self-storage is quick, low cost and easy to manage. However, finding underserved markets is difficult and cities are hesitant to approve rezoning for self-storage due to the lack of sales tax revenue. They want to replace their lost revenue and in a few cases have required us to include small retail stores in our development. In addition, we are exploring the redevelopment of vacant/partially leased anchored shopping centers into mixed use developments with a mix of apartments, office, retail and restaurant. Our goal is to create a place for people to live, work, play and shop and for the apartments to help support the surrounding retail. @ Kevin Wong - What markets are your clients focused on? Have they had success?