All Forum Posts by: Chris Blackburn

This is just an update and info how we put this project together.  (We are fully funded, we are keeping it and we do not need any investors) leasing is going well.  (OK, and a little celebrating our first lease)

(Note, the second photo is AI and is SUPER easy to do, but yes, AI)

We started this project 2.x years ago, buying a shovel ready project. (do not believe them). 1+ year later, we got to the position of being able to buy the permits.   When we started soliciting investors, interest rates were 4.5%.   By the time we made it to construction financing, our rate somehow moved to a 6.5%.   

Our model is a 30/70 split of equity and our team signs on the loan, investors do not.  

These are classic 3 story walk ups, we. have a club house, a park behind the units, garages and EV charging ( will have another post on this)

These were built with a modern look and the 3rd floor has 12' ceilings.   

Check out our pro-forma,  let me know how your project differ... We are the developer and contractor on this (plus capital for land and entitlements).   I think we could have done more 1 bedrooms as there seem to be too many 2 bedrooms on the market.  The 3 bedrooms should do well with the huge park behind us, but time will tell.

Note, I know a lot of developers do not share this data, but if others can learn along with me, it can make us all better.

We expecting rates to drop in the next 2 years and are planning on returning capital to the investors under a 30 year fixed HUD loan. If they get most or all of their capital back and still retain ownership, we have done a good job and they should be happy.

NFA, (Not financial Advice). But this is what/who I have been following.  Pretty simple, not very diversified, if you want more security, just put it in an index fund (good luck outperforming inflation).   The person I have a lot of respect for is a taking youtube head. James with Invest Answers.  He has a patreon.  He is essentially all in on Telsa, BTC (Bitcoin), Solana.   He is retired from the financial world and I like his process (Does not work for most people).   I do believe technology is the only thing that can move faster than inflation.  (Commodities and RE just keep up with it, if you are not raising rents 6%+ every year, there is an argument that your spending power is going down every year.   I have a 4 legged stool, not excited about our government spending.   BTC as an option gives a lot more freedom from the chains of fiat currency than most other options.  

I am the owner of this: https://www.loopnet.com/Listing/3930-Cherry-Ave-NE-Keizer-OR...

OK, this is bigger pockets, who feels comfortable buying or developing in Mexico? Is there a REIT that has the chops and you can ride their coattails?

I like the idea of the opportunity, I would assume our well-educated friends in India, may also have the need for logistic-based RE.     

Our cap rates for brand new apartments in our metro area are 5-5.50, for the 40+/- units.

Banks are killing us with their DSCR vs value.

If they are coming from a 1031 exchange, their original cost of money is low and they may want an easy turnkey rental.  

Here is a youtube video of the property... 

Seeking Experienced Urban Master Planner for Comprehensive Project

Hello Bigger Pockets Experts!

We are currently in search of an experienced master planner to assist us with a significant development project. As a medium-sized developer based in Oregon, we have a diverse portfolio that includes the construction of apartments, adaptive reuse projects, single-family housing, and land development. We have also served as owners, general contractors, and investors in various ventures.

Our most recent acquisition is a retired prison spanning 390 acres. As we embark on this ambitious journey, we find ourselves navigating a lengthy process that involves zone changes, partitioning, and negotiations with the City. Given the scale and complexity of the project, we believe that the expertise of an urban master planner is crucial to its success.

While we could approach the development in a piecemeal fashion, we are convinced that a skilled master planner can bring a comprehensive vision to the project. The right professional would possess the ability to identify, enhance, connect, and develop the various aspects of the development. Our focus lies in fostering a strong sense of community, ensuring a balance between housing diversity, and creating an array of amenities, venues, parks, and commerce centers. We firmly believe that such expertise can only be acquired through experience.

In our quest for resources, we have already explored the National Town Builders Association (NTBA) website at ntba.net. Additionally, we came across an informative article titled "What Makes the 50 Top-Selling Masterplans so Successful?" by John Burns Research and Consulting. A quick search will lead interested parties to this insightful piece.

We are particularly excited about the prospects of creating large parks, expansive green spaces, and potential sports venues such as those catering to music, soccer, and baseball. Furthermore, we envision incorporating a food park that includes a farmers market. The retired prison building itself holds promise for repurposing into a hotel, student housing for the adjacent university, or simple apartments.

To aid in visualizing our vision, we have utilized MidJourney AI, which has generated some impressive results. Attached are a few images for your reference.  (I have actually gotten better from a week ago)

If you have had the opportunity to work with a master planner who possesses a genuine interest in and understanding of this type of project, we kindly request that you reach out to us. Please note that we have no affiliation with the companies mentioned.

For further details and to explore the exciting project we have acquired, please visit: [link to the project's website]

Thank you for your attention and consideration.

Sincerely,

Chris Blackburn Clutch Industries Salem, Oregon

So, if you have worked with someone (Masterplanner) who likes and understands this type of project.  Please reach out.

Note, I am affiliated with any of the companies listed,

Here is a link if you want to see the cool project we purchased...t https://www.higgenbotham.com/a... 

@Matt Smith  Matt Smith is a smart man.  This sounds like a man with experience.   $400/sf is a good starting point.  What I have found is, working with a team is the best solution.  However, you do not go to the Superbowl on your first win.  We are building some medium multifamily units (100+/-).  We started with flex space, then 20 plex, then another 22 plex. (with same contractors), then 40 units. Now, 112 units in construction.   We are in Oregon.  Just finished a 40 unit/9 commercial in Keizer, OR.  We have 3 new, multi family units currently for sale.  We have been using a % model to forecast future costs.  So far, as long as we are generous with cost increases, our budget has been pretty close. 

Uncovering data:

https://portlandgeneral.com/en...

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