All Forum Posts by: Naseer Khan

@Meena Balaji It appears that they are looking right now for people to come with ideas and offers.  I believe they probably need one or two investors to make a big move and that would act as a catalyst for other investors and companies to follow

@Chris Williams The housing part is tough because the lack of available land.  Although Union City is 12 sq miles - half of that land is designated as protected area/hillsides and the residents want to maintain that natural look of the hills. But I know they are looking into more multi housing projects vs. SFRs, which was the focus in the past. 

@David Song I believe the City is inclined to work with investors to make the changes and ease restrictions but I imagine they will likely want to make sure that there are enough investors who are interested/willing to make the conversions to ensure that it sparks a trend that can bring in more investors who are willing to do the same. 

@Amit M. That is a great point - The City should definitely work on creating incentives and loosening restrictions first.  Hopefully the market is right when they get it all together.  

I've been a long time resident of Union City and I've recently been in contact with several City officials who have expressed an interest in converting the City's commercial landscape from warehouses to offices, whether tech or other industries.  

If you're not familiar with Union City, its a mostly suburban city in the East Bay Area, situated between Fremont and Hayward with a population of around 75,000 residents.  It technically falls within the geographic limits of the silicon valley.  The founders of the City thought it would be a good idea to establish the City as a place for warehouses, which currently makes up the majority of the commercial property.  This was fine several decades ago but things have changed a lot in the Bay Area and warehouses aren't the best use for prime/scarce Bay Area property.  

The City sees this as an opportunity for redevelopment and the chance to establish a different identity.  Some of the hurdles that it faces include: finding investors that want to take over a large warehouse and convert it into office space; finding tech or other businesses that are willing to relocate to the City; convincing current warehouse landlords to give up their properties, etc. 

I attended a City Council meeting where a commercial broker (who specializes in warehouses) presented ideas where the City could locate companies that need office/warehouse space in one building (tech manufacturing companies) and provide them with both in one property.  However, I believe the goal is to move away from warehouses entirely, so this does not seem like a long term solution. Ideally, the City wants to lure professional type offices because that is where you get the most price per square foot.  For example, warehouse gets $1.80/sq. ft, warehouse/office gets $2.40 per sq. ft and professional office gets $3.60 per sq ft.  The goal is to maximize the value from this land, which situated in such a great location. 

Currently, the City is in the process of developing a 1 million sq. ft area of land near the Union City BART station where they will build modern office buildings, along with several multi-unit residential buildings. But there is a tremendous opportunity out there for commercial investors/developers who want to work with the City to convert commercial warehouse to office space.  And the City will do all it can to make it happen.  

If you have any ideas or comments, please share and if you want to get in touch with people in the City, let me know and I will get you in touch with the right people. 

@Maria A A. Jeff B is correct - you would just have to register your California LLC as a foreign entity in Ohio. It may take some time to get that going so you may want to look into that asap.

If you are transferring property as a seller, then you are required, under California law, to provide certain disclosures to the buyer, even if you are not working with an agent. See California Civil Code Section 1102, 1103.  The Civil code provides guidance on when disclosures should be made as well. 

This link provides a list of the disclosures but there may be updates that you will need to verify with the DRE. http://www.dre.ca.gov/files/pdf/re6.pdf

Naseer Khan is licensed to practice law in California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.

@Renata Cerveny Do you have a specific question about the formation or do you need someone to take care of the entire formation process? Either way, I'm sure I can help you. Feel free to reach out.  

@Alex Cordero

Look at the county records for the property and see who the actual owner is. If the property was transferred to an LLC, It should be recorded in the county. If you know a realtor, they may be able to look it up with their resources. IF you decide to move forward with the deal, you should also contact a title company to find out what liens are on the property.

@Account Closed

I haven't dealt with that specific situation but based on the regulations: if you only sell 49% of the LLC interest to investors, you will not have to file form 100B. "LLC interest" is defined as Capital and Profits, so the original owner must retain 51% of the capital and profits of the LLC. Hope that helps

This response neither constitutes legal or tax advice nor establishes an attorney-client relationship. Inquirers must seek the advice of their own legal counsel prior to undertaking any course of action related to this inquiry.

@Jim Keisker

If the out of state LLC is not conducting any business and is not making any money, then the LLC should not be subject to the CA franchise tax and registration.

This response neither constitutes legal or tax advice nor establishes an attorney-client relationship. Inquirers must seek the advice of their own legal counsel prior to undertaking any course of action related to this inquiry. 

@Avi Garg Were you told by an accountant, attorney, FTB agent?  I would like to get more information on this topic if someone has it. thanks