All Forum Posts by: Phil Christian

What PSF are you asking and what is your strike point on an effective rate over the terms?  For simplicity let's use $.50 PSF year 1 with $.05 escalations each year. If that is what you are comfortable with on a 5 year deal... on a 7 year deal add 2 months of free rent and on the 10 yr deal ad 5 months of free rent... front load the free rent in year 1. 

If you really want to get creative add more free rent on the 10 yr deal and extend the back end term by the number of free rent months.  

If allowed to work without gov restrictions, the invisible hand of the free market. 

What is your role in the ownership/operations of this building?  Hire CBRE or JLL. 

About a year ago I put a lot of time into searching for the "perfect" outdoor storage setup for a few of the properties we own.  I wasn't able to find the 6x6', off the shelf & set up in place, corrugated steal with heavy duty hinge and secure locking mechanism all for ~$1,000. 

At the end of the day, I figured out it was a decision to spend a lot of money going with a custom setup similar to mini self storage companies or going the off the shelf route (home depot).  

Curious to see others responses.

The vault could/might be impossible to remove without a lot of $$$.  Other than that, bank branches are typically good projects because of their locations and parking. Just generally speaking from SoCal real estate perspective. 

I don't know if this has been touched on yet but candidly I, for my business,  wouldn't be too concerned about the the price per unit and more concerned about the delivery and warranty items. I assume you are not buying 98 appliances at one time and then storing those units on-site.  I presume you are buying as you need and then those units are being delivered and then installed, as needed when needed... the supply chain would be most important for me.  

putz around on this site until you are ready to engage and architect. 

https://www.familyhomeplans.com/duplex-and-multiplex-plans

Can someone provide a few examples of the scopes/key items identified in a multi-family cost segregation study? 

I completely understand the process in a retail build-out (built ins displays vs. movable furniture displays; is the lighting accent lighting vs. base building lighting and subsequently following all the wiring, connectors, j-boxes to the sources, etc). Same goes for an office build-out... lighting as additional accent vs. base building, screw in artwork vs. nail in artwork, furniture tables instead of built-ins, etc, etc.... it's even more obvious for a restaurant build out... On top of it, to do it right you would hire a cost seg engineering group with a construction & accounting background that can strip out savings from an engineering and construction perspective. 

This said, what are the items people have identified for a value-add multi-family project?  By design, apartment units are delivered with no personal property and the only items inside a unit I can think of is the stove/range ~$400-$800 per unit, maybe dishwasher, another $500. Even the built in microwave "could" be considered. 

On the exteriors, it's minor, common area furniture and maybe a few pieces of artwork and furniture in a leasing office/common area. On a small project the exterior/common area items might be ~$5,000 and even on large institutional size projects maybe ~$50,000. 

For a point of reference, I'm reviewing a $20M budget from a competitor and there's all of $25,000 of furniture and another 420 units of stoves and dishwashers. 

Thoughts?

We buy in SoCal. Pm me the address, number of units, unit mix and sales price. Add any other color as you see necessary. 

1. Class A lease rates in sub-market. 

2. Institutional Class A/B leases rates in sub-market.

3. Resident Demographics. 

We buy Class C assets and value-add to a B with rents drafting off institutional rents.