All Forum Posts by: Ryan McGowan

Is it common for operators to lease out? Who are the big players in operations that prefer to lease the facility? 

You can also check on density bonus programs, or work deals with the city where you can increase density by doing something they want like going LEED certified.

If your building is designed for high winds, it's not all that different than designing for earthquakes. They're both a horizontal forces acting on the structure. The foundation isn't the problem in an earthquake. It's the horizontal movement.

Unless it is an unreinforced masonry building, or the soil is subject to liquefaction, I don't think you have much to worry about. A quake in California can throw you against a wall. You're talking over 1g lateral acceleration, and some quakes approach 2g. It's not the shaking or the ground just vibrating. It's the fact that you're moving the building suddenly 2 feet in one direction. Unless you are near two tectonic plates colliding, I don't think it's worth it personally. Liquefaction, maybe... If it's a masonry building without reinforcing metal, I would be worried first about retrofitting, then insurance.

Get a marketing study done as part of the pro forma. It should detail the demographics and competition. Include it in the sells package for the restaurants. Maybe even add a few photos of waiting lines at their competitors on a typical Friday night. Many chains look a lot into traffic counts and "rooftops" within a specified distance. Another factor will be whether it is anchored by a well-known name, such as Wal-Mart or Lowes to give it some assurance of long-term traffic.

I wasn't aware of the changes. I have two tracts coming up that are EB-5. Both in high-end areas. Guess I better look into this...

Contact your local planning departments and ask to be on the mailing list for the agendas for the planning commission. You will get a good feel for who's developing in the area, and what they specialize in, etc. Go to some of the planning commission meetings, business cards in hand. They are public meetings, anyway.

I would not recommend leasing to friends. I wouldn't even recommend becoming too friendly with people you lease to.

Every jurisdiction is different, but commercial properties generally have entitlements for their use. This property is entitled for post office use. Any change in use could take an application with the planning department to change use. Some areas may be pretty relaxed on this. Also, making changes to the parking or exterior look to the building could require the same process. It is important to get a feel for what the planning department is going to make you do to change the use. It's not always just about whether it's an allowed use. For instance, they may make you upgrade the handicap accessibility of the building with up to 20% of your budget. Any unpermitted work could need to be resolved before they issue the entitlements. All of these things would be spelled out in the conditions they give you at the end of the entitlement process. Around here, all the cities and counties allow applicants to submit a "pre-application" without as much hassle. This will give you a lot more feedback from all departments that like to get their fingers into it.

If the improvements require a lot of money to resolve, it could be a negotiating chip for getting a better deal from the seller, so don't get discouraged.

Read through your title report documents and make sure there's no agreements that could be affected by your plans for the property. For instance, I had a project where the owners wanted to demolish a Taco Bell and build a retail/residential mixed use building on the beach. I read through the title report, and found that the access easement to the neighboring property was conditioned upon it remaining a Taco Bell. The bulk of the parking was on the neighboring property, so it became vital that it remain a Taco Bell.