In Los Angeles, older buildings continue to be valued unlike in many other post-industrial cities. Although these buildings have lower ceilings, poor loading, and limited parking, there have many types of occupants. The main advantages to older buildings are their low rents and central locations. One significant downside is since older buildings compete on low rents, owners can’t afford a lot of improvements. This condition creates blight and despite good occupancy rates, neighborhoods decline. Taxes and planning laws exacerbate the situation.

Continue reading “WHITHER OLDER BUILDINGS”

Dear Gardena Building Owner:

Continue reading “Gardena Letter to Building Owners”

New California state law that starts taking effect August 1, 2013. All Sellers and Landlords will need to disclose the energy efficiency of their buildings in any sale or lease of an entire building. The goal is to have an Energy Star rating of 75 or better. However disclosure of any score is a requirement. Here is the handout I received from Greenberg Glusker who provided the legal overview and Green Econome who will help you with the filing and disclosure. Handout

2012 was a very steady year and the best since 2007. I sold land in New York and North Carolina; A $3MM warehouse sale in Savannah, Georgia and a $9MM apartment community in Central Los Angeles. My Gardena/South Bay Industrial core was very solid with over 175,000 SF of building sales and leases. Several things are coming togeth er at the same time. My 30-year presence in Industrial Los Angeles has given me trusting relationships and extensive market knowledge. The investment in a sophisticated GIS database (MAPP) helps to locate property with exacting criteria. The New York State Real Estate License gives me another large market to tap. Strong national and international ties through SIOR substantially widen my geographical scope. As the economy continues to rebound, we will experience a Golden Age of Real Estate.

One of his (Warren Buffet) big worries these days is about what’s going to happen to all the pension money that is being invested in the markets, often with little success, in part because investors are constantly buying and selling securities on the advice of brokers and advisers, rather than holding them for the long term. “Most institutional investors, whoever is in charge — whether it’s the college treasurer or the trustees of the pension fund of some state — they’re buying what they’re sold.”

For More: http://dealbook.nytimes.com/2012/12/03/for-buffett-the-long-run-still-trumps-the-quick-return/?ref=todayspaper

Deal Book –  Anfrew Ross Dorkin

The next chapter in the real estate recovery is well on its way. Many segments are showing good signs of stability. Housing is improving.  Class A industrial is inundated by fierce bidding.  User demand is robust for buildings to purchase. Developers are active with many spec developments coming online.  My non-real estate friends even know about multi-family housing. We are ready for a long period of smart buying for the long term.  I call this period The Golden Age because it will consist of reasonable prices, excellent prospects for growth and minimal downside risks.  All through the Great Recession, purchases have been made. But as low as these prices were, they were risky deals because the outcome was still uncertain. Now that the worst is behind us, we are at the start of a new cycle. This also means that Property Owners who did not want to sell at the bottom will fulfill their long delayed plans to part with good real estate. In other words, we are entering a stable period with less risk and the ability to create lifelong investments in real estate.

Continue reading “The Golden Age”