Things Are Changing……

Things Are Changing……

Posted on by Jim Klein

Everyone has an opinion about where we are in the real estate cycle. Home builders and residential lenders see this as a crisis. Commercial brokers nationwide talk about a slow down. Just this month I have seen a lender take over negotiations in a land sale, a substantial money default on a development deal, and a newer investor unable to replace his interest only loan. We are also receiving calls from sellers who passed on our “low” offers earlier in the year and a few landlords are complaining about tenants getting behind in their rent. So far, most of the problems are related to financing and over-optimistic projections. Still, this a lot of personal incidents in a short period.
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Property Search and Community

Property Search and Community

Posted on by Jim Klein

For those who follow technology and real estate, Search is essential to success. Search is Google’s primary business and is how real estate buyers spend their day. When one carefully defines the relationship of search terms, the better the results. Likewise, when one defines the search parameters for property, the better the deals. Before the Internet, Real Estate Search was conducted by word-of mouth the Multiple Listing Service, and massive cold-calling. It was not easy to be specific. Today, new technologies allow pinpoint accuracy. CRM software, owner and tenant databases, search engines, aerial maps, mobile wireless internet cards and GPS enable one to segment the market into various product types. With massive amounts of capital looking to gain an advantage in different expertise areas, these new search tools have allowed Buyers to look more exactly than ever before.
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Commodity Vs. Developer Property

Commodity Vs. Developer Property

Posted on by Jim Klein

There are two types of property we sell. Commodity properties are typically found on the MLS and are generally offered to Users. Developer properties are land deals that will ultimately be developed into a commodity property. While it is a tidy distinction, owners of each make mistakes because they don’t understand the differences from a deal-making perspective. Each property type has its own logical steps to marketing, representation, legal, and negotiation.

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Added Value Property

Added Value Property

Posted on by Jim Klein

Creative solutions to problem real estate are the domain of value added deals. These are buildings that after they are redeveloped will increase cash flow and operability. The simplest examples are adding more square footage to an underutilized land area or subdividing the building for smaller tenants at a higher per foot rent. Because building new is so costly, there is more attention being paid to reconfiguring older property.
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Underutilized Sites

Underutilized Sites

Posted on by Jim Klein

The value proposition is overwhelming when comparing old, obsolete structures to developing say, a 3-story residential condominium. We often see redevelopment returns of 2 and 3 times compared to what is currently being generated at an older property. All industrial property with a decent location is open to reuse. A growing population, increased densification and worsening traffic mean there is continual opportunity in underutilized property.
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Overcoming Space Scarcity

Overcoming Space Scarcity

Posted on by Jim Klein

Like its harbors, airports and freeways, the Los Angeles industrial market is becoming clogged. Buildings are scarce and sale pricing is unimaginably high. Land values and constructions costs make it expensive to build new. Meanwhile Seller’s options are limited by capital gains (although relatively low for the moment), lack of suitable replacement properties, and unwieldy ownership structures.
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Goodyear Tract

Goodyear Tract

Posted on by Jim Klein

We have a $3 million dollar project near the 200-acre Goodyear Tract located at Slauson Avenue and Avalon Boulevard.It is one of the older manufacturing centers in Los Angeles. Pricing is roughly 30% lower than other properties along the 110 Corridor. Obsolescence and neighborhood factors are the biggest reasons that you can find rents in the mid-$.20’s and sale prices in the mid-$30’s.There are a lot of lessons here that can apply to other parts of Los Angeles where manufacturing is either disappearing or adapting.

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