I was trying to buy a small office building in East Hollywood. Because it was a former gas station, we were concerned it was contaminated. I spent an enormous amount of time trying to structure a deal that would put the risk on the owner, not me. Eventually, it became clear I couldn’t do it … Continue reading “Just missed”
Category: Development
How we benefit from being local
Adaptive is a weird company, in the sense that we do a ton of deals in very small area (basically, from East Hollywood through Silver Lake, Echo Park, and over into Highland Park). Why do we limit ourselves like this? Surely there are other places where it’s easier to find screwed-up apartment buildings to buy… … Continue reading “How we benefit from being local”
Want to see what we make?
This blog is mainly about the rules and numbers underlying the Los Angeles apartment business. Regular readers know all about the whole process, from identifying deals, through renovating, leasing and management. I’m not going to sugar-coat it: This business can be a real slog sometimes. (All businesses are; no one gives you money for free.) … Continue reading “Want to see what we make?”
Construction at 1947 Clinton
Construction continues apace at 1947 Clinton St. in Echo Park, a 4plex we bought in December. Here’s a shot of one of the kitchens partially installed: These units are going to be amazing: All are 3 bed / 1 bath 3 out of 4 have parking All have private decks or big private outdoor spaces … Continue reading “Construction at 1947 Clinton”
Micro-units are coming
Just ran across this piece on yet another micro-apartment complex going up in Santa Monica, and I’m thrilled. In case you haven’t run across this concept before: Micro-apartments are very small apartments, in this case averaging 375 sq ft. For reference, a normal studio apartment in a 1920s building is probably something like 400 sq … Continue reading “Micro-units are coming”
As long as…
…people do things like this: http://losangeles.craigslist.org/lac/apa/3920818867.html …there will be work for Adaptive to do. Check out the remodeling choices (uh-oh). And the location (great). And now the asking rent (low). When I see something like this, I feel like this guy does in this situation:
Can we see the plans? No.
You might think that, somewhere, the City of Los Angeles has plans for every structure erected in the city, at least since modern building permits came into use in the 1910s. You might think that, if you’re planning to renovate an old building, you can go down to some records room, pull the plans, and … Continue reading “Can we see the plans? No.”
Some pics of three of our projects
Thought you might like to see what 1920s buildings look like when you rip them open. When I say we gut our projects, I mean it.
Navigating the broker/principal divide
One of the weird things about our business is that I am both a broker and a principal investor. That means I look at deals for other people and for myself. Who cares? Other brokers. Brokers make money as middlemen. Their goal is to know who’s selling and who’s buying and match the two together. Simple, … Continue reading “Navigating the broker/principal divide”
Fee for services
Lately, it feels like we’re spending a lot more time speaking with potential partners about fee-for-services deals, rather than straight brokerage. What do I mean by “fee for services”? Jon and I have relationships with certain investors where we help them buy and renovate apartment buildings in exchange for brokerage fees and cash payments from … Continue reading “Fee for services”