At Adaptive, we’re 100% focused on multifamily. But that doesn’t stop us from observing what’s going on with other asset classes in our little submarkets. And, recently, I’ve become convinced that there is are opportunities for smaller, food and beverage-driven retail along both Temple and Beverly, south of the 101 in Historic Filipinotown. Driven by the … Continue reading “Restaurants and bars and Historic Filipinotown”
Blog
In, out, and (possibly) back into the brokerage business
Regular readers of this blog have probably noticed a shift in our business here at Adaptive. When I first started writing, roughly five years ago, we were knowledge-rich but capital poor. We knew a ton about buying, renovating, leasing, managing and selling apartment buildings from our experience doing 12 deals between 2008-2012 through Better Dwellings. But … Continue reading “In, out, and (possibly) back into the brokerage business”
The importance of a diligence checklist
The diligence process for a multifamily building is complex. In essence, you are buying a small business, often using a lot of debt. And, if you’re buying the kind of beat-up buildings in which we specialize, often you’re doing the deal with missing / incorrect information from the seller. To make sure you don’t miss … Continue reading “The importance of a diligence checklist”
What a successful deal looks like
Just finished stabilizing a deal and thought you all would like to see some numbers. Bought this large, non-rent control property in late 2015. Renovated and re-tenanted it, with everything finishing up in the last week or so. All in for about $3.6MM. New rent roll is $369k (so, 9.8x GRM). Looking like roughly a 7.8% unlevered … Continue reading “What a successful deal looks like”
Competing with cowboys
We spend a lot of time looking at rental listings to ascertain market pricing for apartments of various types in different neighborhoods. Recently, we’ve seen a lot of renovated product come onto the market. Out of interest, I often check to see who owns the buildings and whether they’ve pulled the relevant permits for the renovations. Very, very … Continue reading “Competing with cowboys”
Why the zoning matters, even if you’re not building
Have been spending some time looking at new neighborhoods around LA for possible investments. Many of the areas I’m reviewing were developed later than the areas in which we’ve traditionally done business. Because they were developed later, when zoning codes were better established and enforced, the apartment buildings I’m reviewing tend to be grouped near … Continue reading “Why the zoning matters, even if you’re not building”
The LAW has not been repealed
Was talking to someone yesterday regarding the frothy pricing in the LA market. She made the reasonable observation that pricing in big city markets seems to be on a long, one way rise. This is a version of an argument I hear a lot: Millennials don’t want to move to the suburbs, because they prefer city … Continue reading “The LAW has not been repealed”
Who benefits from the demise of department stores?
Do you know who is in the cat bird seat right now? Entrepreneurs with retail concepts that require very large spaces and have the ability to drive customers themselves, without need for “walk-in” traffic. Why? Well, retailers are generally getting slaughtered right now; who wants to go to the mall when Amazon will deliver whatever … Continue reading “Who benefits from the demise of department stores?”
What I do all day
Someone asked me this weekend what, exactly, I do all day. The truth is, many days, I don’t do much more than read. Sure, people come into my office for guidance on how to handle tricky issues. But, in those cases, I try to get the person asking the question to make a recommendation, which … Continue reading “What I do all day”
Why I dislike unpriced deals
Recently, I’ve noticed a lot of unpriced listings coming on the market. By “unpriced”, I mean properties where the Seller is basically saying “I want to sell, but I’m not going to guide you to the price I expect”. I get why sellers do this… they aren’t sure what their property is worth and they don’t … Continue reading “Why I dislike unpriced deals”