We’re in lease-up on a wonderful complex in East Hollywood. Have posted some pics below. If you’re interested in a beautiful 2 bedroom apartment walking distance to Sunset Junction and the Red Line with parking and private outdoor space, reach out to Krystal [at] adaptiverealty [dot] com.
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Finishing up a really nice little deal
Regular readers know we’re not sellers; once we complete a renovation and lease the property back up, we refinance, return capital to our investors, then hold. The downside of this strategy is that it can take some time before Adaptive gets to participate in the cashflow generated from the property. Even when we are able … Continue reading “Finishing up a really nice little deal”
Why we focus on unlevered yield
Had someone write in and ask me why we focus on unlevered yield when we look at deals. To be clear, unlevered yield is calculated by dividing the forecast annual net operating income from a property by the cost total cost of buying and renovating it… in other words, treating the project like it will … Continue reading “Why we focus on unlevered yield”
Walking away from a potential homerun
Just walked away from a really nice deal and I’m still in mourning. Last week, we were offered the opportunity to buy a group of smaller buildings in a single portfolio, off market, through a broker with whom we’ve done business before. The numbers looked good and even got a little better after inspection. I … Continue reading “Walking away from a potential homerun”
A great capital partner
Yesterday, a long-time capital partner and I finalized the operating agreement for the entity for a new deal we’re doing and, because the process unfolded in precisely the way I like to do business, I want to highlight it here: We brought the deal to this partner about a month ago, after we had inspected … Continue reading “A great capital partner”
My biggest management problem
Heard a really interesting interview with Brent Beshore recently that crystalized a big problem we have in our business. Brent was talking about how he loves the HVAC service business, because, as long as people live in variable climates, they will need machines to maintain comfortable air temperature, and someone is going to get paid … Continue reading “My biggest management problem”
Having a little fun with the team
On Friday, we closed up shop to take the whole in-office team wine tasting in Malibu. While I am truly proud of our business, we are not exactly curing cancer. So, Jon and I have realized, if we are going to get very high-quality people to work with us, we need to make Adaptive a … Continue reading “Having a little fun with the team”
How we think about apartment design
When you’re designing apartment buildings, you need to resolve the following tension: You want the units to be cool enough to attract tenants today, while making them timeless enough to attract tenants for decades to come. We have settled on what I like to think of as “authentic Socal minimalism”: “Authentic”, because we avoid using … Continue reading “How we think about apartment design”
One bad habit I’m trying to kick
One of the bad habits I’m prone to falling into is failing to grow my network of capital providers. For any given deal, if we’re not deploying a discretionary fund, it’s easiest to reach out to the 3-4 families with whom we do the most business and get one of them to write the check. … Continue reading “One bad habit I’m trying to kick”
Cranking the machine back up
Acquisitions have been slow at Adaptive over the past few months. And it’s not by choice… prices in our core neighborhoods in 2018 have generally run way out ahead of rent growth, taking our forecast unlevered yields down to levels we don’t find appealing. However, recently, we have identified a few areas where the equation … Continue reading “Cranking the machine back up”