Socal Multiunit Real Estate

LOS ANGELES COUNTY MULTIUNIT PROPERTY SNAPSHOT – FEBRUARY 2010

DISPARITY BETWEEN BUYERS AND SELLERS

By Jodi Summers

Multiunit investors are not getting the value that they’re seeking in the Los Angeles West Side apartment building market, and are pulling unproductive sale properties from the market. Look at a two-year comparison, from January, 2008 vs. January 2010 - the number of for sale properties in Los Angeles County is down 46% and the number of sold properties is up 1%, according to Clarus Market Metrics.

The Federal Reserve bank’s recent survey of senior loan officers for 55 US banks and 23 foreign banks shows that credit–while not becoming looser–is not tightening. Creative lending has become a viable means of securing a multiunit transaction, which is why that comparing Jan-08 vs. Jan-10 the number of under contract properties is up 102%

If you’ve applied for a commercial mortgage in the past two years, you know that banks have tightened lending standards for this real estate sector. The relative few who are buying in this sector are finding tremendous satisfaction, as the median price of sold properties is down 63%.

FYI - Residential investment spending boosted overall economic growth by +0.1 percentage point. In 4Q 2009.

**

We would like your real estate business. If we can provide you with more detailed information, please contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com. We look forward to working with you in your next real estate transaction.

**

http://www.cirbdata.com/

https://www.terradatum.com/

http://www.globest.com/news/1590_1590/washington/183353-1.html

http://www.globest.com/news/1590_1590/washington/183353-1.html

http://www.socalgreenrealestate.com

http://www.laedc.org/eedge/index.html#1

GLOBAL USE OF GREEN BUILDING PRODUCTS SKYROCKETING

GLOBAL USE OF GREEN BUILDING PRODUCTS SKYROCKETING

By Jodi Summers

Keep studying those lists of top rated green building products, because global purchasing of green building products will grow to $571 billion by 2013. This growth is more than tenfold from the $455.3 billion spent on green materials in 2008, notes the study by Allied Business Intelligence Research.

“Innovation, particularly in wood and insulation, is a key driver behind the growth of green building products,” observes Larry Fisher, research director of ABI Research’s next generation practice.

“The most significant driver of growth in the green building materials sector is concern for the environment. While environmental preservation has been a topic of discussion for decades, only recently has the level of concern for the environment driven governments, manufacturers and consumers to respond.”

The study notes that businessmen and builders will look toward products with greater energy efficiency produced in an environmentally-friendly manner. Preferred lumber and wood products will come from well-managed forests.

Now if we can only figure out an efficient way to make drinkable ocean water.

**

http://www.purchasing.com/article/439362-Buying_of_green_building_products_to_increase.php

http://www.mossgreenchildrensbooks.co.uk/wp-content/uploads/2009/10/iStock_000001111800Small-2.jpg

Energy to Sell - States with Renewable Portfolio Standards

States with Renewable Portfolio Standards

Edited by Jodi Summers

Here is a nifty map and chart from the U.S. Department of Energy showing states with renewable portfolio standards - a state policy that requires electricity providers to obtain a minimum percentage of their power from renewable energy resources by a certain date.

California is stellar with the objective of 33% renewable energy by 2030, but not nearly as aggressive as Maine, which is shooting for 40% renewable by 2017.

Currently there are 24 states plus the District of Columbia that have RPS policies in place. Together these states account for more than half of the electricity sales in the United States. Five other states, North Dakota, South Dakota, Utah, Virginia, and Vermont, have nonbinding goals for adoption of renewable energy instead of an RPS.

The chart below gives a rough summary of state renewable portfolio standards and links to organizations that are administering these standards or explain the details involved. Percentages refer to a portion of electricity sales and megawatts (MW) to absolute capacity requirements. Most of these standards phase in over years, and the date refers to when the full requirement takes effect.

http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm?prin

FYI – NEW MULTIFAMILY LEGISLATION FROM SACRAMENTO

FYI – NEW MULTIFAMILY LEGISLATION FROM SACRAMENTO

By Jodi Summers

Legislators in Sacramento were more interested in finding was of shrinking the new $7.4 billion deficit for the 2010-11 budget than they were in thinking about the hit that apartment building owners have taken in the multiunit marketplace this downturn.

Fortunately, the more ominous legislation affecting multiunit properties has been shelved until next year, but, as a local multiunit property owner, we know you want to know what has passed and what is on the horizon.

Passed

* Assembly Bill 1020 (Emmerson, R-Redlands): Limits fees that may be imposed by local and state government and preempts local health departments from adopting any new or additional safety standards on top of federal guidelines regarding public swimming pools. Brings state regulations in line with federal law regarding anti-entrapment devices in pools.

* Senate Bill 120 (Lowenthal, D-Long Beach): Allows a tenant or occupant who has paid utilities in place of a landlord in order to prevent him or her from being shut off to deduct that amount from rental payments.

* Senate Bill 290 (Leno, D-San Francisco): Extends a Jan. 1, 2010, sunset period for a 60-day termination notice requirement for tenants who live in a property for longer than one year.

Be Aware of

* Assembly Bill 473, from Assemblymen Bob Blumenfield, D-Van Nuys, will require owners of properties with five or more units to arrange for mandatory recycling services.

* Assembly Bill 479, introduced by Assemblyman Wayne Chesbro, D-Arcata, will require local governments in large counties to adopt mandatory recycling laws for commercial properties.

**

http://www.carealestatejournal.com/newswire/index.cfm?sid=&tkn=&eid=905490&evid

http://www.consrv.ca.gov/smgb/PublishingImages/CaliforniaStateCapitol02.jpg

http://www.blogcdn.com/www.autoblog.com/media/2006/12/the-governator—64_1280.jpg

http://www.greentechforum.net/wp-content/uploads/2007/06/california_state_flag.png

http://www.limitstogrowth.org/WEB-Graphics/CaliforniaPostcardGreetings.jpg

http://forcechange.com/wordpress/wp-content/uploads/2008/03/cfl-float.jpg

6 units - $998,000 - PRICES HAVE COME DOWN IN SANTA MONICA

Jodi Summers

Sotheby’s International Realty

310. 392.1211

jodi@jodisummers.com

6 units - $998,000 - PRICES HAVE COME DOWN IN SANTA MONICA

Actual Net Operating Income - $51,496.80

1835 20th St, Santa Monica, CA 90404

1835 20th St, Santa Monica, CA 90404

* Price: $998,000

* Property Type: Multifamily

* Price/Unit: $166,333.33

* No. Units: 6

* Building Size: 3,038 SF

* Year Built: 1960

* No. Stories: 2

* Lot Size: 5,676 SF

* Parking Ratio: 1 / 1,000 SF

* Cap Rate: 5.16%

* Gross Rent Multiplier: 12.83

* Actual Net Operating Income $51,496.80

Highlights

* Rare Santa Monica Investment Opportunity

* 2 Blocks from Santa Monica College

* 6 Parking Spaces

* Easy Management in a Traditionally Strong Rental Demand Area

* Over 20% Upside in Rents

* Perfect for Owner/User or Investor

Description

If you’re looking for location and future cash flow, take a look at PRICED TO SELL! ALL CASH OFFERS PREFERRED! four (4) two bedroom + one bathroom unit & two (2) single units conveniently located near Santa Monica College.

Unit Mix

Description No. Units Avg. Mo. Rent

2 bed + 1 bath 4 $1,195

Studio 2 $ 850

Location

Close to Santa Monica College @ 20th + Delaware

Is this the kind of property you’re looking for?

Do let us know how we can move forward together in meeting your real estate goals 310.392.1211 or jodi@jodisummers.com.

It’s my hope, that over the course of the year, you would be comfortable referring one person to me. I’m building a referral-based business and your recommendation will make the world a better place.

Best….

Jodi Summers

The SoCal Investment Real Estate Group

Sotheby’s International Realty

310. 392.1211

jodi@jodisummers.com

www.SantaMonicaPropertyBlog.com

www.SoCalMultiUnitRealEstateBlog.com

LICENSE # - 01343854

**

It isn’t what you have, or who you are, or where you are, or what you are doing that makes you happy or unhappy. It is what you think about. - Dale Carnegie

p.s. This is not intended as a solicitation if your property is already listed with another agent.

LOS ANGELES MULTIUNIT PROPERTY SNAPSHOT – JANUARY 2010

LOS ANGELES MULTIUNIT PROPERTY SNAPSHOT – JANUARY 2010

By Jodi Summers

The residential real estate market bottomed out in 2009, and the pundits at the Urban Land Institute feel that 2010 is the year “commercial real estate is going to hit to bottom as well,” notes ULI researcher Charles DiRocco.

It has been reported that commercial real estate value declines will average more than 40 percent below previous highs of mid-2007. Savvy investors are realizing that the apartment building market has hit bottom. Locally, in Los Angeles county, from December 2007 – December 2009 the median price of for multiunit properties for sale properties is down 13% and the median price of sold properties is down 70%. On the upside, the number of sold properties is up 78%, which should keep multiunits away from the wave of property falling back into their possession.

**

http://saratogavoice.com/wordpress/2009/10/20/california-real-estate-forecast-for-2010/

http://nyrej.com/37067

http://www.realtor.org/research/economists_outlook/commentaries/forecast1209

http://pittsburgh.bizjournals.com/pittsburgh/stories/2009/12/07/daily30.html

CURBING GREENHOUSE GAS EMISSIONS - THE GOVERNATOR’S LEGACY

CURBING GREENHOUSE GAS EMISSIONS - THE GOVERNATOR’S LEGACY

By Jodi Summers

Governor Arnold Schwarzenegger will eventually leave office, but his impact may be felt for generations to come. AB 32 and Order S-21-09 – California admirably and aggressive energy initiatives pushed forward by our governor, may actually make the world a cleaner, better place.

“Global warming is a global problem that requires a global solution and I am committed to working toward that solution so our children and grandchildren are left with a clean environment and a strong economy,” observes Governor Arnold Schwarzenegger. “Our policies have influenced the world.”

Thought you’d all appreciate a little primer on AB 32 and Order S-21-09 – California’s bold green energy strategies.

The regulations authorized under AB 32, California’s landmark 2006 global warming initiative gave us the world’s first comprehensive law to reduce greenhouse gas (GHG) emissions. Current law requires investor-owned utilities such as Edison to produce 20% of their power from wind, solar and geothermal energy by 2010 (a target they are expected to miss.)

AB 32 mandates a reduction of California’s GHG emissions to 1990 levels by 2020 and calls for an 80 percent reduction from 1990 levels by 2050. The state has approved an AB 32 Scoping Plan as a blueprint for reducing GHG emissions, adopted measures from the Low Carbon Fuel Standard to the Pavley Vehicle Standards to address 40 percent of its overall goals and is working on more than 20 additional measures such as a cap-and-trade system to fully meet AB 32 mandates.

Recently, the Governator signed Executive Order S-21-09, directing the California Air Resources Board to adopt regulations increasing California’s Renewable Portfolio Standard to 33 percent by 2020 - putting California on track to becoming the largest clean energy producer in the nation.

“Every year it becomes more apparent that no single issue threatens the health and prosperity of our world, or provides a greater opportunity for economic success than climate change,” concludes the governor. “That is why California has stepped up to take the lead. Three years ago I signed the world’s most comprehensive global warming law and since then our emissions have been reduced, our green economy has grown and our policies have influenced the world.”

Once his term as governor is finished, Arnold Schwarzenegger may find himself joining former Vice President Al Gore in the crusade for a cleaner planet.

**

http://gov.ca.gov/issue/energy-environment/

http://www.sgvtribune.com/news/ci_13345618?source=rss

http://www.latimes.com/business/la-fi-power16-2009sep16,0,3412344.story

http://www.environmentamerica.org/uploads/ig/hp/ighpWSCwRpKVJbuUaA7LCA/DSC_0263.jpg

http://image.guardian.co.uk/sys-images/Guardian/Pix/martin_rowson/2006/09/01/rowsonatlas512.jpg

http://www.pollsb.com/photos/o/38053-release_greenhouse_gasses_atmosphere_believed_cause_global_climate_changes_following_causes_increase_greenhouse_gas_emissions.jpg

http://tvtropes.org/pmwiki/pmwiki.php/Main/ArnoldSchwarzenegger

http://images.businessweek.com/ss/06/04/sb_presentations/source/7.htm

REGISTER YOUR CELL PHONE ON THE DO NOT CALL LIST

REGISTER YOUR CELL PHONE ON THE DO NOT CALL LIST

By Jodi Summers

Cell Phone Numbers Go Public this month….meaning cell phone numbers are being released to telemarketing companies and you will start to receive annoying sales calls on your cell phone…and YOU WILL BE CHARGED FOR THESE CALLS.

To prevent this, call the National DO NOT CALL list number from you cell phone. That number is - 888-382-1222.

Registering will block your number for five (5) years.

FYI - You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

GUEST POST - VA LOAN OPPORTUNITIES

GUEST POST - VA LOAN OPPORTUNITIES

by Jay Buerck

Veterans and their families in Southern California can take advantage of one of the country’s most affordable and flexible home loan programs. The Veterans Administration’s home loan program was created specifically for the needs of those who have served our country.

VA loans offer veterans an almost unmatched degree of flexibility. The VA guarantees loans from commercial institutions. That security gives lenders the ability to offer competitive rates and favorable loan terms for qualified borrowers.

VA loans come with myriad financial benefits. Borrowers can purchase a home without spending a penny on a down payment or monthly private mortgage insurance. The VA has loan limits that vary from state to state. Some borrowers can qualify for 100 percent financing. Currently, VA loan limits for San Diego County is $593,750. In Orange County, the loan limit is $737,500. USe a VA Loan Calculator to determine the loan limit for your home purchase.

The VA has multiple loan options. Veterans must first obtain a Certificate of Eligibility (COE) before moving forward with the application process. The COE ensures that a prospective borrower meets the program’s initial requirements.

Any military member who has served 181 days on active duty during peace time or 90 days during war time may be eligible, along with those who have served at least six years in the Reserves or National Guard. Spouses of service members killed in the line of duty may also be eligible.

Not everyone who meets the basic criteria will qualify for a loan. But veterans with poor credit can still qualify for a VA loan. So can those who have filed for bankruptcy or faced foreclosure.

Southern California veterans who currently have a conventional home loan can also benefit from a VA loan. Qualified borrowers can now refinance up to 100 percent of their home’s appraised value through a VA loan.

URGENT! CONTACT YOUR CONGRESSMAN TO AVOID COMMERCIAL REAL ESTATE TAX HIKES

Action to Oppose More Than Doubling of Taxes on Real Estate Carried Interests

Edited by Jodi Summers

In early December, Congressman Charles Rangel Ways, chairman of the Ways and Means Committee of the House of Representatives, introduced the “Tax Extenders Act of 2009″ (H.R. 4213). Wrapped in this legislation package is a proposal that would more than double the taxes on carried interest received by general partners in real estate partnerships. Under this legislation, carried interest would no longer be taxed as capital gains at 15 percent, but as ordinary income at rates as high as almost 35 percent…making everyone’s investment real estate holdings a lot less sexy.

Kick us while we’re down. Those investing in commercial real estate are already feeling economic distress because of the decline of property values and the lack of loans available. The proposed legislation would more than double the taxes imposed on many real estate entrepreneurs.

If H.R. 4123 enacted into law, this proposal could be the largest modification to the taxation of real estate since the Tax Reform Act of 1986.

This bill was past stealthfully, proposed on December 7^th, it bypassed the customary legislative process, bypassing the House Ways and Means Committee, and going directly to the House floor for a vote on December 9, reducing meaningful opportunities to amend the bill.

Safeguard your real estate assets; communicate with your Congressional Representatives and Senators! Let them know that this tax increase on carried interest will further damage the commercial real estate industry and undermine efforts in their own communities to spur job growth and economic recovery.

http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO has letters ready to go to your congressmen.

Save your assets and contact them.

**

http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO

http://www.ysop.org/images/Capitol.jpg