2016 03-22 EAC Community Weekly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

Awaiting updates.

John Hostetler, COO

B2R has finally and we have come to the finish line, but we have credit approval and answered last couple of questions from our title company and looks like we have papers sent to us the next day or two. So fortunately, that will be done very soon.

Olga Levin-Diaz, CFO

No Updates

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

Not sure if other GPs posted their updates, but here’s a brief summary:

Giovanni Gracias – PPS
– Calle de Medio: Working on finance terms to partially cash out EAC
– College: Project near completion. No final inspection scheduled yet
– Escala: Waiting for agent to secure financing. Property has been off market for > 2 months, so once able to get a hold of Gio, need to see if we should move forward and relist if no final answer.

BNF – George Flint
– Pescas is ahead of schedule. Currently Partial Pass on Foundation work, so framers can set up.
– Muirlands on schedule. Currently Partial Pass on Foundation work, so framers can set up.
– No picture updates yet.
– Will be able to do walk throughs once roof trusses are on. 2-3 weeks for pescas and almost 2 months for muirlands at which point buyers will walk the homes. EAC can do walk through then as well.

John Allen
– 2 offers on 53rd street
– Vetting both offers to see which is best overall and most likely to close on the deal

Chad Urbshott, Managing Partner

Awaiting Updates.

Tony Banawa, Managing Partner

Awaiting updates.

Joseph Jin, Managing Partner

1008 Braemar:
Constructions started, last week, just the framing, will gonna go out there this week and will give a quick spot check and take some pictures.

7718 S Loomis:
With regard to the next deals in pipeline, the second deal that I have been approved. Kevin and I went over the spreadsheet and corrected the field that weren’t populated correctly. Saved in PFR files in dropbox under Loomis. Waiting for the deals to get funded to start construction.

GROUND PARTNERS

Lou Ellis, Ground Partner from Jacksonville, North Carolina

Awaiting updates.

Steve Shaffer, Ground Partner from Southbend, Indiana

Awaiting updates.

Andrew Davis, Ground Partner from Orlando, Florida

602 Emma and 1215 Avenue L:
From Roger Chance:
March 14
The writs of possession have been issued and were sent to the Sheriff along with the checks late last week.

I’ll call the Sheriff tomorrow to get an estimate of their backlog.

Nick is listed on the writs as the point of contact to take possession, so after a deputy posts the order to vacate the premises, he/she should be contacting him any day now to schedule taking possession of the premises.

March 15
I just spoke to a Polk County Sheriff’s deputy and they are out as I write this to serve the writ of possession on Senita Scott at Ave L. Nick has likely been contacted by now.

My understanding is the writs for the Emma properties are to be served today ortomorrow as well.

Giovanni Gracias, Ground Partner from San Diego, California

4748 College Ave:
– I am pushing my contractor to wrap up this project by this weekend.
– The final city inspection will be scheduled upon completion of the remaining items on our scope of work but obtaining the final from the city will not prevent us from going live on MLS within a week.
– The for sale sign has been placed outside of the property and marketing has begun.
– Open house is scheduled for next weekend Saturday 4/3 and Sunday 4/4.

2672 Escala Circle:
– My realtor attempted to purchase the property along with a family member but they did not qualify for private financing
– We will be back on the MLS in the next couple days at a listing price of $549K.

George Flint, Ground Partner from San Diego, California

1222 Muirlands:
Muirlands, demo is 95% done. Framing and concrete has started. ROW permit shall be issued this week, thus ROW work starting next week.

Pescas:
Pescas, demo & concrete work is 100% done. Pool is 80% done. Framing is 55% done, thus ruff electrical, plumbing and AV will start in 1 week.

John Allen, Ground Partner from San Diego, California

4336 53rd Street:
Two formal offers on the table for 53rd Street. The first is at $650k gross, with a 30 day DD and 60 day close. The second is at $720k with 21 day DD and 45 day close, but has a much higher commission. We will discuss the pros and cons of each offer and plan to enter into escrow within a couple days

Samuel Lord, Partner from St. Louis, Missouri

3441 Shenandoah:
Ellis Construction took project over. No updates from LTE

4759/61 Alaska:
– 100% occupancy.
– Minor issues to repair on gutters/downspouts of home and one electrical item from inspection (junction box in basement).

4552/54 Virginia:
– 4552B waiting to sign contract with new tenant to move in April 1.
– Will be replacing pocket door with French doors as cannot make necessary repairs to ensure proper opening and closing. Will find doors at restore and keep within standard of the existing.
– Due basement is where wash area is and limited access new tenant has requested to make wash area on first floor. Kitchen pantry is large enough for stackable units. Checking costs to do both 2nd floor apartments if electrical is sufficient to carry dryers.
– Tenant in 4552A had advised us they were going to move as they did not feel safe after break in last month. May already have new tenant interested in it.
– Parapet issues on roof which will need to be addressed. Replacement of existing roofing materials along walls as well as flashing is needed.
– The building has an inward slant. Every door on back of home have been cut to fit as the home sank. Front doors are original entry doors with glass removed.
– Would like to bid to replace the doors.
– Basement doors are solid core but rotting at bottom. Due the entrance is short replacing with steel entry will be expensive as they would be special order. will also install multiple deadbolts as presently each entry is blocked with safety bar and only access is through the first floor apartments.

3501 Iowa:
– Have had some issues with new tenant on 2nd floor. Working with DePaul group/Places for People for resolution to the issues.
– 3501 1st Floor has new voucher for Section 8 housing. Has been to Winnebago property. Issues in home currently should be done after they move. Trying to contact Section 8 to see if tenant can stay until Winnebago is complete and transfer the family there. Voucher will cover above the minimum (believe closer to $900 range). Tenant does want to stay with the group.
– Since work should not be done with tenant occupying would suggest foregoing one month rent until Winnebago is done and transfer over.
– Issues needed to be attended are the back wall. Need to replace footer in basement structural wall on NE corner and replace drywall due mold between it and outer wall. Home has no insulation on back wall and large crack between floor and wall runs length of the back bedroom. 3 years ago the SW corner of the home was jacked up 3″ and new footer replaced there.
– There are other issues in the apartment that can be addressed during the major repairs.

3116 Michigan:
– Tenant has complained again of mold. We have done all we can. Not sure what they are seeing that we have not and have not yet treated multiple times.
– We will be advising tenant we will not re-sign lease with them. If there are issues, the home is too packed with stuff (furniture, boxes, bags, clothing) to re-mediate issue of mold if it is there. There is and has been a dehumidifier in the home since the tenants moved in.
– Complained of water in basement but even during the heaviest rains did not see anything out of the norm for a 100 year old stone basement.

3438/40 Ohio:
– First floor paid majority of rent. remaining balance due on Friday.
– Due issue with Laclede Gas not having proper information tenant has received an $1800 gas bill. Issues were finally resolved.
– 2nd floor tenant has asked about parking pad and clean up of the back area.

Other updates:
– Sent to Lou information on Virginia, Iowa, and Ohio for feedback.
– LTE can have all the work done but wanted his feedback on some of the particular issues (if he has the crew available and can be cheaper).
– We work with Places for People, DePaul, and a few other special needs agencies. DePaul is located at Nebraska and Arsenal (2 blocks away from the Oregon tri-plex). They have requested if we have any more units available.

Nathan Turner, Ground Partner from Ontario

4233 Comanche:

The closing was pushed back until Mar 28 because we had trouble scheduling the utilities getting turned on. We had to get a repairman to come and cap the water and gas lines before that could happen. Otherwise we’re on track to close next Monday.