All Forum Posts by: Account Closed

I send out a regular email to our investors (many of whom are out-of-state) to give them a rundown on important stories in the Boise Metro Area that impact economic growth and/or development.  I have found that for many it is hard to keep up with local news from afar.

It just hit me that it may be of use for many of you, so here is the most recent set of links that I sent out.  I hope these news stories are useful.  I'll try to do this periodically if I can but let me know if you want to get the email directly.

Of particular note is the article near the bottom about how home price growth relative to wage growth.  The Boise area is looking more like high price/rent areas like Seattle than "peer cities" of similar size to Boise.  This is an indication of the very high demand relative to new supply.  While home prices can't hold this trajectory forever, we believe it is a strong indication that rentals (already at near zero vacancy) will continue to be strong.

MAY 2019

Boise P&Z recommends rejection of new subdivision in NW Boise. Fears of density and traffic concerns. https://www.idahostatesman.com/news/local/community/boise/article230370974.html

Caldwell Urban Renewal Grant – American Food Equipment expansion at Sky Ranch

https://www.idahopress.com/news/local/caldwell-urban-renewal-gives-nd-job-creation-grant-to-food/article_a3d5ff6d-a6f3-5ca1-8e5d-444350d71aca.html

New Downtown Mixed Use Project: https://boisedev.com/news/2019/05/14/5th-grove-apartments-boise/

Potential New Distribution Company in Caldwell https://www.idahopress.com/news/local/firework-distribution-company-eyes-caldwell-property/article_da8ad0fb-6083-59e9-9234-4c544df98b0f.html

Older article but the project recently held a ground breaking ceremony: https://www.idahostatesman.com/news/local/community/west-ada/article222811955.html

Further info on Karcher Mall redevelopment: https://www.idahopress.com/news/local/california-company-buys-karcher-mall-plans-m-multi-purpose-development/article_b29c9b0c-b12f-54c7-898a-433d52db456b.html

Major Industrial Portfolio Acquisition: https://boisedev.com/news/2019/05/16/one-of-the-largest-deals-ever-new-firm-buys-big-portfolio-of-valley-buildings-and-land/

Idaho Unemployment Remains Very Low: https://www.idahopress.com/news/local/idaho-unemployment-rate-under-for-th-month-in-a-row/article_4941e062-7de2-5b65-a205-60664a477106.html

Caldwell Looking to Support Entrepreneurs Downtown: https://www.idahopress.com/news/local/caldwell-looks-to-potential-downtown-innovation-center/article_0d4226d7-706a-5b3f-9cd6-529b41b0d85e.html

Brookings Industry Report shows some potential headwinds associated with the Boise area’s recent growth. In particular, the growth being primarily in non-professional employers (which may be good for rentals). https://boisedev.com/news/2019/05/21/boise-brookings-growth-change/

Boise ranks high for parks: https://www.idahostatesman.com/news/local/community/boise/article230596579.html

Meridian is the nation’s 5th fastest growing city. https://boisedev.com/news/2019/05/23/meridian-among-nations-fastest-growing-cities/

Cluster of industrial/showroom space growing at Franklin and Cloverdale. https://boisedev.com/news/2019/05/20/commercial-center/

Downtown Boise residential projects: https://www.idahostatesman.com/news/business/article230436254.html

Boise has fastest growing home prices but wages aren’t keeping up. https://www.idahostatesman.com/news/business/article230753284.html

City of Eagle growth is causing political waves that may impact future development in that high-income pocket of the Treasure Valley. https://www.idahostatesman.com/news/local/community/west-ada/article230411429.html

Wine may not be the first thing you think of in Idaho but south of Caldwell is a growing wine region that some say can rival Washington wines. Koenig, one of the original wineries just traded hands to another local family who looks to help it grow. https://www.idahostatesman.com/news/business/article230757934.html

@Matthew McNeil keep an eye on the City of Boise's upcoming changes to their code. I don't think anything is official yet but they are looking to widen the ability to add ADU's to houses. There have been a lot of technical rules about how big, what features are allowed (i.e. kitchens) and whether the owner had to reside in the main house. If the rumblings are correct Boise is looking to use ADUs as a way to get more affordable housing which may create opportunities to justify some of the higher prices out there.

We have looked at building ADUs for clients and they can be cost effective in the right location/situation.  As a side note - we find it cheaper to just build a new garage/unit rather than try and pop the top on an existing garage... 

You are right about Boise being more expensive these days.  We are still "affordable" but prices and rents are both going up.  It all depends on your strategy - there is a lot of potential growth here but you'll be challenged to find some of the high income potential in lower cost areas.  

It has been discussed over and over on this site but it is really a trade off on income and capital appreciation.  Right now the Boise area is poised to be the next big growth city in the west, so appreciation is what many are targeting.

I'd also second the mention of Nampa (and add Caldwell).  Canyon County was the other side of the tracks in the last up-market but with prices going up, freeways being widened and companies moving westward, the rent to price ratio in these areas is far better.

Hi Joshua.  I'm seeing the same thing.  Rents are rising but rapidly increasing home prices and interest rates seem to be keeping pace.  If you plan a sizeable mortgage it is difficult these days but not impossible.  @Corby Goade has had success finding things out in Canyon County.

We are turning to new construction.  My partner and I are building a couple of homes in Eagle and just bid on a 5 townhome unit site next to downtown Boise.  I personally think the cycle has shifted from buy-and-hold, through value-add pays to being firmly in new construction territory.

@Jonathan Pflueger I'd love to meet up.  I'll ping you directly with my contact info.

@Jonathan Pflueger my partners and I have looked at GC quite and bit.  It has some great opportunities and other areas are still rough - very hit and miss on almost a block-by-block basis.  As mentioned above, getting a zone change can be challenging but on the plus side, they aren't afraid of density.  They even have several off-the-shelf designs that fit the narrower & deeper lots you often find in the area.  If you can show that your overall site plan is similar to these pre-approved plans you can shorten some of the process.

The area is rapidly evolving and you will find everything from a demographic standpoint.  But it is certainly starting to have its own unique vibe - distinct and different from Boise.

Feel free to reach out if I can help with anything.  One of my partners has sold several of the industrial properties down there and another is a builder.  

Thanks @Michele B. I'll look into the site.  It may be for bigger fish than us, but worth a shot.

@Account Closed good thoughts as well.  I know most of the big brokers in town and a few architects.  Talking with these folks is likely a good start.  The goal this summer is to start the process and see where it leads.  We have 3 home lots of our own to focus on, so it may be good timing to spend time building our network in preparation for when those homes are completed.

I am partnering with a General Contractor with strong connections to local subs.  In our local market (Boise area) construction labor is tight and the building market is strong.  We are currently building a few spec homes but finding finished home lots is very challenging.  To fill the gaps between new builds for our own account we are looking to do work for others.

We are not well suited to the large volume / low return type of work (flip contractor, small remodels, etc.) but have the ideal setup and experience for new home construction, custom homes, small commercial and multi-family, and major remodels.  We even have the team for commercial tenant improvements.  With our experience and, more importantly, access to subs, we believe that we have the right team to contribute in the current market but we also need to find a way to get the word out.

As the business-end of things in our partnership, I'm looking for ways to start networking.  How do you get started in developing the contacts and network for these type of projects?

This is very local.  Every city has different rules and different attitudes.  Here in Boise, splitting a lot is easy IF the lot meets all the specific criteria for size, setbacks, road frontage for both lots, etc. If your lot meets the criteria it is often just a procedure.  As others have said, look to your local planning department.

You mention using a hard money loan.  I would advise against that due to time constraints.  Even the easiest lot split will take time.  Time to understand the rules, time to get a surveyor and other specialties to provide the information you need to complete the split, then time to get appointments and on the agenda for the appropriate approval entity.  In my experience, hard money loans are best with quick flips and other shorter term deals.

@Mike Cumbie

You hit the nail on the head with my concern.  I don't want to have her buy the low cost lots for me and then throw the more valuable work to someone else.

On the other hand, I also am feeling like I did all the work since she didn't "bring" it to me, rather I saw it and and felt loyal enough to use her since it was her email blast.