All Forum Posts by: Jonathan Orr

@Garrett M. welcome to the community. As I am sure you are already aware there is a abundance of knowledge her. Always learning and growing!

If you ever want to get together to talk let me know. My background is in commercial and residential development however I have recently being doing a lot of rehab and acquisition work on the single family side for different investors.

Congrats @Steve S.

 Absolutely Jason!  That is one of the main reasons I like and focus in hotels.  When you approach a city that is typically difficult to develop in, I have found a hotel is often the most appreciated asset class because of the transit tax and drivers you mentioned.

@Gon Eisenberg from my experience of developing hotels I prefer hotels to multi family.  However that is because I am focusing in hotel development.  With that being said people are right that it depends on the supply and demand of the market.  If hotels are scarce and MF is plentiful the a hotel may perform better.  However if it is a dead heat then typically a MF will be worth more (just on a perfect scenario basis because of the long time profitability and it being a more popular asset class for investor.  A Hotel may suffer more with an economic downturn for an area.  Think of a hotel as being a multi-family just instead of month to month turnover you have daily turn over.

However, people are saying that a hotel is more hassle to manage, NOT TRUE!  A good hotelier brings in a 3rd party manager to streamline that, yes it may be a high cost but on a day to day basis a hotel brings in more revenue so it evens out.  This is just the same as you bringing in a management company to run a MF. 

Looking at a macro scale they may seem very different but when you truly look at micro costs then they are surprisingly similar. I am currently developing a hotel and apartment complex on the same parcel of land and the hotel will perform better upon stabilization.  With that being said it is easier to get funding for the multi-family because it is a more popular asset class.  

It all depends on what you want to focus on.  If you are leaning one way or another I would recommend getting a feasibility study for ahotel.  This is done by a 3rd party company that will come in and say if a hotel could be successful.  Also, keep in mind that it also depends on zoning and allowable uses for a particular parcel.

@David Sharp you should connect with a architect prior to just a general contractor.  A good architect and research the limits of sq. footage and things of that nature to maximize a potential site. Of course they will want to be compensated but that is a good start.  

So just so I am correct, the greenhouses are already an approved use for the site?  If that is the case I would get a site plan and go to the planning department to find out what their process is with approval. They may just move to permit phase which is when you get full construction drawings and get the GC involved.  However, they may need studies done (traffic, soils, etc...)

You already own the land as well? 

@Joe Bertolino Willing to look at anything.  PM me and we can connect

@Max Powers with almost all shopping retail centers they have CC&R's  (Covenants, Conditions and Restrictions) that outline that with the signing of a tenant that a similar tenant cannot interfere or be leased too.  This also occurs within each individual lease.  So the grocery store I am sure has a lease that says no other grocer can lease space.  I am sure that the local pizza joint may have that they cannot lease to another pizza place.  It can be as general or specific as the tenant and owner agree to. 

I am sure that there are some cross affect compliments happening with the popular restaurants with the grocery.  However that is a marketing question which is not my niche :)

To answer your question about a dated grocery.  It really depends on what you mean by updates.  Just a coat of paint can be several thousand, while I have seen TI work be done that cost hundreds of thousands and have to close for 3 months, depends on the work. Developers and investment owners always try to save the structure and remodel vs a tear down.  The only exception is if a 50k sq ft retail space can be expanded immensely.  That may be enough of a factor to tear down and build a much bigger space.

@Tom G. If you are looking for equity partners I would put together a offering memorandum.  I have someone so PM me if you are interested.  This will cost you up front but then you can take that package to friends, family, local RE meetings, attorney, etc.... 

It should show your underwriting numbers and give a good explanation about the property.

Good luck!

@Jay Hinrichs California municipalities typically have some level of planning meeting.  However that occurs when the property has been discussed on a very Macro view.  

I also have a property in Rohnert Park that I am developing!  The former stadium lands site.  For that property we had general ideas of what we wanted to do in terms of types of assets. however we didn't spend the money to get a site plan until it was under contract. I will say that knowing the language is important in talking with planning to move the ball forward but not until we truly had a good feeling from the city on if they will accept those types of assets.

That is why I mentioned emailing the head planner to set up a meeting.  It gives you the perks of a private meeting without being in front of a commission.   

 I appreciate the help. I am always open to talking with brokers. Please forward their contact info. However I am mostly looking for owners and non marketed properties.