by Brian Bailey
Central Coast Investments
Article Published in SBRPA Rental Property News
February 2014 Issue
I had a meeting on January 10 with Marc Fisher, Senior Associate Vice Chancellor and Campus Architect at UCSB. The purpose of my meeting was to follow up on a presentation he gave to the Santa Barbara Multiple Listing Service on November 12, 2013 concerning current and planned UCSB residential expansion.
The California Coastal Commission approved UCSB’s Long Range Development Plan (LRDP) Thursday, which will add 5,000 undergraduate students and hundreds of faculty and staffers to the university by 2025.
Read UCSB Daily Nexus Article
The 2013 review and 2014 Real Estate and Economic Forecast by California Association of Realtor economist Leslie Appleton-Young took place in Santa Barbara on Feb. 6, 2014. Click to view the presentation.
I had the pleasure of speaking at the Santa Barbara Rental Property Association (SBRPA) recently about the Santa Barbara South Coast multifamily and commercial markets. I spoke along with my friends and fellow brokers Steve Golis and Brad Frohling of Radius Commercial Group. To view the presentation click here: SBRPA Presentation 05-14-14.
Technical notes: In the slides on the 20-year history of multifamily sales the GRM and cap. rate factors are based on proforma rents and the trendlines used are five event polynomial.
Check Your New Leases
The state of California Senate Bill 1186, recently signed by Governor Brown, amends a number of provisions related to accessibility lawsuits and requirements, including those of the Americans with Disabilities Act.
Of specific importance is the addition of California Civil Code 1938 which will require all commercial leases or rental agreements executed on or after July 1, 2013 to contain a paragraph indicating whether the commercial property has been inspected by a certified access specialist and whether the property was found to have met all applicable construction-related accessibility standards pursuant to Section 55.53.
In a related issue, A consultant performing inspections and preparing property condition reports for FHLMC must have ALL of the following qualifications:
•A degree in engineering and/or architecture from an accredited institution
•Five or more years of experience in one or more of the following disciplines: architecture, engineering (structural, mechanical or civil) and/or construction/cost estimating
•Three or more years of experience performing multifamily property inspections
•Two or more years of experience conducting similar work for financial institutions.
Whether this will trickle down to all inspections/inspectors is not known yet.
The various federal/state legislators have focused heavily on the single family real estate issues since 2007. It now looks like they are looking more closely at commercial real estate issues. Stay Tuned!