Jodi Summers = Santa Monica Real Estate

NO NEW SMOKING IN SANTA MONICA APARTMENTS AND CONDOS

November 10, 2012 on 4:28 pm | In Fascinating Information, Market Trends, Multiunits, Of Local Importance, Problem, Problem Solving, The City of Santa Monica says, Uncategorized, WOW | 2 Comments

by Jodi Summers

Santa Monica has often been nicknamed the “Republic of Santa Monica” for the City’s rather unique stance on various social positions. Santa Monica’s latest set of rules may or may not be unconstitutional, but it will no doubt impact multiunit properties throughout Los Angeles. The City of Santa Monica has declared that all new occupancies after Nov. 22, 2012 are non-smoking. No ands, ifs, and certainly no butts.

Will this affect the desirability of one of the world’s best beach cities? We will need to watch. In September and October 2012 in Santa Monica, according to the MLS, 98 properties were leased in Santa Monica. The median lease rate was $4,000 or $3.31 per sq ft per month. The lowest lease rates were $1,500 for several studios and one bedrooms east of Lincoln Blvd., and the high being $14,100 for an Ocean Ave. penthouse. Properties averaged 38 days on the market.

Existing Santa Monica law already bans smoking in residential outdoor and indoor common areas, including balconies and patios and any area within 25 feet of any door, window or vent. The new smoking rules that affect all multi-unit housing in the City

include the following:

All new occupancies after Nov. 22, 2012 are non-smoking: Anyone moving into an apartment or condo in Santa Monica after November 22 can’t smoke in the unit.

Owners and condo associations are expected to conduct smoking surveys by January 21, 2013. Prior to this date, all landlords and condo homeowners’ associations must conduct a survey of current occupants, who must then designate their units either “smoking” or “non-smoking.” Current occupants are grandfathered in. Existing occupants can continue to smoke inside their units if they designate the units as “smoking.”

Results must be distributed. Once the survey is done, landlords and HOAs are expected to give out the updated list of all units’ smoking status to all occupants. In the future it must be kept updated, and given to all prospective renters and buyers along with a copy of the attached information sheet, from www.smconsumer.org.

NEW SMOKING LAW AFFECTS ALL SANTA MONICA APARTMENTS AND CONDOS

Important Info For Landlords, Tenants, And Condominium Owners

Santa Monica has passed a law with new smoking rules that affect all multi-unit housing:

- All new occupancies after 11/22/12 are non-smoking: Starting November 22, 2012, all newly occupied units in multi-unit residential properties in Santa Monica are declared non-smoking. This includes all apartments and condos. So, anyone moving into an apartment or condo after November 22 can’t smoke in the unit.

- Owners must start smoking survey by 1/21/13: Before January 21, 2013, all landlords and condo homeowners’ associations are required to begin a survey of current occupants, who must then designate their units either “smoking” or “non-smoking.” For details about this process, go to smconsumer.org.

- Current occupants grandfathered: Existing occupants can continue to smoke inside their units if they designate the units as “smoking.”

- Results distributed: Once the survey is done, landlords and HOAs must give out the updated list of all units’ smoking status to all occupants. In the future it must be kept updated, and given to all prospective renters and buyers along with a copy of this information sheet. (Also available at smconsumer.org)

- Common areas too: Existing Santa Monica law already bans smoking in residential outdoor and indoor common areas, including balconies and patios and any area within 25 feet of any door, window or vent.

Q: Are there exceptions to the law? If a property is already 100% smoke-free, the designation process is not required. The law also does not apply to temporary special needs housing for people with disabling conditions.

Q: How is the law enforced? Most compliance is achieved through communication. If that fails, and a person persists in smoking inside a non-smoking unit after getting a written notice, the person may be taken to small claims court and is liable to pay damages starting at $100. Any person can enforce the law by giving notice and eventually going to court.

Q: Are property owners required to enforce the law? No. They are only required to conduct the survey and keep updated lists available. They are not required to enforce violations of the no-smoking rules.

Q: What happens if a property owner refuses to conduct the initial survey and give out the required information? The owner can be prosecuted for violating the Municipal Code.

Q: Can a tenant be evicted for violating this law? No. But a tenant can still be evicted if the lease prohibits smoking.

Q: What about medical marijuana? If a unit is non-smoking, then medical marijuana can’t be smoked inside. If a doctor specifically requests that a disabled occupant may smoke marijuana indoors, and the occupant can’t take marijuana in non-smoked form, then the smoking might be permissible under the “reasonable accommodation” standard for disabilities. For more information call the City Attorney’s Office, 310-458-8336.

Q: Where can I get help with quitting? Go to nobutts.org, or call 1-800-NO-BUTTS.

Q: Where can I get more information? Go to smconsumer.org, or call the City Attorney’s Office, 310-458-8336.

We’re here to help you with your property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

http://www.smmirror.com/articles/News/Santa-Monica-Adopts-New-Smoking-Law-For-All-Multi-Unit-Housing-In-City/35858

http://pro.themls.com//membersonly/THEMLSPRO/select.cfm?frame=lse&search_kind=listing

http://www.smgov.net/uploadedFiles/Departments/CPU/S.M.%20smoking%20law%20102412.pdf

http://www.socalmultiunitrealestateblog.com/?p=2173

http://www.smgov.net/Main/News_Tab/New_Smoking_Law_Affects_All_Santa_Monica_Apartments_And_Condos.aspx

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LUXURY CONDOS WORKFORCE HOUSING + RETAIL @ THE NEW VILLAGE AT SANTA MONICA DEVELOPMENT > BUY, RENT OR LEASE

March 20, 2012 on 8:37 am | In Fascinating Information, For Your Purchasing Pleasure, Market Trends, Multiunits, Of Local Importance, The City of Santa Monica says, Uncategorized | 5 Comments

by Jodi Summers

Buy, rent or lease…leave it to Santa Monica to introduce one of the broadest mixed use, mixed income real estate development projects in the country. In 2014, we will welcome the Village at Santa Monica > a 318-unit apartment / condo / retail development split into three buildings on the 1700 block of Ocean Avenue < and spitting distance from the new Expo Line light rail stop.

Here’s the unique rub on this new real estate development project, the low-rise Village at Santa Monica will offer 158 luxury condominiums adjacent to 160 affordable apartments crowning 20,000 square feet of commercial space. So choices abound > if you’re comfortable, you can buy an ocean view condo. If you’re fortunate enough to meet the city’s workforce housing criteria you can rent > the lottery for the affordable units will open in 2013. If you’re looking for retail and restaurant, you can lease.

The project will have a new walk street to better unite Main Street and Ocean Avenue and our extravagant new Palisades Garden Walk park. As is Santa Monica’s way, the whole project will be pretty > laden with gardens and plazas lined with retail and restaurants with outdoor dining. Our own Pacific Riviera…

Impressive logistics made this project happen. Community Corporation of Santa Monica, the city’s largest affordable housing developer, is responsible for the 160 affordable units. Related California is developing the 158 luxury condos. The $350-million mixed-lifestyle development will generate 1,500 construction jobs over its 24-month building cycle. Charles Pankow Builders are the general contractor.

“…We are very sensitive to the responsibility we have for this site that is a one-of-a-kind treasure…” notes Related California president and CEO Bill Witte. “Our intent was to create the ultimate Santa Monica Village…thus; we brought together a superb team that can give it the sense of place it deserves.”

Related’s team of designers is led by Santa Monica-based architects Moore Ruble Yudell. The Santa Monica firm of Koning Eizenberg Architecture is the architect for the 160 affordable apartments. Mia Lehrer + Associates created the landscape plan.

Financing the project was a group effort, featuring Resmark on the condominiums and Wells Fargo and HSBC Bank on construction cost. Santa Monica City Hall put up $19.4 million in ground lease costs and extended the life of the lease to a maximum of 149 years instead of the original 99.

“The Village is at the center of it all,” states Andy Agle, director of housing and economic development for the City. “It is a block from the Santa Monica terminus of the new Expo Line and within easy walking distance to all major destinations including the beach, Civic Auditorium, 3rd Street Promenade, Ocean Avenue hotels and restaurants, Santa Monica Pier, Palisades Park and, of course, the stunning new Palisades Garden Walk and Town Square.”

The Village is the first major residential development to be built on highly prized Ocean Avenue in two decades.

City officials and the developer hope that the three-building complex with its shops and restaurants lining the ground floor will create a lively anchor in an otherwise quiet area, and provide a population base with access to the brand new $55 million Palisades Garden Walk Park next door and the Downtown shopping district.

http://www.globest.com/news/12_288/losangeles/multifamily/350M-Mixed-Use-Moves-Dirt-Source-Says-Timing-is-Right-318759.html?ET=globest:e29242:277110a:&st=email

http://www.smdp.com/Articles-local-news-c-2012-02-16-73490.113116-Civic-Center-Village-finally-underway.html?utm_source=Santa+Monica+Daily+Press+List&utm_campaign=6bb58ddb6a-SMDP_Daily_Template6_10_2010&utm_medium=email

http://www.santamonicapropertyblog.com/?p=4209

http://www.costar.com/News/Article/Related-Begins-$350-Million-Village-At-Santa-Monica-Housing-Development/136050?ref=100&iid=269&cid=383F14EEE265B182474DA2442BACBBBF

http://www.socalmultiunitrealestateblog.com/?p=1878

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http://la.curbed.com/uploads/Koning%20Eizenberg%20Architecture.jpg

RESIDENTIAL REAL ESTATE TRENDS 4 U

November 27, 2009 on 12:03 am | In Fascinating Information, Market Trends, Multiunits, Statistics, Uncategorized | 4 Comments

By Jodi Summers

A recent study from the Urban Land Institute and PricewaterhouseCoopers LLP has concluded that homes near cities with thriving economies and mass transit will outperform outer-ring suburbs and “exurban areas,” it the near future.

The study calculated information supplied by more than 600 real estate experts, including investors, developers, lenders and real estate brokers. The report, Emerging Trends in Real Estate 2009, projects that the worst of the national housing downturn may be over, with the bottom of the market being confirmed by the end of this year.

The report included an overview of housing markets and how they may be affected by macroeconomic trends and changing regional conditions.

Some entertaining factoids:

· Changing preferences could increase demand for condos in urban areas, many of which now have a glut of such properties. One respondent said their company had 30,000 unsold units in south Florida — just as they did in 1975 and 1988.

· At some point, those high-end Miami condos overlooking the Atlantic will be good buys,” the report predicts, noting that ocean views “always find a market.”

· 24 hour cities” like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence.

But, gains in the attractiveness of 24-hour cities could be “squandered” if cutbacks in police, fire and sanitation result in less safe and appealing environments. Falling property values and the economic slowdown are expected to cut into tax revenues, forcing cities to reduce services.

“Nothing would undermine 24-hour dynamics more quickly than rising crime rates,” the report warned.

· “Fast-growing Sunbelt cities had pooh-poohed mass transit in their rapid expansions, enabled by interstate highway building during the 1960s and 1970s,” the report observed. “Virtually no one contemplated the consequences of car dependence until populations began to overwhelm road capacities.”

· The Sunbelt is also plagued by water issues, as spotlighted by droughts that tested Atlanta’s reservoir system, which the report called “insufficient.”

· Water issues pose a challenge to further growth in areas dependant on the Colorado River and throughout the Southwest, the report said. Continued growth in areas like Las Vegas, Phoenix and Southern California will require increased conservation and new sources of water.

· The suburbs will continue to be desirable to families in search of better school districts and child-friendly environments. But the mortgage crisis, high car-related costs and increasing property taxes mean moving to the suburbs requires greater sacrifices.

· As home prices continue to fall, “McMansion subdivisions in the sticks (will) take a double whammy,” the report predicts. Rising heating and cooling bills could work against sellers already facing resistance to long commutes. “People realize they don’t need 3,000 square feet and four cars anymore,” one respondent noted in the report.

· California’s large suburban satellite markets, Riverside and Orange County, are expected to “tank in mortgage and housing misery.”

http://www.inman.com/news/2008/10/21/housing-healthier-near-thriving-metros

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http://www.alwaysonvacation.com/photos/United-States_California_Squaw-Valley_414901.html?spid=415021

EXPENSIVE RENT V.S. CHEAP RENT IN THE U.S.

May 1, 2009 on 12:53 am | In Fascinating Information, For Your Purchasing Pleasure, Market Trends, Multiunits, Uncategorized | 16 Comments

EXPENSIVE RENT V.S. CHEAP RENT IN THE U.S.

California cities have among the highest rents in the country, claiming four of the top rental prices for the nation’s 40 largest metropolitan statistical areas according to the U.S. Census Bureau’s 2008 American Community survey.

San Jose has the most expensive lease rates in the country with renters paying an average of $1,314 a month; the area just north of San Francisco is second at $1,210; and our beloved Los Angeles, it’s a relative bargain at $1,101. So says

California rents even beat out those in New York, which has the seventh-highest rent of any major metropolitan area. But Thomas Davidoff, assistant professor at the Haas Real Estate Group at the University of California, Berkeley, says the differential between high and low rents in California is much less dramatic than in New York.

“Nothing in California matches rents in Manhattan, but in New York if you factor in Brooklyn, rents get lower,” says Davidoff.

Signing a lease in Miami and Orlando fetched monthly rents of $1,031 and $981 respectively.

“Miami and Orlando were two pretty hot areas when the housing market was raging for conversion of apartment stock into condominiums,” he says of the mid-decade housing boom. “So that reduced supply.”

The survey looked at renter-occupied units paying cash rent, and defined gross rent as the contract rent plus utilities, if utilities were paid by the renter.

On the affordable end, cities such as in Cleveland and Pittsburgh, where the slumping job market has lead to rent rates of $678 and $608. Pittsburgh has struggled to rebuild its economic base after the loss of its steel industry, and residents are leaving the city.

“The bottom line is that Pittsburgh is undergoing a sea shift in its economic base,” says observes Davidoff.

Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School. “Rents are relatively low because it’s in a state which is losing population, and it is simply not doing well.”

Rust belt cities like Cleveland, Cincinnati and Columbus, Ohio, still have low rents compared with the rest of the country. Even though, according to the U.S. Office of Policy Development and Research, apartment vacancies are limited because of a lack of new construction, a rental home in Cincinnati will still cost only around $652 per month.

THE SENIOR HOUSING MARKET IS CHANGING

February 13, 2009 on 12:29 am | In Fascinating Information, Green, Market Trends, Multiunits, Problem Solving, Statistics, Uncategorized, WOW | 1 Comment

THE SENIOR HOUSING MARKET IS CHANGING

By Jodi Summers

The first of the Baby Boomers will soon be entering the senior housing market, and that is impacting the single and multifamily housing market.

The National Association of Home Builders and MetLife Mature Market Institute recently examined the 55-plus population and its preferences in homes and communities. Dubbed “Housing for the 55+ Market: Trends and Insights on Boomers and Beyond,” the report is based on data from the most recent American Housing Survey from the US Census Bureau and focused on trends that emerged between 2001 and 2007.

Some interesting conclusions, the age 55-plus population in the country has risen from 52.2 million–about 21% of the population–in 1990 to 59.3 million–again about 21%–in 2000 to 70.6 million, comprising 23% of the overall population, in 2007. By 2010, this group will grow to 76.6 million, or a quarter of the population, and to 85.3 million–26%–in 2014.

Most older households don’t currently live in age-restricted or–qualified housing, but that number is rising. In 2001, 2% of them lived in active adult age-restricted communities; in 2007, 3% did. What’s more, residents in this type of community had the highest satisfaction rates, although most 55-plus respondents related they were happy with their current homes.

Regarding property, design and looks were most important factors to older buyers of single-family homes. In age-restricted 55-plus rental or multifamily properties, proximity to family and friends topped residents’ priority lists.

Distance from work location was the driver behind choosing a community for 17% of older buyers of single-family detached homes in 2007, up from 11% in 2001 to 17% in 2007.

The buyers of units in active-adult communities are getting younger–no older than 60–and in multifamily and rental units, many of the heads of households are females. The share of college-educated buyers in age-restricted homes has also taken a leap, from 50% in 2001 to 72% in 2007.

“NAHB has tracked the 55-plus population and its share of the housing market for decades,” concludes David Crowe, NAHB’s chief economist. “But this new data gives us our first look at specific consumer behaviors and preferences–what they look for in a home, the reasons why they move, and the characteristics of the communities they choose–over an extended period of time. By examining emerging trends, we have a clearer picture of what the mature market wants in homes and communities, which gives builders the tools to build housing that will meet those needs.”

http://www.metlife.com/assets/cao/mmi/publications/studies/housing-for-the-55-plus-market.pdf

http://www.globest.com/news/1406_1406/insider/178616-1.html

http://www.docuticker.com/?p=25847

http://www.marketwatch.com/story/when-baby-boomers-move-family-often-is-reason

IS THE LOCAL MULTIUNIT MARKET STILL A SAFE INVESTMENT?

December 26, 2008 on 12:10 am | In Fascinating Information, Market Trends, Multiunits, Of Local Importance, Uncategorized | 13 Comments

IS THE LOCAL MULTIUNIT MARKET STILL A SAFE INVESTMENT?

by Jodi Summers

The Los Angeles apartment building market has always been considered to be a safe area of investment because of the constantly growing segment of Los Angelinos just cannot afford to buy a house. And…studies are showing that it is still a good place to shelter money in a scary economy.

The official dictum from the most recent Marcus & Millichap study notes “Apartment market fundamentals in Los Angeles are expected to soften mildly through year-end 2008, though vacancy will still be one of the lowest rates in the nation.”

“It’s true, my vacancies are up,” confirms Mike, a Santa Monica multiunit property owner.

The study reports on rental trends and investment activity in the third quarter of this year. The study does reveal that a weakening job base has produced “a notable uptick in vacancy over the past year” in 26 of the Los Angeles Metropolitan area’s 37 class A submarkets. Despite these vacancy upticks, “Healthy demand and solid rent growth will fuel investor interest in the quarters ahead,” Marcus & Millichap forecasts, although it expects that “deal flow will remain measured as tightened lending criteria continue to shrink the pool of active buyers.”

The latest U.S. Labor Market Report from the Bureau of Labor Statistics noted that in the U.S., total nonfarm employment fell by -159,000 jobs in September. This was worse than the August drop-off of -73,000 jobs and the biggest monthly decline since March 2003.

The report says sales have slowed by 37% on a year-over-year basis, attributed to a drop-off in 1031-exchange activity and “a more diminished role from leverage-dependent investors,”. Apartment properties have traded at cap rates averaging in the mid- to high-5% spectrum over the past year and are expected to stay in that range through the remainder of 2008.

If the Democrats get into office, and the capital gains tax rises to the proposed 28% – multiunit demand should again increase.

Another trend is that apartment owners are asking for smaller rent increases, with asking rents expected to rise 4.4% to $1,489 by year-end 2008, while effective rents will gain 4.3% to $1,440. To the contrary, RealFacts research notes that Los Angeles area rents average of $1,661, but RealFacts focuses more on institutional-grade assets.

The RealFacts figures rank Los Angeles as the fifth-highest rental market in the country. Its $1,661 average rent compares with an average of $2,272 in the Greater New York area, the highest in the nation, followed by Bridgeport-Stamford at $2,179, Greater Boston at 1,905 and San Jose, CA at $1,708.

“I live in Santa Monica, it would be great if the City would, just once, allow us to raise rents to a price equal to the cost of living increase,” concludes Mike. “In 2008 they let us raise rent a whopping 3.7% while my expenses on the unit went up more like 5.8%.”

That’s the Mark Obrinsky, vice president of research and chief economist for the National Multi Housing Council is of the feeling that, “The excess supply of for-sale single-family and condominium residences continues to weigh heavily on the multifamily sector, and a correction isn’t expected until at least 2010.”