Kevin Michael Kelly

As California continues to face an unprecedented housing crunch, accessory dwelling units (ADUs) have emerged as a promising solution to bolster housing stock in existing neighborhoods. The journey to approval can vary widely, raising the question: how long does it take to get a building permit approved? We have put together a guide to Understanding the ADU Permitting Process in California. Access it here: https://bit.ly/3xQP7dX We hope it's beneficial to your ADU planning. #accessorydwellingunit #accessorydwellingunits #adu #aduamerica #adudesign #aduready #awesomedwellingunit #casita #guesthouse #builder #construction #contractor #steelbuilthome #prefab #modularhome #california #californiarealestate #Sacramento #LosAngelesRealEstate #OCRealEstate #design #designbuild #garageconversion #homedesign #homeremodeling #interiordesign #renovation #home #homeoffice #housing #modularhome #prefab #DesignToDoorstep

3

The Luxury Four Season Hotels For Sale in San Francisco! The Four Seasons San Francisco at 757 Market St. is being marketed for sale amid challenges for its current owner Westbrook Partners and local hospitality. Amid the downtown issues, San Francisco’s home market, apartment buildings and neighborhood commercial remains very strong in the City by the Bay. Perhaps the story is best told as a tale of 2 cities. The 227-room luxury hotel for sale by owner Westbrook, which also owns the Four Seasons San Francisco at Embarcadero at 222 Sansome St. Now both of the downtown San Francisco Four Seasons are up grabs, after Westbrook's debt default at the Embarcadero opened a path for a new owner to take over. The impact of long-COVID continues to plague the US downtown areas. COVID caused a collapse of the Convention Center Business. Hotels generated much of their business from conventions. The convention bookings at the Moscone Center is extremely light over the next 5 years. It must be a tough job. SF’s CEO of touism Scott Beck, who is in-charge of booking conventions just resigned after 6 months on the job. The asking price appears to be in the range of $800K a room. The building is a combined Luxury hotel/condominium building. There are 12 individually owned condo units for sale in the building with a price range of $1.8M to $4.4M. In my recent post concerning Chicago’s downtown, nearly 100 comments revealed that bringing safety back to the streets of Chicago was seen as the top priority in revitalizing the City. In SF, addressing the homeless population is also a top priority in bringing back office workers, tourists and shoppers. Follow me on LinkedIn for breaking news on local, US and international real estate. #sanfrancisco #chicago #hotel #downtown #condominioum #fourseasons #office #tourists #convention #salesforce #meta #google #tech #ai #facebook

2

Reason #4 on Why You Should Build An ADU Now? #4 ADU's Keep Families in the Bay Area Many people who grow up in the Bay Area have to move away when they start working because it is simply too expensive to live here. An ADU can help keep your children or your child's teacher, your caregiver, nurses, local police officer...in the area. If your family is like many in the Bay Area, you are genuinely concerned about the high costs of assisted living and health care, and whether you are going to have enough money for retirement. In some cases, aging parents have moved into the ADU and have their children and family move into and rent the main house. This is like creating your own retirement plan and long term health care plan all in one! There are other ways to mitigate these future concerns, but hopefully you get the picture. The main thing I want to point out is that we don't have that proverbial 'crystal ball', and we don't know when things are going to "hit" that proverbial 'fan', but you can get ready for it by having a practical plan that may include a functional and operational accessory dwelling unit. Call NOW 1-888-360-3604 FOR A FREE SITE VISIT & STRATEGY SESSION CONSULTATION CalBRE#01795093, CSLB#1114186 www.adunow.house #adu #realestate #california

1

What’s Behind San Francisco’s Boom Loop? San Francisco is showcasing signs of a remarkable recovery despite the pervasive doom-loop narrative. Here are deeper observations into the city's current state of rebound and what it means for investors and tenants: - Resilient Real Estate Market: Despite initial fears, San Francisco's real estate market is attracting significant investments. Notable transactions include Goodwin Gaw's purchase of a Blackstone-owned office complex for $82 million and Roger Fields' acquisition of a former Wells Fargo office for $40.5 million. These moves reflect a strategic approach to "be greedy when others are fearful," highlighting a surge of large investments into San Francisco. - Tech and Non-Tech Tenants Fill Vacancies: A surge in AI companies and traditional businesses returning to office spaces has helped reduce the high vacancy rates. OpenAI and other tech giants are subleasing large spaces, while non-tech sectors like finance and legal are capitalizing on favorable lease terms. Recently, at 150 Post, multiple leases have been signed with promising #AI startups. - Population and Job Growth: After years of decline, San Francisco experienced a small but symbolic population increase in 2023. The city is also adding green shoots in the form of jobs, buoyed by its tech industry and renewed corporate interest. - Cultural and Social Revival: San Francisco continues to be a cultural hotspot. Events like the BeChinatown monthly night markets and weekly downtown concerts are revitalizing these neighborhoods and attracting both locals and tourists. These gatherings are not just cultural expressions but catalysts for economic and social revitalization. Implications for Tenants and Investors: - Tenants: Current tenants and prospective renters can expect more competitive lease terms as building owners look to fill spaces. The variety of available spaces, from high-tech offices to traditional setups, provides multiple options depending on company needs. Neighborhoods previously quiet during the pandemic have begun the return to vibrancy of work life balance. - Investors: The shift towards a balanced demand in the real estate market presents a potential growth opportunity, especially for those willing to invest in properties with high vacancy rates. The economic indicators suggest a slow but steady appreciation in property values as the city recovers. For a detailed understanding, read the full article on Bloomberg: San Francisco’s Comeback https://lnkd.in/ganriuGq. This evolving scenario presents a dual opportunity: for tenants to secure favorable leases in a recovering market and for investors and the community to engage with a city on its path to resurgence. #BoomLoop #SanFrancisco

23

1 Comment

The Justice for Renters Act will not be friendly to apartment owners and investors... "With the threat of SB 446 presently nullified, the big challenger to the long-standing Costa-Hawkins Act is the Justice for Renters Act initiative," writes Whitney Hodges, a partner at Sheppard Mullin, a law firm. "This measure will be put forward to California voters on the Nov 2024 ballot and would wholly repeal the Costa-Hawkins Act. ...The Justice for Renters Act is being funded by AIDS Healthcare Foundation (AHF) President Michael Weinstein. Weinstein—considered by some to be an “agent provocateur” against the state government and dubbed “public enemy no. 1” by the California Apartment Association—has brought some form of this ballot measure twice before (Proposition 10 (2018), Proposition 21 (2020)) without success. Presently, the Justice for Renters Act is publicly supported by the California Nurses Association, the Coalition for Humane Immigrant Rights of Los Angeles, and Housing Is a Human Right (a project of AHF). By repealing statewide rent control regulations, the Justice for Renters Act purports to give local communities “the right to stabilize rents and make apartments more affordable for low-income and middle-income renters.” Essentially, the Justice for Renters Act preclude the state from infringing upon “the right of any city, county, or city and county to maintain, enact or expand residential rent control” and provide local governments with the autonomy to set rental controls. ...the Justice for Renters Act contains a “Trojan Horse.” Specifically, the legislators and unions believe this ballot measure, if passed, would allow wealthy cities (and particularly wealthy coastal cities) to oppose development with affordability requirements. This would, essentially, result in a moratorium on development and undermine the plethora of pro-housing laws intended to avoid such a result. According to [Assembly Appropriations Chair Buffy Wicks], “This ballot measure will end housing production in California. Full stop.” Other critics warn that the initiative would allow local governments to apply rent control to all types of housing, regardless of age, and would eliminate vacancy decontrol. This could, in turn, reduce the availability and quality of rental units. It could also deter the development of new rental housing, and any additional private investment in renovating and maintaining existing units. In sum, this act could harm the very individuals it purports to protect—renters. ...Opponents of the Justice for Renters Act also believe the upheaval of the Justice for Renters Act is not necessary in light of the Tenant Protection Act. Enacted in 2019, this legislation, among other landlord-related restrictions, caps annual rent increases either at 10% or at 5% plus the local inflation rate, whichever is lower, for most apartments more than 15 years of age." Read the entire article. #BayArea #RealEstate #RentControl #Homeownership

2

Is an ADU right for you? Many people are curious about accessory dwelling units (ADUs). And it’s no wonder! Portland has THE largest ADU precedence in the nation. This Thursday, Melissa Appleton, with Deberry Funding, will share with you high-level ADU basics, as well as her firsthand experience investing in ADUs. Topics include: - What technically qualifies as an ADU? - How much do they generally cost to build? - What are some of the specific permitting requirements and nuances you need to be aware of when considering an AUD? - What is meant by System Development Charge (SDC)? - When does it make sense to spend the money on an ADU? Join us virtually on Thursday, June 27, at noon. Register Here: https://lnkd.in/gQc3hfnt Jen Maffei Windermere Realty Trust #ADU #accessorydwellingunits #PortalndADU #ADUinvestment #buildanadu #windermere #jmkeepingitreal

2

OCEANWIDE PLAZA, BILLION DOLLAR DEVELOPMENT IN LA Lendlease, the general contractor for the Oceanwide Plaza project in LA, joined other creditors owed for their work to push the China-based developer, Oceanwide Holdings into bankruptcy last month. Oceanwide Plaza is a three-tower complex — with the tallest building reaching 53 stories that is adjacent to Crypto.com Arena in downtown Los Angeles. The project was slated to include 504 condos and commercial space before construction halted in 2020 due to a lack of funding. Oceanwide Holdings acknowledges it owes at least $370 million, including a $170 million loan from L.A. Downtown Investment, $185 million owed to Lendlease and $15 million owed to the L.A. County Tax Collector. It is estimated the project would need at least $1 billion and over a year to complete. Any buyer of the property would have to acquire significantly below the older valuation of $330 million to make the numbers work. The proceeds from the sale would go to Oceanwide's creditors, including Lendlease. Construction halted on the project in 2020 when China Oceanwide said it ran out of cash. The developer has been attempting to sell the three-tower property for years. Once completed, this high profile property would become a destination due to it's coveted location and surrounding amenities including direct access to the Crypto.com arena. The property is coming to market for the right ambitious and deep-pocketed developer group looking to own a premier property in downtown LA. #realestate #commercialrealestate #banking #innovation #entreprenuer #crypto #marquiscommercialproperties

8

Real Estate Highlights, Tips and Information California's Tax Ranking: High, but Not Highest #piedmont #piedmont #sfrealestate #bayarearealtor #bayarea #california #bayarearealestate #sfrealtor #californiarealestate #luxuryhomes

1

Flipping 🔄 the script on California's tough business reputation, the 2023 ADU laws are unlocking unprecedented flexibility in housing 🏠. A real game-changer for the Golden State! These laws 𝘀𝗶𝗺𝗽𝗹𝗶𝗳𝘆 𝘁𝗵𝗲 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 for building accessory dwelling units (ADUs) by 𝘀𝗽𝗲𝗲𝗱𝗶𝗻𝗴 𝘂𝗽 𝗽𝗲𝗿𝗺𝗶𝘁 𝗮𝗽𝗽𝗿𝗼𝘃𝗮𝗹𝘀, 𝗹𝗼𝗼𝘀𝗲𝗻𝗶𝗻𝗴 𝘀𝗶𝘇𝗲 𝗿𝗲𝘀𝘁𝗿𝗶𝗰𝘁𝗶𝗼𝗻𝘀, 𝗮𝗻𝗱 𝘀𝗹𝗮𝘀𝗵𝗶𝗻𝗴 𝗳𝗲𝗲𝘀. As California aims to tackle its housing shortage, these measures could turn backyard cottages into a booming segment of the housing market. And yes, there is a franchise for that. https://lnkd.in/gKHA44vS

1

1 Comment

If you want to truly understand the problem with government being capital allocators for adding affordable housing, read how LA county in an ADU project started in 2018, has 3 completed. Private sector capital #impactinvestmenting is better.

3

A new state legislative bill, which is a vehicle for commercial rent control, will be heard before the CA State Senate Judiciary Committee on Tuesday, April 30. The bill, SB 1103 (Menjivar), will upend commercial tenant-landlord relationships, limit security deposits, and add complex and ambiguous regulations to the business-to-business relationship. SB 1103 will have detrimental consequences not only on commercial landlords but also on small businesses and not-for-profit organizations that the bill is trying to protect.

11

Real Estate Highlights, Tips and Information What's Hot in Commercial Real Estate #piedmont #piedmont #sfrealestate #bayarearealtor #bayarea #california #bayarearealestate #sfrealtor #californiarealestate #luxuryhomes

1

I couldn't disagree with Mr. Schwartz's assessment of California's #housing crisis more. Government does in fact have significant impacts on the price of land, the cost of construction, job growth and the availability of skilled workers. Subsidized housing can't meet the need alone. -Government's police powers control land use through General Plans, Zoning, Sphere of Influence, Urban Growth Boundaries and other mechanisms. Land use dictates how much land is available and hence the price. More land available for development = lower land prices. -- The cost of construction in California is also one of the highest in the nation. Title 24 (energy code) and the State's building code are some of the most onerous in the US and significantly increase the cost of construction. --California's high fuel costs, are a major determinant of input costs such as concrete, asphalt, lumber and other building materials. -- High density, transit oriented development is prohibitively expensive. Many cities are clearly biased against missing middle housing such as townhomes, duplexes and garden style apartments which are far more cost effective to build. -- California's regulatory environment and high taxes on individuals and business impair job growth. Just look at the number of corporate relocations to more business friendly states such as Texas, Florida and Tennessee. -- California was once a leader in education. We created the UC system in 1868. To move forward, the state should invest in expanding trade schools to help expand the pool of highly skilled labor. Any way you cut it...policies matter. #CEQA might not be the cause of the housing crisis but it is a major deterrent to housing production and needs to be reformed especially for development within existing city boundaries. Even simply allowing victims of frivolous lawsuits to sue for damages would tip the scales of justice while still protecting the environment.

31

9 Comments

In 2023, 55.8% of California households lived in a home they owned – up from 55.3% in 2022. And before COVID-19, you have to go back to 2010 at 56.1% to find a higher rate.

13

5 Comments

Cities in California are losing jurisdictions for their housing plans revoked. As California addresses the housing crisis, they are encouraging most cities to rezone areas to allow for more density building to address the state housing crisis. What does this mean? More opportunities for developers to buy land and rezone/build multiple houses on lots, townhomes, condos, apartments, etc. PM to discuss opportunities for development where you live in what is becoming a wave of opportunity for investors in real estate https://lnkd.in/gTRbUWBB

2

Interesting thoughts, but the first two initiatives should be to address crime and open drug use. Downtown SF is in awful condition - unsafe and a drug users paradise. It's sad to see what was once (but could be again) Americas most beautiful city in this condition. #downtown #decline #cre #sanfrancisco #realestate #crime #decay #investment #government #policies https://lnkd.in/gPe3gq5v

7

1 Comment