The first payments for rent relief have been paid directly to the LLCs and will be distributed to investors between this month and next. So far we have received 100% of past due rents for 2 tenants and have successfully submitted applications for two more. Originally the State was going to be paying for 80% of past due rent and requiring Landlords to write-off 20%. After much lobbying from the California Apartments Association and concerned landlords, the program has been revised to provide 100% of past due rents and up to 3 months for future rents. Although CSQ did not have any missed payments for the first 12 months of Covid, we have now had a few tenants fall behind and we’re working with them and the State to obtain rental assistance.
2021 Q3 Results
Quarterly financials have been uploaded to your respective Investor Portals. This includes Balance Sheet, Income Statement, Cash Flow Statement, and Rent Roll. Please reach out if you have any questions.
551 Daisy Ave.
CSQ properties continue to outperform and our latest acquisition at 551 Daisy Ave, Long Beach, is another example of this. We’ve finished remodeling three units (and increased rents), converted a storage room to a laundry room, and improved the entry of the building. We are still waiting for this property to be stabilized before we are able to begin issuing distributions but expect that to happen shortly.
1470 Elm Ave
After 18 months of insisting the City to repair the alley way in the back of this building, we finally were able to get the City of Long Beach Construction Management Division to fill the pot holes. They repaired the alley for the entire block! This is a huge improvement for the tenants that use this alley every day. We were told “no” each time by three different departments after dozens of calls and emails but persistence paid off.
We also have the 6th unit out of 10 units under construction at this property. These are full rehabs which deliver a 15% increase in rents. At a typical GRM (Gross Rent Multiplier) of 13, this will yield a $35,000 increase in property value. Multiply that by 10 units and you create a forced appreciation value of $350,000, not including market appreciation! This is why we love value-add real estate deals!
1955 Locust Ave
This was the property that received the first Covid Rent Relief payment of $15,850! This includes payment for 100% of past rent and future rent for one tenant who fell behind on rent. The building also had two tenants move out but both were leased within a month with no decrease in rent from pre-pandemic levels.