Creating Value for Tenants and Returns for Investors

Long Beach continues to show very strong job growth and now Elon Musk is moving in. SpaceX was recently awarded a $2.9B contract from NASA and approved for a 6.5 acre sublease at the Port of Long Beach. As Mayor Robert Garcia commented, “We have a booming and growing space and technology economy which is now the largest of any city on the West Coast.”

Market Update

Inflation, Inflation, Oh My!

There has been much discussion about inflation and for good cause. In February 2020, inflation was around 2.5%, pretty close to the Fed’s target of 2%. After 15 months of Covid and $6 Trillion later, inflation is at 5% with what appears to be no end in sight as shown in the chart below. 

During periods of high inflation, it is often recommended to preserve wealth by investing in cash-producing, hard assets. The reason why is this can be a hedge against inflation and Real Estate is a good example of this. If you can invest in a hard asset, locking in a low interest rate, as the prices of goods and services increases, so does the cost of rent. Now the investor has increasing rents and they’re paying back loans with inflated money, thereby increasing their returns. This is what CSQ is actively doing. We are acquiring properties in Long Beach with fixed debt and riding this inflation wave – paying the debt with inflated dollars. When there is a market correction, and there always is, CSQ properties will be located in Southern California, within a mile or two of the beach. These areas have historically done very well during down turns. If you’re interested in learning more, feel free to schedule some time to talk.

june 23

Property Updates

551 Daisy Ave.

Construction began the day after escrow closed on this building! In the spirit of the CSQ corporate value of Innovation, we converted this 90 year old storage room on the roof into a laundry room. This building is made up of all studios without any washer/dryer hookups so the addition of an on-site laundry room is a great improvement; and much needed. We hired a 3rd party vendor to supply and manage the equipment and the revenues will be split 50/50, creating another income stream for investors.

Within the first month the first unit rehab was completed which included a bathroom makeover, new flooring paint, appliances, and fixtures. The second unit is already under construction as well as exterior improvements. Pictures to come soon!

Click here to see all updates on 551 Daisy Ave.

As British philanthropist, Thomas Buxton said, “With ordinary talent and extraordinary perseverance, all things are attainable.” This is the philosophy CSQ lives by which helps fuel the returns we seek for our investors and stakeholders.

In Prosperity,

- Chad and The CSQ Team