In this issue:
- Market Insight
- Property Updates
- Corporate Value – Grit
CSQ participated in a Matthews Real Estate Investment Services survey sent to 96,000 commercial real estate professionals. The results are shown below and of particular interest is that 97% of investors are somewhat or very concerned about Covid-19 affecting the overall commercial real estate market. However, in hindsight and according to the National Multifamily Housing Council, 93% of renters made full or partial payments in April. This is in line with what CSQ saw across its portfolio – a 94% collection rate for full payments. Although this is lower than historical, there are payment plans in place with individual renters who are behind to help them get caught up. All things considered, this is encouraging news for the multifamily housing market.
1470 Elm Ave – construction starting again
Despite the current ecomomic conditions, the bank has released additional funds to be used for future construction. At the onset of Covid-19, we had put construction on hold, but now with the additional funds, we have commenced construction again. 8 out of 10 of the units are currently occupied and the remaining 6 original units will be rehabbed once they are vacated naturally.
8455 Eton Ave
This project continues to be a challenge with filling the capacity. Currently there are 8 women and 6 children in the home with adequate room for much more. We are working on networking with treatment centers and outpatient groups to find homes for women and children in need. We are also searching for other operators who may want to partner on the home.
Corporate Value - Grit
There couldn’t be a better time to rely on the CSQ corporate value of Grit.
Angela Duckworth is a leading expert on “Grit,” and wrote Grit: The Power of Passion and Perseverance, a New York Times bestseller. As Duckworth defines it, grit is passion and sustained persistence applied toward long-term achievement, with no particular concern for rewards or recognition along the way. It combines resilience, ambition, and self-control in the pursuit of goals that take months, years, or even decades.
Grit is one of the core values of CSQ. When I look back on the accomplishments I am most proud of, they all required a significant amount of Grit. I grew up as the oldest of 5 children and my Dad would always come up with projects to keep us busy on weekends and summers. Video games were fairly prevalent but not in our household. We would work on projects with him, hoping to lend a hand however we could. My parents bought the house behind ours as an an investment and during one summer my Dad asked us to cut down and chop up 5 pine trees – by axe! They were about 40′ tall and 14″ in diameter. My brothers and I were eager to take on the task. In retrospect, it was miracle one of the tree didn’t land on the house, but with a few ropes, one axe, and wet finger in the wind, we were able to take them all down. The hard part, the part that required Grit, was to cut the trees up into 30″ logs to be used for firewood, all by axe. In retrospect, we could have rented a chainsaw for $100 and finished the job in a few days. But instead, it took us the better part of the entire summer. And along the lines of “not being the sharpest tool in the shed”, we never sharpened the axe! I’m sure my Dad, in all his wisdom, knew exactly what he was asking us to do and what he wasn’t offering – a chainsaw or even an axe sharpener. Needless to say this is one of my earliest memories I have of Grit. Since then I’ve applied Grit to everything I’ve put my head to and CSQ is no different. In these trying times of Covid-19, Grit is one of the attributes that will get us through to the other side. And it will be worth it!