In this issue:
- Property Quarterly Financials
- Property Updates
- Team Member Spotlight
Property Quarterly Financials
We’re excited monthly distributions have begun for investors in both Long Beach properties! These properties continue to perform according to plan, or better, despite Covid headwinds. The 2020 Q2 financials for each of the respective properties are available on the Investor Portal. Please login here and click the “Documents” tab to see the financials for the respective properties you are invested in. Although the Covid regulations and resulting legislation seems to be changing daily, multifamily investments continue to perform well. We are still evaluating several properties and keeping a close eye on the multifamily real estate market to take advantage of these opportunities as they arise.
With a lot of hard work, a little bit of luck, and a touch of compassion, we have had 100% collections and 100% occupancy throughout Covid. Some units have had turnover, although they’ve leased up very quickly exemplifying the continued strength of the SoCal rental market. According to a report by Matthews Real Estate,
“As the economy moves into what resembles a recession, it is most likely that the industry will see delayed effects of the pandemic in the second half of the year. However, investors remain bullish on multifamily investments in both the near- and long-term. With history on its side, multifamily investments perform well during a recession. Now, with the pandemic creating volatility in office, retail, and other sectors, the capital usually directed toward those investments will most likely seek the stability and predictability of multifamily.”
Despite these societal and market shifts, multifamily investments still provide exceptional risk adjusted returns, as seen in our Long Beach properties.
Team Member Spotlight
This newsletter we are interviewing the longest standing tenant of 56 years at Reseda Medical Arts Building (RMB)! Some may not know, but RMB was built by my Grandfather in 1952. He was a physician and sold it to my Dad in 1984, who is also a Physician. I bought it from my Dad in 2015. Through it all, Dr. Bromberg has been a loyal tenant and for that reason, we thought it would be a worthwhile story…
[CSQ] When did you officially move into the Reseda Medical Arts Building (RMB)?
[Dr. B] September 1964. 56 years ago!
[CSQ] What was the Valley and in particular, Reseda, like back then?
[Dr. B] There were no freeways back then and the Valley seemed far from L.A. I lived in Westwood and Century City was just being built. I could get from Westwood to Reseda in 20 minutes any time of the day if you can believe it. There were a lot of pastures and farms in the Valley, obviously very different than today.
[CSQ] How did you come across Dr. Albert Zdenek and RMB?
[Dr. B] There was a dentist by the name of Richard Nahas in Reseda who kept asking me to come out to Reseda. I moved into RMB and within 6 months I had built up a practice. Originally, I thought I’d give it two years but I’ve been here ever since. Your Grandfather had his medical practice in the building and was always a great landlord and a great guy in general.
[CSQ] Have you ever had a lease?
[Dr. B] In 56 years, I’ve never had a lease – only a handshake. The key is to be understanding of each other and keep the lawyers out of it. When you have good chemistry between the tenants, the landlords, and the staff, it creates a great environment.
[CSQ] What are the secrets to running a successful dentistry practice in the same location for as long as you have?
[Dr. B] You have to let the people know you genuinely care about them and you can’t fake it – they’ll know. Treat people well, they’ll trust you, and you’ll be successful. You also have to be on top of the new procedures because dentistry is continually evolving.
[CSQ] Did you ever think of leaving RMB?
[Dr. B] For a time, I was looking to move to a medical facility in Tarzana across from Tarzana Hospital. In the end I said no, because I had such a great relationship with your grandfather and then your father who owned the building after him. They were both great to work with. Everything was done with a handshake and in the end, that was more important than being in a nicer facility in Tarzana. I’ve never had any issues here. It’s great to have landlords who stay on top of things. When you have a good relationship with your landlord, that is worth a lot and worth more than fancy amenities.
[CSQ] What is it like to be in the same building as you and see other tenants come and go?
[Dr. B] I’ve seen a lot of tenants come and go, but I’ve been happy here. Two of my staff have been with me for over 30 years, two over 10 years, and one for 8 years. I try to take care of people the way I want to be taken care of. Even during Covid with business being slow, it’s important that I keep them employed and working. The [CDC] guidelines are stringent and make it difficult but while there is no vaccine, we have to be very careful. Where I used to see 30 patients a day, now I see 10-12.
[CSQ] What are your long term plans for the practice?
[Dr. B] I’m not sure I’ll be here 30 years from now, but I have no plans to retire. I don’t play golf because I have enough frustration in my life. I’m healthy, work out every day, and love my patients.
[CSQ] If you can commit to another 20 years, I can sell the building to my son and you can go through 4 generations – with no lease of course, just a handshake!
[Dr. B] Now, that would make headlines!