In this issue:
- March Madness
- CSQ Corporate Value: Innovation
- Property Updates
We are in the midst of a different type of March Madness and I hope you are staying safe and healthy. While the stock market has been in a turmoil and many stock investors have seen their portfolios cut by 25%, it turns out people still need a place to live and B-class apartments are an investor’s safe haven! CSQ is still on track to be distributing dividends to its investors while stock market investors are reeling from their (paper?) losses. Construction continues on many projects and we are actively bringing on investors for the next apartment building. It will be a similar project as the other ones you have received updates about.
CSQ Corporate Value: Innovation
The primary corporate value for CSQ is Innovation. This stems from Chad’s “Why”, which is the tagline for the business – “Finding a Better Way”. Chad worked with a very successful and influential entrepreneur by the name of Jamie Douraghy. He founded Life Work Integration to assist entrepreneurs with just that. For 6 months they worked together to develop this foundation. Chad’s “Why” is to Find a Better a Way. “How” does he do this? – by Mastering Things (education and learning). “What” does he do? – Challenge the Status Quo, hence the meaning behind CSQ. For anyone that knows Chad, his whole existence in his personal and professional life is to Find a Better Way in everything he does.
Innovation is the main driver of Challenging the Status Quo. An example of how we’ve done that and provide investor returns at the same time is the parking at the apartment building located at 1470 Elm Ave., Long Beach. The current on-site parking lot has a sliding gate with technically 8 spots behind it. However the gate blocks two of the spaces, creating only a single space use in each of two tandem spots. The innovative approach of installing dual sliding gates with dual motors allows for full use (and rental) of 8 spaces instead of 6. This will provide more rental income from the property and more usable space to the tenants. Parking in Long Beach is at a premium and the ability to offer tenants additional private, enclosed parking is very valuable!
Reseda Medical Arts Building
The interior of one of the units was recently remodeled contributing to the building being 100% leased since it’s purchase in 2015. In the creation of “tenant bench-depth”, another doctor has signed on to sub-lease some space during another physician’s off-days. The driver behind this continues to be the building remodel which attracts new tenants even though there is no vacancy!
This project is moving along well and the exterior remodeling is 90% complete. Under the recommendation of Jon Swire, the broker and an investor in the deal, we decided to add Trex on the facade to increase the curb appeal. You can see from the pictures, that we achieved what we were going for. Who knew a heavy-hitter power broker could also be an architectural designer?!?
Construction on the interior of three of the units have been completed and the units are currently on the rental market. We’ve seen a lot of interest in the units and expect these to be leased by the end of the month.