Video Index (with direct links)
0:43 California bars are closing and hospitals are nearing capacity
1:42 Main Street Lending Program provides loans to small and medium sized businesses
2:33 Free money! Grants for small businesses sponsored by Riverside and San Bernardino counties
3:06 My listing – Chino Hills Plaza
3:48 Nationwide recap of retail investment sales activity
4:52 LA City $100MM rent relief program has been approved
5:24 Where can you see fireworks this weekend?
Welcome to the Independence Day edition of my video update!
Did you know that Californians are getting discriminated against? New York doesn’t want us in their state and is imposing a 14 day quarantine on Californians going out to visit. California is one of 16 states on the list. But this goes to show that while New York was able to flatten their curve early on, other states like California, Texas and Florida opened early, the residents got complacent, and here we are.
Coronavirus cases continue to rise in the state, and on Monday, the state reported its highest count of new cases. Governor Newsom has ordered bars to close in seven California counties, including Los Angeles County. Eight other counties have been asked to to issue local health orders to close bars as well, including San Bernardino and Riverside Counties.
Los Angeles reports that hospitals are near capacity. In the Inland Empire, as of Monday evening, Riverside’s ICUs were at 99% capacity and San Bernardino county’s ICUs were at 81% capacity.
Although deaths are not significantly rising at this time, remember that there will be a lag. First, people get sick, then they go to the hospital, and then they may die. So we will see if these increases cases lead to an increase in deaths in a few weeks.
The data clearly show that we’re on a trend that’s not going in a good direction. So keep your mask on, and keep your distance, or else before you know it, we’ll be back where we were in April.
Main Street Lending Program and other programs to help small and medium sized businesses
After several months of revising rules, the Federal Reserve has finally opened up the Main Street Lending Program. This program is for small and medium sized businesses affected by the coronavirus that could benefit from loans from $250,000 up to $300 million. A small or medium sized business is defined as having fewer than 15,000 employees or 2019 revenues of less than $5 billion.
Businesses may be eligible even if they received funds from the Paycheck Protection Program, so if you know of a business that could benefit from some additional working capital, it might make sense to look into this program.
There are several banks that have lined up to participate. Contact your local bank if you think this is something that you or your tenants can benefit from.
Other grant resources for businesses hurt by COVID
There are other programs at the local level to help small businesses. Riverside County has a COVID-19 business assistance grant program that awards $10,000 on a first come first serve basis. The portal just reopened this past Monday, June 29. San Bernardino County has a similar program with funding up to $2,500. Check out the links below to see if these can help your business or your tenants’ businesses. Typically these grants can’t be used for LLCs that hold real estate.
My latest listing – Chino Hills Plaza
Chino Hills Plaza is a shopping center located on the border of Chino and Chino Hills, in an affluent area where the average household income is $108,000. This property has just gone through significant improvements, with the ownership spending over $250,000 in 2020 on property upgrades such as painting, parking lot work, roof, and HVAC.
The property is 85% occupied, so there’s a value add opportunity for an investor to realize immediate upside by leasing up the vacant 15% space. We’re listed at $9,995,000. If you are interested or have a similar property that you’d like me to take a look at and provide a free valuation for, please reach out to me. Click here to view the listing at CREXi.com.
Retail Commercial Real Estate Update
Let’s take a high level view of what’s happening in the investment sales retail markets. In a recent conference call with my colleagues all over the country within the Retail Brokers Network, we shared with each other what we’re seeing on the ground. Much of this echoes what I’m seeing here locally in Southern California. Here are some highlights from our call:
- Many owners, particularly multi tenant landlords are holding back on selling. There’s uncertainty in the market over who can come current on rent, who will still be in business in a few months as PPP money runs out, and whether we’ll have another state closure again.
- Financing is difficult right now for strip centers. A lot of banks have decided they don’t want to lend on multi tenant retail.
- Financing is still getting done on single tenant properties. A colleague in Louisiana reports that he has closed deals with banks that are lending at 3.75% interest rates on a 10 year loan on a single tenant Walgreens. Loan to value can vary between 65% and 80%.
- Seller Financing is a great advantage. If you own your property free an clear and can offer seller financing, you’ll be head and shoulders above the other properties on the market available for sale.
Where can you watch the fireworks this weekend?
Independence Day is this coming weekend. However, beaches in LA County will be closed this weekend. And to make things even worse, most cities will not be holding fireworks shows. However, at least a few cities have decided to still have a show. Here are a list of cities who will be holding fireworks shows on the 4th.
Orange County: Tustin, and Dana Point. Los Alamitos is having a drive-in fireworks show at the Joint Forces Training Base.
Inland Empire: Lake Elsinore, Big Bear Lake, and Twentynine Palms
Los Angeles County: Santa Clarita, and a drive-in fireworks show in Irwindale
Happy Independence Day!
Link to EIDL Application
How to fill out the EIDL Application
ONT Airport drive-in movie tickets:
Article on the Explore America stimulus program
SF Chronicle article on permanent moratorium on evictions
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