Who got large PPP loans?

Video Index (with direct links)
0:59 Last chance to get a PPP Loan or EIDL free grant money, according to Dr. Evil
1:16 Check out this list to see if any company you know got a PPP Loan over $150K
1:52 High speed train will connect Las Vegas to Rancho Cucamonga
2:41 Mike’s new listings – two Sunrise Preschools day cares in the Phoenix metro area
4:02 Say NO to the “Split Roll” tax initiative, which is now Prop 15
5:03 How are Lease rates trending in the IE, and what is the forecast for the future?

Hello Investors!
Well the official fireworks shows were pretty much all canceled last week, including the ones in Tustin and Rancho Cucamonga, but that didn’t stop a bunch of people from celebrating the nation’s birthday with their own fireworks shows throughout Southern California.  I’m sure you heard them from your house throughout the evening.  I sure did!

Last chance to get your free money!

Last week, the PPP program officially closed.  However, they still have $132 billion dollars to distribute!

So the government signed an extension to allow companies until August 8 to apply for the PPP loan.  Get yours if you haven’t done it yet. Contact your local banker or check out bluevine.com.
And if you’re curious about who is getting these loans, the treasury has released a list of which companies got loans of over $150,000.  Are you on the list?  How about your industry competitor or a local business that you like? Click here to download the Excel file!  You might be surprised at who you see on the list.

And it’s not too late to claim at least $1,000 in the form of a free grant from the SBA through their Economic Injury Disaster Loan program.  Several of my clients have received their money already, so if you haven’t applied to get your free money from the government, do it before it runs out.  Remember, even an LLC that holds real estate qualifies for this grant.

High speed train between Las Vegas and Rancho Cucamonga is coming!

A high speed train project by the XPressWest train company to connect the Inland Empire with Las Vegas got the go-ahead to move forward earlier this year.  The original plan was to connect Las Vegas to Apple Valley, in the high desert. But just last week, the XPressWest received the OK to extend the train further south, all the way to Rancho Cucamonga.
Construction is scheduled to start at the end of this year and be completed in 2023.

New listings – Two day cares for sale in the Phoenix metro area

Day cares are an essential business and are critical to the economy fully reopening.

Sunrise Preschools is one of the most trusted names in day care in the Phoenix area.  The actual tenant on the leases is Childcare Network, which is the 6th largest preschool operator in the country with over 250 locations nationwide.
Sunrise Preschools stayed open throughout the pandemic, and unlike other corporate child care companies, did not ask for any free rent during that time.  These two locations are open and paying full rent.

Glendale is priced at $2,695,000 (6.2% cap)
Mesa is priced at $3,695,000 (6.2% cap)

If you have a day care that you would be interested in selling or receiving a valuation on, feel free to reach out.  I’ve sold four day cares over the past two years and during that time, researched several day cares around here for my own son in one so I have plenty of experience with day care properties.

Say No to Prop 15!

I’ve spoken about the Split Roll Tax initiative several times in my videos.  This is a proposal to increase taxes on commercial property owners.  The official name of the bill is the Schools and Local Communities Funding Act, and it now it has a proposition number: 15.

This bill proposes to reassess commercial properties that are valued over $3 million every three years.  Right now, your property tax can only increase a maximum of 2% per year.  This bill will hurt commercial property owners such as yourselves, and especially the small businesses who are tenants in your property who are likely struggling right now due to the coronavirus.  The bill is written in a way to make it sound like the money raised will help local communities and schools, but in reality, very little of that money will be seen by the schools.  So remember to vote No on Prop 15 in November.  You can read more or donate to the cause to oppose Prop 15 by going to www.noonprop15.org.

Inland Empire retail rental lease rates

This chart shows that market rents have been on a steady upward trend from 2013 up until the first quarter of 2020, peaking at $21.46 per square foot per year, which is $1.79/sf/month.  As the coronavirus hit, we see rates staying relatively flat from Q1 to Q2 of this year, which just ended.  Now is where it gets interesting, as Costar predicts a large drop in market rents for the rest of the year, and into Q1 of 2021, all the way down to $1.54/sf.  That’s a pretty big drop.  Then they predict that rates will rise by late 2022 back to where we were earlier this year, and continue to go up.

We know that transaction volume is down, but the lease rates have not dropped yet during the pandemic.  This isn’t too different from cap rates not having changed much in retail investment sales, or home prices still staying relatively stable and even rising during this time.  Costar thinks that as this pandemic drags on, and PPP funds are depleted, more retail shops will be forced to close, leading to more vacancies, which is more supply in the market, thus driving prices down.  We’ll keep an eye on their prediction and hope that it doesn’t get any worse than that.

Thanks for reading!  See you next week!

Connect with me here:
Website:  https://mikelincre.com
YouTube: https://www.youtube.com/MikeLinCRE
LinkedIn: https://www.linkedin.com/in/MikeLinCRE
Twitter: https://twitter.com/MikeLinCRE
Email: mike@progressiverep.com

Mike Lin, CRE