THE BENEFITS OF REAL ESTATE PARTNERSHIPS

February 15, 2015 on 12:08 am | In Fascinating Information, Investment Opportunities, Solutions, Uncategorized | 2 Comments

by Naomi Shaw

A real estate partnership can be a lucrative venture for many individuals with a limited amount of money to invest. Forming a partnership will increase your working capital, and you’ll be able to buy properties you couldn’t afford on your own.

However, there are some significant risks that can come with forming a partnership. If you choose the wrong person or company to do business with, you could find that your investment quickly becomes a loss.

Before entering into any sort of real estate business partnership, make sure you do your homework on who you’ll be working with.

Knowing Your Partner

Entering into a real estate partnership with another person or company is something you should do only after you understand who you’re working with. While helpful to work with people you know and trust, there are some questions you should ask any person or company before considering a partnership.

● How much money do you have to invest? How is your credit score?

● How many properties do you currently own?

● When do you expect to make a profit from your properties? Do you plan on holding properties for years or do you want a quick turnaround to leverage into other ventures?

● Have you had other real estate partnerships in the past? Do you currently have other real estate partners? Do you have references to any past or current partners?

Understanding Your Partnership Agreement

Before you commit to any type of partnership, it’s essential that you come up with an agreement as to how the partnership is going to work. The most important things you need to discuss when setting up a real estate partnership include:

● How partners will get paid and when. Do partners share profits or are profits tied to resale only?

● What your responsibilities in the partnership are. Usually, one partner will manage properties while another is responsible for finding new properties. Of course, all partnerships differ. Defined roles are important.

● Is the partnership going to be reviewed at certain times? Many partnerships review profits about once per year. After all, not all partnerships are worth maintaining if there’s no growth or profit.

Hire an Attorney

If you form a good partnership, chances are you won’t ever need to consult your attorney. However, you do need to hire a qualified attorney who will help you setup your partnership.

Trying to do it yourself will most likely leave big gaps in your contract, and unless you’re incredibly well versed in business partnerships, those gaps could create potential problems down the road when it becomes time to sell properties, split profits, or dissolve the partnership and its assets.

Hiring an attorney seems costly, but it’s going to cost you a lot less than a business partnership gone wrong.

A real estate partnership is often an excellent way to make more money than you ever could on your own while balancing the work that real estate investing takes. However, partner with the wrong person, and you could end up losing all of the money that you had to invest.

Do your homework and ask questions, and always set up a binding legal agreement that helps both partners understand how they’ll be working together and how they’ll be able to exit the partnership if needed.

Naomi Shaw is a freelance writer in Southern California. Real estate is something she is passionate about and she loves covering the many different facets of it in her writing. She works with Ovlix.com.

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SOCAL OFFICE REAL ESTATE SNAPSHOT JANUARY 2015 – PLAYA VISTA EMBRACES SILICON BEACH

January 1, 2015 on 8:29 pm | In Bravo, Fascinating Information, Investment Opportunities, Lease Rates, Market Snapshot, New Developments, Office Fodder, Statistics, Trends, Uncategorized, Winning Properties | 2 Comments

by Jodi Summersgoogle logo

As real estate developer Rick Caruso is remaking downtown Pacific Palisades, other developers have been flocking to area neighboring Caruso’s Playa Vista development.

Global presence Google has increased their real estate holdings by purchasing 12 acres in Playa Vista, while developers Clarion Partners and Maguire Investments have made significant office investments in the spruce goose in hangar in playa vistaneighborhood.

Word on the street has it that Google spent nearly $120 million on 12 vacant acres next to a historic hangar where aviator Howard Hughes built his famous “Spruce Goose” airplane. Zoning allows for nearly 900,000 square feet of commercial space on the 520,000+ square feet of land. Google will also lease the Hughes hangar. Built in 1943, that 319,000-square-foot building has recently housed soundstages for movie and television production. This compliments their 41,000-square-foot video production facility for subsidiary YouTube, which is housed in a renovated former Hughes building in Playa Vista.spruce goose in playa vista hangar 1945

“This is phenomenal news for the Westside and for the Los Angeles economy,” said City Councilman Mike Bonin, who represents the Playa Vista area. “It really makes and brands Playa Vista as the tech and innovation capital of Los Angeles.”

Also in Playa Vista, DivcoWest and Maguire Investments have formed a joint venture that will own Water’s Edge, a two-building, 260,000-square-foot office property developed by Maguire Investments. The joint venture also plans to develop a third creative office building on the campus. Groundbreaking is expected to be mid-2015.Robert F. Maguire III at the Water's Edge office building in Playa Vista

“The timing was perfect,” praised Robert F. Maguire III, chairman and CEO of Maguire Investments. “Our timing is really exceptional because the buildings currently underway are essentially rehabs, so we will be the first new building in the market….We can’t move fast enough. Once completed it will be one of the most exciting creative campuses in the country.”

Speaking of facelifts, Clarion Partners has completed redevelopment and rebranding of its office property at 12130 and 12180 Millennium Drive in Playa Vista. Not to be outdone, Clarion boasts that the six-story, 301,642-square-foot property will be the first major creative office redevelopment property in Los Angeles. Formerly named Latitude 34, the new building has already signed a 49,000-square-foot lease with Group M advertising company.i-o at Playa Vista by Clarion Partners

Expect new office development on the Westside beyond Playa Vista be limited to a handful of small properties, as the average vacancy falls to 13.8%. Class A rents for top-tier space is up 9% to $44.73 per square foot annually.

Last year Microsoft Corp. opened a roughly 20,000-square-foot space in Playa Vista, relocating 130 employees from downtown L.A. Facebook Inc. has operations nearby. The neighborhood boasts the headquarters of online advertising platform Rubicon Project, consumer electronics and accessories maker Belkin International and ICANN, the nonprofit organization that is responsible for assigning Internet domains.

The Lincoln Property Co. (which sold the land to Google) is the largest commercial developer in Playa Vista, with five office buildings – including the new West Coast headquarters for movie Runway Shopping at Playa Vistaspecialist IMAX Corp.

Lincoln is also building the Runway, a $260-million retail, housing and office project that will become the commercial heart of Playa Vista when it opens early next year. Other developers are in the process of building an additional 2,600 housing units.

As the Silicon Beach reputation continues to grow, Playa Vista has become an innovation incubator. At first, the neighborhood’s appeal was because of its location near major freeways, the Westside, the beach and Los Angeles International Airport. But, Playa Vista has come into its one as a vibrant creative community, home to USC’s Institute for Creative Technologies, as well as TMZ, Warner Bros, Sony PlayStation and Verizon. Yahoo is rumored to be leasing office space there soon.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

Howard Hughes in the cockpit if an HK-1

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CALIFORNIA’S REAL ESTATE BILLIONAIRES – DONALD STERLING IS INTO APARTMENT BUILDINGS HE WAS INTO THE CLIPPERS

December 20, 2014 on 10:24 pm | In Fascinating Information, Funny...Money, Statistics, Uncategorized | 1 Comment

#994 Donald Sterling

Net Worth: $1.9 Billion

Age: 78

Source Of Wealth: real estate, Self Made

Residence: Beverly Hills, CA

Citizenship: United States

Marital Status: Married

Children: 3

Education: Doctor of Jurisprudence, Southwestern Law School; Bachelor of Arts / Science, California State Los Angeles

Donald Sterling on Forbes Lists:

  • #931 Billionaires
  • #328 in United States
  • #792 in 2013
  • #296 Forbes 400

Rounding out the California-based real estate billionaires on the Forbes top 1,000 billionaire’s list is the infamous former owner of the L.A. Clippers Donald Sterling.

In August 2014, Sterling was forced to seller the basketball team he owned to former Microsoft CEO Steve Ballmer for $2 billion. You remember, Sterling gained notoriety due to racist remarks he made in 2014 in relation to the L.A. Clippers, the evolution of struggling San Diego-based NBA team he bought in 1981 for $12.5 million.

Donald Sterling was born Donald Tokowitz on April 26, 1934, in Chicago, Illinois. His family moved to the Boyle Heights area of Los Angeles when he was two years old. Starting in 1961, Sterling began to make his career as a divorce and personal injury attorney building an independent practice when Jews had few opportunities at prestigious law firms.

Sterling got started in real estate when he purchased a 26-unit apartment building in Beverly Hills. He then purchased Lesser Towers, a pair of large apartment buildings in Westwood and renamed them the Sterling Towers (now the Sterling International Towers).

Sterling amassed his fortune over several decades, buying apartment buildings primarily in Los Angeles; he also owns properties in Orange County, San Diego and Las Vegas.

In 2009, Sterling paid $2.7 million to settle a lawsuit that alleged housing discrimination against African Americans and Hispanics; Sterling and his wife denied any wrongdoing.

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CALIFORNIA’S REAL ESTATE BILLIONAIRES – JOHN ARRILLAGE BUILT SILICON VALLEY AND LOVES STANFORD

December 10, 2014 on 10:14 pm | In Bravo, Fascinating Information, Funny...Money, New Developments, Office Fodder, Statistics, Uncategorized, Winning Properties | 2 Comments

#960 John Arrillaga

Net Worth: $1.9 Billion

Age: 76

Source Of Wealth: real estate, Self Made

Residence: Portola Valley, CA

Citizenship: United States

Marital Status: Widowed, Remarried

Children: 2

Education: Bachelor of Arts / Science, Stanford University

John Arrillaga on Forbes Lists:

  • #931 Billionaires
  • #328 in United States
  • #792 in 2013
  • #314 Forbes 400

The other half of the 1960s Silicon Valley real estate development team of Peery and Arrillaga is John Arrillaga. Together, they built a fortune in commercial real estate in Silicon Valley. In 2006, Peery-Arrillaga sold about half their real estate portfolio for $1.1 billion. Current tenants include Google and Apple.

In July, 2013, billionaire Arrillaga made headlines with $151 million gift to his alma mater, Stanford University. It is the largest gift from a living donor in the university’s history. Arrillaga, a Stanford alum, worked 6 part-time jobs to help pay his tuition while a student there in the 1950s.

He has previously donated funds for other Stanford buildings including the alumni center to the student gym, and he endowed scholarships to support 50 Stanford students. Arrillaga’s daughter, Laura, teaches philanthropy at Stanford and is married to Netscape cofounder Marc Andreessen, now a prominent venture capitalist.

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CALIFORNIA’S REAL ESTATE BILLIONAIRES – RICHARD PEERY AND SILICON VALLEY

November 30, 2014 on 10:04 pm | In Bravo, Fascinating Information, Funny...Money, New Developments, Office Fodder, Statistics, Uncategorized, Winning Properties | 1 Comment

#824 Richard Peery

Net Worth: $2.2 Billion

Age: 75

Source Of Wealth: real estate, Self Made

Residence: Palo Alto, CA

Citizenship: United States

Marital Status: Married

Children: 4

Education: Bachelor of Arts / Science, Brigham Young University

Richard Peery on Forbes Lists:

  • #796 Billionaires
  • #277 in United States
  • #736 in 2013
  • #260 Forbes 400

Back in the 1960s, Silicon Valley real estate developer Richard “Dick” Peery worked with business partner John Arrillaga to turn orange groves into office parks for the booming tech industry.

In 2006 the partners sold a vast swath of buildings for $1.1 billion but held onto a portion.

A Google lease 15 of Peery Arrillaga’s buildings and the duo is reportedly constructing a building that LinkedIn will lease.

Peery’s son Dave runs the family foundation, which supports social entrepreneurs and organizations addressing poverty in the SF bay area and around the world. The family is also contributing to several education and child-related initiatives such as the Palo Alto High School athletic facility and the Palo Alto Junior Museum and Zoo.

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