DaddyO

[DaddyO @DaddyO586]

@otter401 @moseskagan @CohenSite @JMGregorchuk Was it in response to the real estate interests (Kilroy, Douglas Emmett and Hudson Pacific) pushing for AB736 - which excluded addressing Upland - that pissed Jarvis off?

[DaddyO @DaddyO586]

@otter401 Culver City's TT was passed as a general tax, so TT will be at 3% in CC...

[DaddyO @DaddyO586]

@otter401 But hey, it's across the street from the DMV.

[DaddyO @DaddyO586]

@credealjunkie LA had a boom in apt construction between 2015-2020, alot of it downtown with top market rental rates. After Covid, with little new apt deliveries, lack of additional supply of high rent apps. couldn't continue pace of rent growth.

[DaddyO @DaddyO586]

@mottsmith Or exclude the RUBS component (including reasonable reserves for R&M) from the calculation of % of "housing cost" applicable to rent - like unbundling parking. Let real expenses float at market.

[DaddyO @DaddyO586]

@DRand2024 The affordable units in a DB project become a bigger econ drag as construction costs increase. Buildng less dense but all market (for sale) now making more sense on larger sites...

[DaddyO @DaddyO586]

Southern California rent increases after LA wildfires, outpacing US https://t.co/ALcwmVs6Qt

[DaddyO @DaddyO586]

Tracking Multifamily Rents Following the 2025 Los Angeles Wildfires https://t.co/toHr4CWzU2 via @apartmentlist

[DaddyO @DaddyO586]

@CohenSite Really love all your content and you've become a touchstone on LA-RE matters, but the market can't get around this one. Buy you a beer sometime.

[DaddyO @DaddyO586]

@CohenSite no offense...

[DaddyO @DaddyO586]

@CohenSite Yes, you've now stumbled on the fact that in high land cost locations -from a developer's perspective-a sfh is more profitable and less risk than building more densely

[DaddyO @DaddyO586]

@mottsmith Final thought - if this were combined with getting rid of the LA Linkage fee -$22 psf on multi-housing - it would really positively affect new MF proforma's.

[DaddyO @DaddyO586]

@mottsmith This rate, while significant, is not so high as to screw up a project's proforma and has the potential to generate ULA tax earlier, promotes re-assessments due to increased sales velocity. The pro-ULA crowd shld recognize this...

[DaddyO @DaddyO586]

@mottsmith Thanks. Seems problematic if one has a large portion of units above low-income and so subject to prop taxes but if it works economically (????)

[DaddyO @DaddyO586]

@CohenSite Have you done a DCF with a sale in yr 15 subj. to ULA ? What's the impact on value "today" assuming a new build sold upon stabilization?

[DaddyO @DaddyO586]

@CalMatters Is some of the additional cost in metro areas associated with cost to construct parking? LA metro most often requires below grade parking so cost and time increase. TX and CO are often parked unstructures/on-grade.

[DaddyO @DaddyO586]

@Jessica925cre It's economics. New MU retail generally is underwritten at the top of the market (need to make the pro forma work!) plus have high NNN - RE taxes particularly - that push actual rents well above market. Make the all-in cost to a TT at true gross market and retail can survive.