Modular Development – Fast Forward or Not So Fast?

Modular construction provides developers an opportunity to streamline construction, increasing efficiency, and reducing the development timeline. However, because the modular components are constructed offsite, and don’t reside at the development site, they are not a part of the construction lender’s collateral. This challenge requires both lenders and developers to consider the sufficiency of the collateral […]

Multifamily ADUs in New Construction – California’s Biggest Density Bonus of All?

By Emily Laetz Introduction A creative interpretation of California’s recently-passed legislation regarding multifamily accessory dwelling units (ADUs) looks to offer developers of new multifamily housing the opportunity to increase their projects’ maximum allowable unit density by up to 25%, a tool that planners and legislators are hoping will make a substantial dent in the state’s […]

San Diego’s Wunderkind

Introduction As the world focuses on medical and biological innovation during the COVID 19 pandemic, San Diego commercial real estate investors and developers will find it hard to ignore what is happening in Life Science today. There are landscape-changing projects in motion, office spaces are being reimagined to accommodate this use, and the residual impact […]

Structure With A Purpose (SWAPtions)

Introduction Hedging interest rates should be top-of-mind for anyone engaged in financing long term, capital intensive, illiquid assets like real estate. With rates at historical lows, many are skeptical of how long this will last, seeing only one direction for rates to eventually move, up. Some developers choose to pay a premium for the option […]

The Case for Building in Secondary Housing Markets

Given resilient apartment fundamentals, current monetary policy, and perceived risk in other asset and primary markets, multifamily development opportunities in supply-constrained and relatively affordable secondary markets are better positioned than ever to provide attractive investment opportunities. Scattered sentiment throughout the capital markets, however, exacerbates the supply/demand imbalance at the financing level, creating a unique time […]

Tale of Two Valuations: Buyer vs. Seller Cap Rates

Development is hard, very hard. Just ask our clients. So is predicting what your project is worth after it is completed and what the returns will look like. Here is our take on how to best navigate modeling an exit, which has evolved from numerous conversations with our clients and equity partners. – Capitalization rates […]

Ready, Aim, File? Getting CEQA back on track

It is well known that California’s attractive environment supports a high standard of living and ample demand for housing. What should be more well-known, however, is how California’s environmental legislation, while well intentioned, can prevent that demand from being satisfied. It has been Jennifer Hernandez’s and her colleagues at Holland & Knight’s goal to prove […]

WeWork is Insanely Over-valued.

    Shorting a public stock is easy. Shorting a private company… well, not so much. If shorting was easy, here’s my take on why making a bet against WeWork’s $21 billion value makes sense. First, I have nothing against WeWork. I like the concept and much of what they do. I think they’re visionary […]

Part 2: The Sunshine Tax

In Part 1: National Housing Trends, our recap of the past decade indicated that the United States continues to experience a large housing shortage since household construction fails to keep up with household formation. To supplement this, much of our follow-up research showed which metros get hit the hardest and uncovered important implications for our […]