January 18, 2019
The Park Blvd project is close to receiving full permits. While the holidays slowed down response time from the City, our team is clarifying what will most likely be the last round of comments before locking in the wood frame permit. As mentioned in previous updates, the foundation permit has already been pulled and the project is construction ready. We have received 4 very favorable options for construction financing and will be picking a partner within the next 3-5 weeks in order to move forward with breaking ground. Most importantly, we have selected our general contractor for the project, Wermers Construction, which group specializes in multi-family construction.
Project Stage: Pre-Construction. Foundation Building Permit Obtained. Wood Frame Permit in Progress. Construction Financing in Negotiation.
Granito is waiting for the city to approve our value engineering changes to the foundation so that we can get back to work on the shoring and foundation work. The civil and structural engineers are continuing to make additional value engineering changes to keep the budget in line. Details are being completed on the site regarding utility layouts and connections as we prepare for the building construction. Multiple lenders for the construction financing are standing by for the revised budget so that we can close the construction loan. We are gearing up to begin the next phase of shoring by end of Q1.
Project Stage: Construction
All three units are now in a long term lease and cash flowing. There has continued to be minor maintenance on the property that results in a basically break even between debt service and property income. The work for placing the the third water meter is almost complete as the lateral to the street has been run and the last piece is simply having the City install the water meter. This is expected to be complete in January and has taken longer due to a back up at the City for the installation of meters. The property is weeks away from the completion of the condo process so that the units can be listed for sale.
Project Stage: Completed and Cash flowing.
The front unit has been re-listed after falling out of escrow after the foreign buyer dropped out of the sale due to misunderstanding the necessity of CCRs for the two homes on the property as they are technically mapped as condos even though they are physically detached single family residences, a very common setup in the neighborhood. Showings have picked back up and the listing agents have re-engaged buyers that had a high interest in the home while the front house was in escrow. New construction continues to be scarce in Pacific Beach which should help us get into escrow again quickly.
Project Stage: Completed and on Market.