Spring 2016 Newsletter

by DWC Team on May 27, 2016

Inn at Sunset Cliffs bThe DWC brokerage team has recently been engaged to sell two unique assets located in San Diego County. One of the properties, The Inn at Sunset Cliffs, is a generational, oceanfront hospitality property located in the Sunset Cliffs neighborhood of Ocean Beach, CA. The boutique 1950s era, courtyard-style inn features 25 rooms, a pool and patio area, as well as two ocean view decks – one directly on the oceanfront.

SRS_0079The second asset is a state-of-the-art, turn-key commercial greenhouse property. The facility is located in the Twin Oaks Valley, adjacent to San Marcos – a prime agricultural area, with convenient access to Interstate 15 (I-15) and Highway 78. Sited on 4.11 acres, the 124,500 square-foot computer operated facility features full environmental/climate control across three distinct zones, allowing a grower to produce a wide variety of crops.

The DWC brokerage team is comprised of Alan Scott, CCIM, Thomas K. Olson and Matthew P. Yunker.

This article featured in the Spring 2016 Newsletter. To view the full newsletter click here.

This article is featured in the Spring 2016 Newsletter. To view the full newsletter click here.

2016 is anticipated to be one of the best years for housing in over a decade, following 327,000 national multifamily unit completions in 2015 (U.S. Department of Housing and Urban Development). According to the National Multifamily Housing Council, there are 1.6 million more renters today than five years ago. This upswing is expected to maintain stride through 2019, though skeptics warn of overbuilding and declining affordability of urban Class A properties. Combining slow wage and income increases with tech and oil industries exerting downward pressure, prices could ultimately pinch households and pump the brakes on the multifamily housing market.

Denver for example, increasingly known as a tech growth hub, is setting records in mounting home prices and Class A multifamily construction. According to the Denver Post, “A decade ago, Denver-area builders requested about 15,500 permits per year for single-family homes. After the crash, the number of permits averaged only 6,000 a year, although it has since moved closer to 10,000 a year, still below historical averages. By contrast, more than 31,000 multifamily permits have been pulled the past four years, a record-setting pace.”

CHART

Cities in the Silicone Prairie, such as Lincoln, NE and Madison, WI, are also experiencing rapidly escalating apartment costs. The big-picture economic concern is the ability to sustain funding for the stampede of new tech start-ups. Venture capitalists have reduced funding of startup tech companies, including “unicorns” – private companies valued at more than $1 billion. In April 2016, Moneytree reported, “Total venture dollars deployed to startup companies for the quarter remained flat…compared with Q1 2015, dollars and deals are both down 11 percent.”  As tech-heavy regional markets slow, the potential for overvalued housing vacancies grows.

Oil IndustryVis-à-vis, in February, oil prices dove to their lowest since 2003 but have since rallied to above $45. U.S. production dropped to 8.94 million barrels/day in mid-April, the lowest since October 2014. The dive is expected to continue through the second half of 2016. In a CNN interview, Fadel Gheit, the senior oil and gas analyst at Oppenheimer & Co. stated, “Half of the current producers have no legitimate right to be in a business where the price forecast even in a recovery is going to be between, say, $50, $60. They need $70 oil to survive”.  With cost tensions mounting, the industry has halted drilling new wells.

Wyoming, Oklahoma and North Dakota have been hit the hardest. A drop in production yields a climb in unemployment – rates increased in March yr/yr while the national average has declined (The Wall Street Journal and the Bureau of Labor Statistics, April 28, 2016).

The VueAs the tech, oil and gas markets are expected to eventually level out and surrounding economies correct, real estate vacancies and loan delinquencies hover, manifesting the perpetual boomerang nature of cyclical markets.

As DWC stays active in development projects, acquisitions of investment properties and providing brokerage services, we still remain a preferred provider managing troubled assets for law firms, state and federal courts, institutions, trusts and partnerships. Having the proven track record in hundreds of cases involving multifamily assets, energy and operating companies, DWC is here to support you when issues arise. Since 1989, the distinction and variety of services we’ve performed has been a clear reflection of the attention focused on the ever changing needs of our clients over time.

If you have questions about a potential matter, please do not hesitate to contact Nicholas Wilson at (619) 906-4384.

Focus on Chula Vista

by DWC Team on May 27, 2016

This article featured in the Spring 2016 Newsletter. To view the full newsletter click here.

Chula Vista, the second largest city in San Diego County, boasts uniquely developable waterfront properties and remains fertile for developers to enter the market. Recognizing this potential, DWC currently has development projects underway and continues to actively target additional potential in the area.

“Chula Vista continues to impress with urban growth potential. The city is experiencing economic vitality and we are an active participant.” – Douglas Wilson

Otay Ranch Senior Living
After much due diligence and several feasibility studies, DWC continues to move forward on our 124-bed, Otay Ranch Senior Living project, focusing the team on completing the design and entitlement phases of the project.  Working closely with the City of Chula Vista staff, DWC is scheduled to submit its entitlement application in early June 2016.  The project is slated to break ground Q1 2017.

Monterey Place
Monterey 4Monterey Place, a single family home development, is underway following a December 2015 groundbreaking. This project includes 23, two-story, entry level homes with two floor plans of four- and five-bedrooms, ranging from 1,708 square-feet to 1,973 square-feet on 5,000 square-foot lots. The site is well located, approximately 12 miles from downtown San Diego.  Framing is underway with a delivery of Phase I expected in Q3 2016. The development is led by Monterey Place LLC, with DWC as its managing member. Rosemary Snow and Alex Wilson of Bennion Deville Homes are handling sales and marketing.

bvmpBonita View Plaza
DWC ERI Bonita View LLC, with DWC as its managing member, recently acquired Bonita View Plaza, a 28,500 square-foot medical office building. All scheduled capital improvements and upgrades have been completed, including: mechanical systems, common area, parking lot, landscaping, signage and building facade upgrades. Tracy Clark and Brandon Keith of Voit Commercial Real Estate are leasing the building with suites available from 1,500 square-feet to 14,000 square-feet.

Jacobs Center For Neighborhood Innovation

May 27, 2016

This article featured in the Spring 2016 Newsletter. To view the full newsletter click here. “The relationship between JCNI and DWC has grown into a meaningful commitment to assist in seeing JCNI’s vision come to fruition. Their talented staff have been instrumental in developing this vision and working closely with us to begin the implementation […]

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Jacobs Center for Neighborhood Innovation

May 27, 2016

“The relationship between JCNI and DWC has grown into a meaningful commitment to assist in seeing JCNI’s vision come to fruition.  Their talented staff have been instrumental in developing this vision and working closely with us to begin the implementation process.” – Douglas Wilson DWC is currently acting as a third-party real estate advisor for […]

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June Events

May 27, 2016

Special Assets Management Association (SAMA) — June 1-3 Douglas Wilson and Nicholas Wilson will be attending the 2016 Annual SAMA Conference in La Jolla, CA San Diego Architectural Foundation (SDAF) — June 2 Please join Michele Vives for A Day on the Bay in San Diego, CA, a forum open to the public to promote discussion and […]

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As the Oil Markets Remain Flat, Douglas Wilson Companies is Here to Help

May 10, 2016

The boom in oil production from the Dakotas through Texas, once buzzing with thousands of workers and injected with billions of investment dollars, is now experiencing a turn of the market. Exploration for new wells has quickly decelerated as oil prices have dipped to record lows, adversely rippling across local economies. “Hotels that were once […]

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May Events

May 1, 2016

Meet the Money — May 2-4 Nicholas Wilson will be attending the Meet the Money Conference,  “Getting to the Winner’s Circle: Marathon, Sprint or Obstacle Course?”, in Los Angeles, CA Downtown San Diego Partnership (DSDP) — May 4 DSDP will be hosting a Part II breakfast of the Downtown Sports, Entertainment, and Convention Center Complex Forum, […]

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April Events

April 1, 2016

Sheppard Mullin — April 4 Douglas Wilson Companies will be joining Sheppard Mullins for Padres opening day at Petco Park, in San Diego, CA, April 4. Bisnow — April 7 Bisnow will be hosting an April 7th breakfast “Future of the Cali Baja MegaRegion”, in San Diego, CA. Urban Land Institute (ULI) — April 12 […]

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