Wednesday, March 29, 2017

Off Market Opportunities (OMO)

Mark your calendar and remember these predictions for 2017.

Los Angeles industrial real estate will reach and top $400 per square foot. The confluence of cheap loans, massive demand, alternative uses, low vacancy and foreign money creates the perfect storm for an increase in values.  Many off market opportunities exist and there are many well located warehouses in the Los Angeles market.

I'm not a big stock market guy. I have some friends that watch it close and I get a tip now and then. I'm buying North Star Realty Finance Corp. (NRF), a real estate R.E.I.T. that will merge this month with Colony Capital, Inc., at $15 per share. Another R.E.I.T. I also bought was Max Sound Corp (MAXD) O.T.C. at $0.01 per share. This is a total penny stock that has patent technology with a lawsuit against Google (and a total gamble by me).


Disclaimer: This blog is presented to the public. The blog and all information provided is for entertainment only, and are not specific recommendations for any person, entity to purchase, or invest without consulting their own experts and performing their own independent due diligence. Major Properties, Bradley A. Luster and affiliates assume no liability for any gains or losses of the purchase or sell and for any recommendations made by this blog. 

Tuesday, March 21, 2017

Foreign Currency Comes to Los Angeles

Major Properties is a boutique brokerage firm with 15 agents. In spite of being small, we not only get our fair share of deals, but we also have a pulse on the Southern California real estate market. I'm sure that gives us an edge over our competition. 

Major Properties has approximately $200 million in deals currently in escrow. The market is showing no sign of weakness or slowing, and more money than ever is flowing into Los Angeles real estate. This first quarter of 2017 looks amazing with no end in the foreseeable future.

I represented the sale of a property on Pico Blvd near Fairfax Ave. The property has a small athletic gym in one space and an 8,000 square foot film studio in the other section. I was in and out of escrow twice over an 18 month period for around $12 million. The prospective buyers could not make the deal work for their use.

In December we got a call from Bangkok, Thailand. A buyer was interested in purchasing the site. The conversation went like this:

Buyer: "Brad, how much for this property?"
Brad: "$12 million."
Buyer: "How much for all cash, no contingency, 10 day close?"
Brad: "Try $10 million."

The deal was signed, the money wired and it closed one week later! Wow!

In regard to Los Angeles, we are only at the beginning of this economic bonanza. With the urbanization of Downtown, the Rams returning, the Olympics possibly returning, cannabis dispensaries and cultivation, population growth, diversity of traditional buildings, etc., we are in an amazing stage of growth. Stay tuned!

Wednesday, March 8, 2017

Kung Fu Real Estate


I really like watching Kung Fu shows, as they are the ultimate good vs. evil type programs. The show Kung Fu starring David Carradine was a staple in my house growing up. The various life lessons that the monks taught "Young Grasshopper" were inspirational.

My business practice follows similar principles of Kung Fu and other various teachings that promote discipline and consistency.

I annually plan reasonable and achievable goals and outline a plan for success. I try to avoid the distractions of the media, temporary market fluctuations, and the shenanigans and personal discretions of some people you deal with.

In 1998 I found myself getting a divorce and living in a 2-bedroom apartment on Bentley and Santa Monica Blvd. Two months after I moved into the apartment the property sold. The new owner planned to white paper the building into condos. I was offered my unit for $200,000 and I accepted the offer. Two years later the owner finalized his plan and was able to deliver the property. So, in 2000 I bought my condo for $200,000 and 30 days later I sold it for $325,000.

I then bought a 3-bedroom house in West Los Angeles on Tilden Ave for $400,000. I also married my wife Theresa. Two years later, we sold Tilden for $975,000 and bought a 5-bedroom/4-bath home in Mar Vista for $1,375,000. 

To sum up, in 1998 with $20,000 cash I bought my first condo and 4 years later, with no fresh cash and only the $20,000 initial investment, I had a $1,375,000 home. Today, that same home is worth $3,000,000. Real estate is amazing! 

At the same time, Major Properties has been buying and selling properties for our clients and ourselves. Values have risen to never seen before prices over the past few years and foreign investment is at an all time high as well. It is estimated that Major Properties has done over $4 Billion in transactions over the 53 years we have been in business in Los Angeles. We are happy to provide a complimentary opinion of value and marketing analysis for all commercial, industrial and residential property owners.