Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.
Issue link: https://westernrealestatebusiness.epubxp.com/i/873170
www.REBusinessOnline.com Western Real Estate Business • September 2017 • 63 MULTIFAMILY LANDLORDS SHOULD BECOME FAMILIAR WITH NEW RETROFIT MANDATES California is known for many things, and earthquakes are one of them. A new mandate is tackling the damage and injuries caused by many of these quakes, but landlords must do their part to ensure their buildings are seismically sound. By Robert Lopata L os Ange- les created a mandate in 2015 that all soft- story apartment buildings must be seismically retro- fitted to stabilize the building in the event of an earth- quake. This is be- cause hundreds of these buildings — which typically feature wide, open spaces for park- ing that are supported by weak poles — collapsed in the 1994 Northridge quake, killing 16 people. This type of building currently accounts for 13,500 multifamily properties in Los Angeles. As many as 2,000 buildings are suspected of needing a retrofit in Santa Monica alone. A soft-story building is unable to carry the weight of the stories above it in the event of a large earthquake since the first floor is structurally much weaker. The first floor gener- ally will have large openings in the perimeter walls, such as tuck-under parking, where parking is beneath the second floor. Although the ur- gency is very clear and the last ma- jor earthquake proved this type of structure to be unsafe, many ques- tions remain for owners with this type of building structure, includ- ing who will pay for this retrofit and what the clear roadmap is for how it can be accomplished. What Apartment Owners Should Know • The goal of the mandatory seis- mic retrofit program is to reduce the structural deficiencies of soft-story buildings in the most economical method • The law applies to buildings that are at least two stories in height, built under building codes dating back to 1978 or earlier • The city has set deadlines for the owner to submit engineered plans, obtain a permit and complete con- struction • Based on past mandates, building owners that do not comply are at risk of receiving city-issued fines, not to mention the extremely dangerous personal liability they will carry • Renters and apartment owners share the financial burden of earth- quake retrofitting, and owners can pass half the costs onto renters through rent increase over a 10-year plan • Property owners will have seven years to reinforce soft-story wooden apartments, and a list of the 13,500 buildings that need retrofitting is al- ready available Building owners are not the only people affected by this mandate, as hundreds of homeowner associa- tions and HOA board members need a clear understanding of this law, as well as how to go about preparing their communities for this work. Unfortunately, it is already becom- ing difficult to find a qualified engi- neer to file the permit and a contractor to do the work, as there is no licens- ing for retrofit contractors. There are many resources available to assist in finding appropriate contractors. Us- ing a property management firm can ease the burden of searching for the right professional. Retrofitting isn't cheap. It can cost anywhere from $60,000 to $130,000. However, since the Los Angeles City Council voted that renters and apart- ment owners must take on an equal share of the costs of seismic retro- fitting, rent increases won't be too drastic. Some companies will create a personal loan structure that fits with- in an owner's or HOA's budget. This is a complicated and expensive issue, and it is important that an apartment owner find knowledgeable guidance to make the process as painless and cost-effective as possible. Robert Lopata, President and Co-founder, LBPM, a full-service property management firm in Sherman Oaks, Calif. Lopata S E L E C T R E TA I L S I T E S Apple Valley, California Economic Development Office (760) 240-7915 select@applevalley.org S e l e c t A p p l e Va l l e y. c o m Apple Valley offers golden opportunities for retail businesses. JESS R ANCH MARKE TPL ACE Located at Bear Valley Road and Apple Valley Road Weingarten Realty owns and manages this 969,000-square- foot regional center which includes Cinemark Theatres, 24 Hour Fitness, Burlington, WinCo Foods, Red Robin, and Buffalo Wild Wings. Ulta Beauty and Jersey Mike's Subs opened their first stores in the region here. Chase Bank is resuming development of a new branch office at the SEC of Bear Valley and Apple Valley Roads. A limited number of inline spaces are available as well as an adjacent 10-acre parcel for entertainment and hospitality opportunities. APPLE VALLEY COMMONS Located at State Highway18 and Dale Evans Parkway Lewis Retail Centers developed this 469,000-square- foot center at the heart of Apple Valley's Civic Center and includes Super Target, Ross Dress for Less, Dollar Tree, Round Table Pizza, Starbucks, Union Bank and more. Recently opened or coming stores include Juice It Up, WaBa Grill, 76, and Les Schwab Tire Center. A limited number of pads and inline spaces are available for lease as well as a 140,000-square-foot former Lowe's building across Dale Evans Parkway. APPLE VALLEY GATE WAY CENTER Interstate -15 and Dale Evans Parkway In 2016, the Apple Valley Planning Commission approved Apple Valley Gateway Center, a 10-acre, 80,480-square- foot project at the northeast corner of I-15 and Dale Evans Parkway. Belco Development, of Murrieta, is proposing to construct a hotel, retail shops and restaurants. Hotel and tenant interest is now being accepted. QUAIL RIDGE PL A Z A Nor theast corner of Apple Valley Road and Yucca Loma Road Mal Riley and Associates, developer of the highly successful Jess Ranch Marketplace II and III, has returned to Apple Valley to design and develop the site formerly known as The Fountains. Riley has already assembled a remarkable development team and in a rare move signifying the intensity of the project, is bringing in two of the largest commercial brokerage firms, Jones Lang LaSalle and CBRE, to assist in leasing. Located near the strongest median income demographics in the region, the project will be designed as a mixed-use concept including retail, restaurants, office, townhomes (or multi-family) and senior living. Yucca Loma Bridge is now open. Jess Ranch Marketplace Apple Valley Commons Quail Ridge Plaza UPCOMING MARKET HIGHLIGHTS OCTOBER NOVEMBER DECEMBER Northern California Orange County Inland Empire Seattle Reno Las Vegas Portland EDITORIAL OPPORTUNITIES: Nellie Day • nday@francemediainc.com ADVERTISING OPPORTUNITIES: Scott France • scott@francemediainc.com