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Live-work rentals for musicians

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Renee Healion said:
Did they start out as a gimmick or have they remained as live/work, gregb?
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Renee:

Live-work projects are very common (and successful) in my markets.
San Francisco, Oakland, Berkeley, Emeryville... there are a lot of them.
In fact, if I were younger and single, I'd opt for a live-work condo (maybe if I were just single, I'd opt for one).
As a family-guy, I'm a suburbanite.
But as a single (or married with no kids), I could be an urbanite (I'd always be a conservative, however, which may limit my urban choices! :rof:).

On the other hand, not all areas (even in the Bay Area) have a demand for such space.
CAN was working on a tax appeal deal in Daly City (just south of San Francisco); live-work configuration. No sales, no comps, and little demand.
 
So if it works, it works. And if the marketing gambit fails, the project does not fail, it just defaults to whatever the prevailing residential market is. Sounds like the appraiser needs keep their eye on the more conventional competition when appraising live/work, no?
 
Renee Healion said:
So if it works, it works. And if the marketing gambit fails, the project does not fail, it just defaults to whatever the prevailing residential market is. Sounds like the appraiser needs keep their eye on the more conventional competition when appraising live/work, no?
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Kind of.
Which goes to my original question:
A. Does anyone have experience (specifically, the cap rate) with this type of project, and
B. if so, might there be a relationship between the "conventional competition" (I said 'typical apartment')vs. these types of projects, such that
C. a relationship might be discerned which could be used as a risk-premium to use as an adjustment?

So, I think your comment and my original question are asking the same, if not similar, question. :)
 
But I am three hours tireder than you so I thought I thought of that.:rof:
Well, good luck with someone snappier!
 
Denis DeSaix said:
CAN was working on a tax appeal deal in Daly City (just south of San Francisco); live-work configuration. No sales, no comps, and little demand.
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Not looking good for this one either. 7 sales "industrial Live/Work" in SF and SJ MSA, January 2011 to present. 3 with no transaction information, 2 non-arms length, 1 is a multi-parcel sale to a redevelopment agency for $15M, and one possible interesting one at $70/sf.

Did you finish the stinker in Oakland?

Did you notice I'm still up on the one due tomorrow? Did you notice I've had too much coffee? :rof:

lol... Musicians are flaky and unreliable. No business sense. And an investor who would by one of these is probably using inherited money and wants to hang out with musician types in the hopes that he can jam with them with his high dollar guitar and hang out with the babes all night.

What will this space rent for if you strip out all the music stuff and evict the flaky tenants?
 
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You have comps. I changed from the preset function to a word search and found some live/work condos and rental properties.

Talk to you tomorrow.
 
CANative said:
You have comps. I changed from the preset function to a word search and found some live/work condos and rental properties.

Talk to you tomorrow.
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Sounds good.
I'll be in early.... very early!

(BTW, the owner is someone who we've done work for previously. He is very savvy and he did his homework well. You might be surprised at this project's viability. But, I can identify with your or anyone else's initial skepticism.)
 
On my second search there were several sales where the planned new use was live work units.
 
These concepts are becoming more and more popular. The bank was asked to consider loans to a firm known as "We Work", which also has a spinoff called "We Live". We inspected a few "We Work" spaces here in NYC and they were very impressive. They continue to achieve excellent absorption rates as they open new spaces in town.

This type of use is fairly new and transaction data is likely to be severely limited, as I believe you've already found.

Here's the website for "We Work":
https://www.wework.com/
 
Lost Cause said:
These concepts are becoming more and more popular. The bank was asked to consider loans to a firm known as "We Work", which also has a spinoff called "We Live". We inspected a few "We Work" spaces here in NYC and they were very impressive. They continue to achieve excellent absorption rates as they open new spaces in town.

This type of use is fairly new and transaction data is likely to be severely limited, as I believe you've already found.

Here's the website for "We Work":
https://www.wework.com/
Click to expand...

The one in SOMA (South Of Market Area) San Francisco has me sold; one of their amenities is "free beer"!

Thanks for the link!
 
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