NNN Reconciliations & Month ends reports

An aerial view of our property in Deer Park taken about eight months ago.  New tenants have since moved in and there is development around the property.  We'll take some new photos come late spring.

An aerial view of our property in Deer Park taken about eight months ago.  New tenants have since moved in and there is development around the property.  We'll take some new photos come late spring.

Spent the morning writing December's month end (also year end) reports.  Wasn't the most fun way to spend a Sunday morning, but it was a great feeling to realize I've put another year of growth in the portfolio.

I was able to wrap up the NNN (triple net) reconciliations for our Deer Park property today as well.  Getting that off my plate this early in the month feels like a huge win.

On top of that, I toured a group through one of the vacant spaces in our new office building (more info to come on that shortly).  They seemed interested and are supposed to bring their remaining team members back for a follow-up tour.

 

 

What the Heck is This Substance?

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We received a call from the STCU facilities manager who said a residue was covering their ATM at our Deer Park property.  He'd gotten a call from a concerned member and then forwarded the pictures to me.

At first, it was thought to be chemical de-icer that was sprayed haphazardly on to the ATM.  I contacted our snowplowing company and asked them to look into it.  They went to the site and inspected the ATM.  It turned out to not be de-icer, but an oily substance.

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This prompted further investigation by the snowplowing company.  They had recently placed a truck into service due to a ruptured hydraulic line.  The ruptured line was spraying fluid everywhere.  Prior to being taken out of service, the last place the truck had worked was our site.  

Mystery solved and then cleaned up.  Never a dull moment in the life of a real estate investor. 

Deer Park Property Visit

New parking lot striping with some crack sealant

New parking lot striping with some crack sealant

Crack sealant has been applied.

Crack sealant has been applied.

On April 17th, I toured our retail property in Deer Park.  I showed some photos of some alligator-ing of the parking lot that would require crack filling.

That process occurred last week along with some updated parking lot striping.

Crack sealing is a big deal in our market due to the amount of snow we get.  During the day, snow melts from the sun beating on the parking lot.  However, as the night-time temperature drops below freezing, the water that has seeped into the asphalt will freeze and expand.  This expansion further cracks the asphalt, increasing its exposure to the elements and decreasing its useful life. We have to stay on top of cracks like this.  The previous owner failed to do it and we missed it prior to last winter.  That's a compounding problem we couldn't let continue.

Regarding the parking lot striping, I'm a big believing in doing it every year. Beyond the safety aspects, I believe it has a subconscious affect on how it makes visitors to the shopping center feel.  I discussed this further in the article Buying with the Eye.


Some exciting news for the neighborhood.  A new development has been underway for a couple months on the parcel next door to our project.  A 36-unit apartment building is under construction.  It will be three buildings of 12 units each.  Delivery is expected in early fall.  This is an exciting development for the small community of Deer Park, Washington and one we hope will bring addition traffic to our retailers.

This isn't our development, but it should bring additional traffic to our center.

This isn't our development, but it should bring additional traffic to our center.

Construction has begun...

The first property that I ever bought has experienced another vacancy.  It's been roughly five years since the last one so it's been a pretty good run.  However, the tenant that moved out had been there since the mid '70s.  It's required a complete gut job and a new start.

However, we've got great tenant coming in.  The Professional Fire Fighters of Spokane County Fire District 9 & 10 is our new tenant!  I'll detail more about this in an upcoming post, but thought you might like to see some of the build-out as things move along.

It's taken us longer to get started on this project than expected.  We did the initial demo back in April.  You can check out the pictures further back in this blog.

Due to the market, timelines are very tight to get contractors in for bids and then to get them back to start the work.  My clients are experiencing this problem as well.

Anyway, we're excited to have the work underway.  Stay tuned for further updates...

Graffiti

We were tagged over the weekend at our property on Northwest Boulevard.  I was alerted to it by one of the tenants.  The tag was huge!

I called my painter and he took care of it immediately.  That got nice feedback from the tenants.

Also, I reported this to the local Spokane COPs shop.  They have a neighborhood resource office who tracks this sort of activity.  

Mailbox Installed

We were required to install a commercial grade mailbox at our Deer Park, Washington property.

The original developer and previous owner had never done this.  The post office did not want to have their carrier exiting the vehicle to deliver the mail to each space.  This is what they had been doing in the past and finally drew a line in the sand with our newest tenant.  They were refusing to deliver mail to them, instead making them pick it up at the post office.

This obviously created a problem for us and would create a problem for any incoming tenant as we hope to fill the final vacancy soon.

Can you guess how much one of these units costs?  With tax, a little over $1,400.00!  I bought it from Lowe's and had it delivered to our local store so shipping was free.  However, that's still an amazing cost for a chunk of metal. 

Don't forget that we needed to install a concrete pad to support it.  The pad had to have a volume of 4' x 4' x 4" (deep).  We went a little smaller and deeper, but it's an expensive process to build a little concrete pad.

Anyway, the post office and our tenants are now happy.

Demo of Vacancy

We brought in our contractor and demo'd the former Spokane Vitamin Supply space.  After 40 years, it was pretty rough.  They'd had essentially the same carpet in the space that whole time.  It had held up amazingly well, but was forest green and way past its useful life.

Gutting it allowed us to see what could be done with the space.  

It's a wide open box now.

It also had popcorn ceilings which we will have scrapped (after an asbestos test, of course!)

Going to look sharp when we get a new tenant in.

Yes, that's a whole in the wall where a non-functioning AC unit had been.

Yes, that's a whole in the wall where a non-functioning AC unit had been.

This had been covered in by a simple wall the tenant had built.  We'll either replaced it with a new door or we will block in as appropriate.

This had been covered in by a simple wall the tenant had built.  We'll either replaced it with a new door or we will block in as appropriate.

A Little Touch Up Paint

As mentioned previously, Spokane Vitamin Supply moved out.  

The first thing we did was take down the old sign and touch up the building's paint. Unfortunately, we discovered that the previous sign's base was applied with liquid nails to our metal facade.  Removing it will severely damage the metal.

We're going to have to figure out a plan once we get a new tenant.

A New Vacancy, A New Opportunity

After nearly 40 years, Spokane Vitamin Supply moved out of our building at 1008 W. Rosewood.

The business had changed had several times, the most recently a few years ago.  The recent owners sold the business again and the new buyers have relocated it to their existing business in the Spokane Valley (neighboring city).

What this has left us with is a vacancy.  It's time to crank up the machine and start marketing the property.