Here is your monthly “Gladstone Gazette” update – a quick summary of what I’m working on, learning about, and interested in the world of real estate.
Rental portfolio update (we crossed the 20 unit mark!)
406 Belmont st. (6 units, Manchester, NH): we pushed rents this year while looking to refinance – this helped produce a high valuation on the appraisal but hurt a bit on the vacancy and cash flow. I will keep looking to find a good balance between keeping rents at the market and maintaining strong cash flow.
Summer st. (11 units, Concord, NH): neighboring 5 and 6 unit buildings we are renovating as unit turnover.
81 Arcadia st (2 units, Revere) – duplex we renovated last year. Occupied and producing strong cash flow, will likely hold this one for a few more years to capitalize on the strong growth in Revere.
87 Arcadia st (Single Family, Revere) – neighboring property to 81 Arcadia, we bought this off-market after getting to know the owner from the work next door. Currently rented, prepping for potential sale this spring.
Active development projects:
Spencer ave (8 units, Chelsea): the foundation is set and the modular boxes are finishing production! Scheduled completion this spring. If you know anyone looking for a sparkling new luxury condo in one of Boston’s hottest markets, let me know! See www.spencerflats.com for more info. Note: Project sponsor is OnPoint Capital. Gladstone Capital is partnered in an advisory capacity.
Saratoga st. (9 units, East Boston): The elevator shaft is up, however there was some lost time on this due to a mysterious, monstrous underground concrete block in the way of the approved route for water / sewer connections. It took over a month for the city to approve the new routing plans. We’re hoping to have the steel in place in the next month, and charge steam ahead with the framing once complete. Note: project sponsor is OnPoint Capital, Gladstone Capital is a Limited Partner on this project.
Our new house! (Needham): Jill and I officially became suburb people, and are renovating our new home in Needham. Living through a renovation is a completely different animal than rehabbing an investment property. Happy to share more of our learning / experience to anyone thinking about doing this in the future.
Reading: Essentialism – My resolution this year is to prioritize the few things that really matter to me and subtract anything with a disproportionate “return-on-headache.” I’m already taking action, and have sold an income producing website and left the property management business. If you like this book, I’d also check out The One Thing by real estate legend Gary Keller (founder of Keller Williams).
Listening to: Tim Ferris show with real estate billionaire Sam Zell. My big takeaways were Sam’s conviction in original thinking and what “makes no sense” vs. what “is painfully obvious,” and his appreciation for the opportunities and freedom as the son of Jewish immigrants who fled Poland in 1939, just missing the German invasion.
Watching: five-part documentary going behind the scenes of Navy SEAL BUD/S training. I was recently in San Diego near the beaches in Coronado where the SEALs train. Helps put things like attention to detail, teamwork, and mental toughness into a new perspective. Side note: need get in shape.
Events I’m looking forward to this month:
- Harvard Real Estate weekend (March 7-8, Cambridge) – this is my fourth year attending and it’s been an incredible value every time. Great speakers and networking. Plus you always just feel smarter being at HBS.
- Vetting a Multifamly Deal (March 11, Newton)
- Boston Real Estate Guild (TBD, Boston)
Thanks for reading and please give me feedback by responding to this e-mail. What do you want more or less of? Let me know!