Hope you’re doing well and enjoying the early summer weather!
Here is your monthly “Gladstone Gazette” update – a quick summary of what I’m working on, learning about, and interested by in the world of real estate.
Some interesting news and data:
- Rent collections continue to trend close to last year’s levels – through June 13th the NHMC tracked 89% collections, slightly above the 88.9% collected through June 13th 2019.
- Digging in a bit more as to why / how rent collections are still so close to last year’s levels… both median personal income and personal savings rates are way higher than pre-COVID levels. If you’re inclined to nerd out on the data, the BEA charts show unemployment assistance (including the $600/week ‘bonus’ payments) is having a big impact on median incomes. The looming question is how things will change as the CARES act benefits phase out.
- Some states (like New Hampshire) are pumping direct rental assistance to tenants to help them catch up and stay current on rent. In some cities (e.g. San Francisco), landlords are still pleading with legislature to implement rental assistance to help offset the effects of eviction moratoriums.
- Mortgage applications are going bonkers. Buyers and bidding wars are coming back , as inventory of new / existing home listings remain depressed. Fewer homes for sale + more buyers shopping = increased competition and pricing.
Gladstone Capital updates
- Big week for the Spencer Flats project in Chelsea with OnPoint Capital. Eight of the modular boxes are already on site, secured in a nearby gated parking lot. Steel was erected Monday, and the remaining 14 boxes are coming up from PA this week. We have a tentative set-day for the June 23rd and I can’t wait to see these puppies get stacked!
- We are also gaining momentum marketing the units for presale. Our website and social ads have generated a number of qualified leads we will continue engaging with and bring through the units once they’re up and the final connections are made. We are live on Zillow new construction and just put out a new virtual walk-through video. More to come, but great to see the momentum building.
- Saratoga Street in East Boston also saw a lot of action with the lifting of Boston’s construction moratorium. Steel is up (despite a blown hydraulic line) and framing is underway.
- The rental portfolio is still humming along with marginal COVID impact, and we’re working towards closing on a new 8 unit building in Manchester NH.
Reading: The Changing World Order – an online series by Ray Dalio.
Recording: I was on a podcast a few months ago (pre-COVID). I’m not expecting to beat Joe Rogan’s numbers, but it was a fun experience and I’m hoping to do more over the coming months. Let me know what you think and most importantly…. why it’s awesome.
In all seriousness, I’d like to keep getting better at communicating my story and things I’ve learned along the way, so please let me know if you have suggestions for me.
Starting: my part-time MBA at Babson, an entrepreneurship focused business school located a mile down the street from our home. I was on the fence about going to business school for the past few years – but now with my employer reimbursing the cost, I decided to pull the trigger. Only a couple of more years until I’ve mastered business!
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!
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