It may seem impossible in one of the least-affordable real estate markets in the country. Except for city charter schools.

For the past 10 years, the alternative public schools have paid a relative pittance to rent space from the school district.

At 95 cents per square foot annually, the district was nearly $2 below Oakland’s charter school rental rate, $5 shy of Los Angeles and nearly $8 less than Berkeley, which has only one charter school that rents space.

To rent on the retail market would cost a school around 15 times what San Francisco Unified charges charters.

San Francisco district officials, who hadn’t raised charter school rent in five years, realized this year that they could charge more under state law and decided to triple the rent to $2.79, phasing in the increase over two years.

Eight charter schools will be hit with the increase, generating an additional $500,000 a year for the district. But charter schools and their advocates say any rent increase will have an impact on what happens in the classroom.

“For example, a school with a 20,000-square-foot facility would incur an increase of $34,400 per year for facilities expenses,” said Hilary Harmssen, the Bay Area regional director for the state charter association. “California Charter Schools Association schools would likely need to divert funds that are currently invested in the classroom for teachers, books and other learning materials.”

Rent parameters

Districts are allowed to charge charter schools what they spend per square foot to maintain buildings and grounds, costs that include security, maintenance, trash removal, gardening and custodial services.

In 2011, the district surveyed other Bay Area districts and found the wide discrepancy. Most charged between $2 and $4 per square foot, said district spokeswoman Gentle Blythe.

“This decision was reached after carefully reviewing similar practices in other districts, many of which we learned charge higher rates based on a different methodology than SFUSD had previously been using,” Blythe said.

San Francisco school board members said they were surprised to learn the district, for years, has been charging charters far less than other cities, where land isn’t worth nearly as much.

Charter schools have until May 1 to let the districts know whether they will stay or go.

District officials, however, were largely unsympathetic to the impacts on the city’s charter schools.

Fiscal responsibility

“Our budget has been slashed every year,” said school board member Jill Wynns. “There’s a lot of political pressure to just be nice to (charter schools). There’s nice and there’s bordering on fiscally irresponsible.”

At Gateway Public Schools, which has operated a charter high school in the city for 15 years and a middle school, officials were trying to figure out how to cover a $100,000 rent increase each of the next two school years.

“On the one hand I understand (the district’s) perspective,” said Sharon Olken, the executive director of the schools, which serve about 600 students. “They have a financial responsibility just as we do.”

And it was a bit of a wake-up call when Olken went looking for space in the retail world and found that commercial space costs $1.25 per square foot – per month.

“It was a sobering statistic,” she said. At the same time, “no one expects their rent to triple in two years. We budget an increase each year to account for inflation. That’s obviously not 200 percent.”

The increase over two years is the equivalent of about three teachers, Olken said.

“What I said to the district is from our perspective what we assumed was a fixed cost tripled,” she said. “Regardless what it started at, we are talking about real dollars that affect every student in our school.”

Jill Tucker is a San Francisco Chronicle staff writer. E-mail: jtucker@sfchronicle.com

Article source: http://www.sfgate.com/bayarea/article/S-F-district-raises-charter-school-rent-4283891.php

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?Sellers may move money across
the bay in search of higher
yields or park capital in
less management-intensive
single-tenant retail assets,? says
Mishkin.

SAN FRANCISCO-A research report that GlobeSt.com exclusively obtained from Marcus Millichap Real Estate Investment Services shows that for the San Francisco apartment market, renovating existing properties is key to outsized returns. According to the report, the apartment market here is arguably the strongest in the nation, and the impending construction boom will only have a minor impact on operations.

Job growth in the tech industry remains the key driver for occupancy and rent gains, and owners will likely have a strong negotiating position into next year, says the report. However, some early indications are emerging that rent growth will slow to a sustainable pace during the next several quarters, the report says.

Jeffrey Mishkin, first vice president and regional manager of the San Francisco office, notes that “class A vacancy is leveling off, while lower-tier vacancy tightens. As rents in the top-tier have climbed, many tenants are choosing to move down the quality scale rather than spending more of their income on housing,” he says. “Although new demand has been sufficient to offset these losses, new supply could tip the supply-demand bal­ance. Several thousand units will come online during the next two years, creating competition for class A properties. As a result, operators are expected to slow rent gains to maintain occupancy rates until the development cycle wraps up in 2015.”

Investors will remain active in the San Francisco market, though deal flow could be impeded by the number of available listings, he adds. “Sellers may move money across the bay in search of higher yields or park capital in less management-intensive single-tenant retail assets,” he says. “Some owners see the low cap rates and low interest rates as a favorable time to divest. Buyers, meanwhile, remain focused on the spread, which points toward a strong buy stance.”

Many of these investors are seeking older, larger units that can be upgraded, he says. “Changing a large studio to a one bedroom or a large one bedroom into a two bedroom can have a significant impact on asking rents.”

The new owner may have to wait for rent-controlled units to be vacated to execute this strategy, which could tie up capital for an extended period, adds Mishkin. Nonetheless, he explains, “the return could be much more lucrative than the average 5% yield for a class B asset in today’s market.”

Categories:

West,
Multifamily,
Acquisitions/Dispositions,
Development,
San Francisco

Natalie Dolce Natalie Dolce, editor of the West Coast region for GlobeSt.com and Real Estate Forum, is responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, Natalie was Northeast bureau chief, covering New York City for GlobeSt.com. Dolce?s background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats Arthur Frommer?s Budget Travel magazine, FashionLedge.com, Co-Ed magazine, and has also freelanced for a number of publications including MSNBC.com and Museums New York magazine. Contact Natalie Dolce.

Article source: http://www.globest.com/news/12_484/sanfrancisco/multifamily/Renovating-Existing-Property-Key-to-Outsized-Returns-327035.html

CIM acquired the apartment portfolio through a deed in lieu of foreclosure transaction. The properties span the geographic and demographic diversity of the City of San Francisco and, as is typical of this market, have high occupancies. CIM has applied its investment and management model to enhance the properties and increase the value of the portfolio. The San Francisco Bay Area is one of the strongest commercial real estate markets in the country and a top target for investors.

CIM identified the Greater Bay Area as possessing the attributes that fit its investment model, which focuses on established and emerging urban areas with solid infrastructure and transportation networks. CIM Group has investments in a variety of commercial properties in the Bay Area including approximately 1.7 million square feet of office properties and two hotels in Oakland.

About CIM Group

CIM Group is a leading real estate and infrastructure investment firm that since 1994 has systematically and successfully invested in dynamic and densely populated communities throughout North America. CIM Group draws on its experienced team of real estate, investment and finance professionals to identify and pursue investment opportunities in three primary strategic categories: repositioning and development projects in established and emerging urban areas; well-positioned operating properties in transitional and established districts; and infrastructure. CIM manages three distinct portfolios, including opportunistic, stabilized and infrastructure funds, each of which are diversified by geography and type of property within that risk profile. Headquartered in Los Angeles, CIM maintains regional offices in New York, the San Francisco Bay Area and Bethesda, Maryland. For more information, please visit www.cimgroup.com

Article source: http://www.heraldonline.com/2012/11/14/4415342/cim-group-sells-10-properties.html

In the greater San Francisco and San Jose markets, average rental prices increased by 10.4 and 12.2 percent, respectively, making the two areas the markets with the greatest rent appreciation in the country, according to a report by RealFacts, a company that analyzes rental data. The S.F. region includes parts of the East Bay, and San Jose includes other parts of Santa Clara County.

Click on the photo at right to see how rents have increased in the Bay Area.

Over the past four years, according to the survey, rental prices have climbed 13.7 percent in San Francisco, while occupancy rose only 1.3 percent. The City’s high apartment occupancy rate is one of the factors contributing to its rising prices, real estate experts agree.

“We’ve reached a point where there’s nothing out there,” said Craig Berendt, a broker with Berendt Properties. “People are knocking down my door to get an apartment.”

Renters now have to compete for apartments, sometimes creating a bidding war. Vacancies are filled quickly, and for above-average prices. Berendt recently rented a client an 800-square-foot Hayes Valley apartment with an outdated 1950s kitchen and without parking for $2,100 a month. About a year ago he would have been lucky to get $1,700, he said.

The tech industry, which is credited with contributing to the boom in both residential and commercial real estate, has created a renter profile of young, well-paid professionals who can afford the cream of the crop.

“Current renters moving in are pickier about what they want,” said Janan New, executive director of San Francisco Apartment Association. “They are willing to pay high rents, but don’t want to compromise on amenities.”

She said that means landlords have to deliver — by installing granite countertops, track lighting and other new features that also can drive up asking rates. The trend has made San Francisco a city that is increasingly unaffordable to middle-class residents, both New and Berendt said.

“I see our middle class really starting to dissipate,” Berendt said. “Obviously we don’t want that. We want a well-balanced class system, but the rents are just going through the roof.”

RealFacts’ report analyzes detailed data for 47 market survey areas in the country, including Los Angeles, Dallas, Denver and Tampa. Although the report omitted detailed information on major metropolises such as New York City and Washington, D.C., RealFacts spokeswoman Linda Burke said the company’s data on those cities supports its findings about San Francisco and San Jose.

sgantz@sfexaminer.com

Article source: http://www.sfexaminer.com/local/2012/01/bay-area-leads-nation-rental-price-increases

With tech workers flocking to the Bay Area again and the homeownership market still sluggish, local demand for rental housing is spiking and prices are on the rise, according to new data gathered by Novato-based RealFacts.

The combination of factors is driving people to choose — and then beg — to rent. The occupancy rate in The City rose 6 percent between 2010 and 2011 — meaning there are fewer apartments available on the market — and the average cost of all rentals went up from $2,214 to $2,422, according to RealFacts data.

Sarah Bridge, owner of RealFacts, theorized that members of Generation Y just don’t want to be tied down in the real estate market, especially not in the suburbs.

“That demographic is moving more toward rentals in a tight-knit, walkable community,” Bridge said.

The new data matches what countless apartment hunters already know. Even if you have the credit score report and boilerplate rental application in hand to try to beat out the competition — and especially if you’ve already given the 30-day notice on your current place — life is not getting easier for The City’s potential tenants.

That clock is ticking for 29-year-old nonprofit employee Allyse Heartwell and her tech worker boyfriend. After the couple suspected they had been outbid by other tenants on a place they really liked, they decided they would fight back at some open houses on Wednesday.

“If we like the place, we are going to bid $100 up,” Heartwell said, adding that she tried to bid $50 over the asking price on a previous place, but to no avail. “It’s like they should start putting these places on eBay.”

Because the couple’s options are narrowed by the fact they have a dog and are interested only in certain neighborhoods, they see some of the same people at the open houses.

“We definitely smile at each other, but we don’t really chat with them,” she said.  “You just go for 15 minutes, then you have to leave to get to the next one.”

Abigail Glynn, a broker with Davis Realty Co., said she’s noticed a resurgence in The City’s rental market. She said the demand is no surprise, considering increased hiring at tech companies that are now better established than they were during the dot-com bubble a decade ago.

“I’m getting Google people and they’re making money,” Glynn said. “We’re getting the second wave of dot-com kids.”

dschreiber@sfexaminer.com

Rents on the rise

Average San Francisco rental
Second quarter 2010: $2,214
Second quarter 2011: $2,422

Average rent cost per unit type
Loft: $2,100
Studio: $1,821
One bedroom: $2,229
Two bedroom, one bath: $2,394
Two bedroom, two bath: $3,272
Three bedroom, two bath: $2,975
Three bedroom, three bath: $3,609

Source: RealFacts

Article source: http://www.sfexaminer.com/local/2011/08/new-wave-tech-workers-san-francisco-becomes-landlord-s-market

J.Wavro Associates, a group that specializes in rental property leasing, recently attended the Hollywood-themed San Francisco Apartment Association’s Spring Boutique Tradeshow.

Mill Valley, CA (Vocus/PRWEB) June 07, 2011

For the sixth year in a row, J.Wavro Associates, a San Francisco property management and leasing firm that specializes in rental property leasing and executive relocation, attended the San Francisco Apartment Association’s (SFAA) Spring Boutique Tradeshow, “Hooray for Hollywood.” Held on April 18th at Fort Mason, this event brought in over 300 SFAA members to interact one-on-one with representatives from businesses that provide products and services to the owners of properties.

J.Wavro Associates has attended this event for six years in a row, which has given their leasing agents a chance to interact with hundreds of owners, and answer specific questions regarding their property needs. This year, J.Wavro Associates was among 35 exhibitors at the show.

“J.Wavro Associates is always a wonderful addition to our annual trade show. Their booth is always full of lively associates happy to chat with San Francisco Landlords,” said Deputy Director of SFAA Vanessa Khaleel. “We are so happy to have them participate and add their positive energy to each and every show.”

Since 1917 the San Francisco Apartment Association has kept San Francisco housing owners informed about how to manage their property. Their service helps them protect the value of their investment, keeps them informed about their rights as owners, and affords them peace of mind. They have hosted the Annual Spring Boutique Trade Show for over 20 years.

J.Wavro Associates employs more than 20 licensed real estate professionals who specialize in rental property leasing and executive relocation service in the San Francisco Bay Area. Their leasing services help property owners enjoy the profit from their rental investments without any of the hassle. Their relocation specialists save renters time and money by quickly finding the right apartment to fit their needs.

For more information about J.Wavro Associates, call them at (415) 675-8804 or visit them on the web at http://www.jwavro-sf.com.

About J.Wavro Associates

J.Wavro Associates is a group of licensed real estate professionals specializing in rental property leasing and executive relocation in the San Francisco Bay Area. They specialize in helping to lease rental properties, and have an extensive corporate and private network that allows them to consistently attract suitable tenants. Their Bay Area executive relocation specialists offer rental assistance to people looking to move to the Bay Area or locals looking for a new home. The real estate professionals of J.Wavro Associates can provide a wealth of knowledge on a particular neighborhood or neighborhoods of interest to clients. They will also identify specific properties that fit the client’s exact needs and budget. As part of their executive relocation service, J.Wavro Associates will arrange appointments, provide property tours and assist in lease negotiations.

J.Wavro Associates serves the City of San Francisco and other Bay Area locations including the South Bay and Marin.

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For the original version on PRWeb visit: http://www.prweb.com/releases/prwebrental-properties/san-francisco/prweb8540519.htm

When it comes to investing, you cannot settle for anything less than the fastest and most efficient news feed. That is why we created Benzinga Pro. Sign up for a free trial today!

Article source: http://www.benzinga.com/press-releases/11/06/p1143431/san-francisco-rental-properties-leasing-company-goes-hollywood

James Wavro, of J.Wavro Associates, was recently awarded the prestigious President’s Award for 2010 by the San Francisco Apartment Association (SFAA) at their Trophy Award Ceremony. Established in 1917, the SFAA is a non-profit organization that represents rental property owners, and provides services like political representation, an online magazine, educational resources, and news. The Trophy Awards honor firms and employees that are leaders within the rental housing industry. The President’s Award is reserved for an individual whose contributions to the rental property industry are truly above and beyond expectations.

“James Wavro is probably the hardest working, diligent, and conscientious professional I have ever had the pleasure to work with in the housing industry,” said Dave Wasserman, Ex Officio President of the SFAA. “As such, my decision to bestow the SFAA President’s Award onto him was made with utmost ease.”

The 4th Annual Trophy Awards Ceremony was held at the stately Palace Hotel in San Francisco. Over 300 rental property industry professionals donned their finest formal attire and gathered together for the cocktail hour, sit-down dinner and awards presentation ceremony.

The Trophy Awards honor the leading firms, employees and properties in the rental housing industry. For most awards, prospective honorees are nominated by colleagues or SFAA members, and sent a questionnaire packet. Their full and honest answers, and accompanying documents, are reviewed by a panel of judges who then choose the nominees and winners.

The recipient of the President’s Award, however, has no nomination process or panel of judges; this special award is decided only by the president of the SFAA and is given to select individuals for lifetime achievement of excellence in the field.

In addition to the President’s Award, San Francisco property management and leasing firm J.Wavro Associates was honored when Joanne Fazzino of J.Wavro Associates won Leasing Agent of the Year 2010.

J.Wavro Associates employs more than 20 licensed real estate professionals who specialize in rental property leasing and executive relocation service in the San Francisco Bay Area. Their leasing services help property owners enjoy the profit from their rental investments without any of the hassle. Their relocation specialists save renters time and money by quickly finding the right apartment to fit their needs.

For more information about J.Wavro Associates, call them at (415) 675-8804 or visit them on the web at www.jwavro-sf.com.

About J.Wavro Associates

J.Wavro Associates is a group of licensed real estate professionals specializing in rental property leasing and executive relocation in the San Francisco Bay Area. They specialize in helping to lease rental properties, and have an extensive corporate and private network that allows them to consistently attract suitable tenants. Their Bay Area executive relocation specialists offer rental assistance to people looking to move to the Bay Area or locals looking for a new home. The real estate professionals of J.Wavro Associates can provide a wealth of knowledge on a particular neighborhood or neighborhoods of interest to clients. They will also identify specific properties that fit the client’s exact needs and budget. As part of their executive relocation service, J.Wavro Associates will arrange appointments, provide property tours and assist in lease negotiations.

J.Wavro Associates serves the City of San Francisco and other Bay Area locations including the South Bay and Marin.

###

For the original version on PRWeb visit: www.prweb.com/releases/prwebrental-properties/san-francisco/prweb8390075.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/05/06/prweb8390075.DTL