October 13, 2021
It's time to take a deeper look! In a previous post I shared a peek behind the proverbial curtain, as it were. This week we will take a deeper look through the keyhole to see what the crews have been up to. AND, we will also learn more about Bakerson and what makes us tick.
We are passionate about serving the underserved. As we navigate this new economy with all the hiccups with distribution, travel, closures and re-openings, government intervention, moratoriums, demands, and of course, arguments amongst ourselves proclaiming who's right and who's wrong, we ultimately learn very few people really "know" anything. Life is full of surprises. One thing we do know is the lower income, self-paying resident is being underserved. As our economy booms and new construction takes off, we are seeing companies take underperforming assets and turning them into something special. We see them taking the old & tired buildings and turning them into "Metro A" properties. It's really exciting to watch and see! It's truly amazing! The neighborhoods are being transformed. It brings to question, where are the residents from these neighborhoods and old buildings going? How are they being served?
Have any of you noticed that as these previously rougher C & D properties are being repositioned there is nowhere for the previous residents to live? It's true! There is huge demand to supply units to the market for the lower income residents. And, to be specific they are what we call the "permanent resident" those who will likely never own a home and would simply like to live in one. Who are these people? They are the ones just above the poverty line up to the established in the workforce today. They may not be middle class. They may not be poor. They are stuck right in between. In fact, studies have shown this is the largest segment of our population...and growing. Sadly, they are being forgotten.
Another thing we are noticing is the money flowing into larger metro areas. BIG money. Phoenix is booming in construction, property sales, companies expanding here AND rental increases are going up much faster than wages. This is being seen in large metros across the US. Is everyone benefiting? It seems so! Or, does it...? One thing we are seeing is investors betting on growth in equity, rental increases and continued compressed cap rates. And, the margins are slim unless we see these values continue to rise. So, where else is there opportunity? What about smaller markets? Is there opportunity there? Yes! There is huge opportunity in buying and creating cash-flowing properties in smaller markets across the west. These communities need units brought to the market. Smaller markets too are being underserved.
What of these residents and smaller communities being underserved? How can they be helped? Well, that is where Bakerson comes in. We are able to buy and reposition properties at well below replacement cost and deliver units to the marketplace which are safe, functional, durable and clean while not outstripping the market for these lower income, self-paying residents. And, we are looking forward to owning and providing our service to these residents and communities for generations to come. It's a win-win-win-win.
Our passion is serving the underserved. Our focus is the permanent resident; one who may never own a home and would like to live in one. Our mission is creating communities which are safe, functional, durable and clean. Our desire is to attract like-minded individuals to take this journey with us. And, our promise is to leave all things better than we found them.
Sierra Vista needs units delivered to the market. Thunder Mountain is doing just that! And, the city is excited with the progress. Let's take a peek at this week's update:
As we walked the property last week we saw a few rooms full of piping laid out for the sprinkler system. We saw another room full of windows waiting to be installed. In a couple other rooms were boxes of cabinets ready to go when the rooms are ready. So far, due to the proactive action of Nate & the contractors, we have seen minimal delays due to materials being locked up in the broken supply chain.
The upstairs units in phase II have been demoed. The sprinkler system continues to be installed and they are installing the heads in a few rooms already. The electrical upgrade to the system has begun.
And that is ... Oh wait! There's more!
We are cutting the walls to install the doorways between units to make one 1-bed unit out of two studios. And, as I shared above and in a previous blog, there may be surprises. As they were drilling holes in the wall to bust out the doorway they discovered electrical conduit buried in the concrete mortar. Nothing too alarming nor too large to undertake. It is great to know so when they run the concrete cutting saw they do not cut into the electrical system. That would be a bummer. We will reroute electrical to accommodate.
The quality of the construction of this building is incredible. Being concrete and block for walls, flooring, ceiling AND roof, it makes for a solid structure. "Good bones" as we say in the industry.
It's exciting to see the progress and to share it with you!
And that is our project from my corner of the globe ~Bruce
Love the photos through the hole. Solid update.
ReplyDeleteLooking at everything a bit differently.
DeleteThanks! You are my biggest cheerleader!
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