Q2 2016 Update

Operating Results:

We report Sandalstone’s Q2 2016 results to be strong reflecting full occupancy. Quarterly revenues were flat over prior quarter with a 11.3% increase over Q2 2015. The primary reason for this was the rise in rents and lower vacancy. We had one turnover which we filled within ten days. Vacancy was at 0.3% which was reflected the quick turn. The turnover was at our Jib Court property in Las Vegas which we took over the property management - we did quite well in filling this property. This gives us the confidence to take over all properties in Las Vegas as we think about re-positioning the portfolio over the coming years.

 

The highlight of the Quarter involved our property on Jib Court.  This is a 6 Bedroom 5 Bath house in Las Vegas and is the most expensive single family house in our portfolio.  We made the decision to take over the property management of this house as a trial to see if we could mange the Vegas properties in-house.  This was a good trial as we would start with a new tenant.  We placed an ad on Craigslist and Zillow and we received a fair number of responses.  As usual there were a number of responses that were outlandish, however we got lucky by finding a large family that was moving from Idaho.  We scheduled a trip to Las Vegas meet them and they took the house.  We had our go to handyman get the house back in great condition and we were able to minimize the turn to about ten days.  

Over the next quarters we will update progress on taking over additional properties.  

Market Update 

We reference Case Shiller in each of our updates as we believe that index to be the best indicator of asset prices. SF registered annual gains of 6.4%.   Las Vegas registered a 5.7% increase which was a little over average for the nation.  The top 3 national markets continued to be Portland, Seattle and Denver third.  Later this year we expect that the nationwide numbers will show a complete recovery to post crash levels.  

Clarameda Fund, LLC:  

-  Continued payout of monthly distribution.  Initial Partners have received over 50% of capital back in the form of distributions.  Zillow estimate of property value is up 95% from purchase price plus rehab costs.  

-  Continued paying out Clarameda Fund Investor which we anticipate finalizing in Q3.

In Summary,

This was a brief update as we held serve on the existing properties and set the table to take over the Las Vegas properties.  

My thanks as always to the people who assist us in our endeavors and the Partners who trust us to manage the Company with their capital.  

 

Cheers!

 

Biren
Biren Talati
Managing Member
Sandalstone Group, LLC