Q3 2016 Update

Operating Results:

We report Sandalstone’s Q3 2016 results to be strong reflecting our last inclusion of our AirBnB property in Oakland . Quarterly revenues rose 6.2% over prior quarter with a 4.3% increase over Q3 2015. The on-going rental properties benefitted this period from the rent increase obtained from our HUD program properties. Vacancy was at 0.5% which reflects only two turns managed within one month . We finished a major painting and re-siding project on a Oakland property which should end the exterior work.

 

Among the achievments of the Quarter were to turnover two tenants in the Oakland Duplex in rapid fashion while raising rents.  We had an interesting story develop when we discovered a prospective tenant intended to move in with a pitbull.  We denied the application for liability reasons.  

We also began looking for a new property to add to the Portfolio along the condo-hotel area as we are emboldened by our success with AirBnB and the success of one of our investors.  Stay tuned for that next Quarter.   

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 5.26%.   Las Vegas registered a 5.99% increase which was a little over average for the nation.  The top 3 national markets were Seattle (10.4%), Portland and Denver third.  A continued West Coast trend.  

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.  

-  Finalized paying off a Clarameda Investor.

In Summary,

This was a brief update as we held serve on the existing properties and are in place to take over the Las Vegas properties and also add to the Portfolio.  The Q4 Update will be more comprehensive as we review the quarter and the year.    

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