“Urban retrofitting : creating different sorts of spaces and uses out of places that are already there.” Alex Steffen

Is your building “non ductile.”? If it is, it is defined as brittle and prone to collapse during an earthquake. Since 2015, The City of Los Angeles has required properties which have a weaker first floor to be retrofitted to strengthen them against potential earthquakes. The weakness can be because of a garage below a unit, tuck under parking and in some cases, even a window.

LOS ANGELES RETROFITS These can be quite expensive. For example, think about the retrofit costs involved when dealing with large buildings that have tuck under parking. With the final due date of 7 years from the Order to Comply, many property owners are working hard to meet the requirements before the time expires.

OTHER AREAS Los Angeles, West Hollywood and Santa Monica and the Southern California cities with mandates in place for the retrofit work. Other cities are in the works. The City of Torrance website says that they are in the process of developing a seismic retrofit for commercial and multi family units. The City of Long Beach says that work is underway to develop a building resiliency program. The County of Los Angeles is also moving toward a mandatory retrofit order.

OTHER CONSIDERATIONS I own a building in Whittier, which is not mandated to do soft story retrofit. When I re- financed the building, a few years ago, the lender made retrofitting some garages I had below 2 apartments a requirement in order to get the loan. Since that was the only thing required, and my belief that retrofits will soon all be required, I did the work. It’s not always a mandate, there could be lending or insurance considerations. At that point you need to decide if it is better to find another insurer or lender or just to do the work.

WHAT TO DO? Personally, I think all areas will eventually be required in all areas of Southern California. If you have a property even if under 3 units, which has been the limit for existing ordinances, and your units that could use a retrofit, get a couple of bids. You could end up paying more if you wait until you are under the gun, not to mention the possibility of “the big one” happening. Retrofitting may not help when “the big one” hits, but it may strengthen a smaller jolt, and it may help on your insurance premium. In any case, at least, by getting a bid on the proposed work, you will know what kind of expense you are looking at, and whether you need to consider selling or exchanging the property.

“The most we can hope for is to create the best possible conditions for success, then let go of the outcome. The ride is a lot more fun that way. ” Phil Jackson

What we at PRS PROPERTIES CAN DO. We try to keep pending legislation and proposed legislation in our newsletters and are always available to chat. We can supply you with rent and sale comparables in the area of your property. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.