903 Loyola transaction has continued to progress smoothly. We continue to stay in close communication with all parties and are hopeful to be able to release details of the deal within the next week. 

903 Loyola is currently pending. We are working extremely closely with our listing agent to ensure a smooth transaction. As we near the closing date, we will publish further details regarding the sale. 

We continue negotiations on 903 Loyola. Our listing agent has multiple parties engaged and we are working closely with him to make tactical decisions during the negotiation process. Concurrent efforts are being made to promote and show the property to as many possible buyers as possible. 

As our email earlier in the week described, 901 Loyola has sold and we are now negotiating offers on 903 Loyola. This weekend had another strong turnout of potential buyers. We will let you know as soon as anything comes to fruition. 

 

I wanted to give you a quick update on the Loyola project.

We closed the sale transaction on 901 Loyola Dr. Los Altos yesterday. 

On 903 Loyola we are negotiating with two buyers, however we don't have a signed contract yet.

As of this morning, we have initiated a complete return of the Principal amount of the Preferred Equity Investment into the project.

If you had invested via ACH, you will be receiving the amount via ACH in the next few days. If you had written a check, you will receive a check in the mail shortly.

I'll keep you informed on the progress of 903 Loyola Dr. Los Altos. Interest and profit share payment on the Preferred Equity will be made once 903 Loyola is sold, all accounting is done, and the project is completed.

Let me know if you have any questions.

-Navneet

 

 

901 Loyola final inspection passed this week and we have received occupancy certificate. We are in the process of closing and will provide an update at the appropriate time regarding the details of the transaction. On 903 Loyola, we are currently negotiating offers. We are wrapping up the last of the loose ends and will be calling for final inspection next week at 903 Loyola.

We are currently one inspection away from receiving Final Permit and Occupancy Certificate on both 901 and 903 Loyola. Upon closing out the permit, we will be completing the pre-sale of 901. On 903, we are currently featured as a "Hot Home" on Redfin (https://www.redfin.com/CA/Los-Altos/903-Loyola-Dr-94024/home/108432207) and have been gaining steady foot traffic and interest.

Pictures of 903 Loyola.

On both 901/903 Loyola we are finishing up the interiors. We are installing baseboard, hardware, closets, appliances, and finishing the decks. We hope to start the sewer connections early week and finish by end of the week so we can proceed with the driveways, front hardscaping, and landscaping. For those of you who are not aware, we are in contract on 901 Loyola and doing everything we can to get occupancy certificate by end of the month in hopes of closing escrow as soon as possible. On 903 Loyola, we are hosting an open house this weekend to hopefully pre-sell the home prior to occupancy certificate.

On the interior, countertops on both 901 and 903 are almost complete, lighting fixtures and plumbing fixtures are installed and we are preparing to install flooring. On the exterior, garage doors are installed, grading in the rear is progressing, and we are preparing for the utility connections.

The stucco on both homes is now complete. Starting next week, the driveway site scaffolding will be removed and we will begin utility trenching. On the interior, cabinets are installed, tile is almost complete, paint is done, and hardwood flooring material is now on-site in preparation to begin the installation.

901 Loyola walls are now primed and tile has started in the bathrooms. Cabinets will be delivered next week and then finish coat of paint will be applied. 903 Loyola painting is nearly complete and waterproofing for the tile work just passed. Stucco has one more coat before scaffolding around the exterior of the homes can be removed.

As the update earlier this week communicated, 901 Loyola is in contract and as of yesterday, contingencies have been removed. Close of escrow will take place upon the certificate of occupancy. 903 Loyola will be going back on MLS starting middle of April. As for the construction, 901 and 903 drywall is complete and stucco is underway. The site work is also making progress. 

The Loyola project continues to be challenging due to site constraints. Stucco and drywall are supposed to start next week and site work will continue on the exterior. 

We have passed all trades inspection in both 901 and 903 Loyola. Spray insulation is complete in 901 and just started in 903. As soon as the team is done spraying insulation, batt insulation will begin followed closely by drywall. In 903, all remaining windows and doors are now installed, we are waiting for the final delivery for 901 in order to complete installation. The rear retaining wall behind 901 garage and between 901 and 903 is going to be poured 02/25. This offers a great visual for the end buyer which we are hoping will help the pre-sale effort.

The Loyola site is progressing quickly. Fencing is almost complete, the front entries are wrapping up, garage framing is done. On the interior, we are waiting to pass our last inspection prior to begin insulation  work on both 901 and 903 Loyola.

Both 901 and 903 Loyola went live on MLS this week. We have been pushing both 901/903 Loyola extremely hard to get to the finish line as soon as possible and to best prepare the site to go on market and showings. Rough work in both the homes is nearing completion and we are striving to hang drywall starting the last week of January.

Window and door installation is almost complete on both 901 and 903 Loyola. HVAC rough-in is nearing completion. Roofing is almost complete as well. As soon as the structure is completely weather tight, we will begin electrical and low voltage. The garage footings have been poured and we will be pouring the slab early next week.

Framing has completed and we are currently working to install the windows and doors. With the wet weather, we are eager to complete the building envelope and have a dry working environment in the interior. Drainage in the backyard is complete and the detached garage pads are ready to be poured. As soon as they are poured, framing will begin.

901 Loyola and 903 Loyola were put on MLS last Tuesday. We are constantly trying to push and innovate our pre-sale effort and we are very proud of the work that the team has put in to try to make it happen. 

Sheathing inspection has passed and we are currently finishing framing. Rough trades are inside each of the houses completing layout. We are also working in the back of each home to complete drainage. As soon as drainage is complete, we will begin preparation to pour the detached garage slabs. 

901 and 903 Loyola framing is almost complete. We have sheathing inspection scheduled for early next week and already have some of the rough trades inside the house. Starting next week, we will have plumbers, electricians, and mechanical contractors there working.

The first-floor wall framing on 901 is now complete. The contractor has all of the bottom plates set to begin wall framing on 903. Drainage for both 901 and 903 will commence next week followed closely by the building of the detached garages.

We have framed the first floor and just finished the subfloor on the second story. We are preparing to put together landscaping plans and begin site preparation in order to sell both 901 and 903 Loyola Dr.

All backfilling and grading work has been completed. We have begun framing both homes concurrently. Framing is expected to complete by first week of November.

We have made great progress in backfilling on both 901 and 903 Loyola. We will be working at the beginning of next week to grade the site to satisfactory conditions in order to drop framing material off. Based on site constraints, 903 Loyola framing will begin first followed closely by 901 Loyola. Our contractors have been hard at work to make up time that was lost during our excavation and concrete trades.

Both 901 and 903 Loyola waterproofing and subdrainage are complete. Drain rock has been placed about 50% of the way up the basement walls. Starting next week, we will have heavy equipment on-site to begin backfill of our stockpiled soil. The site constraints have made this portion of work very difficult and we are eager to stand walls!

903 Loyola - Site clean up is complete and we will be placing drain rock and then backfilling starting next week.

901 Loyola - The walls have been poured on 901 and we have stripped the forms. Waterproofing is almost complete. The vertical drains will be placed next followed closely by drain rock and backfill.

903 Loyola - We are working on backfilling and drain rock.

901 Loyola - The walls have been formed and scaffolding has been installed as we prepare to pour concrete tomorrow. We will then strip the forms, waterproof, and backfill between 901 and 903 Loyola.

903 Loyola - Waterproofing and drainage are complete. We are proceeding with backfilling and drain rock around the perimeter.

901 Loyola - The slab has been poured and walls are about 50% formed. We will continue forming the walls through end of next week.

903 Loyola - The basement walls have been poured and we are beginning waterproofing. Drainage and backfill are following close behind as the waterproofers work their way around the perimeter.

901 Loyola - Rebar is about 50% complete. Rebar will be continued to be tied and placed throughout this week in preparation for the slab being poured.

903 Loyola - The scaffolding and all inspections have been complete in preparation to pour the walls this weekend. We are eager to complete the pour so that we can backfill and begin the first steps in framing.

901 Loyola - Drain rock, forms for the slab, and waterproofing are now complete. Rebar is currently being fabricated and bent off site and is scheduled to be delivered beginning of next week. We are hoping to pour the slab end of next week or beginning of the following week.

903 Loyola - The slab for the basement has been poured and forming of walls have begun. Steel is being finished this week leading into next, with our concrete pour for the walls currently scheduled for the end of next week.
901 Loyola - We have finished all under-slab plumbing and drainage and soil has been backfilled and compacted. Forms have been confirmed to be in compliance with all setbacks and we can now begin to place drain rock in preparation to form the slab.

903 Loyola - Waterproofing is complete and we are currently setting rebar for the slab. Pre-pour inspection for the rebar is scheduled for 06/27.
901 Loyola - We have relocated the ramp to accommodate the site constraints. Form work for the slab will be completed next week and plumbing will begin.

903 Loyola - Drainage, plumbing and form-work is underway. Our first inspection is scheduled for next Monday. We will be proceeding with water-proofing in preparation to pour foundation next week.
901 Loyola - Due to site constraint, we are using that space to provide access to 903 Loyola. We will build a ramp next week in order to create easier access for both lots, after which, work can be done simultaneously on both lots. We will begin form-work and plumbing for the foundation next week.

Excavation will be completed by tomorrow. Click here to see live view of the project. Plumber, water proofing and other preparation for the basement foundation will start on Monday.

We were informed last week that the front setback for the two homes was not compliant. It needed to be 30ft instead of 25ft in the approved plan - a mistake made by the County Planning. We worked diligently with our civil engineer, structural engineer and architect over the long weekend to update the plans and move the homes back to comply with setback requirements, and the updates to the plans are expected to be approved by Monday. Had we not reacted and resolved the issue so quickly, it would have been very expensive to address later.

We've broken ground on this project. Heavy excavation is underway on both projects, and will be ready for basement foundation work next week. Meanwhile, the design team and realtor are putting together a go-to-market package.

We have finally received building permit for 901 Loyola Dr. The piers for shoring have been completed. The crew members have been grading and preparing the site for excavation on Monday.

We have finally received building permit for 903 Loyola. We will start excavation tomorrow. Building permit for 901 Loyola should be a few days away. Also, the first draft of 3d walk through for 903 Loyola is ready. We are giving feedback to the modeling firm with final material selection in the coming weeks. Here's a link to take a sneak peak: 903 Loyola 3D Walk-Through

Demolition has completed for the property. We expect to receive construction permit within the next two weeks and will begin earth work and foundation promptly.

We have selected a general contractor for the project. He is very experienced and someone we have worked with in the past and we were very happy with his work and communication skills. All the paperwork for construction financing is in place, and will begin as soon as demolition permit is issued. Temp power pole and temp fence are installed.

We are in final stage of selecting a general contractor. The demolition permit has been approved. The building application has been approved by all departments except for one. We are planning to put construction financing in place early next week and will begin demolition the following week.

We have applied for demolition permit. We should be hearing back from the County of Santa Clara in two weeks. Our architect will submit second round comment feedback for 901 Loyola to the county early next week. Fence and temp power pole have been installed on the site. We have also begun the application for construction financing.

We received comments on encroachment application and drainage application for both lots. We will be submitting revisions on these two application on Monday. All the comments were minor. We are waiting on bids to be submitted by two different general contractors. Finally, we are working with PG&E and Cal Water on design and eventually permit of utilities.

We received county's comment letter for 903 Loyola. All the comments were minor and there weren't any surprises. The civil and architecture teams are working providing feedbacks for the comments by end of this week. For 901 Loyola, we are expecting to receive the comment letter from them by end of this week.

We are still waiting on comments from the Santa Clara County. We are working on renderings for 903 Loyola and are also negotiating the construction contract with a General Contractor.

We have created first drafts of 3D rendering of exterior and interior based on design by our architect and designer. These will be used for our pre-sale effort.

We submitted building permit submission yesterday. We expect to receive response from County of Santa Clara within the next few weeks for first round revisions. Our architect has finished a full set of plans for construction. We have sent the plans to general contractors for bids.

We received first round of comments from County of Santa Clara regarding building site approval. We were able to get approval for 10' wide drive way from fire department (current fire code requires 14'). Other minor items have been taken care of by civil engineering team and architect. We have submitted updates and feedbacks to the county. We should hear back from them within 30 days, hopefully with approval. Concurrently, we are putting together a building submittal package and will submit within the next 10 days. Our team has begun interior design work.

We are making progress on architectural, structural and civil plans for building submission. Target for building submission is January 2016. We have also retained an interior designer to finalize material and supply selection.

We have submitted application for building site approval to the County of Santa Clara. According to the planner, public hearing is not needed. We expect to receive first round of comments within the next 30 days.

Purchase escrow on the property was closed on 11/24/2015. Title has been recorded. We have prepared the building site approval package and will submit to County of Santa Clara Planning Department next week.

We signed 1st position loan doc on November 20, 2015 and the fund has already been wired to the title company. We are planning to close the purchase escrow on November 25, 2015. The capital raised through preferred equity will be transferred to title company also on the same day. Investment will begin accruing interest as of November 25, 2015.

Since the appraisal was higher than expected, we were able to raise more money from our debt provider, hence allowing us to raise less than the original goal of $1M in preferred equity, while still maintaining a healthy cash flow to complete the project. We raised a total of $775,000 via preferred equity investments.

Appraisal for existing property came in at $3.5 million. $1.5M for 903 Loyola (Lot only) and $2M for 901 Loyola (Lot + Home). This is above our purchase price of $2.5M.

Updates related to planning and construction:

• We have retained Lea & Braze Engineering as civil engineering for this project.
• Architecture plans are being finalized.
• We have met with planners at Santa Clara County to review our proposed plans, and incorporated verbal feedback to civil engineers and our architect.
• We are submitting building site approval application before Thanksgiving