Butera's closing.....

When Covid clears, we are going to shocked to discover how many businesses have folded up due to their income being slashed by the shutdown -- good, solid businesses are biting the dust daily. Are not the pool rooms closing some of the top of the line rooms?
 
garczar said:
Something tells me that any re-opening is pretty far down the road if ever. Only reason i could see for selling off the entire inventory. Paying California storage rates for that much stuff would get pricey QUIK. I agree on the landlord deal. These people gotta eat and pay bills too. Sometimes getting a negotiated reduction is just not doable.
Click to expand...
But who are the landlords going to get to replace them? Restaurants are getting killed. Bars are getting killed. Office space is getting killed. I think landlords acting like this are short-sighted.
 
Inferno said:
So, taxes are the problem, and not multimillionaire property owners?
Click to expand...
Build your own building. Case closed. Look, rent rates in Calif. have always been high. I checked a while ago and in the Moorpark area it averages about $21/sq.ft./yr. If that room is around 6,000sq.ft. that's $10,500/mo. Avg. income and home prices are fairly high also. Looks like he did ok for over 10yrs but covid was most likely the culprit.
 
Biloxi Boy said:
When Covid clears, we are going to shocked to discover how many businesses have folded up due to their income being slashed by the shutdown -- good, solid businesses are biting the dust daily. Are not the pool rooms closing some of the top of the line rooms?
Click to expand...
Yes. Those that are open are struggling.
 
sixpack said:
But who are the landlords going to get to replace them? Restaurants are getting killed. Bars are getting killed. Office space is getting killed. I think landlords acting like this are short-sighted.
Click to expand...
Around here, doctors/dental offices spring up commonly in these available spaces.
 
sixpack said:
But who are the landlords going to get to replace them? Restaurants are getting killed. Bars are getting killed. Office space is getting killed. I think landlords acting like this are short-sighted.
Click to expand...
They can pound sand . They'll be luck if they become Amazon graveyard surplus warehouses . There can only be so many dentists and tanning salons .
 
sixpack said:
But who are the landlords going to get to replace them? Restaurants are getting killed. Bars are getting killed. Office space is getting killed. I think landlords acting like this are short-sighted.
Click to expand...
I agree that there should be a middle-ground for both the tenant and the owner. They both kinda need each other now.
 
garczar said:
And vape shops. They pop up like weeds in spring here in Oklahoma. Just about everything is open in my area. Not great but far better than a few months ago.
Click to expand...
You know, you're right! A vape shop just opened around here very recently.
 
Good luck on that move. I knew Lou in the 80s, he used to stop by often at our room in Sepulveda, he often gave group and private lessons. Great person and a real Gentleman. They didn't call him The Machine Gun for nothing..

Sent from my SM-G970U using Tapatalk
 
I think the days of California Dreaming are slipping away. If they ever reopen I would wager it will not be in Cali. Sorry to see another room gone!
 
yes property taxes play a major role in the charge of rent. and if you dont get an acceptable return on your investment then you have to raise the rent. or evict and find someone who will pay more, or sell to someone who has a better use for the property.

has nothing to do with being a millionaire or not.
 
maha said:
yes property taxes play a major role in the charge of rent. and if you dont get an acceptable return on your investment then you have to raise the rent. or evict and find someone who will pay more, or sell to someone who has a better use for the property.

has nothing to do with being a millionaire or not.
Click to expand...
Yep. Agree.
 
Well, I don't agree with Socialism but I do feel we need a middle class.
I'm baffled by people who can't be content with having everything they need for their lifetime but battle day after day to get more.
What's the point? When you die, you will be back to having absolutely nothing and have wasted your life to screw people out of a buck.
 
Inferno said:
Well, I don't agree with Socialism but I do feel we need a middle class.
I'm baffled by people who can't be content with having everything they need for their lifetime but battle day after day to get more.
What's the point? When you die, you will be back to having absolutely nothing and have wasted your life to screw people out of a buck.
Click to expand...
What's that got to do with a business owner who can't fade the rent?? Its quite possible the landlord did try to help out. I have no idea and no one else on here does either. WTH, the NatDebt is already at stratospheric levels and this idiot Biden is gonna pile on more so why not just bail-out all the struggling room owners? MAGA- Make Action Great Again. ;)
 
As for property taxes in California, we have Prop. 13. Your valuation is the last sale price plus a 1% annual increase. Tax rate is about 1.5% of valuation. This means that most commercial property owners pay very low taxes if they hold onto the property.

Residential turns over faster. When I sold in 2006 I was paying 3x the taxes of my down-hill neighbors who had bought in 1960, and 1/3 the taxes of my neighbors across the street who had just bought. (similar subdivision houses) Those unfair ratios remain constant as everyone has the same 1%/year value increase.

Prop 13 appears to have been the brainstorm of everyone's favorite bank, Wells Fargo, which has a lot of commercial property.

That strip mall pays $38k/year in taxes, has 28k covered (interior) sq.ft. and 1.8 acres total. It's valued at $3.4M. There appear to be eight or nine businesses on the property.
 
sixpack said:
But who are the landlords going to get to replace them? Restaurants are getting killed. Bars are getting killed. Office space is getting killed. I think landlords acting like this are short-sighted.
Click to expand...


I live in California and I get to see vacant buildings every day. It's a renters market right now and landlords are increasingly open to almost anyone who will rent their vacant space. I'm talking about commercial space right now and not so much residential property, which is still doing okay considering all the benefits given to tenants in California at this time. The next few months will be a prime time for someone who wants to open a new business to get a very good lease. We don't know what is motivating Sal's landlord and it could be any number of things, some of which have been theorized on here already. The people I know who have commercial space are glad to hang onto any of their current tenants who are willing to renew their leases, typically with little to no increase in rent. That's why Sal's situation strikes me as odd. It could well be that there is a developer who wants to buy the entire property and have it be as empty as possible, which is not unusual. The area where Sal's room is located is experiencing a great deal of growth both from people and businesses fleeing Los Angeles proper for the suburbs. Key reasons are a lower cost of living and safety. Two biggies!
 
Bob Jewett said:
As for property taxes in California, we have Prop. 13. Your valuation is the last sale price plus a 1% annual increase. Tax rate is about 1.5% of valuation. This means that most commercial property owners pay very low taxes if they hold onto the property.

Residential turns over faster. When I sold in 2006 I was paying 3x the taxes of my down-hill neighbors who had bought in 1960, and 1/3 the taxes of my neighbors across the street who had just bought. (similar subdivision houses) Those unfair ratios remain constant as everyone has the same 1%/year value increase.

Prop 13 appears to have been the brainstorm of everyone's favorite bank, Wells Fargo, which has a lot of commercial property.

That strip mall pays $38k/year in taxes, has 28k covered (interior) sq.ft. and 1.8 acres total. It's valued at $3.4M. There appear to be eight or nine businesses on the property.
Click to expand...
Probably owned by a Mex. cartel. ;)
 
Bob Jewett said:
As for property taxes in California, we have Prop. 13. Your valuation is the last sale price plus a 1% annual increase. Tax rate is about 1.5% of valuation. This means that most commercial property owners pay very low taxes if they hold onto the property.

Residential turns over faster. When I sold in 2006 I was paying 3x the taxes of my down-hill neighbors who had bought in 1960, and 1/3 the taxes of my neighbors across the street who had just bought. (similar subdivision houses) Those unfair ratios remain constant as everyone has the same 1%/year value increase.

Prop 13 appears to have been the brainstorm of everyone's favorite bank, Wells Fargo, which has a lot of commercial property.

That strip mall pays $38k/year in taxes, has 28k covered (interior) sq.ft. and 1.8 acres total. It's valued at $3.4M. There appear to be eight or nine businesses on the property.
Click to expand...

That's a low tax base. Better than what we are paying for residential units that we own in Los Angeles.
 
You must log in or register to reply here.
Back
Top