Re: Yes or No on P:
The 3 Developers bids are:
The Wrong Housing IN the Wrong Place.
How do I know:
I owned, and personally managed, 300+ apartment units.
I know this apartment proposal in downtown Menlo Park will NOT work. !
Why?
"First Hand EXPERIENCE !"
1) The first question prospective tenants always ask: Where is my "assigned parking space" going to be?
Or: Where is visitor parking?
The developers answer:
About 1/3 mile away, in a ramp, at the end of Santa Cruz, by Peets Coffee, AND by the way: There is "NO assigned parking". There are not enough spaces for both the store customers AND the tenants AND visitors, because the developer could NOT afford to do that. ( its 1st come 1st served ). Sorry!
That is a Deal Breaker!
Tenant Leaves !
2) Another "new" tenant question:
Why are there No Washers and Dryers in any of the apartments?
Answer: The developer put a community Laundry Room with coin operated washers & dryers, in each building, to increase their profits.
Sorry !
(Another Deal Breaker)
Tenant Leaves !
3) Prospective Tenant Question:
All around the apartments I see the backs of old stores with overflowing dumpsters, whats that about???
ALSO: Please, can you reimburse me for the money I spent on the "pay to park meters" in your private parking ramp?
Answer: No Answer !
Prospective Tenant Leaves. !
One more: No Sale !
Actually, many prospective tenants saw the overflowing dumpsters, and never even came in for a tour.
Some of them parked on level 5 of the Private Ramp and decided not to walk 1/3 mile to ask about the apartment !
There is much more that says "Dont invest in this apartment project, it is going to end up with high vacancies and bankruptcy."
"It is NOT Financially Feasible !"
The citys Feasibility Report even WARNED:"NOT Financially Feasible", but the city council Ignored that advice and :
"Now, Were Stuck with this mess !"
That is why I advise : YES on P
Council: Abandon This Flawed Plan, and Look at Better Locations for Apartments! ( IF NEEDED ).
Thank you,
Michael DeMoss, Menlo Park Resident
Commercial Real Estate Attorney,
Former Chairman of the Audit Subcommittee, Menlo Park Finance & Audit Commission
Note: the new FAY Apartments in Downtown San Jose went BANKRUPT!
Learn from other developers mistakes!
