During today’s HyperFast Wealth segment, hosts Dan Lesniak and Sunil Saxena provide insight into how their projects performed in the first half of 2020 and tell us what’s in store for the rest of the year. Hear the positive outlook for the DMV market and get the details on the status of their current projects.
Episode Highlights:
- Their development business wasn't affected too much by COVID-19. In general, they were still building and still getting permits.
- Sunil thinks Q3 will be about rebuilding as the world gets back on its feet.
- Q4 is just going to be phenomenal.
- Dan and Sunil have seven to eight projects in the pipeline, with five more they're looking at.
- Prices have been strong in the DMV area.
- The Keri Shull Team is having their best month ever.
- Dan says that the overall number of transactions went down but the ratio of buyers to sellers stayed the same or got even better for sellers.
- Their current projects are geared towards buyers with stable jobs.
- One project was postponed a few months, but they found some workarounds to keep building.
- Raising money became a little more difficult for developers because people were nervous.
- Other people thought it was a great time to invest in stock and some hard money lending dried up.
- It's harder right now for a developer to launch a project and close on it, so that will only make the inventory problem worse for the next 6-12 months.
- The permitting process has sped up because there are fewer projects coming into the DCRA.
- Dan and Sunil provide a rundown of their current projects.
- They have two very large single-family homes in the luxury area of D.C. where they are doing site work. That project is moving along very well and will deliver at the end of the year.
- Their Capital project is four units in the Ivy City area close to the Nike store. It's an up-and-coming area. They had to revise permits but they're out there doing work. This will probably be another end of year delivery.
- Randolph is three units near the Columbia Heights area. They had permit issues. They have four months of construction left.
- Columbia is one of their favorite projects. They are developing eleven beautiful units.
- The Benning Road project is in a rapidly transitioning area. They are near the end of the permitting stage for this project.
- The Chesapeake project is closing any day. It will be ten units next to a Whole Foods and a park.
- The final project, 10 units on the Georgia Avenue corridor, is under contract. They may hold this building for rentals.
- It's been a busy year for everyone but they've been focused on what they do best.
3 Key Points:
1. Prices have been strong in the DMV area.
2. Because it’s harder for developers to launch projects right now, there will be even less inventory in 6-12 months.
3. Dan and Sunil have an amazing portfolio because they’ve focused on what they do best.
Tweetable Quotes:
- “Prices have been strong in the DMV market. We're seeing bidding wars.” – Dan Lesniak
- “We're seeing really good numbers on the sales. I think it's only going to accelerate.” – Dan Lesniak
- “You're going to see six months down the road a supply shrinkage.” – Sunil Saxena
- “Activity really points towards an actual increase in the performance we're expecting out of our projects.” – Sunil Saxena
- “If you kind of stay in your lane, stay focused on the things you can control, good things happen.” – Dan Lesniak
Resources Mentioned:
Sunil Saxena LinkedIn
