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Napa Valley Feud Pits Real-Estate Startup Against Homeowners

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Pattie Dullea came out one morning in Napa, California, one morning last month to speak to the young man who pulled up in an antique sports car to see the house across the street.

“Maybe you don’t want to buy there,” she told the man who was there to invest in the house. “We don’t want our neighborhood to become a timeshare neighborhood. And we will do everything in our power to prevent that from happening. “

Scenes like this are becoming more common in California’s wine-growing towns, where a real estate startup called Pacaso is buying million dollar homes and then selling off ownership to second home hunters looking for weekend getaways.

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San Francisco-based Pacaso was co-founded by the Zillow Group’s founder, Spencer Rascoff, and is the former CEO of Starbucks Corp. Howard Schultz among his first investors. The company claims to have reached unicorn status faster than any other company in US history, reaching a valuation of $ 1 billion within six months of launching last year.

The Covid-19 pandemic has been a boon to business. Remote working inspired many to spend time outside of the cities, but rising home prices and shortage of homes meant fewer people could afford to buy an entire home.

Members of the Rainier Alliance, a group of residents who opposed Pacaso, met on June 10 at the home of Ms. Dullea, who was wearing sunglasses.

The opposition to Pacaso in Napa is the latest attempt by homeowners to prevent real estate companies from changing the way homes are occupied or owned in their neighborhood. Homeowners and local governments have been fighting the proliferation of short-term rentals through platforms like Airbnb for years,

and the high demand for vacation and primary residences during the pandemic only exacerbated the conflicts.

property

From aspiring residences to large commercial businesses.

Austin Allison, chief executive of Pacaso and a Napa resident, said the local inconvenience was undue outrage over the greater lack of affordable housing in California. The company’s 14 houses in the region, which the company markets to up to eight partial owners each, are a drop in the ocean, he said. “This real estate crisis is a big problem that is much bigger than Pacaso,” he said.

Napa Valley homeowners say their quiet residential cul-de-sacs are on the verge of becoming high-traffic party zones and no longer affordable for local families. Anti-Pacaso signs dot property boundaries. In several cities groups have organized against his presence: In Napa there are Communities Against Timeshares (Cats); Sonomas Together Opposing Pacaso (stop) is active in Sonoma; and in St. Helena, neighborhoods against Pacaso’s encroachment (no).

A delivery truck with a sign saying Pacaso in Napa; It says “No Timeshare” on the sidewalk.

Opponents can count early wins. On Ms. Dullea’s street in Napa earlier this month, Pacaso said it would no longer market any shares in the home it bought there. The company cited feedback from the community in its decision to sell the home, which it will sell to a single owner. To allay concerns about reducing its stock of relatively affordable housing, the company also agreed to only buy homes priced above $ 2 million. And to keep the peace, she has fitted the stereos in her homes with decibel limiters.

The Napa Valley resistance could become an obstacle to the Pacaso model, which is based on offering luxury apartments in traditional residential areas and away from typical vacation areas. The company has so far started in 20 US markets and plans to expand into Europe.

There are signs of Pacaso’s operations in several California wine-growing communities, including Napa.

Allison said the Napa pushback would likely affect the way the company buys homes in the future, but said it commits to its core idea of ​​buying homes in places like the Napa Valley, where second homes are already common will stay. “Luxury homes in luxury neighborhoods are great pacasos,” he said.

Pacaso sued the city of St. Helena, which informed the company that their homes were considered illegal timeshare rights under a city ordinance. Pacaso says its properties are technically not timeshare. A St. Helena attorney maintained the city’s position that Pacaso’s timeshare rights were against the law.

Napa Valley has a long history of conflict between the people who live there and tourists, and some longtime residents say their cities have struggled to strike a balance. In the 1980s, locals protested the construction of the Napa Valley Wine Train, a railroad project designed to carry tourists between wineries and resorts when they couldn’t stop it.

Pacaso has accused some locals of trespassing and intimidation. A Pacaso executive filed a complaint with the police after someone replied to an online listing with the message, “I’m going to burn down every home you buy in Napa,” a company spokesman said. But local residents involved in the protests against Pacaso say they are not trespassing or acting aggressively.

“I think people just have to relax and mind their own business,” said Will Maroun, a Pacaso customer in St. Helena who bought an eighth of a stake in a house that overlooks the backyard of the vineyards. Mr. Maroun was hosting an outdoor dinner for four at 7:00 p.m. one evening when a neighbor filed a noise complaint with the police, he said.

The police ordered him to turn off his music, but Mr. Maroun has continued to enjoy the pool ever since. “You just didn’t call the police.”

Nancy Gardner and Carl Sherrill said neighbors call in when a potential buyer arrives to tour a Pacaso home in Sonoma, California.

At Sonoma’s Old Winery Court, residents of an eight-house cul-de-sac say Pacaso is the big problem. They hope to repeat Mrs. Dullea and her neighbors’ victory in Napa. They are upset about the new house that a former neighbor built and then sold to Pacaso for $ 4 million this spring. Now they fear their close-knit community will be overrun by part-time workers who come and go in the house.

Every yard now has an Anti-Pacaso sign, and some cars parked on the street have it, locals say. When a potential buyer arrives to view the property, residents alert each other and then leave their homes to make their presence known, said Nancy Gardner and Carl Sherrill, retired homeowners who oppose Pacaso.

“It’s not personal,” said Mr. Sherrill. “You are maybe the nicest people in the world. But we get angry. Because we’re angry with Pacaso. “

Write to Will Parker at will.parker@wsj.com

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Celebrating 40 years in Taos Real Estate | Success Stories

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Louise Rose is just as individualistic in her attitude as she is as an independent Taos broker. This combination has ensured that it successfully brings clients together with the home, land or investment of their dreams.

Before Louise moved here, she was a stockbroker with a NYSE firm. She raised her sons Justin Bailey and Andrew Morrison, who graduated from the eclectic and distinguished Taos High School. “Children who grow up here are well prepared to live anywhere in the world.”

Louise is blessed with loyal clients who appreciate her upbeat approach, ability to listen, and insane sense of humor.

“Finding someone for the perfect home or ranch is the most personal transaction they can have,” said Louise. “It’s worth finding exactly what you’re hoping for. To get to know a customer, you have to listen carefully. Especially if you come from outside the city, it is important to understand exactly what attracted you to our unique and fascinating heart and soul of the Southwest. “

It’s an intuitive process that takes countless hours with people of many languages, cultures, and ethnicities. Often times the first home she shows them is the one they choose.

“Show them what they want; not what other customers desperately want or need to sell unless it’s the perfect thing. That saves everyone a lot of wear and tear. “

Louise has lived in Taos since 1973 and has seen many changes. She believes that no matter how many people move here, the spirit and essence of Taos never change.

In 1982 she carried out the first “Realtor Tours” together with another broker. Within two years, the brokers were ready for a multiple listing service (also known as MLS). Customers finally got the benefit of knowing that the home they were buying was the best choice for them and they no longer had to go to every real estate agent in town to find out what was for sale.

In 1985 she and two other people brought the first real estate franchises to Taos. Louise sold her successful ERA Taos Realtors in 1991. Three years later, she bought the Realty World, Taos franchise and then sold it to work independently.

With the market hot today, her boutique business is in demand through word of mouth and referral.

Louise said, “I personally rarely go to a doctor or lawyer for advertising because the most experienced and talented are as busy as they can get. When I do advertising, it is to the benefit of my salespeople, so that they get the attention. ”

Her longstanding clients include the Comptons: Mike, a successful commercial high quality contractor, and Jane, the Taos optician, whose first appointment is in early October.

Louise sold the Comptons her first Ranchos home, the first they looked at; and then 20 years later she sold it for them to the first buyers who looked at it.

The new doctor, his wife, and their poodle lived in a motel and needed a place to stay immediately.

Two weeks later, the Comptons were out with their two young daughters, four horses and three dogs.

The Comptons are currently selling Taos Creek Cabins, which can be seen in the pictures with Louise on this page.

Pat Allen, another longtime Taoseño and owner of 9 to 5 Ship & Print, said, “I remember the first house Louise showed me was the one I bought. It was the easiest purchase ever. She is still my broker after 30 years.

Louise’s pink, white, and black property signs are eye-catching. Each carries a reminder, “Please don’t disturb the owner,” a thoughtful touch that embodies both the agent’s signature personal style and savvy business acumen.

Louise has enjoyed a life of world travel and adventure and, when she’s not selling real estate, is working on a book. If you are a happy new customer, she will pamper you with stories and you will instantly connect with this powerhouse of energy. They know that you made the right choice in choosing your broker.

“The last decade has been the best of my life and I’ve been happier than ever,” she said. Share your enthusiasm and let Louise Rose help you find the home that will make you happier than ever.

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Tucker Carlson exposes real estate companies ‘wrecking’ America

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“Gavin Newsom is turning the state of California into a swamp,” said Fox News host Tucker Carlson on Tucker Carlson Tonight.

TUCKER CARLSON: In addition to all of the other problems California has, property prices are higher there than anywhere in the country. The average home price in the state of California is now over $ 800,000, more than double the national median. In the past few years, California leaders have passed dozens of laws that they claim will fix the problem because it really is a problem. Governor Jerry Brown, the last man, signed 15 housing laws in 2017 alone. Last year, Gavin Newsom signed 18 separate housing laws. Did it work? No not at all. They didn’t work for the people who live in California. But they weren’t intended for people who wanted to buy houses. Instead, these bills had one purpose: to destroy suburban houses and replace them with high-density apartments. Of course, real estate developers make more money when single-family houses are leveled and replaced by multi-family houses. And real estate developers happen to be the main donors to the California Democratic Party, and Gavin Newsom in particular.

Real estate development company Marcus was one of Newsom’s largest funders in the recent recall election. This week, after surviving the recall, Gavin Newsom tragically rewarded these real estate developers with the largest housing bill ever. Newsom has just signed a series of laws, SB9 and SB10, that will abolish the suburbs in the state of California. The state that invented the suburbs. These bills were approved by the California Building Industry Association, which, citing, “represents the interests of home builders and developers of residential and commercial projects. There will be some new commercial projects in the California suburbs.” As the New York Times put it, you quote, “SB9 essentially ends the single-family zone zones.” Property owners now have state approval to convert any single family home in the state of California into a 4 unit apartment complex. How does this improve someone’s life? It will not. It means demolishing houses to build rental units.

At the behest of his donors, Gavin Newsom is turning the state of California into a swamp. It’s not just happening in California, Oregon recently passed a nationwide ban on single-family home zoning. That’s crazy! Cities like Minneapolis and Sacramento have started allowing apartment buildings on single-family lots. Crowding problem anyone thinks? By the way, only the Chinese government seems to be doing everything possible to rule the real estate developers. “Housing should live and not for speculation,” said the Chinese president. Woo, I hate to quote the President of China but in this case he’s right, one of the largest and most indebted real estate companies in the world is collapsing and China has signaled that it will never be interested in a bailout again. In this country, real estate companies not only get bailouts, they can also write laws that destroy your neighborhood. And in many parts of America, they can tear down the neighboring house and turn it into a residential complex. Big!

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Real Estate News

Crow Holdings Announces Closing of Ninth U.S. Diversified Value-Add Real Estate Fund with Approximately $2.6 Billion of Investable Capital

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DALLAS – (BUSINESS WIRE) – Crow Holdings, a leading national real estate investment and development firm, today announced the definitive closing of Crow Holdings Realty Partners IX, LP (“Fund IX” or the “Fund”). Managed by Crow Holdings Capital, Crow Holdings’ investment management company, the fund invests in value-adding real estate investments in the United States, primarily in industrial and multi-family homes and specialty sector opportunities.

Fund IX was oversubscribed with approximately $ 2.3 billion in commitments, above its original ceiling of $ 2.0 billion, and received strong support from existing investors and significant participation from new investors, including global banks and Insurance companies, pension plans, family offices and high net worth individuals. The fund has also co-invested a total of $ 265 million in equity, resulting in total investable equity of approximately $ 2.6 billion for the strategy. Fund IX marks the company’s largest fundraiser to date and is a significant increase over the $ 1.3 billion pledges raised for the previous fund.

The fund focuses on diversified value-add investment and development opportunities in multiple property types in major US markets. Today these possibilities exist mainly in industrial and multi-family houses as well as in special sectors such as prefabricated houses, comfort and gas, self-storage and student dormitories. The fund was fully launched during the Covid-19 pandemic and began investing during this challenging time as well. To date, more than 63% of the fund’s capital has been invested in 62 investments, primarily in the high-growth regions of the Southwest, Southeast and Mountains of the United States

“We appreciate the trust our investment partners have in the continued ability of our team to deliver results to them,” said Michael Levy, CEO of Crow Holdings. “This successful degree shows recognition for our company’s long-standing track record, real estate expertise and, in particular, for our early recognition of the considerable tailwind behind the demand for logistics and e-commerce, the changing population demographics and changing housing preferences as an integral part of our differentiated investment strategy . ”

“With more than 63% of the capital employed in Fund IX, we are already achieving strong investment results, including the repatriation of capital at the beginning of the fund’s life cycle through rapid realizations. This achievement is recognition of the team who have worked hard during this unprecedented and challenging time to continue fulfilling our commitment to all partners, ”said Bob McClain, CEO of Crow Holdings Capital. “We believe that our pipeline – particularly in the industrial, multi-family and specialty sectors – will continue to offer attractive opportunities to grow results throughout the life of the fund.”

Hodes Weill Securities, LLC acted as placement agent for Fund IX.

About Crow Holdings

Crow Holdings is a leading national real estate investment and development company with 70 years of operations and $ 21 billion in assets under management. With a strong track record across property types and market cycles, Crow Holdings pursues unique investment opportunities through a range of strategies and risk-return profiles, creating value for its investors, partners and communities. Operating out of 17 offices in the United States, Crow Holdings has extensive industry reach with expertise in multi-family, industrial, office and specialty sectors and has developed or acquired more than 225 million square feet. Our core principles of partnership, collaboration and reconciliation of interests remain central to Crow Holdings today. More information is available at www.crowholdings.com.

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