Need Help On Research Project in Bellingham, Washington
Folks:

I am doing a research project on the closure and future of the Leopold Hotel (retirement community) here in Bellingham, Washington. This is at the request of one of the tenants who is being kicked out. I have no interest in doing any investments; I just want to find out what is going on out of personal curiousity and to help my friend.

The owners abruptly announced closure two week prior to Christmas 2018; giving tenants until March 31 to find new homes. What was very galling ans suspicious was that some of the tenants have paid their deposits and moved in as recently as two weeks prior the abrupt announcement. Naturally, this has cause anger and confusion in the community.

Moreover, the owners have so far refused to say what will be done with the building.

I have already proceeded to do as much of the database research as I could (using the Bellingham, Whatcom County, and Washington Secretary of State records in order to try to figger out the transaction records of the building and I think I may have gone over my head in as far a trying to come up with a conclusion as to what would be viable for the property.

Here is a link to my research so far  (pdf file). This has my finding, guesses (in green) and my questions (in red).  [www.allyn.com/leopold.pdf](https://www.allyn.com/leopold.pdf) I have been told that the county's assessed value of a property is generally about 1/2 of the resale value. If this is so, I still see the building as upside down, but this is where I need  help.

Can someone please take a look at my notes and tell me if I really f\*\*ked up in my findings or conclusions.

Thank you

Mark Allyn
[{"id": "efe47kv", "text": "Investing this much time to research a commercial real estate transaction and then writing up your analysis and publishing to the world wide web.  \nWe're reaching new levels of autism here  \n", "replies": [{"id": "efe98km", "text": "I am completely lost on your thought. What does this have to do with autism? I am merely trying to reach out for help so that I can help my friend.", "replies": [], "depth": 2}], "depth": 1}, {"id": "efef65g", "text": "The property was bought by a company called Oakland LLC for 9.5 million dollars. \n\nOk, this can get a little complicated. State Street is the company that sold it to Oakland LLC, and there is a lot of language in there that if a sale were to occur, that State Street would be paid. \n\nOakland LLC is probably just a holding company, that will hold the property until its eventual sale, in which case State Street will then be paid. \n\nI do not think there are plans to redevelop it or anything major. It is a historic building so there are limited things that can be done. \n\nThis property is in a qualified opportunity zone, so it will probably eventually be sold to a qualified opportunity zone fund, which will then add about 3 million dollars to improve it and then lease it up at market rates. The property will then be probably be sold in 2026, at which point the original investors of the fund can avoid payment of capital gains. \n\nThat is my guess. Take a look at the grand deed if you can, it will tell you what is going on. ", "replies": [{"id": "efeipw1", "text": "Thanks for the explanation. I have a question; what is a qualified opportunity zone? That gets me curious because the location (downtown Bellingham) is by no means blighted (unlike a place like Detroit, Michigan). I thought that opportunity zones are meant to provide a means of recovery for places that are in economic distress such as Detroit or Flynt, Michigan, or am I complete wrong?", "replies": [], "depth": 2}], "depth": 1}, {"id": "efemwj9", "text": "Opportunity zones have below median income, but they are often not in terrible areas. The two headquarters that amazon is opening are both in opportunity zones. ", "replies": [{"id": "eff4rdb", "text": "Now that makes sense. if they are including the incomes of the tenants they have just kicked out, then it would qualify. Now, with the tenants gone, I will have to take another look at who else is left in that neighborhood.", "replies": [], "depth": 2}], "depth": 1}]