Daily Business Report: Wednesday, Nov. 3, 2021
Study: Landlords in San Diego County lost
$2.4 billion in unpaid rent since start of pandemic
San Diego County housing providers lost a significant amount of rent since the start of the pandemic in March 2020 – a total of $2.4 billion, according to a study commissioned by the Southern California Rental Housing Association (SCRHA) looking at the current state of rental housing in San Diego County.
Half of the landlords surveyed were impacted by missed rental payments. Across units with sizable rental payment lapses, an average of five months of rent remains due, totaling approximately $5,000 per unit.
“We’re not talking about big real estate trusts with reserves to manage through this kind of crisis,” said Alan Pentico, CEO at SCRHA. “Nearly 70 percent of our members are mom and pop operators who own 15 units or less and still need to make mortgage and tax payments on their properties, even if their residents are unable to pay rent.”
The study, conducted in August 2021 by the Fermanian Business and Economic Institute at Point Loma Nazarene University found property managers made significant efforts to ease tenant obligations and keep renters housed including:
• 53 percent of landlords negotiated temporarily reduced rental rates
• 47 percent of landlords agreed to waive late fees and penalties
• 32 percent offered a payment plan
• 15 percent removed the penalty for early lease termination
• 11 percent offered rent forgiveness
After rental assistance programs were introduced, many landlords also tried to work with tenants to fill out the necessary paperwork.
PHOTO: Rental housing in Downtown San Diego.
San Diego companies raise $2.32 billion in
venture capital funding in third quarter 2021
San Diego companies raised $2.32 billion in venture capital (VC) funding in the third quarter of 2021, the third highest quarter of funding raised on record slightly above $2.0 billion in the second quarter 2021, according to a CBRE report.
Life sciences companies brought in $1.24 billion, the fourth highest quarter of life science funding raised, slightly below last quarter’s raise of $1.54 billion. Biotech/pharma raised the majority with $998.9 million, generated primarily by two deals of $100 million or greater.
Tech companies raised $1.02 billion in the quarter, the highest funding raised on record, significantly higher than last quarter’s $359.8 million. Tech venture capital funding in 2021 YTD is already above what was raised in 2020, and well above 2019. This is in line with a continuing upward trend of interest and investment in the tech sector starting in 2018.
Tech (Hardware/Svcs) companies raised most of the tech funding with $583.2 million. Tech activity in the third quarter included 16 deals of $10 million or greater, five of which were over $50 million.
For the full report, click here
Citizens coalition files transportation
improvement initiative for November 2022 ballot
A coalition of San Diego unions, businesses and environmental groups on Tuesday formally launched a citizens’ initiative to improve San Diego County transportation. Planned for the November 2022 election, the initiative is focused on reducing traffic, fixing local roads, expanding transit, and repairing and upgrading deteriorating bridges and rail lines.
If approved by voters, the measure would guarantee dedicated funding for zero emission transit infrastructure and transportation improvements throughout San Diego County, including repairing local roads in every community, rerouting rail lines on bluffs in danger of collapse, expanding wildfire evacuation routes, adding express trolley and bus lines, and making transit fares affordable for seniors, students and the disabled.
The initiative will require approximately 116,000 valid signatures to qualify for the November 2022 ballot.
Marine Corps veteran Oscar Gomez joins
Ronald McDonald House Charities as COO
Decorated Marine Corps veteran Oscar Gomez is bringing years of nonprofit operations management experience to Ronald McDonald House Charities of San Diego as the organization’s new chief operations officer.
Having spent over a decade managing operations and comprehensive training programs for Marines and sailors around the world and across various specialties in the United States Marine Corps, Gomez was driven to work in the public service sector after leaving active duty.
He earned dual master’s degrees in social work and public administration from the University of Southern California in pursuit of his passion to provide necessary resources to communities in need.
In his most recent role, Gomez was the deputy director of Head Start, Early Head Start and Early Head Start Childcare partnerships at the Metropolitan Area Advisory Committee on Anti-Poverty (MAAC).
Charged with providing administrative oversight to the 369 staff members working at 21 centers, 21 family childcare homes, and six partner locations that served 1,903 children and their families in San Diego County, he directed daily operations for key service teams and managed a $33.5 million annual budget.
General Atomics awarded contract to develop
unmanned Off-Board Sensing Station aircraft
General Atomics Aeronautical Systems Inc. (GA-ASI) received a $17.8 million award from the Air Force Research Laboratory (AFRL) to design and develop an unmanned Off-Board Sensing Station aircraft. AFRL is developing an open architecture concept Autonomous Collaborative Platform (ACP) to achieve its goals of rapid time-to-market and low acquisition cost, while extending and enhancing the sensing volume of manned platforms.
“We’re excited to continue working on this project with AFRL,” said Chris Seat, senior vice president of Special Programs for GA-ASI. “Our experience in developing and delivering the most cost-effective and forward-looking UAS solutions puts GA-ASI in a great position to deliver the right ACP to meet our customer’s requirements.”
The award covers the next 12 months as the base effort, and if the option is exercised, GA-ASI will spend the following 15 months manufacturing and flight demonstrating the aircraft with the award potentially growing to a total of $49 million.
State Law Group promotes Bryan Blanco to junior partner,
appoints Marco Sarkovich as lead transactional attorney
Slate Law Group in San Diego has appointed former lead transactional attorney Bryan Blanco to junior partner, and former associate attorney Marco Sarkovich to lead transactional attorney of finance and tax law. The firm was launched in early 2020 by Kelly DuFord Williams.
Bryan Blanco began working with founder Williams in 2016. Since then, he has been responsible for the integration of intellectual property services into the firm’s portfolio and has run the transactional practice for the last three years. Blanco regularly handled a caseload of over 50 cases during the COVID-19 pandemic and has brought in more than $500,000 a year since he was hired. In his new role as junior partner, Blanco now assumes a financial and personnel management role with Slate Law Group while continuing to run the intellectual property department.
Marco Sarkovich also joined the firm as an intern in 2018 when Williams led DuFord Law before being promoted to a law clerk and then an associate attorney position. Sarkovich was recently named lead transactional attorney, overseeing finance and tax law after passing the Uniform Bar Examination. Sarkovich has contributed to Slate Law Group’s growth through new clientele and service offerings, including personal injury law services.
Northrop Grumman announces new
$500 million share repurchase agreement
Northrop Grumman Corporation has entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC to repurchase $500 million of Northrop Grumman’s common stock. The ASR is in addition to previously planned repurchases, including open market share repurchases, and, as a result, the company is now targeting greater than $3.5 billion of repurchases in 2021.
Under the ASR agreement, Northrop Grumman expects to receive initial deliveries of approximately 1.2 million shares on Nov. 3, representing approximately 85 percent of the expected share repurchases under the ASR agreement, based on the company’s closing price of $354.85 on Nov. 1, 2021.
Open enrollment begins for Covered California
Open enrollment began for Covered California, the state’s health insurance marketplace that currently serves 1.6 million residents. Californians can sign up for coverage through Jan. 31, 2022 — and 85 percent of the roughly 1.1 million uninsured residents eligible for financial assistance could get no-cost coverage thanks to expanded federal aid, officials said.
Probation Department receives grant to
supervise high-risk, repeat DUI offenders
The San Diego County Probation Department received a $335,000 grant from the California Office of Traffic Safety to provide more intensive monitoring for people convicted of driving under the influence.
The grant will help fund regular and frequent check-ins with high-risk, felony and repeat DUI offenders. Probation officers monitor the person’s compliance with their treatment plan, DUI program participation, court orders, and their substance abuse by conducting frequent alcohol and drug testing, and home visits during non-traditional and evening hours, weekends, and holidays.
The probation grant will also pay for operations targeting probation violations, alcohol testing, officer training in Standard Field Sobriety Testing and collaborating with courts and prosecutors to establish probation orders.
Grants available for Oceanside small
businesses impacted by COVID-19
The City of Oceanside is partnering with the Oceanside Chamber of Commerce and MainStreet Oceanside to manage a grant program that will award grants ranging from $1,000 to $7,500 to small businesses impacted by COVID-19.
Grant amounts will be determined based on an objective system that measures the financial impact of COVID-19 on the business. The application period is now open and will close on Nov. 19, 2021. Grant awards are anticipated to be distributed in December 2021.
Mission Fed Credit Union opens
its newest branch in Oceanside
Mission Fed Credit Union has officially opened its 33rd branch site, located at 2267 S. El Camino Real, Suite A, Oceanside, 92054.
In celebration of the new branch, and true to Mission Fed’s commitment to the community, Mission Fed leadership presented YMCA Youth & Family Services (YFS) with a $1,000 donation. YMCA YFS is a branch of the YMCA of San Diego County devoted to social services.
The unique programming offered by YFS has been addressing San Diego’s most pressing social issues since 1970. Specific to the Oceanside community, they help homeless youth/young people with transitional housing, skill development, behavioral and mental health services, and more.
“At a time in our industry where we’re seeing banks and credit unions close branch doors, we’re fortunate to open a new branch for our members – and in a location where we’re needed most,” said Debra Schwartz, president & CEO of Mission Fed. “We’re proud to serve our North County members, and happily greeting new members as well.”
S.D. City Attorney’s Office gets state grant
to prosecute drugged and drunken drivers
The San Diego City Attorney’s Office has been awarded a grant of $244,008 from the California Office of Traffic Safety (OTS) to fund the special team of prosecutors that works on both drug-impaired and drug/alcohol-impaired driving cases.
The purpose of the program is to prevent impaired driving and reduce alcohol and drug-impaired traffic deaths and injuries. So far this year there have been 35 DUI-related deaths in San Diego County. This year’s toll has already surpassed the county’s worst year, 2017, during which 25 people were killed in DUI crashes.
