A Broken Arm, Dorian’s 3rd Birthday Party, Tax Day, and Thoughts on Commercial Leases in Columbus Versus Newport Beach
We made it through tax day at the firm, which is usually the busiest time of the year (followed only by the weeks around Christmas where there are some last-minute rushes to handle things prior to the close of the calendar year). I’m now gearing up for my favorite activity, which is a complete top-to-bottom review of each portfolio under our management, cycling our way through individual and family holdings to determine if there is anything that has changed and if there are any opportunities we think are sufficient to justify rebalancing existing holdings. This is a more intensive than the usual rebalancing or event-specific reviews triggered by, say, a large cash deposit.
Getting through that aforementioned tax deadline was slightly challenging this year because we had a family emergency when Dorian built a tower of blocks on top of a Pottery Barn stuffed canoe and, in his own words, “high dived” off it onto the floor, breaking his left forearm in two places. This meant spending time in the flagship Nationwide Children’s Hospital in downtown Columbus as he had his arm set into a cast. Strangely, we, as his parents, seemed much more concerned and distraught by it than he was as it took no time at all for him to adapt and recover. On our way out of the Emergency Room, he swung around with his newly-secured arm and accidentally socked me in the nose, causing me to start bleeding and the nurses to come to my aid. It was a comedy of errors that we can now laugh about but at the time it was stressful. He’s already telling us he can’t wait for the cast to come off so he can “climb again”.
Speaking of Dorian in particular, for his 3rd birthday, we did several Arts & Craft projects and had a small family-only party. The whole thing was themed yellow, since that is his favorite color. We got him a double chocolate chip bundt cake with vanilla icing and Grandpa made him a chocolate and vanilla cake covered in homemade yellow buttercream frosting to match the yellow plates and yellow napkins. The rest of the day was spent playing with toys – the robot claw and realistic tool set in a tool box are especially popular – and watching Disney+. Grandma and Grandpa got him some cool new clothes which we’re excited about because he seems to be going through another growth spurt. Several of his shirts were – you guessed it – yellow. Later, after everyone had left and Graham had gone to bed, he, Aaron, and I were in the playroom where he charged me only three pretend dollars for a very large sandwich and iced tea from his new pretend restaurant setup. I felt it was a great bargain and Aaron told him it deserved a 5-star review on Yelp.
Graham is definitely excited for his birthday later this year. Things really are different as the kids approach (and now, for Dorian, exceed) three years old. They have so many traits that make them distinctly themselves; musical preferences, food preferences, favorite color, even opinions on what cartoon they want to watch in the morning before breakfast.
We’ve also been making a point to take time as a family almost every night to either walk several miles or, on certain days, ride our bikes together. Aaron got one of those Burley Bee two-seater bike trailers so we can still get out and enjoy some exercise while the kids ride behind us, usually telling us to “Go faster like the roadrunner!” These outings help us connect as a family despite the long hours we work and, in addition, have given us a deep appreciation for the environment around here. I’ve been impressed with many of the flowering trees planted around New Albany, many right off the walking trails. They are filled with bright red cardinals, blue jays, mourning doves, robins, and hawks. There also seem to be a lot of deer, rabbits, and squirrels around, too.
Walking through some of the neighborhoods, especially those modeled after places like Colonial Williamsburg, is so cool as the sun starts to set. It’s insane how well designed some of these houses are despite not taking up a large footprint; many are between 3,000 and 4,000 square feet inclusive of the basement but appear much smaller. I have a feeling that Aaron and I are going to end up adding to our collection of properties, maybe buying individual houses and putting them in trust for each of our kids so they at least have shelter guaranteed for the rest of their lives no matter what else happens. If America designed its communities more like New Albany, so many problems could be solved.
In other news, the search for commercial office space that I mentioned recently has hit full stride. We had decided to negotiate and sign a lease at one of the Water’s Edge buildings in New Albany with the hope of scheduling the remaining shipment of property, plant, and equipment sooner rather than later. Dis aliter visum. Despite the office suite off the main lobby still showing as available in marketing literature, the landlord was not interested in entertaining any proposals because management intends to expand the space for an existing tenant and are in the final stages of negotiations.
This is a disappointment because I would strongly prefer the local income tax to go to New Albany since we are determined to build our life here. When Dorian broke his arm, the paramedics from the Fire Department were at our door probably within 120 seconds of us calling 911. It was one of the most impressive things I’ve ever witnessed. I want to support that and do our part to make sure their coffers are always filled. Yet, the lack of suitable commercial space for a firm like ours might force our hand; at least until we build something. As such, a few days ago, Aaron and I rescheduled our day so that we were able to pack multiple tours in across four, five, or six buildings in the Easton Town Center area of Columbus. It’s too early to tell if anything will come of it, mostly because the area isn’t, quite, geared towards higher end professional service firms like you find in Newport Beach. (The inventory in Columbus proper has given me such an appreciation of The Irvine Company. While Columbus is far better in terms of price-to-value for for the wealthy when it comes to residential real estate, Donald Bren’s empire made it so easy for white-shoe firms and the brokers with whom they were working to find a space, negotiate a lease, and get deals closed quickly and efficiently. I wish he owned a few Class A commercial buildings in the area. He deserves his success.)
Reader Comments (8)
Comments are presented chronologically, with replies indented beneath the comments to which they respond.
Robert
April 22, 2024
With two boys, you will live through it again. Part of the joy of raising kids. When they get a bit older take them to Colonial Williamsburg. So much to do in the summer but the real treat is Grand Illumination around Xmas time. Especially now that you live in a mini Williamsburg. Good choice btw. Federal and Georgian style is pleasing to the eye. So glad you are back to posting again.
SFrentier
April 23, 2024
Hi Joshua, glad to see you writing again and interesting in reading your future post on why you guys decided to move out of Newport Beach and CA in general. I’m sure it will (should be;) a far ranging missive on everything from family, lifestyle, aging, real estate, local politics, etc.
You mentioned how Covid proved to be a life marker for many people, and I agree. It’s amazing how the work from home phenomena really took off due to Covid. And also what’s turning out to be (what I call) a post globalist world whereby prime superstar cities are no longer so exceptional, and other mid level cities are getting investments and attention from creative and entrepreneurial people moving to them.
This has definitely hit my home city of San Francisco pretty hard, but we are staying put. Matter of fact, the city is quieter now and not as manic as it was 2014-2019. And it’s quietly getting cleaned up and the nice residential neighborhoods are as activated and energetic as always. We recently had elections and the moderates have swooped in. The supreme court is about to decide on cities abilities to control homeless encampments on their streets as we speak. We’ll also have a mayor election in November too. So many positive changes are coming our way.
But the effects of Covid did influence our real estate portfolio, and we made the strategic decision to sell off about 60% of our portfolio that was in a neighborhood that peaked in value due to Covid. We sold top of market in late 2021 and early 2022 (also splitting our massive capital gains into two tax years:) With the proceeds we paid off all loans on the several prime condo rentals we decided to keep in a pretty high end neighborhood in the city. We also have no debt on our primary, so we can live well with less rentals and less headaches and less risks. And as a bonus we had enough money left over to get the second home that we have wanted for several years in our native homeland. We now spend several months a year abroad which greatly enriches our lives. Keep in mind that we just turned 60, so I’m glad that I pushed everything forward back in 2021 to get to the end game scenario. (I always tell people that in retrospect I’m super happy with this move, but thought I’d be doing it at age 70 and not 57!) Covid and it’s effects on real estate heavily influenced that decision.
I’ll be looking forward to your post on your decision to move, and what factors influenced it.
Cheers!
Joshua Kennon
May 3, 2024
Replying to SFrentier
I am so happy to hear you are doing well! It made my night! I'm also thrilled to hear about the wise financial decisions you made. De-risking can be profoundly wise and it certainly sounds like it's been the right move based on what you've shared in the past. Ah ... I'm just so happy for you!!! Congratulations!
Adam
April 24, 2024
I love checking in here and seeing I’ve missed more than one post. Thank you for that simple yet undeserved joy. Take care!
Joshua Kennon
May 3, 2024
It's been really interesting the difference in my psychology. Aaron and I have talked about it quite a few times. The other day, we walked out of a grocery store with the boys each in a cart, the parking lot was fairly empty, it was a bit warm, the sky was that magnificent Midwestern canvas I've written about so many times that nowhere else in the world seems to get, and we started laughing asking, is it that we grew up here? Is it true you really do have certain attachments to the places of your youth? He pointed out we always loved it, though, so there are just certain things about it. Like ... the abundance of water. Flowers. Trees. Everything is green.
It's so much calmer here. I feel like I can hear myself think.
Don't get me wrong. California is jaw-droppingly beautiful. I loved it. But I suddenly feel, in a lot of ways, like I am being transported back to around 2015-2017 and the past several years have been a dream of some kind. I think it was taking the big Missouri furniture out of storage and rebuilding a lot of our life, only on a larger scale, when we left. Suddenly I'm sleeping in the same bed I was for all those years in Missouri, again. I'm grabbing things off the same bookcases. I'm even wearing some of the same colognes because the colder weather and higher humidity means they carry differently than they do out west so there is some memory association there.
Whatever it is, I find myself taking my coffee breaks now and just writing, again, like the old days. Order is returning everywhere. It's all getting solved, cleaned up, simplified, streamlined ... I just miss the restaurants in California. My goodness, what I wouldn't give for a Great Maple french toast here.
MadeItSquare
May 3, 2024
Replying to Joshua Kennon
That feeling that things are back to how they should permeates your last batch of writings. I love having you back.
So happy for you, guys.
SFrentier
May 9, 2024
❤️
Wali
May 19, 2024
What are your thoughts on Bitcoin?