Charlie Dunlap

Charlie Dunlap
Charlie Dunlap, a former partner of Trammell Crow, is the Founder and Chairman of RRA Companies. His more than 40 years of experience in the industry has involved the development, construction, rehabilitation, and management of assets valued at more than $2 billion. He has developed, built, or rehabilitated more than 10,000 housing units, managed over 11,000 apartment units, and managed or developed industrial, office, and retail properties in excess of half a million square feet. Mr. Dunlap has been named the Arizona Certified Property Manager of the Year and was presented with the Phi Epsilon Professional Award from Arizona State University.

Recent Posts

Counting the Costs When Purchasing a 25-Year or Older Building - Part 3

Posted by Charlie Dunlap on Mar 11, 2019 9:51:50 AM

In Part 1 and Part 2 of this series, we discussed the definitions as well as what factors decrease the useful and physical life of a commercial building.  In this article, we examine a specific property type of commercial real estate that has important deviations from a “typical” older commercial property: residential rental property.  We will explore why residential rental buildings (primarily apartments) have shorter economic useful life expectancies and what the main limiting factors in extending a property’s economic useful life is.

Economic Life of an Apartment is 27.5 Years

When considering the purchase of an older residential rental property (such as an apartment) it is important to understand that the useful economic life of an apartment building is significantly shorter than that of a commercial building.

As a reminder, the IRS allows 27.5 years over which you can depreciate residential rental buildings and 39 years for retail and other commercial structures.  This shorter depreciation schedule was established to encourage construction of new rental housing, however, it also reflects the fact that residential rental structures have a significantly shorter useful lifespan than commercial structures.  The tax code presumes that the useful life of a residential rental building is only 70% of the useful life expectancy of a commercial building.

What factors contribute to a shorter useful life for residential rental housing properties?

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Topics: Sponsors

Counting the Costs When Purchasing a 25-Year or Older Building - Part 2

Posted by Charlie Dunlap on Feb 22, 2019 12:38:01 PM

In Part 1 of this series, we discussed what the useful and physical life of a commercial building is, as well as the five stages of a building's life.  In this article, we will explore some of the factors that can decrease the physical and useful life of a commercial building. We will also touch on building obsolescence, which can be a major threat to older buildings.

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Topics: Sponsors

Counting the Costs When Purchasing a 25-Year or Older Building - Part 1

Posted by Charlie Dunlap on Feb 15, 2019 10:10:12 AM

*This is the first in a three-part series on considerations when purchasing older buildings.

Purchasing a building that is 25-years-old or older requires a significant historical investigation and analysis to determine the risks associated with the building.  These articles are intended to aid any investor attempting to answer the following questions:

  • How do you identify the risks that come with the ownership of an older building?
  • What factors can hurt the future net cash flow of an older building?
  • How much more economic life is left in the building
  • How many years are left that will produce reliable income from the ownership of the building?
  • How do you determine the current value of an asset with a shorter economic life?

A building’s “useful life” depends on its previous ownership, intended use, and prior maintenance regime.

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Topics: Sponsors

8 Reasons for CRE Receivers to be Appointed...Even if No Monetary Default Has Occurred

Posted by Charlie Dunlap on Oct 3, 2018 9:25:13 AM

Events such as a downturn in the economy, a dispute among partners, or cash flow problems caused by new market competition, can affect the viability of an income property loan.  These real estate loans may need a “workout” by the lender so that the borrower doesn’t lose its property.  During the loan workout phase, it is critical that the borrower keep in full, open communication with the lender about their cash flow situation and plans to avoid a monetary default.  When a lender is dealing with a responsible, honest borrower, the lender is more likely to work with the borrower to help them get through a rough period. 

With that being said, even if no actual monetary default has occurred, there are a number of events that could precipitate the need for the appointment of an independent receiver.  Some examples of these events are:

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Topics: Receivership, Litigation

Retail: Apocalypse Now?

Posted by Charlie Dunlap on Jun 18, 2018 2:25:02 PM

We’ve all heard it.  Brick-and-mortar retail as we all knew it is in a death spiral – and the prognosis is grim.  Retail owners, tenants, and investors should find other ways to make a living.  There is no life after death for this product type.  But is this really the case?  Are we sitting front row, witnessing the extinction of brick-and-mortar retail?  The answer, as we discuss in our latest white paper, Understanding & Embracing the Evolution of American Retailis slightly more complicated than “yes” or “no”.

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Topics: Retail