October 4, 2022
  • October 4, 2022

Mayor Adler pledges to advise California real estate company Pacaso

By on August 11, 2022 0

Mayor Steve Adler has a new position on the government advisory board of a San Francisco-based real estate startup.

Launched in 2020 by Zillow executives, Pacaso allows individuals to purchase and own a second home through a limited liability company.

After winning the mayoral election in 2014, this is Adler’s last year in office. Prior to his mayoral role, Adler gained property experience by founding a prominent estate law firm representing property owners.

Now, Adler joins others like the mayor of Denver and a member of the Florida House of Representatives on Pacaso’s advisory board. Pacaso says the group will provide recommendations to senior management to help shape the company’s actions on housing policy, community engagement, growth and expansion, and other policy issues.

In a board announcement, Pacaso says one of the contributors to the housing crisis is the legacy model of second home ownership where homes in many communities sit unused for much of the year.

“In this context, it is more important than ever to invest in creative solutions,” Pacaso’s statement reads. “While no company can solve this complex set of problems alone, Pacaso offers a sustainable alternative that combines multiple families into one luxury home.”

Last March, Pacaso said it was the fastest U.S. company to achieve unicorn status after raising $75 million at a $1 billion valuation. With the new capital, the company made expansion plans like entering more markets and hiring a new CFO.

The company said it “modernizes the decades-old practice of timeshares” and is not a timeshare, although city officials in at least one city have classified it as such.

Pacaso operates by creating an eight-share LLC. Once someone has purchased shares, Pacaso oversees matters such as property planning and maintenance. After owning for a year, people can then sell their shares and potentially make a profit.

“Throughout my career as a founder and technology investor, I’ve seen tremendous growth and innovation among startups, but none compare to Pacaso,” the Pacaso co-founder said at the time. , Spencer Rascoff. “The opportunity ahead of Pacaso is huge and I’m excited to help the company realize its full potential.”

But not everyone shared the same enthusiasm for Pacaso.

NPR reported how the company plans to expand into North America and Europe, but has encountered resistance when establishing some of its first operations in the California wine country.

City officials in the city of St. Helena in Napa Valley said Pacaso could not operate there due to a local ordinance prohibiting timeshares. In response, Pacaso sued the city in federal court.

Neighbors also expressed their opposition and formed groups like Sonomans Together Opposing Pacaso.

Currently, Pacaso has no listings in Texas, although it does in other states like Hawaii, California, and Colorado.

Former Columbia, South Carolina mayor Steve Benjamin will chair the government advisory council. In a statement, he called Pacaso’s model “added value to communities across the United States.”

“Pacaso is consolidating demand for second homes into fewer homes, reducing pressure on housing inventory for first-time buyers and middle-class families,” Benjamin said. “It’s the thoughtful, sustainable approach to housing we need right now, and I’m proud to help advise the company as it strives to bring this model to more communities.”

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