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By AZ Advisory Team, January 15, 2010 2:24 pm

Some huge deals have been done in recent weeks as highlighted by the Financial Times. Either previous commercial real estate crisis fears were overdone or these new investors are about to get creamed.  Success will probably all come down to the particular property in question.

A public sign of such activity came on Friday when Colony Capital won a Federal Deposit Insurance Corporation auction for $1bn of commercial property loans formerly held by failed banks in states hit hard by the real estate downturn. Earlier last week, SL Green, a real estate investment trust, said it had refinanced a Times Square tower it owns with Canada’s Caisse de Dépôt et Placement du Québec in a $475m deal ed by Bank of China. In December, JPMorgan Chase raised $625m for Inland Western, a real estate investment trust, of which $500m was in the form of securities backed by commercial real estate assets. The deal was particularly notable because it was done without help from the term asset-backed securities loan facility, or Talf, which was set up to provide financing for investors in such deals.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 14, 2010 4:44 pm

Alex Zylberglait of Marcus & Millichap Real Estate Investment Services is pleased to present 14705 NW 25 Ct, consisting of approximately 49,000 rentable square feet, located in Opa-Locka, FL.

Construction of this concrete block industrial facility was completed in 1966 on a 2.02 acre site. It is a Class B property in its market. There is approximately 9,000 square feet of office space with central A/C. There is also mezzanine storage space in the building. The warehouse has three dock-level doors and four grade-level doors. The clear height is 22 feet. The property is currently vacant. The building was recently renovated in 2004, renovations included interior office build-out and the roof.

Opa-Locka is a primarily industrial community located in northern Miami-Dade County. The property’s neighborhood consists of a harmonious mixture of industrial and commercial development. The neighborhood is well located with respect to transportation arteries and employment centers. It is strategically near the Golden Glades Interchange. The interchange connects the Palmetto Expressway, Interstate 95, and the Florida Turnpike. Downtown Miami and the Port of Miami are easily accessible using I-95. Industrial areas in Hialeah and Doral are accessible using the Palmetto. The Miami International Airport is accessible using both I-95 or the Palmetto. Located nearby the property is the Opa-Locka Airport which supports the business aviation community and light cargo traffic to the Caribbean.

Property Address:
14705 NW 25th Ct
Opa-Locka, FL 33054

Property Type:
Industrial Warehouse

Parcel Size: 2.02 AC
Rentable Square Feet: 48,846
Floor Area Ratio (FAR): 0.56 FAR
Zoning: I-2 Industrial – Heavy Manufacturing District
Parking: 22 Spaces
Landscaping: Trees and bushes
Street Frontage: NW 147th ST
Cross Street: NW 25th Ct

Contact Alex Zylberglait for his expert investment advisory services on this distressed asset industrial warehouse in Opa-Locka.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 13, 2010 12:33 pm

Looking at a report by our commercial real estate research partner, Real Capital Analytics — it says that “Foreign interest in buying US property is high and will grow in 2010. Asian investors will provide some of the newest capital in the market, but German funds and high net worth buyers from around the globe will also be active. The increased capital from Asia that has just started to emerge will particularly benefit the West Coast whereas more traditional European investors prefer the East Coast. Potential changes to the Foreign Investment in Real Property Tax Act (FIRPTA) could remove some barriers that have discouraged foreign investment in the US. Over the past few years, just 10% of US property acquisitions have involved cross-border investors, well below the global average of 28%. A repeal of FIRPTA is unlikely, but one likely change could facilitate greater foreign investment in US REITs, yet another reason why the REIT sector looks so promising for 2010.”

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 12, 2010 10:43 am

Alex Zylberglait of Marcus & Millichap is proud to offer Square One Center, a one-story Class B medical office building with approximately 17,600 square feet of rentable space. The property was built in 1999 of concrete block. It is located right off West Dixie Highway next to Aventura, Florida. The building has ample on-site parking with a 6 to 1,000-square foot parking ratio.

The property is 100 percent occupied and has a majority of medical tenants. It is located proximate to Aventura Hospital, which recently underwent a $130 million expansion. There is ease of management for an investor with all NNN leases.

Aventura is an affluent suburban submarket in northeastern Miami-Dade County, a mile from the beach. The city is located centrally between Ft. Lauderdale and Miami. Aventura has been a rapidly growing area for several decades as people are drawn to the region’s beaches and excellent year-round climate. Minutes from the property are Highway I-95, Biscayne Boulevard and Aventura Mall.

Property Type: Office
Subtype: Medical Office

Property Name:
Square One Center

Property Address:
20880 West Dixie Highway
Miami, FL 33180

Price: $4,100,000
Size: 17,600 Rentable SqFt

Contact Alex Zylberglait for his expert investment advisory services on this office property Square One Center.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 11, 2010 4:02 pm

The troubled US commercial real estate sector has been attracting a new wave of capital from sources including US private equity firms, foreign banks and foreign investors. Although the current situation is good for opportunistic investors,  their bottom-feeding strategies can be disrupted by rising interest rates.

Nonetheless, the growing interest from investors and the deals coming out of it will bring liquidity to the market which would help the commercial real estate sector, the affected banks and the US economic recovery.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 8, 2010 10:11 pm

Real Capital Analytics predicts this 2010 could be the year when newcomers come to invest in commercial real estate.

Many more were out raising capital or just waiting for the right opportunity during 2009 and that the growing number of bidders being reported by brokers recently is evidence that many have raised the capital and may now be ready to invest,  according to Real Capital Analytics.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 7, 2010 9:54 pm

In a Dow Jones news report, Morgan Stanley through its team of  six analysts say that the nation’s commercial real estate troubles is a manageable problem. They predicted that commercial real estate values will remain stable this year and that the U.S. is headed for a “multi-staged” and “gradual” recovery. They also said that CRE as a whole is “only a moderate headwind for the economy,” and that property values bottomed in mid-2009.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 6, 2010 8:29 am

1031 Exchange Rules and Timelines

There are 2 timelines that anybody going for a 1031 property exchange or (TIC) should abide by and know.

• The Identification Period:

This is the crucial period during which the party selling a property must identify other replacement properties that he proposes or wishes to buy. It is not uncommon to select more than one property. This period is scheduled as exactly 45 days from the day of selling the relinquished property. This 45 days timeline must be followed under any and all circumstances and is not extendable in any way, even if the 45th day falls on a Saturday, Sunday or legal US holiday.

• The Exchange Period:

This is the period within which a person who has sold the relinquished property must receive the replacement property. It is referred to as the Exchange Period under 1031 exchange (IRS) rule. This period ends at exactly 180 days after the date on which the person transfers the property relinquished or the due date for the person’s tax return for that taxable year in which the transfer of the relinquished property has occurred, whichever situation is earlier. Now according to the 1031 exchange (IRS) rule, the 180 day timeline has to be adhered to under all circumstances and is not extendable in any situation, even if the 180th day falls on a Saturday, Sunday or legal (US) holiday.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 5, 2010 4:27 pm

We think that troubles in commercial real estate will not be that bad to bring down the economy.

Other analysts said last year that pending commercial-property bankruptcies could push the country back into recession – wreaking damage on the financial system equivalent to the subprime residential mortgage losses. We disagree to this because the  value of outstanding commercial mortgages is only a fraction of the value of outstanding residential mortgages.

Nonetheless, more losses will come over the next couple of months or years for commercial property owners and their lenders. The amount of loss and regained investments would depend on how owners, investors and lenders hold or sell their commercial properties and then make strategic acquisitions that is more aligned to their objectives, core and operational competencies as well as a good build-up timing for the coming upturn.

Commercial real estate’s decline in value is already slowing this year and we should expect it to bottom and turn around by the half of 2010.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 4, 2010 1:38 pm

Based on our survey, it’s clear that investors want to pursue new acquisitions.  Seventy-two percent (72%) of respondents say that they are currently reserving and amassing capital for buying opportunities. The majority of investors expect to execute more transactions. More than one in four respondents (28%) say they have already started adding to their portfolios, while an additional 41% say they plan to begin acquiring property over the next six months. Although 2009 was an unusually slow year for investment sales, investors appear to be more optimistic that investment sales will pick up in 2010. Property sales year-to-date through September totaled $12.4 billion, which is a fraction of the $110.6 billion notched during the same period in 2007, according to Real Capital Analytics, a New York-based research firm that tracks office, industrial, retail, apartment and hotel transactions above $5 million.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.