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By AZ Advisory Team, February 27, 2010 9:00 am

The generation of Americans now between 44 and 62 years old, 76 million of them, collectively known as the baby boomers, make up about 30% of the U.S. population according to the U.S. Census Bureau. They helped shaped America into what it is now. The economic boom of the 1990s, when these baby boomers were 26 to 44 years old and when most were producing income for themselves, created an unprecedented amount of personal wealth in America—currently estimated at more than $33 trillion.

With this, we are now at the forefront of what is expected to be the largest transfer of wealth in American history.  This huge transfer of wealth, estimated to be $40.6 trillion in a 55-year period according to Paul G. Schervish and John J. Havens in a Boston College research, will be a mix of waves of retirements and inheritances spanning three generations surrounding the largest and richest generation in America, the baby boomers.

First, the oldest of the baby boomers are retiring.  A couple of years ago, Kathleen Casey-Kirschling born on January 1, 1946 – the first baby boomer – retires and files for early retirement benefits at 62.  Other millions of baby boomers will be retiring as well in the next 26 years. It won’t be long before they think of transferring their wealth to their heirs.

Stay tuned for the continuation of this post. If you want to receive the entire report, sign up here: AZ Advisory – Powerful Tips in Commercial Real Estate Investing.

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, February 26, 2010 10:14 pm

Third Party Development

Hospitals and health care systems have embraced third party ownership and management of real estate, because it can preserve capital resources for acute care needs, eliminate the potential conflicts that arise in the landlord/tenant relationship between hospitals and referring physicians, and minimize the potential legal and regulatory challenges associated with leasing space to referring physicians. High profile transactions to convert existing medical office buildings and other non-core medical real estate to third party ownership and management have focused public attention on monetization over the past few years. Hospitals and systems are now beginning to use third parties to develop and own new medical real estate projects.

This concludes the topic Repositioning to Medical Office.  Take a look at my commercial real estate office listings here and take a look at this medical office in South Miami available for investment acquisition.

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, February 25, 2010 10:24 pm

Alex Zylberglait of Marcus & Millichap is proud to present 6285 Sunset Drive. This ready for occupancy 5,200-square foot medical office building is ideally suited for a small medical practice.

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6285 Sunset Drive lies within an established medical hub just steps from South Miami Hospital (which recently completed its medical office complex), a few blocks from South Dixie Highway, and the Metrorail & bus stations.

This medical office building commands a high visibility location in a heavily traveled section of Sunset Drive. It is in the vibrant city of South Miami which borders the University of Miami main campus and the affluent communities of Coral Gables and Pinecrest.

Because of the unparalleled quality of its location, 6285 Sunset Drive would be a solid investment with significant appreciation potential.

Contact Alex Zylberglait, CCIM, SIOR
Vice President Investments
Director – National Office and Industrial Properties Group

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, February 25, 2010 5:03 pm

These changing market dynamics will increase demand for medical office space, presenting new opportunities for commercial real estate professionals. Repositioning office space for medical use can be expensive in the short term; however, the long-term value benefits can be substantial. Retrofitting these buildings can run about $80 per square foot to $100 psf and strong management is key as physicians tend to have more maintenance issues due to patient traffic. In addition, higher parking ratios are a difficult hurdle to overcome. Depending on the jurisdiction, medical office parking ratios can be between four to five spaces per 1,000 square feet.

With significant barriers to entry, medical office repositioning projects are geared toward sophisticated investors with a solid management staff as well as an understanding of the demand for this space in a particular market. A building approved and re-zoned as medical office can provide an immediate pop in value similar to that of an approved condominium map for an apartment building. The rental premium created can provide a strong hedge against lagging office rental rates and high market vacancy, since medical practitioners tend to stay put.

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, February 18, 2010 4:21 pm

Medical office properties have emerged as a growing sector in the real estate industry in the past few years, attracting a wider range of investors. It survived the worst of the recession and is coming out strong and healthier than other property types in this period of recovery.

There is a migration of capital from the commercial real estate world, which in general has become very soft, to the medical real-estate world. Medical office buildings typically have 70,000 to 100,000 square feet of space housing physician practices and related services. The buildings usually are located on hospital campuses, but sometimes are in satellite locations.

Their growing appeal is based largely on the perception that they are more immune from the economy’s ills than other property sectors, such as commercial-office buildings or apartments.

To be sure, investors are still snatching up commercial buildings that are well-leased despite the current weak conditions. But the medical office sector is considered healthier overall because physicians tend to stay longer and default less than other office tenants, and because medical office rents aren’t as sensitive to the economy.

Stay-tuned for the continuation.

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, February 10, 2010 1:36 pm

Alex Zylberglait of Marcus & Millichap is pleased to present 12459 Seminole Boulevard. The portfolio consists of two class C office buildings with a total of approximately 18,000 rentable square feet. The buildings were built in 1972 of concrete block. Each building has approximately 9,000 square feet with two floors. This portfolio also has on-site parking with a total of 48 spaces.

The property is located in Largo, Florida. Largo is located in the heart of Pinellas County along the Gulf Coast of West Central Florida. Centrally located, the properties are at the crossroads of the county. The property is proximate to major thoroughfares Ulmerton Road and Seminole Blvd (State Hwy 585), which has a traffic count of 33,000 vehicles a day. Within three miles, the population is over 100,000. Largo has grown to become the fourth largest city in the Tampa Bay area and is an extremely dense rental market. There is easy access to Interstate 275 which connects Tampa and St. Petersburg. The property is nearby Largo Mall anchored by Target and is minutes from the St. Petersburg-Clearwater International Airport.

Contact Alex Zylberglait, CCIM, SIOR
Vice President Investments
Director – National Office and Industrial Properties Group

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 26, 2010 6:08 pm

Purchasing ahead of the market’s bottom, as opposed to waiting for concrete signs of recovery, provides investors with the advantage of relatively limited competition. Resumption of job growth will draw more investors back into the market, and, while prices may soften further before stabilizing, they ultimately will pass through current levels at the start of the next appreciation cycle.

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 25, 2010 2:07 pm

One of the biggest risks to the economic recovery and commercial real estate is rising interest rates ahead of a recovery in end demand. In the last few weeks of 2009, the 10-year Treasury yield moved up 60 basis points to 3.8 percent. This move largely reflected a capital shift toward equity markets as risk tolerance rose but also illustrates inflation concerns and volatility in the U.S. dollar. This recent rise in long-term rates may not last, as geopolitical concerns and a choppy economic recovery pattern may create a fl ight to safety, but the prospects of a jump in interest rates above and beyond the sustainable 3.5 percent to 4.0 percent range poses a risk to the housing recovery and places additional pressure on commercial real estate values.

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.