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By AZ Advisory Team, December 9, 2009 5:32 pm

Concrete Framing Systems

Concrete deterioration will, in most cases similarly to relate to rebar corrosion possibly abetted by the presence of salt-water aggregate or excessively permeable concrete. In this respect, honeycomb areas may contribute adversely to the rate of deterioration. Columns are frequently most suspect. Extensive honeycomb is most prevalent at the base of columns, where fresh concrete was permitted to segregate, dropping into form boxes. This type of problem has been known to be compounded in areas where flooding has occurred, especially involving salt water. In spall areas, chipping away a few small loose samples of concrete may be very revealing. Especially, since loose material will have to be removed even for cosmetic type repairs, anyway. Fairly reliable quantitative conclusions may be drawn with respect to the quality of the concrete. Even though our cement and local aggregate are essentially derived from the same sources, cement will have a characteristically dark grayish brown color in contrast to the almost white aggregate. A typically white, almost alabaster like coloration will usually indicate reasonably good overall strength. The original gradation of aggregate can be seen through a magnifying glass. Depending upon the structural importance of the specific location, this type of examination may obviate the need for further testing if a value of 2000 psi to 2500 psi is sufficient for required strength, in the event that visual inspection indicates good quality for the factors mentioned.

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 Alex Zylberglait, December 7, 2009 4:17 pm

Got news today that a real estate giant in Qatar, called Barwa is exploring investment opportunities in US commercial real estate and is encouraging other investors to join him as he made a presentation at a one-day business seminar “Entering the US Market“.

Barwa Real Estate Company deputy chief executive officer and Group Strategy & Investment executive director Mohamed Abdul Aziz al-Saad said in a report that the company’s investment exploration will be focused on commercial properties.

The company with over QR25bn (USD6.8bn) in assets value, has previously invested in Sudan, UAE, Bahrain, Egypt, Switzerland, France, Turkey, among other countries, as part of its international portfolio.

“It’s not going to be centered on coastal areas in the US only…” al-Saad added.

More and more foreigners are seeing opportunities opening up for commercial real estate investments. Howabout you, what do you see? From wherever part of the globe you are, opportunities are opening up here in the U.S for foreign investors. Contact me for a free consultation.

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, December 4, 2009 4:33 pm

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, December 3, 2009 5:16 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, December 2, 2009 2:14 pm

So here’s a continuation of our topic: Forty Year Inspection Requirements:

Steel Framing System

Corrosion, obviously enough, will be the determining factor in the deterioration of structural steel. Most likely suspect areas will be fasteners, welds, and the interface area where bearings are embedded in masonry. Column bases may often be suspect in areas where flooding has been experienced, especially if salt water has been involved.

Thin cracks usually indicate only minor corrosion, requiring minor patching. Extensive spalling may indicate a much more serious condition requiring further investigation.

Of most probable importance will be the vertical and horizontal cracks where masonry units abut tie columns, or other frame elements such as floor slabs. Of interest here is the observation that although the raw materials of which these masonry materials are made may have much the same mechanical properties as the reinforced concrete framing, their actual behavior in the structure, however, is likely to differ with respect to volume change resulting from moisture content, and variations in ambient thermal conditions.

Moisture vapor penetration, sometimes abetted by salt laden aggregate and corroding rebars, will usually be the most common cause of deterioration. Tie columns are rarely structurally sensitive, and a fair amount of deterioration may be tolerated before structural impairment becomes important. Usually, if rebar loss is such that the remaining steel area is still about 0.0075 of the concrete area, structural repair will not be necessary. Cosmetic type repair involving cleaning, and patching to effectively seal the member, may often suffice. A similar approach may not be unreasonable for tie beams, provided they are not also serving as lintels. In that event, a rudimentary analysis of load capability using the remaining actual rebar area, may be required.

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, November 25, 2009 1:30 pm

Masonry Bearing Walls

Random cracking, or if discernible, definitive patterns of cracking, will of course, be of interest. Bulging, sagging, or other signs of misalignment may also indicate related problems in other structural elements. Masonry walls where commonly constructed of either concrete masonry remits or scored clay tile, may have been constructed with either reinforced concrete columns tie beams, or lintels.

Steel bar joists are, of course, sensitive to corrosion. Most critical locations will be web member welds, especially near supports, where shear stresses are high possible failure may be sudden, and without warning.

Cold formed steel joists, usually of relatively light gage steel, are likely to be critically sensitive to corrosion, and are highly dependent upon at least normal lateral support to carry designed loads. Bridging and the floor or roof system itself, if in good condition, will serve the purpose. Wood joists and rafters are most often in difficult from “dry rot”, or the presence of termites. The former (a misnomer) is most often prevalent in the presence of sustained moisture or lack of adequate ventilation. A member may usually be deemed inacceptable condition if a sharp pointed tool will penetrate no more than about one eight of an inch under moderate hand pressure. Sagging floors will most often indicate problem areas. Gypsum roof decks will usually perform satisfactorily except in the presence of moisture. Disintegration of the material and the foam-board may result from sustained leakage. Anchorage of the supporting bulb tees against uplift may also be of importance, with significant deterioration. Floor and roof systems of case in place concrete with self centering reinforcing, such as paper backed mesh and rib-lath, may be critical with respect to corrosion of the unprotected reinforcing. Loss of uplift anchorage on roof decks will also be important if significant deterioration has taken place, in the event that dead loads are otherwise inadequate for that purpose.

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, November 24, 2009 2:58 pm

Overlooked Opportunity

Accounting professionals must be able to suggest and help implement cost segregation for their clients or employers so they can achieve maximum tax savings. In the past when taxpayers purchased real estate, they traditionally allocated 20% of the purchase price to land and 80% to buildings. While the IRS rarely questioned this simplistic approach, purchasers did themselves a financial disservice: They forfeited opportunities to achieve a better tax result.

Although the cost segregation technique always was available to real estate purchasers, it often was overlooked as a tax-savings tool. Recently, however, buyers have begun to recognize that despite some drawbacks, cost segregation can dramatically increase tax savings. They are, therefore, taking advantage of this opportunity, challenging the “business as usual” mantra.

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, November 23, 2009 2:59 pm

Add Amenities

Finally, you can also consider adding amenities to the property to make it more appealing and valuable. Value enhancing amenities can include something simple like creating a playground in a multifamily property or adding free wireless Internet for your retail tenants. Or you can add more extravagant amenities like a daycare center in your office building or an outdoor courtyard in a hotel property.

In summary, when scouting for commercial properties, look beyond the historical data and see what things you can employ to make the property more valuable. All other important factors considered, choose the one that gives you a lot of room to utilize value-generating strategies that is non-existent or yet untapped by the present owner and therefore not part of the price.

Know your property’s potential before you close the deal to realize maximum gains — after you have modified its usage to a more profitable one, after you have made improvements and added amenities, after increasing rents accordingly, and after decreasing expenses. The best deals are made when you buy a property, not when you sell a property!

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, November 20, 2009 4:31 pm

Practical Tips To Remember

CPAs should routinely recommend that their clients or employers use cost segregation studies whenever the expenditures for a structure, including leasehold improvements, equal or exceed $750,000.

Cost segregation can be used for new construction and improvements, for the purchase of existing structures and for buildings acquired in prior tax years—even if the building has been disposed of.

A taxpayer that uses cost segregation for a previously acquired structure must file IRS Form 3115, Change in Accounting Method.

If a taxpayer disposes of a building for which cost segregation was used, it should consider the recapture considerations associated with this disposition.

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, November 18, 2009 11:27 pm

Decrease Expenses

Evaluate the historical operating statements of the property to determine if there are areas where you can decrease expenses. For example, perhaps improving the property with more energy efficient light bulbs in the common areas will drastically reduce your monthly electrical bills. Or perhaps you find that the gas company can individually meter the units so that instead of paying for the gas, you can fairly pass that expense onto the tenants. In the vast majority of instances, a commercial property owner can cut expenses without significantly impacting the operations of the real estate itself.

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.