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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 19, 2010 11:24 am

Several factors continue to drive the medical office trend. The country’s aging population requires more medical care, and hospitals have been on a building binge for the past five years, spawning development of neighboring medical offices. Physicians and healthcare groups are also moving smaller stand-alone facilities closer to patients in suburban markets.

According to a recent study by Marcus & Millichap, the long-term outlook for the medical office market looks bright. “Once viewed as a higher-risk specialty asset, medical office properties have clearly become main stream for private and institutional investors,” notes the report. “Long-term leases and low tenant turnover, combined with a stable market outlook and advancing medical technology, point to a positive future.”

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, February 9, 2010 4:39 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.

View Presentation
View Executive Summary

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 8, 2010 12:03 pm

Alex Zylberglait of Marcus & Millichap is proud to present 11981 Southwest 144th Court, a two-story Class B office building that was built in 2002 of concrete and stucco. The property has approximately 14,700 rentable square feet and will be delivered vacant. The building features upscale finishes. There is ample on-site parking with 50 parking spaces.

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View Executive Summary

The property is directly across from the Kendall-Tamiami Executive Airport which is one of the busiest airports in Florida, serving corporate, recreational, flight training, and governmental agency activities.

The Kendall area is one of the most densely populated metropolitan areas in Miami-Dade County, creating one of the most diverse cultural mixes that Miami has to offer. It is anticipated that the population of the Kendall area will continue to grow at a healthy pace over the next number of years. The property is minutes from the business centers of South Miami-Dade County and close to Southwest 137th Ave, Krome Ave, the Florida Turnpike and the Don Shula Expressway. The property’s location also provides fast and easy access to the Florida Keys as well as recreational and business activities in Miami and Miami Beach.

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 29, 2010 6:58 pm

Operating Expenses (OE)

Operating Expenses are those things that the property owner must pay for while owning the property. Such expenses might include property taxes, insurance, maintenance fees, management fees, and utilities.

Net Operating Income (NOI)

The Net Operating Income is the amount of money that would go to any investor after receiving all income and paying all expenses, with the exception of payments on loans and income taxes. The NOI is important because it makes all real estate investments that are purchased for cash flow equivalent.

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 28, 2010 10:56 am

Vacancy and Collection Losses (V/C)

Vacancy is the measurement of time, expressed in percentage of the GPI, that you would expect the property to not have a tenant. Every property will have periods of vacancy due to change-over in tenants plus market cycles that make it harder to find tenants.

Collection losses, much like vacancy in that no income is being collected, is when non-paying tenants are in the property and either need to be motivated or evicted. This too is expressed as a percentage figure of GPI.

The key to Vacancy and Collection Losses is that you can compare different types of properties in different market cycles. Perhaps an office in the higher price range will have longer occupying tenants, thus a lower vacancy, whereas a property in a student area can be expected to turn nearly every year, resulting in a higher vacancy. Using the correct figures for vacancy allows us to compare these two properties and determine which one is the better buy.

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.