Orion Real Estate Group Closes More than $203 Million in Transactions in Fourth Quarter by Christopher Sanz, JD, LLM

Posted on March 03, 2022

Orion Real Estate Group today announced it invested $203,878,022 during the fourth quarter of 2021 to acquire 85 properties representing 436,898 sq. ft. of absolute, triple-net-lease space throughout the country.

Acquisitions closed during the months of October, November and December included the following:

  1. More than $99.15 million for a portfolio of 27 car washes operating under the Mammoth and International Car Wash Group (ICWG) brands
  2. More than $38.42 million for a portfolio of 23 properties occupied by brands that include Applebee’s, Chick-fil-A, Wendy’s and AutoZone
  3. More than $38.30 million for a portfolio of 10 properties leased back to Equipment Share
  4. $28 million for a portfolio of 25 properties tenanted by Friendly’s restaurants

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

Due Diligence is Crucial for Distressed Properties by Kevin Sanz, CCIM, MSIRE

Posted on February 10, 2022

Commercial real estate priced below market value can offer investors an opportunity to acquire property at a discount and yield potentially higher returns in the future. However, it is critical for investors to look under the hood of these distressed properties to assess their performance and fully understand the rationale behind the purchase price.

For example, a property may be underperforming due to deteriorating physical conditions that a current owner does not have the cash flow nor the time or resources to repair. This means those tasks and expenses would pass to the new owner and eat into returns. Alternatively, the current owner’s life circumstances may require an immediate sale and cash raise, perhaps due to a divorce, death or business dissolution. In these circumstances, the risk to prospective buyers and the expected return on their investments may be negligent.

Navigating these challenges requires the experience of professional real estate advisors with the knowledge and contacts needed to thoroughly assess a property and the financial, tax and legal buyers may face.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

The Pros and Cons of Investing in Gateway Markets by Christopher Sanz, JD, LLM

Posted on February 02, 2022

Commercial real estate investors have a wide array of choices when it comes to where they put their money, both in terms of asset class and physical location. One way to break down location is by gateway and non-gateway markets.

Gateway real estate markets are metropolitan areas with dense and growing populations, diversified economies, a full range of real estate assets (multi-family, office, retail and industrial) and a well-developed system of transportation connecting the downtown area and to surrounding suburbs and other major metropolitan cities. In the U.S., gateway markets include New York, Los Angles and Chicago, as well as Miami, Houston and Atlanta. Each one is an in-demand market with robust real estate activity, which traditionally has made them safe options for generating stable rental income, maintaining property values and providing access to liquidity that comes with a robust market.

However, with these benefits come high barriers to entry, including higher costs of acquisitions and operations, higher taxes and increased competition for available properties. Additionally, the Covid pandemic has expedited years of trending corporate and consumer migrations away from major cities to secondary and tertiary markets, where economic activity continues to thrive and provide investors with the potential for higher returns on their investable dollars.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

What is a Credit Tenant in Commercial Real Estate? by Kevin Sanz, CCIM, MISRE

Posted on January 27, 2022

Tenant selection is critical to commercial real estate investing. After all, landlords seeking want assurances that tenants will pay rent on time, add value by attracting both foot traffic and other quality tenants, and reduce the property’s risk profile. One way to achieve this aim is identify “credit” or “investment grade” tenants with strong ratings from the nation’s major credit reporting agencies, including Fitch, Moody’s and the S&P.

While an investment-grade credit rating can offer investors a degree of confidence in tenants’ financial capabilities, it does not mean that non-credit tenants are bad. It merely means those tenants are too small or not as widely known as the companies that the rating agencies do follow. Moreover, a well-known company with an excellent credit rating today is not completely void of risks during the terms of a lease. Changes to operations or broader economic conditions can result in credit rating cuts at any time. For these reasons, it is recommended that investors work with private equity real estate firms experienced working with credit agencies and monitoring tenants’ credit risks on an ongoing basis.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

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