Posted on December 14, 2021
The annual inflation rate increased for the fifth straight month in September 2021, reaching a 13-year high of 5.4 percent, according to the Department of Labor. Fearing a prolonged period of inflationary pressure, many private investors have sought refuge in commercial real estate, which has historically weathered these headwinds. In fact, according to Real Capital Analytics, commercial property sales during the past nine months were up 10 percent from the same period in 2019, before the pandemic.
As an asset class, commercial real estate generally provides a hedge against inflation, providing investors with steady rental income and the potential for both rent increases and ultimately higher property values that often outpace inflation over the longer term. The challenge for investors, especially in in markets with rising demand and lower inventory, however, is finding the right property in the right location and at the right price point to meet their unique needs and goals. Working with experienced real estate investment advisors can go a long way toward finding that proverbial needle in the haystack and helping often before a property hits the market.
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.
Posted on December 08, 2021
Economic uncertainty has not slowed robust net-lease commercial activity through the third quarter of 2021. The passive nature of these assets continues to attract investors seeking steady rental income, tax savings and long-term wealth building opportunities without any hands-on management responsibilities. However, not all net-lease assets have performed equally well throughout the pandemic, which has essentially changed the way consumers work, shop and enjoy their personal time. For example, grocers, pharmacies and do-it-yourself home and auto care retailers have become essential businesses as have quick-serve restaurants with drive throughs and dedicated parking for curbside pick-up service. In fact, many successful brands are now in growth mode and looking to change their retail footprint to include more stand-alone locations. The challenge for investors is getting in on these opportunities, often before they even hit the market. The solution is to work with experienced and active real estate investment advisors with deep relationships with national brokers and quality tenants.
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.
Posted on November 30, 2021
Between Jan. 1, and Sept. 20, 2021, Orion Real Estate Group invested more than $345 million to acquire 97 properties representing more than 1 million square feet of net-lease space. These transactions included two portfolios of a combined 41 single-tenant Walgreens pharmacies in nine states, a 94,175-square-foot mixed-use retail and office property located in Pinecrest, Fla., and various CVS pharmacies and casual dining chains, including Panera Bread and Huddle House. During the same period, Orion sold 48 properties representing 435,670 square feet for more than $178 million.
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.
Posted on November 11, 2021
Adaptive reuse refers to the transformation of an existing real estate structure for a new and better use, thereby allowing owners/investors to maximize the value of the underlying real estate and extend the life of its useful purpose. Examples include renovating a shopping center into warehouse space or converting office buildings into multi-family apartments. The costs required for AdRu are far less expensive than those required for new construction, allowing investors the ability to renovate and readapt their properties to keep up with changing demographics and evolving lifestyle trends.
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.
Posted on November 04, 2021
Qualified intermediaries (QIs) are vital to the success of tax-deferred 1031 exchanges of real property. It is the QI’s responsibility to facilitate the exchange and ensure investors meet all the rules and timelines required for preferential tax treatment. This includes the requirement to identify like-kind replacement property within 45 days following a property sale and to close on the purchase of that replacement property within 180 days of the original sale. The QI receives and holds the net proceeds from the relinquished property and invests it into a new property without triggering any tax implications to the investor/taxpayer.
While their roles are critical to 1031 exchanges, QIs are not regulated by any federal agency nor are they required to by licensed or insured. Therefore, investors must tread careful when selecting a QI. Working with professional real estate advisors can help to ensure the QI you select has the experience and qualification to properly execute all phases on the exchange and make the process as smooth as possible.
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.
Posted on October 27, 2021
NNN ground leases are long-term agreements between landowners/investors and tenants/leases who lease the land on which their buildings sit or on which they plan to erect a building. For landowners, these arrangements provide a reliable stream of rental income as well as the benefit of long-term property appreciation without the headaches and expenses that come with managing the property. Moreover, in the event a tenant defaults on a lease, the building ownership transfers to the landowner who may then profit from leasing both the land and building to another tenant at a higher rental rate in the future.
One of the main disadvantages of ground leases is that land does not depreciate. Therefore, owners/investors may not claim depreciation deductions to reduce their annual income tax liabilities. Working with experienced real estate investment advisors can help to minimize any downside risk to ground leases.
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.
Posted on October 18, 2021
Absent from the latest draft of tax legislation making its way through Congress is any mention of Section 1031 exchanges, which for decades have allowed passive investors to defer taxes on the sale of commercial property when proceeds are reinvested in a similar, like-kind property. Previously, the president had called to eliminate the tax break on gains exceeding $500,000 for individual taxpayers or $1 million for married couples filing joint tax returns. While it appears that 1031 exchanges are safe for now, investors should still pursue exchanges in the works and consider expediting them before prosed tax increases and reductions to the estate tax take effect as early as 2022.
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.
Posted on September 15, 2021
Drugstores, such as Walgreens and CVS, are among the few businesses that survived the pandemic largely unscathed and, in many cases, with stronger-than-expected sales. In fact, their proven track record through economic downturns is just one reason why they are sought-after tenants by net lease investors.
Even before 2020, drugstores were in growth mode due to consumers’ focus on health and wellbeing. During the pandemic, their easily accessible locations, often as free-standing corner units with ample parking and drive-through services, provided consumers with convenient shopping options. At the same time, investors benefited from drugstores’ strong credit history and the essential nature of their business. However, as with all forms of commercial real estate, investors must conduct through due diligence and work with professional advisors to understand a specific property’s fundamentals and its potential to yield desired risk-adjusted returns.
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.
