We feature two types of investment activities. Our primary activity is brokering industrial buildings to investors. We represent buyers and sellers, mostly by matching local industrial properties to institutional and national-level investors. Many individual owners seek our experience as exclusive agents.
![Industrial Building Investment](/sites/default/files/inline-images/Industrial%20Building%20Investment-01%20big.jpg)
Our other growing investment activity is with investment partners. Partnership Buildings generally deliver current income and appreciation. Cap Rates vary from 5% for all cash "Class A" investments in New York and Los Angeles to 6.5% for older, but functional buildings in those same markets. There are particular opportunities for infill buildings that have not been re-positioned adequately for ecommerce and creative industrial. Our core competency is identifying those buildings, one-by-one, that are suitable for investment. We see more opportunities than last year.
![Asking prices over time](/sites/default/files/inline-images/image_30.jpg)
Cap Rates are 5 to 6 percent with minimal leverage. If those returns sound skimpy, historical appreciation for Los Angeles Industrial has been averaging almost 11% per annum from 1993 to 2019. There is a series interruption in this data set (2007-2013), but I can calculate the periods 1993 to 2007 which returned 11.7% in Annual Average Appreciation. And dramatically from the period, 2013-2019, that delivered 19.6% in Annual Appreciation. This due to Cap Rate Compression and the dip during the Great Recession. The general investment proforma for properties shows a 5% positive cash flow (all cash investment) and 10% in annual appreciation.
.
![HNWI Investors](/sites/default/files/inline-images/investment%20structure%20infographic-01%20%281%29.jpg)
Investments are supported with granular detail of owners, tenants, analytics and street knowledge. Deals are created by the data we collect and market experience. The most lucrative areas are sub-institutional grade because the market has not been consolidated. We frequently post opportunities to purchase buildings in well located, major industrial markets along with our rationale. Pricing is $5MM to $15MM. The biggest obstacle is raising capital until these properties are re-positioned and stabilized.
![Gardena Mapping](/sites/default/files/inline-images/google-mapp-combo.jpg)
For those looking for industrial building investments, please contact us to be included in any new offerings. Thank you.