1. FedEx Ground: This is a warehouse/distribution center that delivers to the local homes and businesses within an approximate 50 miles radius. It is located in the Panhandle of State of Florida in the South East of United States. The parent company FedEx delivers packages all over the worldwide.
2. This is a drug store located in the State of Georgia, USA. It has become part of the Rite Aid chain now.
3. This is a high volume gas station located in State of Illinois, USA. It is next to highway and is across from a new WalMart. Its combined annual sales of gasoline and grocery is about US$ 6 million.
4. This is a high-end Mexican fast food restaurant chain with drive-through that also sells alcoholic beverages. It is located in San Antonio, TX. Its annual sales is close to US$3.0 million which is very high for a restaurant. It is sitting right next to a highway and outside a Home Depot store.
5. This is a small Post Office located in State of Nevada and is about 50 miles North of Las Vegas.
6. This is a heavy industrial equipment rental company located in Carrollton, Texas.
7. This is a small residential apartment building located in Berkeley, California. There are 14 units with parking and has a small restaurant up front. The tenants are mostly graduate students from the University.
8. This is a four-unit residential apartment in San Jose, California. There are 2 – 1 bedroom, 1- 2 bedroom and 1- 3 bedroom units. It is mostly are for singles and for small families.
9. This is a nice single family home, ranch style, located in the quiet Willow Glen neighborhood of San Jose, California.
The world’s Real Estate markets have been down by 20% to 70% over the last 18 months EXCEPT in China. Her markets have been up from 30% to 300% in certain rural areas. All markets tend to go through cycles like pendulums and they tend to overshoot or undershoot. Is it time to look at the US Real Estate market now if you have sufficient cash? I think the best time to enter any market is when no one wants it. I especially like the US industrial/commercial (not the office type) triple net properties with long term, stable, and financially strong tenants.
The reasons we like them in the US are because:
1. The markets have already been down for more than 30% to 50% but the
incomes have been, either flat, stable or trending up. The value just cannot keep
going lower because eventually the long term annual rent will act as a floor. No
one is giving free money away except the US and maybe the Chinese
2. The typical good quality NNN properties traditionally have capitalization rates of
between 5% to 7% and are now between 7.5% to 10%+. If you put 50% cash
down, due to leverage and potential capital appreciation due to Cap Rate to go
back to historical norm, your return can be higher than 20% or more year after
year with no management/landlord worries.
3. This is a buyers’ market now with a lot of good quality properties and tenants to
choose from. The returns are high, the lease terms can be between 10 to 20
years and the Cap Rate can be higher than 9% with minimum risk and
headaches. Most of these industrial tenants do not like to move once they are
in good locations. They would rather stay and expand than move to another
location that would cost more money and time to rebuild. Expansions are
usually good for the property owners because it will generate higher incomes
4. United States of America is not going to disappear. Believe it or not, a lot of
good companies in the USA are cash rich and are making a lot of money. They
will be making more in the coming decades. The timing is right for longterm
investors to get in it now. One may have to wait a few years, under the worse
case scenario, for the market to improve/turn. Meanwhile, one will be getting
nicely monthly incomes from the tenants in the order of 20% or higher. That is
pretty good in my book!
Please email us at firstname.lastname@example.org and let us go to work for you immediately for your profitable future!
The following are samples of some of the NNN commercial properties that we still own, manage or have handled in the past. We can help you invest in properties that are priced in the range from US$1.0 million to US$10 million or higher. We can also consider managing them for you if you prefer. (Please click on the thumbnails to magnify the photos.)
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US Industrial Real Estate
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