We understand the needs of commercial owners and how to market office, retail, and industrial real property to developers, owner-users, and investors. Our service includes:
+ Market Analysis & Updates
+ Pricing Strategy
+ Position / Reposition Strategy
+ Estimated Seller Proceeds
+ Traditional, Digital, and Cross-Industry Marketing
+ Proforma Modeling & Offering Memorandum
+ Buyer Vetting & Pre-Qualification
+ Disclosure & Due Diligence Assistance
+ Negotiating Confidence
+ Smooth Transactions
+ 1031 Exchange Experience
+ Clear Communications
We understand unique business requirements and help you grow - either as a tenant or an owner-user. We also help commercial investors build wealth. Our service includes:
+ Access to on & off-market properties
+ Market Analysis, Updates & Cash Flow Modeling
+ Offer Strategy
+ Due Diligence Review
+ In-House Lending
+ Creative financing
+ Protective Clauses
+ Negotiating Confidence
+ Smooth Transactions
+ Clear Communications
If you own a business, its no secret that your rental payments are eating into your bottom line. While renting may present an easier fit for cash flow in the short term, buying as an owner-user almost always makes more sense in the long run. That is because every year your principal loan balance pay down offsets against your cash flow so that your net outlay can be virtually equal to renting. Moreover, appreciation helps add to your equity while you sleep, and depreciation offsets paper losses against your tax footprint (not to mention other tax advantages such as renting to yourself). Moreover, owning commercial property also secures an automated retirement plan as you can rent out the building for fixed income or sell out when its time to retire. That is, either way, a business’s rent outlay is going to buy someone’s property, along with that owners retirement –- we figure it might as well be you.
The SBA 504 Loan Program provides approved small businesses with long-term, fixed-rate financing to acquire fixed assets for expansion or modernization. 504 Loans are typically structured with SBA providing 40% of the total project costs, a participating lender covering up to 50% of the total project costs, and the borrower contributing 10% of the project costs.
Some of the top-level benefits of the 504 Loan program include:
The funds can be used for:
Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017. Opportunity Zones are select census tracts in which businesses, equipment, and real property can receive investment through special funding. They allow investors to receive federal tax incentives by investing their capital gains into select communities known as Opportunity Zones using special investment vehicles called Opportunity Funds. There are currently 879 designated Opportunity Zones in California, with 193 in The City of Los Angeles, 19 in the City of Long Beach, and 17 in unincorporated areas of The County of Los Angeles. The tax advantages of investing in an Opportunity Zone are:
If you've been searching for commercial property on consumer-side websites like LoopNet or the MLS, you are missing a big part of the picture. We subscribe to CoStar commercial reporting and data repository that includes everything that is on the consumer-side of LoopNet, and much more that is not otherwise accessible to consumers. Our subscription to CoStar allows us to dig deeper and to obtain the most up-to-date information for decision makers so that we can put together off-market transactions below the radar. If there is nothing on the market that meets your criteria, we'll contact every owner of off-market property that could potentially work, including properties that are leased but set to expire soon. We happily use our resources for the benefit of our clients and go the extra mile to find exactly what our buyers are looking for.
Even as we navigate through the challenges brought on by the pandemic and resulting economic fallout, owner-user purchasers are still willing and able to pay more for commercial real property. Of course, owner-users have always been willing to pay above investment value due to the utility derived from the property; but with interest rates where they are today, owner-users are also enjoying cheaper access to capital. Indeed, the ability to leverage more is providing more purchasing power to owner-users than ever before. For example, using an SBA 504 loan, owner-users who will occupy 51% or more of a commercial building can buy commercial property with as little as 10% down on a long-term note with a historically low-interest rate to boot (not to mention retaining the ability to lease out the remainder to further subsidize the carrying costs). This attractive opportunity to finance is fueling a surge in demand for commercial property ; and together with low inventory, the opportunity to sell has never been so enticing.
We're driven by results and we're determined to provide the exposure you deserve. Our sales team is powered by a dedicated marketing arm with in-house marketing specialists and outside consultants to ensure maximum exposure for your commercial real estate listing. In addition to building a premium stand-alone website for your property, we also leverage our membership in major listing services and associations to cast as wide a net as possible for your listing.
Our experience tells us that the best approach to negotiation is to move everyone to the same side of the table. We strive to find common ground early on to ensure the best chance of finding a solution that works for everyone. With the aim of achieving long-lasting solutions, we approach difficulties with the idea that the best solution is one that is factually conforming, functional, feasible, and fair to the parties involved. From there, we are free to embrace a conciliatory process that is both rational and creative, which ultimately leads to a smooth transaction.
IRS Section 1031 exchanges (also known as Starker exchanges, like-kind exchanges, delayed exchanges, non-simultaneous exchanges, and tax deferred exchanges) allow a seller of real property to defer an otherwise taxable gain until a future taxable event occurs. 1031 exchanges can only be used like-kind property, which includes a variety of property types so long as it is held for investment and not personal use. The underlying property being sold is considered the "downleg property", with the property being acquired being the "upleg property". After selling the downleg property, the taxpayer must identify the upleg property within 45 days, and close escrow on the upleg property within (1) 180 days of the downleg transfer, or (2) the due date of the tax return for the year that the downleg was sold. To effect a 1031 exchange, it is necessary to hire a 1031 accomodator to "step into" the place of the Seller for purposes of holding the sales proceeds from the downleg to be used to acquire the upleg. There is no limit to the number of 1031 exchanges that a taxpayer can be involved in, so effectively a taxpayer can continually defer the taxes for life by holding on to the property or continuously exchanging it with another.
We are committed to putting our clients in the best position possible to achieve the best price and terms in the quickest amount of time. At the same time, we approach every real estate transaction from a defensive stance. The undercurrent to everything we do is the unwavering understanding that “Defense Wins Championships” .
317 Rosecrans Avenue, Manhattan Beach, California
Sold Price: $4,500,000
Appraised Investment Value: $4,000,000
Sale Date: July 1, 2020
Year Built: 1982
Office Spaces: 9
Gross Building Area: Approx. 4,384 sf
Lot Area: Approx 2,484 SF
Property Type: Office
Imperial Real Estate represented Sellers
444 West Ocean Boulevard, Suite 800
Long Beach, California 90802
1008 S. Pacific Avenue, Suite 208
San Pedro, California 90731
609 Deep Valley Drive, Suite 200
Rolling Hills Estates, California 90274
1230 Rosecrans Avenue, Suite 300
Manhattan Beach, California 90266