How Commercial Property Investment Can Change Your Life

The Fed has consistently raised rates for the past several meetings and the impact is growing from it.  Given this turbulent economic climate many investors are concerned about where the stock market and their investment portfolios are headed.  In fact, real estate is one of the sectors seeing the most growth right now.  That’s why commercial property investment can change your life –especially in a down economy.  Real estate isn’t going anywhere and there isn’t more land being made.  That’s why Ben Reinberg, the Founder and CEO of  Alliance Consolidated Group of Companies(Alliance), knows it’s a more secure investment in a buyer’s market.  Reinberg has been investing in real estate for decades and believes that he has literally seen and experienced it all.

“Alliance has been successful because of our persistence, focus, resource-rich ability to adapt to different environments, and our strong leadership team.  We are always spearheading new initiatives and taking our investments to the next level,” said Reinberg.

His company, Alliance, is extremely careful about what they invest in and where those investments are located.  His team has very specific internal criteria that they focus on because they know it works.  Market changes don’t scare Reinberg, and, in fact, Alliance just launched a new fund to do significantly more transactions over the next two years.  Their focus: medical offices and smaller medical buildings in population-centric areas.

“Our ‘sweet spot’ is medical and veterinary properties with a population of at least 50,000 permanent residents within a 5-mile radius,” notes Reinberg.  “Rent growth in the initial lease term, investment in properties by the tenants, and whether they are private or public organizations”. These factors play a significant role in their investment decision-making process. “Each of our criteria are designed to maximize the value and return for each side deal,” added Reinberg.

There are literally hundreds or thousands of real estate investment opportunities out there, but they don’t all have Alliance’s success rate.  By making deals that benefit all parties in a transaction, Alliance not only increases their value, but also consistently creates long-term relationships.  His tenants stay longer, and his buildings are consistently kept up so everyone from employees to tenants to guests feel at home in their buildings.  Healthcare is one of the fastest growing industries in the U.S., so to maintain a razor-sharp focus on this area simply makes sense.  Simply put, demand for medical care will always exist and it’s growing exponentially.

Education is another key to Reinberg and Alliance’s success.  Not only does Reinberg keep an open line of communication with his investors, but he also makes sure they understand not only what they are investing in, but also what their investment is doing for the communities they own property in.

“The biggest misconception I hear is that investing in medical office assets is too risky.  It’s ironic because the human body is never going out of style.  It’s our foundation, as well as that of our tenants’ businesses.  Another misconception is that investing in medical office assets provides low returns.  Alliance has average mid 20s IRR in our medical investment space.  We consistently provide low-risk investments with opportunistic returns.”