All Forum Posts by: Alex Vidal

@Amit M. MOBs are definitely attractive because of the higher yield, stability and lower management responsibilities. We’ve seen a lot of investors 1031 out of apartments into the MOB sector in recent years. I have mountains of historical MOB data (both national and based on regions/MSAs) and I write a bi-annual national medical office newsletter covering sales, development and other trends. DM me your email and I can send you my contact info and some data for you to review.

@Account Closed What are your goals for your acquisition? Medical may seems expensive, but any commercial property will have higher cost loans than a typical multi-family investment. With medical office, however, you get long term leases (typically 5-10 years) and extremely stable tenants. Also the average cap rate nationwide for stabilized medical office properties was 6.7% last year and the vacancy rate was only 8.7%. Even now with interest rates rising, I'm currently proposing on a 10 year single tenant NNN super simple deal in CA at a 7% cap. If you want to be extremely safe and buy a 10+ year NNN leased health system credit rated deal, you can find them all day in the 6-6.75% cap rate range nationally. If you wanted a little higher return, stabilized multi-tenant deals with around 5 year remaining lease terms are currently trading in the 7.5% range.

From my personal experience, it's been tough in recent history to find any multi-family deal in the Bay Area worth buying at less than a 4% cap and MOBs offer almost as much stability/upside and much less management responsibilities.   

Hi Ann, what is your budget/what size building are you looking for? I actually specialize in MOB sales and have been involved in $650M in sales over the past 7 years. Unless if you have very deep pockets, I wouldn’t recommend buying anything in the Bay Area. MOBs are inherently valuable wherever they’re located due to the fact that the tenants rarely move, healthcare is expanding with aging baby boomers, the tenants make tons of money and they spend tons of money on their tenant build outs. I’d recommend buying a single or multi (2-5) tenant building out of state to get your feet wet in the sector. You’ll have professional commercial property management in place (much better than the residential/multi family managers), your returns will be much greater and you’ll still have one of the top 3 most stable assets classes. Feel free to DM me if you’d like to discuss in further detail.

@Account Closed @Brian Burke Hahaha @Jon Q. is caught red handed in his ludicrous lies again! 

@Greg H. @Account Closed This thread has made it abundantly clear that @Jon S. has nothing to offer the BP community but contradictions and snake oil. He already had his account banned once this week and he's well on his way to getting banned again lol.

All he does is talk about how great he and his life are and he offers no substance to back it up, just words and nonsense. As we've seen, his own website even contradicts what he's saying. You'd think if he was trying to solicit money he'd at least have those facts worked out haha! 

Now he's pulling random photos from the internet without him even in them and saying how much of a world traveler he is. 

I say good riddance! 

@Account Closed haha it's more of a no excuses inspirational quote I liked. Obviously I'm very happy with the money I have and the wealth I'm building :)

@Account Closed there no use wasting our breath on this fool. As he let us know he did work at BlackRock (for 5 months) so we should take him at his word!

@Brent Seehusen

 Agreed always good to have a little lively debate on BP. We'll see how things shake out, but I think anyone in CA is going to be just fine in the long run. 

@Account Closed

Yes I agree that the stats aren't bulletproof, since real estate is hyper-local and they track larger MSA's. It's up to an investor to explore their own specific neighborhood that they're evaluating. I'm confident we'll all be rich and happy with our appreciation and cash flow rent growth over the next 15 years :)

@Brent Seehusen

It's similar appreciation, but SF beats LA in the longer time frames. Every little bit of appreciation makes a huge difference in the long run because of compounding. Also I think you'd agree that rents have increased substantially more in SF over the long term, which would make it the clear winner.

@Brent Seehusen

No one can save you if you buy/sell at the worst possible times or if you buy a negative amortizing property as many people did in the past decade. It's the same thing in the stock market, if you sell on a downturn that's your fault, things will always cycle back upward you cant simply follow the crowd. 

Even if I adjust to your 2010 benchmark the returns are as follows:

10 Year - 3.1%/Yr.

20 Year - 3.15%/Yr.

30 Year - 5%/Yr.

Once again, I ask anyone to show me a market that can demonstrate similar appreciation over a 15-30 year period. That's also not even addressing the Bay Area's massive rent appreciation over any 15-30 year period. Unfortunately there isnt accurate data going back that far in history.

I sleep very soundly knowing the strength of these Bay Area fundamentals and I'm confident we are not in a 2005/2006 type market.