Firm Invests In California Business Park Commercial Real Estate
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Commercial Real Estate on Monday, May 20, 2013.
Business people are always looking for ways to increase profits through investments. One common way of making money with investments is through investing in commercial real estate. This type of investment can have a high profit potential for the right situation. One company believes it has found this right opportunity and has decided to purchase a business park property in California.
The 465,000 square foot property was purchased for an amount which has yet to be disclosed to the public. The sellers of the property were two investment managers who collaborated in a joint venture. They hired a financial firm which specializes in commercial real estate transactions to help market and sell the property.
According to the financial firm, the property was attractive due to its potential revenue for the buyer via leasing of vacant spaces as well as a possibility of increasing rents for spaces with tenants with leases that are about to expire in the near future. Also, the property is adjacent to a local freeway which makes it a convenient location for potential tenants. Additionally, 60 percent of the spaces are already leased, which means the buyer will be able to immediately gain significantly from income from rent.
Those looking to purchase commercial real estate, similar to this case in California, should consider all of the legal implications involved in owning commercial property. There are various rules and regulations which must be complied with. However, these will vary depending upon jurisdiction as well as the type of businesses that will be operated out of the property.
Source: The Wall Street Journal, "HFF closes sale of office/R&D business park in Silicon Valley," May 8, 2013