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JLJ CAPITAL'S THE MARKET

JANUARY 20, 2022

LOCATION, LOCATION, LOCATION

Anyone who has looked for a home or bought an investment property knows this adage. What does this mean for Real Estate in 2022? Madison Ave. retail good or bad? It used to be great and was trading in excess of $2,000 per foot now all retail in NYC for the most part is impaired. What does L3 really mean in today’s environment and how can you benefit? The good news is that real estate has been one of the best investments over decades. During inflationary periods it has been one of the better investments. Understanding the location of the property and its strategic value for the type of real estate will determine if the property has potential for long term sustained returns. I will not spend time in this article determining price but price always maters.

Let’s look at Warehouses as an example of L3. Easy access to major highways and located in regional through fares are important for warehouses. I have seen many opportunities in the last year for cheap warehouses in locations that are out of the way. One should be wary of these types of opportunities. The absorption rate on these properties tends to be very low. This leads to very low rents or high vacancies.
When I look at opportunities I ask how much supply of this type real estate is in the area and what are the demographics for this area. A growing population with a lack of supply of a type real estate is always good for investing in real estate as it creates tails winds. If more business and people are moving in to a location the opportunities for investing are increased. The danger is prices tend to rise higher in these areas as more and more money flows into them. Spending time understanding markets and looking for growth opportunities before major investors move in can increase your results more than just following the pack. Over the next year I will be highlighting different areas of the country and trends in real estate. Some more obvious than others. What I hope to do in these articles is to cause you to ask questions and did into the areas deeper.

JLJ CAPITAL TRANSACTIONS

HALSEY STREET

HALSEY STREET

$2.58 MM

FOREST LIVINGSTON NJ

FOREST LIVINGSTON NJ

$1.37 MM

COLLINS AVE FL

COLLINS AVE FL

$6.7 MM

329 BROADWAY

329 BROADWAY

$57.0 MM

NEW CANAAN

NEW CANAAN

$2.0 MM

DOLCE TWIN CREEKS, II

DOLCE TWIN CREEKS, II

$55.5 MM

FALLS CHURCH

FALLS CHURCH

$12.7 MM

BELLEVUE WOODBURY

BELLEVUE WOODBURY

$154,000

EDGEWATER

EDGEWATER

$16.5 MM