Property Management
Berkson Realty Advisors, LLC manages a selective number of commercial, industrial, and residential properties. We are committed to providing a high level of service to our clients and tenants.
Retaining quality tenants is a top priority, which we accomplish by providing proactive and responsive property management services.
Services and Capabilities:
Retaining quality tenants is a top priority, which we accomplish by providing proactive and responsive property management services.
Services and Capabilities:
- Lease negotiation, preparation, and administration
- Maintenance and repairs
- Assistance with physical improvements to properties
- Accounting
- Rent collection
- Annual budgeting and long range planning
Investment Services
Overall Objective: Diversified Mix of San Diego County Real Estate
One of our Company’s unique features, in contrast with most other real estate investment vehicles; i.e., those that cover single-property or cover multiple markets, is that Berkson Realty Advisors, LLC remains not only focused in the Southern California region, and more specifically the San Diego subregion, but offers the benefits of diversity across its property mix with investments in multifamily, retail, industrial, and office properties.
One of our Company’s unique features, in contrast with most other real estate investment vehicles; i.e., those that cover single-property or cover multiple markets, is that Berkson Realty Advisors, LLC remains not only focused in the Southern California region, and more specifically the San Diego subregion, but offers the benefits of diversity across its property mix with investments in multifamily, retail, industrial, and office properties.
- General Real Estate Investment Goals
- Stable Non-Speculative Cash Flow: Alternate to perceived low return Corporate Bond and similar types of investments. Early Year's projected cash flows must not be based on substantial speculative development or capital costs; or on vacant turnaround models, etc.
- Moderate Appreciation: Reasonable expectations of modest property inflation (3% per year) that is in line with overall inflation will justify this goal.
- High Appreciation Potential with Speculative Deals: Expectations of high appreciation with land being held for long term investment; short term land development deals often times including build-to suits; vacant turnaround deals. These sort of deals offer 20% and better returns but are not for those that desire up-front, highly stable cash flow and moderate appreciation as part of their investment portfolio.
- Cap Rate (at Stabilized Occupancy): At least 8.5 to 9.0, preferably in the 9.5 to 11 range.
- Credit Tenants: Tenants that have substantial (investment grade or equivalent) creditworthiness.
- Purchase Price Range: Between $1.5M and $6M.
- Strong Location: Primarily a function of sub-markets/neighborhoods, but certainly a focus on above average demographics, visibility, accessibility.
- Strenuous Due Diligence: Physical, Economic, Financial, Legal and Environmental, etc.
- Specific Investor Financial Goals
- Preferred Return: 8%; but may go higher on a property-by-property basis up to 275 basis points over the then-current 10-year Treasury Note rate (fixed as of the closing of each acquisition).
- Sharing After Preferred Return: All cash proceeds from operations and/or capital transactions (including final disposition of each property), after coverage of the Preferred Return, will be shared 50/50 between the investors and the Managing Member, Berkson Realty Advisors, LLC.
- Fees to Fund’s Manager: Fees to manager for acquisition (1% origination fee) and property management (4-5% of gross receipts); possible brokerage fees to Managing Member upon purchase or sale of the properties.
- Cash-on-Cash Return For Non-Speculative Investment: 8-12% (based on current Treasury Note rates). IRR: 10% to 15% over a 5-10 year period (based on current Treasury Note rates).
- Taxable Equivalent Cash-on-Cash Yield: 12% to 15% due to IRC depreciation provisions; compared to non-depreciable, fully taxable investments (such as corporate and treasury bonds, public and private stock in corporations, etc.).
- Other Investment Features
- Overall Amounts: In the upcoming year, $2M to $5M per investment that, with leveraging, can purchase $8M to $20M of property across three to four properties.
- Leveraging: Financing should be available to fund typically 70% of purchase price. Initial investor commitments in some instances need to allow for initial purchases to be all-cash with financing that is post-closing.
Development Services
Berkson Realty Advisors, LLC brings a 9-year development track record that includes over 1.2 million square feet of office, retail, industrial, and residential properties.
Services and Capabilities
Services and Capabilities
- Site acquisition
- Debt and equity financing
- Initial planning, design and feasibility
- Entitlements
- Cost Estimating
- Construction and project management
- Oversee environmental, hazardous materials, geotechnical, soils, traffic and other 3rd party technical reports
- Government relations/interface
Brokerage Services
RPAC, Inc. is a related entity of Berkson Realty Advisors, LLC, providing brokerage services for the acquisitions of its properties.
Consulting Services
Berkson Realty Advisors, LLC provides a full array of consulting services on a fee related basis (see "Services" menu).