REAL ESTATE ADVISORY

COMPREHENSIVE REAL ESTATE SERVICES
AND TRANSACTION MANAGEMENT

KB Real Estate Advisory is the Strategic Advantage for
High-Level Real Estate Investors

We advise on all property types nationally. Having acquired over $2 billion of properties as principals over the past 10 years, we have extensive experience in all aspects of identifying, researching and acquiring commercial properties. When sourcing properties, we utilize an extensive array of data sources to identify target properties and gain great insight of the various markets where we ultimately acquire properties. Our long-term relationships with large property owners, developers, and real estate professionals are critical and serve us well.

ACQUISITION ADVISORY
KB Property Advisors represents buyers in the acquisition of commercial real estate. Our platform is ideally suited to those buyers who seek to complete an IRS Section 1031 Exchange. We understand the regulations and timeframes that must be met to successfully complete an exchange. We often have access to off-market properties, as we are always in the market to purchase properties for our own various investment programs.
PORTFOLIO TRANSITIONS
Many investors get to a point in their lives where they choose not to continue to operate their real estate assets in an active capacity. While some are engaged in estate planning and want to leave the equity and income stream to heirs, who may not be prepared or may not have the desire to actively manage such assets, others may be ready to take a little more time for themselves. [MORE...]

They may prefer to move away from the day-to-day management that an active-owner role requires. We structure portfolios that function as passive income, while still leaving the owner in full control of their real estate investment. We implement a "Structured 1031 Exchange" for such acquisitions in order to defer any capital gains taxes and/or recapture of depreciation.
SALE-LEASE BACK STRUCTURES
Many companies own real estate because they operate a business that utilizes the real estate as its base of operations or as a facility for the sale of its goods or services. For many companies, it can be beneficial to conduct a sale-leaseback of such real estate assets in order to unlock capital that can be used for other business purposes, such as expansion or exit financing. A sale-leaseback transaction can provide an owner with the ability to set his own lease terms, allow the owner to retain control of the real estate that is vital to the operation of the business, provide tax savings by permitting the owner to write-off the total lease payment, and give the owner the ability to recognize greater value for the property as a financing tool because, unlike a mortgage, a sale-leaseback can be structured to finance up to 100% of the appraised value of the property.
TAX STRATEGIES

High-Value Tax Exchanges

KB Property Advisors has many tools at our disposal for aiding clients seeking to complete a Section 1031 Exchange. Our relationships with large real estate firms and institutional property owners provide us knowledge of, and access to, investment-grade properties that are not for sale on the open market. [MORE...]

We find properties, quickly and directly, that are a match by type, size, risk profile, tenancy, geography, and many other criteria as set forth by our clientele.

For high-value tax exchanges, the negative tax consequences of a direct sale can be substantial. We have a team of experienced professionals to guide our clients through a Structured 1031 Exchange. We not only identify suitable properties, but we also secure the financing, conduct due diligence, manage title and escrow, and direct all other aspects of the transaction as needed.

UPREIT Transactions

KB Property Advisors has established relationships with many publicly-traded REITs seeking high-quality properties and willing to enter into an UPREIT transaction in order to gain access to such select properties. [MORE...]

When an owner or investor "contributes" property to an UPREIT, they receive shares in the REIT instead of cash—which would trigger a tax event. The investor receives UPREIT partnership units equal to the value of the property. The Internal Revenue Service code treats the transaction as a deferred sale from a tax perspective and capital gains taxes are, therefore, deferred as well. These transactions can be mutually beneficial as the property owner receives partnership units of equivalent value to the property contributed in publicly-traded REIT shares on a tax-deferred basis.

During the holding period, the investor will receive dividend income from the REIT rather than from the cash flow of property operations. The REIT shares become tradable at which time they can be sold on the open market, thus providing the investor with liquidity.

Owning operating partnership shares in a REIT allows an investor to diversify their portfolio as the REIT owns many properties in different geographic areas. It can be a preferred vehicle for estate planning and generational wealth transfers.

RECENT TRANSACTIONS
  • Fresenius Medical Care
    Deptford Township, New Jersey

    A single-tenant, net-leased
    medical property
    » 9,586 Sq. Ft.
    » Acquired in 2014
    » $4,975,000
    » Purchased by KB Deptford Township, DST

     

  • Mission Oaks Professional Center
    Camarillo, California

    A multi-tenant professional
    office building
    » 80,000 Sq. Ft.
    » Acquired in 2014
    » $12,800,000
    » Purchased by Verdugo Way Associates

     

  • Portofino Senior Apartments
    Henderson, Nevada

    A senior-living, garden
    apartment community
    » 205 units
    » Acquired in 2013
    » $9,900,000
    » Purchased by Reliant Group

     

  • Q-LOFTS
    San Francisco, California

    A portfolio of work-live apartment condominiums
    in the SOMA District
    » 147 units
    » Acquired in 2013
    » $94,000,000
    » Purchased by Essex Property Trust

     

  • Memorial Hermann Medical Center
    Houston, Texas

    A single-tenant, net leased
    medical property
    » 30,000 Sq. Ft.
    » Acquired in 2013
    » $13,310,000
    » Purchased by American
       Realty Capital Healthcare Trust


  • JCPenney Plaza
    Pleasanton, California

    Located on an out-parcel to
    the Stoneridge Mall
    » 94,000 Sq. Ft.
    » Acquired in 2013
    » $30,000,000
    » Purchased by Equity One, Inc.

     

  • The Shoppes at Shoal Creek
    Kansas City, Missouri

    Anchored by Office Max
    and Best Buy
    » 101,000 Sq. Ft.
    » Acquired in 2013
    » $14,000,000
    » Purchased by SCC Investment Co.

     

CAPITAL MARKET INDICES
Friday, July 21, 2017
FED Prime Rate:
  4.250%
FED Funds:
  1.250%
5 Yr. Treas:
  1.823%
7 Yr. Treas:
  2.073%
10 Yr. Treas:
  2.254%
5 Yr. Swap Spread:
  1.903%
7 Yr. Swap Spread:
  2.055%
10 Yr. Swap Spread:
  2.227%
Libor 1-Month:
  1.229%
Libor 6-Month:
  1.453%
ACCOUNT ACCESS

To access your Advisory Account, please enter your username and password below. If you would like to  become an Advisory Client please call us at 702.435.9000