Areas of Specialty
Here at Aginsky Capital we manage a wide range of asset types with over $100 million of real estate under management today.
We pride ourselves in providing a turnkey solution to investors with customized services, all under one roof.
What We Do
Our service suite is tailored to offer you a one-stop-shop when it comes to investing. Count on us to tackle challenges in all of the following areas.
Commercial Real Estate Acquisition
ACG’s real estate investment philosophy is simple and effective. We target high quality commercial real estate assets that have a strong tenant base and an opportunity for us to add value to the asset. We evaluate every asset through three key metrics.
The primary metric is the predicability and certainty of the cash flows generated via rental yield over the investment horizon.
The secondary metric is the opportunity to increase the value of the underlying asset through repositioning or rehabilitation.
The final metric is the external local and macro-economic factors that may affect the value of the underlying asset over time.
ACG’s Real Estate Service Suite
- Company formation and structuring
- Identification of the asset
- Due diligence
- Financial due diligence
- Property inspection
- Legal due diligence
- Negotiation assistance
- Transaction advisory
- Property management
- Leasing services
- Property media and design
- Tangible asset
- Total control of the asset through 100% ownership structure
- Hedge against inflation
- Hedge against currency devaluation
- Capital appreciation opportunity
- Easy to leverage
- Ability of investor / manager to add value
- Predictable and guaranteed cash flow*
Recommended Property Types
Government Leased Buildings
Investing in real estate in which government agencies are tenants is much like investing in a U.S. treasury bond: fixed rental income guaranteed by the full faith and credit of the United States government. However, the difference between a bond and a government-leased property is the rate of return: a government bond will earn an investor 0.5-1.5% on average, while a property will earn a minimum of 7-9%. A property owner leasing the space to the government is also assured the tenant will always pay on time and will never experience financial problems that would impede rental income.
The federal government, the largest user of real estate in the United States, owns and occupies 300 million square meters of office and related space. Currently, 32 million square meters of that space is leased. According to the General Services Administration (GSA), property manager for the federal government, the amount of government-leased space continues to grow at a more rapid pace than that of owned space.
Furthermore, federal government real estate leases require the landlord and the tenant each to pay a portion of the operating expenses. This structure creates an alignment of interests to improve cash flow and help insulate investors from rising operational expenses.
Office Buildings and Business Parks
Economic growth stimulates the lease market of office buildings. Office buildings remain one of the less risky and most profitable investments in commercial property.
One of the more popular types of leases in US is a triple-net lease. In such a lease the tenant is responsible for paying all current expenses related to maintenance, utilities, taxes and insurance. Landlords of properties with such leases collect rent while tenants pay most of the operational expenses. This increases the income of landlords with fewer risks as the burden of paying for utilities, taxes and insurance is fully transferred to tenants. Most of the properties presented by our firm have tenants that are on such types of leases.
In many cases, office buildings are rented by companies under long term lease contracts with as long as 5, 10, or even 15 years still remaining on the lease. The lease lengths will serve to insulate the investor from the short-term macro-economic cycles and also allow us to capture long-term capital appreciation.
Gyms, Fitness Clubs and Healthcare Buildings
The number of people using medical services and doing sports is expected to increase as healthcare reform continues. Mandatory insurance for businesses and state insurance for poor and older people reduces the financial burden for families and people who would like to improve their health.
Fitness centers, such as 24 Hour Fitness, Allstar Fitness, and Gold’s Gym, operate based on monthly and annual contracts. This provides them with stable income streams regardless of client usage of the facilities. Sport and fitness industry, including lease of fitness club buildings, is expected to continue stable annual growth of 2.6% to reach $28.2 billion by 2016. Most of the above mentioned fitness clubs are all franchises of the national networks with thousands of locations nationwide. The lease of specific fitness clubs in most cases is guaranteed by credit rated corporations, which minimizes financial risks for the investor.
Service and Retail Centers
The U.S. is a country of shopaholics says Face Hope Consolo, chairman of Douglas Elliman, a retail group that places new retail centers from all around the world in the U.S. As soon as one shop closes in American retail center, another one opens in its place. Due to the stable profits and high liquidity, the properties leased to service centers and retailers are seldom on the market and often traded by exclusive firms and brokers through their personal contacts with buyers.
Ancillary to the uptick in apartment rentals has been an increase in self-storage rentals from individuals or families who have needed to store their belongings as they downsize to a smaller residence. Investors in the self-storage space have continued to express optimism even during the recession of 2008-09. Interest in this asset class, particularly from private equity firms, continues to increase because of steady cash flows, high returns, and low loss ratios. In addition, investors like the fact that there are no tenant improvement costs or leasing commissions and also have limited large capital expenditures.
Popularity of the self-storage industry has grown so fast that in the past decade that use has grown from one in every seventeen households to one in every ten. As mentioned above, ownership of a self-storage facility provides relatively high returns with lower costs and without susceptibility to macroeconomic changes – growing businesses and families also require storage services during moves into larger buildings and homes. This asset’s ability to maintain value in both favorable and depressed economic situations makes it a safe bet for any real estate portfolio.
Asset Managment Services
At Aginsky Capital Group we service a broad range of niche categories to serve the appetites of the most diverse group of global investors. From individuals to institutions and from small amounts to large capital investments, we service almost any type of privately held U.S. investment vehicle.