Services
Property Income Advisors, Inc. provides a turnkey real estate investment management platform, including advisory services for acquisitions, financing and sales, as well as comprehensive asset management capabilities. We undertake a personalized and disciplined strategy designed for our clients to achieve real estate investment success. Property Income Advisors, Inc. acts as a fiduciary to its clients, in an unbiased manner and always in the client’s best interest.
With over 75 years of collective commercial real estate experience, our career history includes the successful supervision of asset management activities for more than 15 million square feet of commercial real estate located in major markets throughout the United States valued in excess of $2 billion. In addition, we have directed property acquisitions, dispositions, financings and lease transactions totaling more than $3 billion.
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Specific real estate advisory services provided by Property Income Advisors, Inc. include:
Customized Investment Strategies
Prior to recommending specific properties for acquisition by a client, Property Income Advisors, Inc. will work with the investor to develop a customized investment strategy designed to meet the client’s specific risk and return objectives.
Regardless of the client’s specific risk and return objectives, Property Income Advisors, Inc. primarily seeks out income generating properties in prime locations, built to high quality standards and occupied by credit tenants. Core assets with these fundamentals perform better than other property types over the long-term and help to insure potential for consistent and growing income, valuation increases, capital preservation and they offer better liquidity. Value-add opportunities are also selectively considered, provided a well-defined investment strategy can be determined and the downside risk clearly understood.
Creation of Tax Efficient Holding Structures
Working closely with our client’s legal and accounting team, Property Income Advisors, Inc. has a great deal of experience assisting Gulf-based investors in the creation of tax efficient holding structures. The exact holding structure utilized will depend on the client’s specific requirements and the nature of the investment. We often use the portfolio loan structure to provide Gulf-based investors with tax-free current income during the holding period. At the U.S. level, the portfolio loan structure can also help to offset any capital gains tax that may be due upon the sale of the property. Income can also be sheltered from U.S. taxes by utilizing interest and depreciation deductions.
Shari’a Compliant Transactions
Property Income Advisors, Inc. has worked with Shari’a advisors in the Middle East to structure Ijarah financing approaches that are acceptable from an Islamic standpoint. This entails setting-up an appropriate lease structure that allows Islamic investors to realize the economic benefits of real estate ownership, while separating them from involvement in any way with the mortgage financing. We also understand that sourcing compliant properties to Islamic investors is a very important part of this process.
Asset Management
The asset management efforts of Property Income Advisors, Inc. are focused on maximizing the value of each property. This is accomplished by evaluating the challenges and opportunities of an individual property and then determining the appropriate strategy to produce maximum revenues, reduce operating costs and enhance asset value, through both short and long-term goals. We employ a hands-on, pro-active approach to asset management with well thought-out recommendations and decisions, quick responses and attention to detail, all of which helps to ensure success.
With over 75 years of collective commercial real estate experience, our career history includes the successful supervision of asset management activities for more than 15 million square feet of commercial real estate located in major markets throughout the United States valued in excess of $2 billion. In addition, we have directed property acquisitions, dispositions, financings and lease transactions totaling more than $3 billion. These assignments covered office buildings, retail properties, logistic facilities, undeveloped land and residential complexes and addressed situations such as re-leasing vacant space, value-add investment strategies, operating expense control, market analysis, environmental remediation, completing major property upgrades and renovations and re-financing maturing mortgages.
Specific responsibilities undertaken by Property Income Advisors, Inc. as asset manager include the establishment of an overall management and leasing strategy for each property, along with the creation of an annual operating budget. In addition, local property management and leasing agents are selected and supervised, all cash receipts and disbursements are monitored and controlled and compared to budget, debt service and real estate tax payments are made as required and appropriate casualty and liability insurance is secured. Property Income Advisors, Inc. also negotiates lease terms with prospective tenants and works with outside attorneys to document such leases. We carry out on-site property inspections at least on a semi-annual basis and provide our clients with detailed accounting reports on a quarterly basis. All major property decisions and expenditures are made only with the prior approval of the client.
Acquisitions
Property Income Advisors, Inc. assists investors in the acquisition of United States commercial real estate. Working closely with the client, we establish acquisition guidelines and then seek properties that meet those parameters. With strong national relationships, we receive a continuous flow of property submissions from all of the major U.S. markets.
For properties that meet the client’s acquisition criteria, Property Income Advisors, Inc. prepares an Investment Summary detailing all of the attributes of the property and the rational for its purchase, together with financial projections. After obtaining the investor’s approval to proceed forward on an acquisition, Property Income Advisors, Inc. will supervise and direct the entire process.
Specific responsibilities undertaken by Property Income Advisors, Inc. will include the negotiation and finalization of the purchase contract and the completion of a thorough financial review of the property by examining each tenant lease and all other revenue and expense items. A detailed property inspection will be conducted. We will retain and supervise outside professionals such as appraisers, engineers and environmental specialists as part of the acquisition process. A title and zoning review will be completed. Working closely with attorneys and accountants, Property Income Advisors, Inc. will assist in the formation of the most tax-efficient holding structure. If a mortgage loan is required as part of the purchase, we will also coordinate all aspects of this. The terms of an acquisition are finalized only with the prior approval of the client. After an acquisition, Property Income Advisors, Inc. provides professional asset management, which is critical to the success of any real estate investment.
Financing
Obtaining favorable mortgage financing on behalf of a client is another service provided by Property Income Advisors, Inc. An appropriate level of mortgage financing enables an investor to gain the advantage of leverage and to take advantage of using the interest paid on the mortgage as a deduction for U.S. income tax purposes.
While Property Income Advisors, Inc. has long-standing relationships with many mortgage lenders on a national basis and can work with them directly, we regularly use a select group of mortgage brokers to source loan quotes. These mortgage brokers deal with mortgage lenders on a full-time basis and this insures that the most competitive loan quotes are presented to the client.
Property Income Advisors, Inc. will supervise the efforts of the mortgage broker to insure that the loan quotes obtained from all lenders address the client’s objectives. We will then recommend a specific lender to the investor and, once selected, negotiate the loan application, assist the lender with their underwriting and in the preparation of the physical due diligence reports. Property Income Advisors, Inc. will also work closely with the lender, the lender’s attorney and the borrower’s attorney to negotiate the loan documents and to lock the interest rate and to finalize the funding of the mortgage loan. The terms of the mortgage loan are finalized only with the prior approval of the client.
Dispositions
Selling a property is a complex task. Property Income Advisors, Inc. can direct and supervise all aspects of the disposition process. Specific duties undertaken include the selection and supervision of the sales agent, review and approval all marketing material, supervision of the marketing process and preparation of a detailed document center covering all of the necessary due diligence materials to be supplied to prospective buyers. Property Income Advisors, Inc. will also analyze all offers received on the property and, after a buyer interview and selection process, a buyer will be recommended. We will then work closely with the buyer, the buyer’s attorney, the seller’s attorney and with title and escrow specialists to finalize the purchase and sale agreement and to close the transaction. The terms of a sale are finalized only with the prior approval of the client.
Consulting Services
When an investor needs recommendations on a course of action for a particular property, Property Income Advisors, Inc. can undertake a detailed review of the property’s operations and the market in which it is located. Specific recommendations in the form of an action plan are presented to ownership. Property Income Advisors, Inc. can then supervise the implementation of the action plan. Examples of consulting services include property operation reviews, sell versus hold analysis, opinions of value, analysis of debt maturity alternatives and property strategy and leasing plan development.