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Showing posts from February, 2025

5 Hidden CRE Investment Goldmines in OC and LA

  5 Hidden CRE Investment Goldmines in OC & LA đź’°đź“Ť Most investors are looking in the wrong places —but these five overlooked areas in Orange County and Los Angeles County are seeing major appreciation and development opportunities. 🚀 1. Santa Ana (Orange County) – The Next Urban Boom âś… Why? Santa Ana is undergoing a major urban revitalization , with new mixed-use developments, upgraded infrastructure, and a growing population of young professionals looking for work/live spaces. âś… Hot CRE Plays: Retail-to-multifamily conversions, office-to-residential projects, and small-scale industrial spaces. âś… Insider Tip: The Fourth Street corridor and Bristol Street near South Coast Metro are seeing a lot of city-backed redevelopment efforts . 2. South LA (Los Angeles) – Logistics & Industrial Hotspot âś… Why? With proximity to LAX, the Ports of LA & Long Beach, and major highways , South LA is primed for industrial and logistics expansion . âś… Hot CRE Plays: Last-mile deli...

What are cap rates?

Understanding Cap Rates: A Beginner’s Guide for Southern California Investors If you’re diving into commercial real estate investing for the first time, you’ve likely come across the term “cap rate.” This critical metric can make or break your investment decisions. But what exactly is it, and why does it matter so much? Let’s break it down into five easy-to-digest points. 1. What Is a Cap Rate? Cap rate, short for capitalization rate, is a formula used to measure the return on investment (ROI) for a commercial property. Think of it as a snapshot of a property’s potential profitability. Here’s the basic formula: Cap Rate = Net Operating Income (NOI) ÷ Purchase Price • Net Operating Income (NOI) is the property’s income after deducting operating expenses (like property taxes, maintenance, and insurance). • Purchase Price is what you paid (or will pay) for the property. For example, if a property generates $100,000 in NOI annually and you paid $2,000,000, the cap rate would be: $10...