COMPELLING INVESTMENT

Despite declined real estate values, it’s still difficult for smaller investors to place their money in NYC real estate, says Marilyn Kane, president of newly formed real estate fund management firm Iridium Capital, whom we visited in her Madison Ave office. There are many accredited investors looking for places to invest, but distressed properties, bundle foreclosures, and short sales aren’t for the inexperienced, she notes. Her newly launched fund will be investing in net-leased properties with long-term holding periods, a vehicle particularly suitable for self-directed IRAs.
Marilyn, with colleague Sean Shanahan, tells us that triple-net leased properties are compelling because the tenant manages the property and pays for all building maintenance, insurance, and taxes— leaving the investor little or no responsibility. Iridium's first fund will invest in a diversified portfolio of NNN properties across the medical, industrial, and retail sectors in the $1M to $3M range. Today’s combination of low interest rates and historically high cap rates should allow investors to attain at least 8% annual returns, she adds. In the meantime, catch her speaking on the subject at NYCREW’s “Commercial Leasing: What Not to Do in This Market” panel on 10/22 and the NYC Real Estate Expo on 10/30.

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