Analysis Finds Resale Value of Borelli’s Commercial Condos Has Risen by Up to 18% Annually

Commercial condominiums are one of the hottest trends in real estate today. Many buyers are initially attracted by the prospect of equity buildup and substantial tax benefits—ranging from IRC Section 179 write-offs and accelerated depreciation made possible by cost segregation, to loan interest deductions.

Now, an analysis by Borelli Investment Company of 15 years of data from current resales at its previously developed commercial condominiums reveals another compelling reason to buy. The study found that Borelli’s commercial condo units at these developments have seen appreciation of 9% to 18% annually.

“We have typically used a figure of two percent appreciation annually in our financial comparisons for prospective buyers,” said Ralph Borelli. “This information seems to indicate that’s very conservative. With a wealth of history on our De La Cruz Commercial Condominiums, an owner who bought in 1992 would have enjoyed a return over 15 years of 4 1/2 times the annual figure we have been using.”

Borelli’s exclusive Lease vs. Buy Calculator will also allow prospective buyers to do a detailed, personalized analysis of the potential after-tax savings from buying a condo instead of leasing space. The powerful, easy-to-use tool is available online and provides answers in seconds.  READ THE FULL STORY

When it Comes to Leasing... The Little Things Borelli Does Mean a Lot

An out-of-the-area company that needs a small secondary location in Silicon Valley…and flies in for a day to find the space. A start-up business looking for modest-sized offices. A fast-growing company that wants to be able to terminate an existing lease and move to a larger space in the same park if possible.

These are examples of the kinds of smaller clients and special requests many brokers aren’t prepared for—and Borelli Investment Company enjoys serving. “We are geared to handle any type of space requirement, regardless of size—big or small,” remarked Monte Pasquinelli, Borelli’s senior vice president-asset management.

A high percentage of Borelli’s managed inventory ranges from 1,200 to 6,000 square feet, with a surprising number of spaces under 1,000 square feet. Borelli offers clients exceptional flexibility, creative leasing alternatives, local knowledge, and enhanced responsiveness through services such as a web-based tenant support system and good, old-fashioned face-to-face time. The little things Borelli does for its clients—large or small—make a BIG difference. READ THE FULL STORY

Borelli’s Latest Investment Fund Sells Out in One Week

Borelli Investment Company raised $10 million in equity capital—double its original projection—for its latest investment fund in only one week. Investors quickly snapped up the $100,000 shares, which are projected to pay an annual return of 12 percent.

With the money in hand, homebuilder KB Home has now begun construction of 80 affordable townhomes in the heart of Sunnyvale, near Lawrence Expressway and Monroe. Investors interested in future investment opportunities may contact Ralph Borelli, and should consult with their CPA before investing. READ THE FULL STORY

Hungry for a Tasty Deli Opportunity?

Do you have an appetite to run your own delicatessen? Right now, at Junction Office Center, 2051 Junction Avenue in North San Jose’s Golden Triangle, investors or owner-operators have the opportunity to purchase—NOT lease—space for an exclusive 1,286-square foot deli with a 400-square foot outdoor eating area.

The deli will be the only one serving Junction Office Center’s tenants, representing a total of 52 units and 77,400 square feet of space in the two, two-story buildings. In addition, 56,000 employees work within a 3-mile radius of the location, and 220,000 employees work within a 5-mile radius. The plumbing and electrical infrastructure for the deli is already in place.

If you like your deli opportunities rare, this is it—the only one that also includes a side of substantial tax benefits and other property ownership advantages. READ THE FULL STORY

Staff Spotlight: Mike Kronzer and Joe Vieira

These newcomers to Borelli Investment Company’s staff of dedicated property management professionals bring an extensive background in managing family real estate holdings and a commitment to providing the highest quality service to their positions. Learn how their background, business philosophy, and secrets to success make them a perfect fit for Borelli—and an ideal resource for owners and tenants. READ THE FULL STORY

COMMERCIAL REAL ESTATE INSIDER is published periodically by Borelli Investment Company. For more information about Borelli’s services, visit www.borelli-inv.com, or e-mail info@borelli-inv.com. If you’d like to add an individual or business to our electronic distribution list for this and future issues of the Insider, CLICK HERE.
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