A strong shekel and a weak US dollar have prompted many affluent Israelis to explore investment opportunities abroad, with a surge in foreign investor interest in US commercial real estate.
Optimism about a strong economic recovery and a post-pandemic boom has led to a resurgent US real estate market. Although residential real estate prices, at least in some US locations, are approaching “bubble” territory, commercial real estate, particularly in high-demand sectors like health and medical, presents some very attractive opportunities for qualified investors.
Commercial real estate is attracting renewed investor interest because it can produce returns that are uncorrelated with bonds and equities. This makes commercial real estate a great way to achieve diversification of an investment portfolio while at the same time providing the security and stability of a physical asset, with investment returns in a first world currency.
OrbVest is a global real estate company based in New York, with representation in Israel, which offers investors from around the world the opportunity to invest directly in US commercial properties, with a focus on medical office buildings, from as little as $10,000.
OrbVest’s strategy is to acquire profitable, professionally-managed medical office buildings in fast-growing cities across the United States, on behalf of limited partner investors from over 20 countries around the globe, including Israel.
OrbVest now boasts a portfolio with a total area of over 1.4 million square feet, representing more than $360 million of specialized medical real estate under management.
“We believe that healthcare-related commercial real estate in the United States was able to prove its resilience before and during the pandemic, and should continue its growth as an ageing population and technological progress drives increasing demand for these specialized buildings,” says OrbVest CEO Martin Freeman.
OrbVest recently closed on its purchase of Fleming Island in Jacksonville, Florida. This is OrbVest’s first property in the Sunshine State, and its fourth acquisition since the start of 2021.
Earlier this year OrbVest secured its third property in Princeton, New Jersey, a medical and office building comprising 40,028 square feet of rentable space; Talavi Spectrum, a 74,662-square-foot, multi-tenant office building in Phoenix, Arizona, OrbVest’s second property in greater Phoenix metro area; and a 11,852-square-foot Great Expressions Dental Centers office situated on 1.15 acres in Fayetteville, Georgia.
How it WorksQualified investors have the choice of investing in a listed security, or, if they are an accredited US investor or have an accredited company or LLC, they can invest directly in the US.
Quarterly dividends are paid from the income of the selected project, as well as the capital gains paid at the end of the investment period, depending on the performance of the underlying asset.
Investors receive quarterly reports and can monitor their holdings on a specialized dashboard. Most investors choose to re-invest in other OrbVest projects.
“At the end of five years, which is generally our hold period, we typically sell the building, and produce another profit as the targeted buildings typically have rental escalation clauses and other value add opportunities that add investor value. OrbVest has built a strong reputation as a specialist in medical office investing over the past seven years in the United States and has a pipeline of attractive off market investment opportunities,” explains Liron Mazor, representing OrbVest Israel.
Why Medical Real Estate?
OrbVest’s experienced management team has invested considerable resources understanding the transformative nature of medical technologies and how they will influence health care and senior living trends in the future.
Healthcare real estate is expected to grow as demand for life science facilities, medical offices, and senior housing increases. Experts agree that segmenting away from traditional hospitals and diversifying into outpatient and specialized facilities is a growing trend that will create significant demand and profitable future opportunities for healthcare commercial real estate in the United States.Pre-pandemic and mid-pandemic stability have positioned healthcare properties to see significant demand and future growth as the destabilizing impact of the pandemic is diminishing and life is returning to normal.
Israeli investors seeking stable, income-generating investments in a low or negative yield world are increasingly turning their attention to US commercial real estate.
For qualified international investors seeking diversification and US dollar denominated investment returns in professionally-managed, high-yield medical real estate, OrbVest represents an exceptional opportunity.