The midterm elections are over, and the country has turned their interest to the markets and the holidays. The calendar pages are getting ready to shift and the planning has already begun in earnest for 2023. Interest rates may be up and today’s financial climate is changing all the time, but that’s ok with Alliance Consolidated Group of Companies (Alliance), Founder and CEO Ben Reinberg. As a successful commercial real estate investor for almost three decades, Reinberg has seen it all.
“Alliance has been successful because of our persistence, focus, resource-rich ability to adapt to different environments, and our strong leadership team. We are always spearheading new initiatives and taking our investments to the next level,” said Reinberg.
The company is excited by the market changes and invests in in the healthcare industry because of its resilience to downturns. In this economy, many see commercial real estate as a buying opportunity, especially when done properly. According to Reinberg, healthcare is also among the fastest growing industries, with respect to demand. Both service demand and worker demand play key roles in the success of this industry, especially in the South, Southeast, Southwest, Mountain, and the Western regions of the United States.
“Our ‘sweet spot’ is medical and veterinary properties with a population of at least 50,000 permanent residents within a 5-mile radius,” notes Reinberg. “Rent growth in the initial lease term, investment in properties by the tenants, and whether they are private or public organizations” all play key roles in the Alliance decision-making process. “Each of our criteria are designed to maximize the value and return for each side deal,” added Reinberg.
Alliance certainly isn’t the only company investing in the health and veterinary commercial real estate spaces, but they have tackled many of the misconceptions about the space head on. Those include everything from risk to returns. The Alliance team understands this and clearly realizes the importance of everything from education to selecting the right partners when it comes to investing. For Ben Reinberg and his highly skilled Alliance team, this is literally what they handle every day.
“The biggest misconception I hear is that investing in medical office assets is too risky. It’s ironic because the human body is never going out of style. It’s our foundation, as well as that of our tenants’ businesses. Another misconception is that investing in medical office assets provides low returns. Alliance has average mid 20s IRR in our medical investment space. We consistently provide low-risk investments with opportunistic returns.”
While the company is selective about their investments, they are also keenly focused on their growth as well. They recently launched a new fun to raise additional capital for more commercial transactions and plan to do a lot of purchasing over the next 18-24 months.
For those that have already invested in the commercial real estate space, or those that are simply looking for consistent returns in an ever-changing economy, Alliance offers a variety of investment opportunities.