Marcus & Millichap Vice President/Investments, Steven Regenstreif To Address Long-Term...

ENCINO, Calif./PRNewswire/ -- Marcus & Millichap net lease specialist, Steven Regenstreif, will join a panel of the nation's most prominent real estate experts discussing the outlook for 1031 tax deferred exchange transactions at the second annual "Net Lease Summit: Capital Strategies for Corporate Real Estate" conference sponsored by Commercial Property News on September 13.

"While the economic slowdown will continue in the coming months, the single tenant net lease segment of the real estate market should retain its health," said Regenstreif, who has completed more than $750 million in net lease transactions. "The sluggish economy and the inefficiency of the stock and bond markets are prompting investors to rid their balance sheets of commercial real estate assets. As developers seek to release construction debt, the market has an abundance of good quality single tenant opportunities. Net lease transactions, particularly in 1031 tax deferred exchanges, enable investors to avoid capital gains and meet their financial goals without management responsibilities. Current 1031 tax laws allow an investor to sell a property and purchase a replacement from a third unrelated party, it is not required that properties be actually traded."

Choosing the right single tenant property with proper analysis is more critical than ever for investors seeking reinvestment options, Regenstreif commented. "If a tenant goes out of business, the demographics and area trends of the location should be strong enough to appeal to a good credit tenant. Credit is no longer the only consideration. Location has once again become a key factor; therefore, understanding the demographic variables -- population growth, trends, household incomes, area density and consumer expenditures -- of the submarket is crucial."

In the current market, according to Regenstreif, most 1031 exchange investors are buyers coming out of multi-residential and commercial investments looking to move their equity from management intensive assets to non-management credit tenant properties. The right location and tenant in a net-leased property will provide an investor with consistent returns with minimal management at a time of volatility in other assets.

To access reports on market trends by property type: http://www.marcusmillichap.com.

SOURCE: Marcus & Millichap, 09/07/2001
CONTACT: Hessam Nadji of Marcus & Millichap, +1-415-391-9220
Website: http://www.marcusmillichap.com