To Top

Tag Archive: Investing

  1. Did you know…Commercial real estate often outperforms the stock market over the long term?

    Comments Off on Did you know…Commercial real estate often outperforms the stock market over the long term?

    Did you know commercial real estate often outperforms the stock market over the long term?

    Since real estate properties are tangible assets, they are inherently less risky than stocks and better equipped to weather economic downturns. Because of these factors, according to MorningStar, tangible assets like real estate have outperformed the Standard & Poor’s 500 (the stock market of the 500 largest companies in America) for the past 30 years (Due.com, n.d.).

    While both stock and real estate investing have their pros and cons, purchasing real estate can provide more stable returns and offer tax advantages. In fact, a Gallup poll from 2023 found that 34% of Americans think real estate is the best long-term investment, while only 18% say the same of stocks and mutual funds (Asis, 2023).

    Are you interested in getting started in commercial real estate? Check out a few Black Diamond Realty investment properties that would be a great addition to any investment portfolio below.

    West Virginia Investment Offerings:

    3313 4H Camp Road is a fully leased investment opportunity located along tranquil Booth Creek outside city limits in Morgantown. Originally built as a single-family residence, the property has since been redeveloped as a drug rehabilitation center and is fully leased to long -term tenant, Ascension Recovery Services.
    View the detailed marketing flyer for 3313 4H Camp Road. 

    900 Fairmont Road is a fully leased office investment opportunity in Morgantown. The property is conveniently located inside Morgantown and Westover city limits and within two miles of WVU’s downtown campus. The property is fully leased by Wise Path Recovery Centers.
    View the detailed marketing flyer for 900 Fairmont Road. 

    32 Baird Street is an impressive 12-unit student housing asset with one office at the doorstep to West Virginia University’s Downtown Campus. This turn-key, recently upgraded asset offers attractive in-unit amenities including a washer-dryer, patio/deck area, oversized closets, keyless entry doors and granite countertops.
    View the detailed marketing flyer for 32 Baird Street.

    300 Scott Avenue – This portfolio of four buildings on Scott Avenue in Morgantown includes a total of 22,122 (+/-) square feet of space outside of city limits. Three of the buildings consist of office space, and one is an 8-unit multifamily building.
    View the detailed marketing flyer for 300 Scott Avenue.

    705 Greenbag Road is a fully leased, two-story office building comprised of 3,020 (+/-) square feet. Currently occupied by Apex Physical Therapy, the property comes with a 15-year seller sale leaseback, ensuring long-term stability. The property is located outside the city limits of Morgantown roughly 2.9 miles from I-68, Exit 4 and 2.8 miles to downtown Morgantown and West Virginia University’s main campus.
    View the detailed marketing flyer for 705 Greenbag Road.

    440, 442 Williamsport Pike is a turn-key car wash located in a high-traffic area of rapidly growing Martinsburg, WV. Excellent visibility at the intersection of Routes 9 and 11 and prominent signage make this 7,667 (+/-) square foot offering a perfect generational investment or prime redevelopment opportunity for the right buyer.
    View the detailed marketing flyer f0r 440, 442 Williamsport Pike.

    213 Lincoln Street is a multifamily investment opportunity in Grafton that offers a total of five separate apartments across one 4,301 (+/-) square foot home. All units are fully leased, and off-street parking is available.
    View the detailed marketing flyer f0r 213 Lincoln Street.

    18 Cleveland Avenue is conveniently located within walking distance to WVU’s main campus and close to many Morgantown amenities. All 5 units are currently leased, including a warehouse/industrial/office space of 3,408 (+/-) square feet currently leased by the landlord. 18 Cleveland Avenue would make a great addition to an investment portfolio.
    View the detailed marketing flyer f0r 213 Lincoln Street.

    511 Grant Avenue is a two-story, seven-unit multifamily building grossing 9,120 square feet on 0.138 (+/-) acre. Each unit is approximately 800 (+/-) square feet. This offering is in an ideal location in downtown Morgantown and in the heart of WVU’s main campus.
    View the detailed marketing flyer for 511 Grant Avenue.

    200 West Creek Village is a mobile home investment opportunity in Morgantown is comprised of a 24-lot mobile home park on 12.88 acres. This property is conveniently and strategically located just a short drive from major routes, including Route 7 and I-68, and within close proximity to Sabraton-area shopping, downtown Morgantown, and WVU’s main campus.
    View the detailed marketing flyer for 200 West Creek Village.

     

    Pennsylvania Investment Offerings:

    100 Ridgeview Drive is comprised of one 10,800 (+/-) square foot multi-tenant building on 5.08 (+/-) acres. It includes six units, with three available for lease. This is a great opportunity for a commercial investor looking for property in a well-trafficked, easily accessible location or a business looking to lease a space in a developing, commercial area.
    View the detailed marketing flyer for 100 Ridgeview Drive.

    1023 Pittsburgh Street in Uniontown, PA includes two single-story office buildings on 3.76 acres. The buildings are comprised of 30,000 (+/-) square feet, 12,000 (+/-) square feet in Building 1 and 18,000 (+/-) square feet in Building 2. Features of this investment property include two off-street parking lots and a 24-hour emergency call system with central monitoring.
    View the detailed marketing flyer for 1023 Pittsburgh Street.

    1264 Pittsburgh Street is an investment opportunity in Uniontown, PA featuring a multi-tenant building, office space, and an auto sales car lot on nearly two acres. The property features expansive road frontage and an easily accessible paved parking lot.
    View the detailed marketing flyer for 1264, 1266, 1268 Pittsburgh Street.

     

     

    References

    Asis, A. (2023, November 23). Real estate vs. stocks: Which has higher returns? US News. Retrieved September 24, 2024, from https://money.usnews.com/investing/articles/real-estate-vs-stocks-which-has-higher-returns

    Due.com. (n.d.). Real assets outperform S&P 500 consistently. Nasdaq. https://www.nasdaq.com/articles/real-assets-outperform-sp-500-consistently

  2. Did you know…A higher cap rate can indicate a potentially higher return on investment?

    Comments Off on Did you know…A higher cap rate can indicate a potentially higher return on investment?

    Did you know a higher cap rate can indicate a potentially higher return on investment?

    In commercial real estate, cap rate, short for capitalization rate, is used to estimate the potential return an investor will make on a property. The formula for calculating cap rate is:

    NOI (Net Operating Income)/Asset Value

    A higher cap rate implies a higher return on investment on a property in comparison to a similar investment – but a higher cap rate also carries more risk (DiLallo, 2024).

    A property with a lower cap rate can mean lower potential returns but is also more stable and less risky. If an investor has a higher tolerance for risk and seeks the highest possible profits, they will want to target a high cap rate (Rafter, 2024).

    A few things to remember about cap rates:

    What is considered a “good” cap rate is subjective and dependent of a variety of factors – but, in general, there is agreement that a cap rate of 5-10% is healthy (Cap Rate 101: Definition, Calculation & Good Cap Rate Factors, 2022).

    According to the Commercial Market Insights Report by the National Association of Realtors, as of January 2023, the following were the national average cap rates by property sector: Multifamily: 4.9%, Office: 6.9%, Industrial: 6.2%, and Retail: 6.7% (DiLallo, 2024).

    Cap rate is most useful for determining if one real estate investment is worthwhile compared to other investments and for decision-making is best used in conjunction with other tools.


    Featured Properties: 

    705 Greenbag Road is a fully leased, two-story office building comprised of 3,020 (+/-) square feet. Currently occupied by Apex Physical Therapy, the property comes with a 15-year seller sale leaseback, ensuring long-term stability. The property is located outside the city limits of Morgantown roughly 2.9 miles from I-68, Exit 4 and 2.8 miles to downtown Morgantown and West Virginia University’s main campus. Cap Rate: 7.79%. View the detailed marketing flyer for 705 Greenbag Road. 

    900 Fairmont Road is a fully leased, two-story office building comprised of 10,200 (+/-) square feet. The building is currently occupied by Wise Path Recovery Centers (managed by Ascension Acquisition LLC). The property is located inside the city limits of Morgantown and Westover, situated 2 miles of West Virginia University’s Downtown Campus, shopping and more. Cap Rate: 6.79%. View the detailed marketing flyer f0r 440, 442 Williamsport Pike.

    440, 442 Williamsport Pike is a turn-key car wash located in a high-traffic area of rapidly growing Martinsburg, WV. Excellent visibility at the intersection of Routes 9 and 11 and prominent signage make this 7,667 (+/-) square foot offering a perfect generational investment or prime redevelopment opportunity for the right buyer. As-Is Cap Rate: 9.61%.  View the detailed marketing flyer f0r 440, 442 Williamsport Pike.

    1023 Pittsburgh Street in Uniontown, PA includes two single-story office buildings on 3.76 acres. The buildings are comprised of 30,000 (+/-) square feet, 12,000 (+/-) square feet in Building 1 and 18,000 (+/-) square feet in Building 2. Features of this investment property include two off-street parking lots and a 24-hour emergency call system with central monitoring. Cap Rate: 9.31%. View the detailed marketing flyer for 1023 Pittsburgh Street.

    32 Baird Street is an impressive 13-unit student housing asset at the doorstep to West Virginia University’s Downtown Campus. This turn-key, recently upgraded asset offers attractive in-unit amenities including a washer-dryer, patio/deck area, oversized closets, keyless entry doors and granite countertops. Cap Rate: 7.4%. View the detailed marketing flyer for 32 Baird Street.

     

     

    References
    Cap Rate 101: Definition, Calculation & Good cap Rate Factors. (2022, June 9). Commercial 1 Brokers. https://commercialonebrokers.com/what-is-capitalization-rate-1/.
    DiLallo, M. (2024, April 5). Capitalization rate: Everything you need to know. The Motley Fool. https://www.fool.com/investing/stock-market/market-sectors/real-estate-investing/basics/capitalization-rate.
    Rafter, D. (2024, July 2). Cap rate: What is it and how is it calculated? Quicken Loans. https://www.quickenloans.com/learn/capitalization-rate

     

     

     

     

     

     

     

     

     

  3. Did you know…There are three classifications of office buildings?

    Comments Off on Did you know…There are three classifications of office buildings?

    Did you know…There are three classifications of office buildings?

    Class A, Class B, and Class C are three classifications of commercial office buildings. The classifications are based on quality, condition, location, price, and amenities (Hamann, 2024). Class A, B, and C commercial office building classifications are considered subjective as price and availability of real estate varies by geographic location. For example, a Class A building in a suburb might be considered a Class B building in a city. Generally, characteristics of the three classes include:

    Class A – Class A properties are regularly the newest in their market. These buildings are characterized by high-quality construction and have the most up-to-date features and in-demand amenities. Class A office buildings often attract professional tenants like law firms and can be the most expensive (Hamann, 2024).

    Class B – Class B buildings are typically at least 10 – 20 years old and fall in the middle range in terms of quality of location and amenities. These buildings may not boast a prime location or top-of-the-line amenities but are well-maintained and functional (Tross, 2024).

    Class C – Class C office buildings are often at least 20 years or older and may need repair. The tenants of Class C buildings are more likely to be small and family-run businesses in smaller markets. While Class C buildings may be less desirable aesthetically, the rent is usually lower.

    Here are a few Black Diamond Realty’s office offerings and their features and amenities:

    315 High Street – 315 High Street is a two-story office building located in the heart of downtown Morgantown. The 9,240 (+/-) square foot building boasts a prime Morgantown location with high foot traffic, off-street parking, storage space, and proximity to many popular Morgantown amenities including WVU’s main campus. Learn more about 315 High Street.

    2004 White Willow Way – This 4,000 (+/-) square foot office space is in a great location with excellent visibility and frontage along Point Marion Road in Morgantown. The suite features a reception/waiting room, four private offices, two open office areas, one conference room, a large file/storage room, and off-street parking. Learn more about 2004 White Willow Way.

    1000 Technology Drive – Located within the I-79 High Technology Park in Fairmont, 1000 Technology Drive offers multiple office suites ranging in sizes form 1,090 (+/-) to 4,888 (+/-) square feet. The office suites feature top-of-the-line amenities including high security, free parking, a fitness center with group fitness classes, a large outdoor courtyard, and more. Learn more about 1000 Technology Drive.

    45 Professional Place – Located in White Oaks Business Park in Bridgeport, 45 Professional Place’s available suite offers a reception area, large open office/work room, conference room, storage closet, and ample parking. White Oaks Business Park is a modern, campus style business park conveniently located adjacent to West Virginia’s growing I-79 corridor. Learn more about 45 Professional Place.

    Cambridge Place – Also in Bridgeport, Cambridge Place Office Park offers premier office suites in a pristine setting. The office park, located off Thompson Drive, features high end finishes, manicured landscaping, convenient parking, and on-site management. Learn more about Cambridge Place.

     

    References

    Hamann, J. (2024, March 12). Class A, B, and C office buildings in commercial real estate. Commercial Real Estate Loans. https://www.commercialrealestate.loans/commercial-real-estate-glossary/building-classes/
    Tross, K. (2024, July 12). Class A vs Class B Office Buildings: Understanding the Key Differences. VTS. https://www.vts.com/blog/the-3-office-buildings-classes-what-do-they-really-mean

     

     

     

     

     

     

     

     

     

     

     

  4. Did you know…Conducting thorough due diligence before investing in commercial real estate can reduce risk

    Comments Off on Did you know…Conducting thorough due diligence before investing in commercial real estate can reduce risk

    Did you know…Conducting thorough due diligence before deciding to invest in a commercial real estate property can reduce risk and help the investor avoid mistakes and evaluate their bottom line.

    Generally, due diligence in commercial real estate refers to the research, investigation, and assessment stage that occurs before purchasing or investing in a commercial property. Due diligence helps the potential investor identify risks involved with the investment and allows the investor to make the most informed decision possible. The most common factors to consider in the process are the property’s physical condition, environmental risks, zoning laws, financials, tenant leases, and the seller’s background (Junaid, 2024).

    There are many websites where investors can find due diligence checklists. The checklists all vary slightly, but, in general, a commercial real estate due diligence checklist may include:

    General

    • Physical inspections of the property
    • Obtain site plan / survey
    • Obtain property history of capital improvements
    • Reiew environmental reports

    Financial

    • Obtain most recent property tax returns
    • Review leases
    • Review rent roll and tenant history
    • Review utility bills and other property expenses

     Legal

    • Title report
    • Obtain Certificates of Occupancy, any appraisals, and all relevant contracts
    • Insurance quote
    • Zoning information, approvals, and permits
    • Licenses and warranties
    • Property management matters


    We are the experts in commercial real estate, to speak to a specialized Associate, call 304.413.4350. Click HERE to visit us online.

    Resources for Due Diligence Checklists:
    https://propertymetrics.com/real-estate-due-diligence-checklist/
    https://safetyculture.com/checklists/real-estate-due-diligence/
    https://www.tylercauble.com/blog/commercia-real-estate-due-diligence#checklist

    References:
    Junaid, J. (2024, February 16). How to conduct a due diligence for commercial real estate. Property Management Blog | SnapInspect. https://blog.snapinspect.com/how-to-conduct-a-due-diligence-for-commercial-real-estate/

     

     

     

     

     

     

     

     

     

  5. Real Estate Investing 101

    Comments Off on Real Estate Investing 101

    Are you putting all of your eggs in one basket? What is the first rule of thumb your financial advisor will work hard to instill into your investing DNA? Diversify your assets! Parents often gloat when they feel their kids are well-rounded; the same holds true for your investments. In theory, a portfolio with stocks in multiple sectors can better withstand one industry tanking, if another sector rises.

    Investors encouraged to pick investments that are a comfortably balanced between risk and reward. Have you considered real estate investments? Do you currently own some assets and want to expand your portfolio?

    Income-producing assets can offer a nice diversification play to your portfolio. The bullet points below highlight the key perks to real estate investing. 

    • Appreciation: Similar to other investments, you are aiming to buy low and sell high. Real estate is the same. It is important to complete proper research and due diligence on any investment asset to understand the risks. We are proponents of buying across stable, diversified (there’s that word again) markets. We also like value-add opportunities.
    • Cash Flow: As is the case with a blue chip stock that pays a dividend, your goal in purchasing an investment property should be to have a monthly surplus of cash after all expenses are paid. Value-add opportunities offer room for cash flow growth.
    • Tax Benefits: Nobody likes paying taxes. Real estate offers effective, legal ways to lower your yearly tax exposure. Two of the most prominent tools include depreciation and interest. These are paper write-offs allowable by the IRS. When you receive “an offer you cannot refuse,” remember/consider four important numbers: 1.0.3.1. Under Section 1031 of the United States Internal Revenue Code, a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property. This allows you to effectively kick the can down the road and leverage into larger assets over time.
    • Building Equity: As an owner of leveraged real estate, every month, you will write the largest expense check (in most cases) for your LLC in the way of a mortgage payment. This is a positive thing; you are building equity in yourself. That’s right; think of your mortgage payment differently. You are leveraging other people’s money (banks, alternative forms of financing, etc.) to make money. Each monthly payment results in a slightly lower overall balance, which means you are building your net worth.

    At any given moment, Black Diamond Realty has on and off market investment opportunities. Call us to explore the concepts above further and/or to discuss our current inventory of income-producing assets.

    Disclaimer: Black Diamond Realty LLC and its agents do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Prospective investors/purchasers should consult their own tax, legal, and accounting advisors before engaging in any transaction. We will work with your independent tax/legal/accounting advisors to help tailor a real estate transaction specific to your needs.
Navigate:
Morgantown Office

1399 Stewartstown Road
Morgantown, WV 26505

P: 304.413.4350

Eastern Panhandle Office

1209 N. Queen Street
Martinsburg, WV 25404

P: 304.901.7788

Email:
Let's Connect:

Join Our E-Mail List
* indicates required

Site Map | All Rights Reserved. Privacy and Legal Info | Site design by The Stick Co.