Despite a global health crisis now in its third or fourth wave, and an outbreak of regional violence in late spring that saw hundreds of rockets fired into Israel and sporadic outbreaks of domestic unrest, from a financial perspective 2021 has been a banner year for Israeli investors.
Buoyed by a robust market for initial public offerings (IPOs), record low interest rates and a strong shekel, Israeli high net worth investors are suddenly flush with investable capital and are looking outside the country’s narrow borders for new investment opportunities.
The Tel Aviv Stock Exchange saw notable gains with 88 IPOs raising US$5.3b, an increase of 340% by deals and 242% increase by proceeds in the third quarter.
The TA-35 Index, an Israeli stock market index computed by the Tel Aviv Stock Exchange comprising the largest 35 companies by market value, rose 7% in the third quarter and is up 20.2% since the start of 2021.
But there are storm clouds on the horizon. Economists are joining a growing chorus of experts pointing to leading indicators such as rising interest rates, supply chain disruptions and rapidly accelerating inflation suggesting the good times can’t, and won’t last forever.
While the stock market is a great way to build wealth over time, it’s not the only way, and diversification is essential to being able to withstand a prolonged economic downturn or even flat stock market returns over the coming years. Real estate is one compelling asset class in this regard – it has historically proven to be a source of steady capital appreciation.
OrbVest, a global real estate company that invests in US income producing medical office buildings, has seen increasing interest from Israelis and other foreign investors looking to hedge against a stock market swoon and rising inflation by seeking premier commercial real estate investments in the healthcare sector in some of the fastest growing metropolitan areas of the United States.
Healthcare real estate has historically been a source of steady growth and investor returns. The sector proved its resilience before and during the pandemic, underscoring the centrality of health care in all our lives, and remains well-positioned for long-term capital appreciation. As the population ages it will inevitably create rising demand for healthcare (and healthcare real estate).
OrbVest has amassed an impressive portfolio of over 1.4 million square feet representing over $360 million real estate under management (REUM) with a 65% re-investment rate.
OrbVest is actively pursuing additional medical office building investments across the United States to provide enhanced diversification for its investors and reduce concentration risk. It’s most recent acquisition is the West Orange Professional Center in Orlando, Florida. The 38,537-square-foot campus contains two medical office buildings and is located directly across the street from Orlando Health – Health Central Hospital.
OrbVest’s goal is to make investing in global real estate simple for qualified small and large investors who are able to invest from as little as $10,000. Clients use a convenient online platform to invest directly into healthcare commercial real estate.
The investments generate regular dividends that are distributed on a quarterly basis, creating annuity income over the period of investment. Typically, assets are held for five years, producing additional capital gains for the investors in addition to dividend income.
OrbVest has been rapidly growing its portfolio of high-quality investment properties over the past several months and has a steady pipeline of attractive new investments.
In 2021 alone, OrbVest acquired properties in Jacksonville, Florida; Orlando, Florida, Princeton, New Jersey; Fayetteville, Georgia; and Phoenix, Arizona.
“OrbVest properties are located in areas of large, stable populations or projected population growth, particularly in Sun Belt states, as population growth is a key driver of real estate values.” explains Liron Mazor, OrbVest Israel partner and founder of Greengrass Wealth Management.
“OrbVest looks for multi-tenanted medical office buildings with high-quality tenants and weighted average lease terms of around 5 years or longer that contribute to higher yields and more predictable investment returns.”
Real estate investing, particularly commercial real estate investing, offers several distinctive advantages to stock market investing. Commercial real estate provides a unique inflation hedge because the costs of new construction or property renovations move in the same direction as inflation, so when costs rise, landlords and property managers can typically increase rental rates to keep pace with rising inflation. In addition, savvy property owners have built in escalation clauses that provide for substantial rental increases annually, regardless of inflation.
For the average Israeli investor looking to hedge their investments against inflation risk, commercial real estate investment, especially medical office buildings and healthcare real estate, offers the ability to maximize potential investment returns and avoid concentration risk in the frothy stock market.
To learn more about investment opportunities in healthcare commercial real estate, contact Liron Mazor:
Israel Telephone >> 050-914-6138
Website >> https://orbvest.co.il/
Email >> firstname.lastname@example.org
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