Jacob Frydman Reviews the State of the US Office Market

A robust American economy is strengthening the fundamentals of the country’s office market, keeping vacancy in check and driving asking rents up, according to real estate investment expert Jacob Frydman. Referencing a report from Houston-based commercial real estate company Transwestern, Frydman discussed the sector’s continued steady improvement across the third quarter of 2018, in which absorption (a measurement of the net change of the supply of commercial space) reached 22.7 million square feet, vacancy remained stable at 10.1 percent, and asking rents increased by 4.0 percent, annually. Frydman pointed to the U.S. economy’s recent strong performance as a primary contributor to the office sector’s improving momentum in a tight labor market. “Real gross domestic product increased at an annualized 3.5 percent, according to first estimates, and personal consumption contributed 2.7 percent to that rate,” said the seasoned investor. A strong economy also means more jobs are being added, which has been reflected by office-using employment increasing by 1.7 percent on an annualized basis. “Because inflation has remained in line with the Federal Reserve’s target of 2.0 percent, consumer and business confidence should keep the office market healthy well into 2019.”

Jacob Frydman is the Founder of White Acre Equities investment firm and a Managing Partner at LambdaStar Infrastructure Partners. He has more than 25 years experience in developing and investing in real estate related transactions, having acquired over five million square feet of commercial real estate and participated in over $1 billion of investment and development transactions over the course of his career. Frydman’s notable transactions include the acquisitions of the Global Crossing New York Headquarters, the Aetna Building, the NBC Television Studios and Two Dag Hammarskjold Plaza.

Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman

Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman

 

Jacob Frydman on Financing Options for Purchasing Commercial Real Estate

Robust job growth, a surge in gross domestic product growth to 4.2% in Q2 and favorable regulatory and tax policies have resulted in strong commercial real estate (CRE) fundamentals as of late, discussed New York-based property exert and CEO of Frydco Capital Group, Jacob Frydman, “2018 has been the strongest year of economic growth this cycle, with sales transactions up to $236 billion in the first half of 2018, up 4% compared to 2017, which was a record year.” With interest in CRE is at an all-time high, Frydman laid out several financing options for individuals seeking to purchase their first commercial property. Just as with home mortgages, banks and independent lenders are actively involved in commercial real estate, said Jacob Frydman. Insurance companies, pension funds, private investors and other sources, including the U.S. Small Business Administration’s 504 Loan program, also commonly provide capital. In contrast to residential mortgages, which are typically made to individual borrowers, CRE loans are often made to business entities (corporations, developers, limited partnerships, funds, trusts, etc.). An entity is not required to have a financial track record or any credit rating, however the lender may require the principals or owners to provide a guarantee, or an individual or group with a credit history from whom they can recover in the event of default. If this stipulation is not required, and the property is the only means of recovery, the debt is called a non-recourse loan, meaning that the lender has no recourse against anyone or anything other than the real estate.

Real estate acquisitions and investments expert, Jacob Frydman is the Chairman and CEO of Frydco Capital Group and a frequent guest on Fox News, Bloomberg TV, CNBC and other television news outlets. Over the span of his 30-year career, Frydman has acquired more than five million square feet of real estate, and participated in transactions valued at over $2 billion. His prior notable transactions include the Global Crossing New York Headquarters, the Aetna Building, NBC Television Studios, and Two Dag Hammarskjold Plaza.

Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman

Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman

Jacob Frydman – Committed to Supporting the Rhinebeck Jewish Center

Renowned real estate and private equity investor, Jacob Frydman is a devoted philanthropist and actively participates in programs and activities of New York’s Chabad of Dutchess County and The Rhinebeck Jewish Center as he takes a firm stance in pledging his time and personal funds to both organizations. Following a life-long career in real estate development and acquisition, a passion which began in high school when he made his first real estate investment, Frydman has been recently giving more of his energy to supporting local charitable establishments, following his retirement as CEO of a public Real Estate Investment Trust. Through the compassionate and proactive philosophy of the Rhinebeck Jewish Center, Frydman finds a powerful way to help those in need and to uplift the community spirit.

A native New Yorker, Jacob Frydman received a Bachelor of Science degree in Finance from Boston University and his Juris Doctor degree from Case Western Reserve University School of Law. During his 30-year career in the real estate industry, he acquired over five million square feet of property on the east coast of the United States and took part in procurement and development transactions valued at over $2 billion. His notable real estate projects include Two Dag Hammarskjöld Plaza in midtown Manhattan, which he re-developed, together with his long-time partner, Mitch Rutter, into a commercial condominium solely for foreign governments as their missions to the UN.  They also redeveloped the Aetna Building in lower Manhattan, and the DHL center in midtown Manhattan. In 1998 Frydman purchased the NBC New York television studios from General Electric, and from 1998 through 2010 he produced the log-running TV soap opera, “As The World Turns”, together with Proctor & Gamble. Having retired from his role as the CEO of a public Real Estate Investment Trust, Jacob Frydman continues to share his expertise in a consultancy service to developers and other businessmen within the industry, where he advises on highly complex special situations where he can enhance a property’s value, undertaking it alone or at times with partners. A long-standing philanthropist, Frydman is also a firm supporter of the Washington DC’s Brem Foundation, helping women in struggling communities at risk of developing breast cancer, and has served as a member of the Board of Directors of the Bardavon Opera House, home of the Hudson Valley Philharmonic.

Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman

Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman