Anyone who is interested or in need of income should pay attention. Any investor who is looking for diversification should pay attention.  It isn't often that we see an opportunity to obtain a 7% cash flow with an opportunity for capital gain. A recently introduced investment program purchases income producing properties in three dynamic and growing areas; data centers, healthcare facilities and educational real estate. These are currently operational and distributing net lease payments to the property owners.  After the properties are held for a period of 3-5 years, they may be sold, depending on market conditions at the time. This sale could generate capital gains.

Data centers are critical to corporations and government entitities to house mission critical computer operations. Demand for data centers is projected to outpace supply by 250% through 2013. Spending on cloud computing is expected to increase 27% per year through 2014. Mobile data traffic is projected to double every year through 2014. Data centers are critical to this rapid growth.

 Healthcare reform will add nearly 46 million people to the ranks of the insured. It is estimated that 45 million square feet of additional healthcare facilities will be needed to accommodate this . The healthcare industry will generate 3.2 million jobs between 2008 and 2013. Most healthcare facility operators prefer to lease property rather than tie up capital and manpower in property management. 

 Colleges and universities expect an increase in population of nearly 30% between 2000 and 2015. These institutions are facing reductions in funding from states and endowments, so they will increasingly turn to leasing to monetize their properties such as student housing, academic and service facilities.

 This program is closing on properties and will begin distributions of 7% in the next thirty to sixty days. Some portion of the distributions can be treated as non taxable. This is an investment that is not correlated with the equity markets, so its performance is not influenced by movements in the market. This is an opportunity worth considering if you need current income or are attracted to a stable high yield.

 For information, please contact us at anadolna@associatesgroupinc.com