Commercial Real Estate For the Conservative Investor

Sale-Leasebacks, also known as Net Leased properties, continue to be a very popular real estate investment for high net worth individuals and real estate investment partnerships. There are several reasons why and here are the top five:

1. Long term leases
2. Credit tenants
3. A+ locations
4. Little or no management required
5. Fee simple ownership For those investors that are looking to balance, reposition and diversify an investment portfolio, many are rediscovering fee simple ownership of investment real estate.

Too often the only portfolio exposure to investment properties has been through the purchase of a stock in a REIT or some type of blind pool that would invest in properties, conservative or value added, retail, office or industrial. Unfortunately, the value of the holdings were subject to the vagaries of the stock market and we all know where that has gone. So, regardless of the underlying asset value the stock value of their holdings have declined.

That’s why more and more investors are returning to fee simple ownership of real estate. What has always been one of the major concerns of the investor – the time and effort needed to manage a property – need not be a concern when purchasing a sale-leaseback, net leased property. These investments typically have fresh long term lease (10 to 25 years) in place, are newly constructed buildings in quality locations and have a tenant that is a truly credit tenant leasing the property on a triple net or double net basis. Net means the income in net to the investor. The tenant is paying all if not most of the expenses of occupancy therefore there is little if any management required. For the busy professional that has not the time or inclination for management a sale-leaseback is the right answer at the right time.

There are numerous commercial investment properties new to the market and offered for the first time every month. The serious investor needs to be aligned with a commercial real estate broker who understands investment real estate and can identify various opportunities in diverse markets. For the conservative investor, net lease real estate can offer solid long term returns on capital.

An Overview Of Commercial Real Estate For Sale In Arraial D’Ajuda

If you are looking for real estate in a quiet and peaceful village atmosphere, not many places in Bahia can come close to Arraial d’Ajuda. This village on the discovery coast is situated on a cliff which overlooks some of the best beaches in the region. The lovely atmosphere attracts a lot of tourists and the affluent population from Brazil as well as other countries. There is plenty of real estate for sale in Arraial d’Ajuda with a wide range of options.

Despite the village charm, the town is close to the city of Porto Seguro which has an international airport. It has all the characteristics of a traditional village with traditional houses, charming outlets, hotels and little streets connecting the town center to the other places.

Real Estate Options In Arraial d’Ajuda – Overview

You will find farmhouses on huge plots of land. Some of them have wooded areas and some even have a forest cover.

Commercial real estate makes a lot of sense here considering the tourist traffic. You get everything from shops to hotels in Arraial.

For those who prefer to construct, land is also available with plenty of choices in both small and large plots.

Commercial Real Estate

Thanks to the brisk tourism business and the large number of visitors, commercial ventures targeting the tourism industry do very well. If you are looking to invest in commercial ventures like shops, restaurants, bars or apartment complexes for renting out, Arraial gives you many options. The price could start from as low as R$60,000 and go as high as R$1,800,000 with an average price of about R$909,200.

At the lowest end, for prices less than R$100,000, you will find small shops and spaces where you can open a café, bar or restaurant in the main village area or in downtown Arraial. Spaces to start a fairly large restaurant or shop can cost up to R$300,000. If your budget is close to R$800,000, you can consider fully furnished apartment complexes with essential facilities. These can then be rented out or sold individually.

Houses on larger plots ready with restaurants and other commercial outlets near good beach locations are available for about R$1,500,000. These are good for conversion into a small resort or for renting. Commercial complexes with multiple commercial spaces in prime locations on the main street could cost more than R$1,750,000 depending on the size.


The number of hotels available for sale in Arraial is a reflection of the huge number of visitors it receives every year. If you are interested in taking advantage of this by investing in a hotel, you have the choice of buying an already functioning hotel or a piece of real estate that has the required space and infrastructure to start a new one. Prices range from R$500,000 to about R$3,000,000 with an average of about R$1,424,000.

Below R$1,000,000 you will get good opportunities that are nicely located on the main street or near quiet beaches on plots of up to 2500 sq. meters and with up to 770 sq. meters of built-up area. You will get a piece of real estate with a mix of rooms, cottages or apartments in this range. Basic infrastructure such as parking, pool, etc. is usually available. Depending upon the price, you could get in addition a nice garden, air-conditioning, restaurants, bars, a library or other useful features such as Wi-Fi connectivity.

The mid range hotels are priced between R$1,000,000 to R$2,000,000 on plot sizes up to 6800 sq. meters and with up to 700 sq. meters of construction. You will get real estate with a mix of apartments, houses and cottages on the same plot. Some of the hotels may already be in operation and others are available with infrastructure in place to start a new hotel.

These mid range hotels are usually in very nice locations in town, near the beach, near the ferry or in an ocean fronting locality. Depending upon the package, you can expect fully furnished accommodation, air-conditioning, fancy multiple swimming pools, ample parking, playground, solar power, restaurant, bar, grill, reception, etc.

High end hotels in Arraial will cost you upwards of R$2,000,000. You will find these on the best seafront locations or some of the best in-town locations. Plots which range from 1000 to 2000 sq. meters and with construction of about 700 sq. meters can be expected. Just like the lower ranges, you will get a mix of apartments, suites and cottages with all previously mentioned facilities.

Finding Commercial Real Estate for Your New Business

Starting a business is a major decision. It can be a costly one if the wrong choices are made in the process, particularly when it comes to commercial real estate. It is important for you to carefully consider properties before making a choice to go with one. You will need a professional agent to help you look at properties, to compare their good and bad features, and to help you as you make your final choice.

Before beginning your search for commercial real estate, you will need to think seriously about what exactly you need the property for. Depending on the purpose, you might have to meet certain government laws and regulations. You will need to find an agency that commonly deals in this area, and that has an agent who will work well with you.

Before deciding on an agent, you will want to make sure that you choose someone that will not charge too much for their help. He or she should be experienced in commercial real estate specifically so that they will be able to help you make an informed decision.

Your new business will likely be your livelihood. Because of this, you will want to make the wisest decision possible before purchasing property. It is important that every part of it will pass inspections for your purpose for the property. It would be very difficult if you were to purchase a property only to find out that you will have to put a great deal of money into it to make it usable. The right agent should be able to help you to see warning signs before you go forward with a purchase.

It is important for you to compare the costs of various properties while taking into consideration what some have to offer over others. Make sure your budget is large enough so that you will be able to get the property that you need. You could start small and work your way up to a larger piece of commercial real estate, but if you can find one that will allow you to grow some, you will probably not regret it if the price is right.

As you research and plan your new business, include all of your brainstorming, necessities and other ideas together so that you will be able to have a go-to notebook for your plans. This will help you, and it will help your commercial real estate agent to see what you want in a property.