Ocean Block Capital's Blog

The Deal Story – Sherwin-Williams – Plattsburgh, NY

Earlier this year, I had the opportunity to lead the acquisition of a Sherwin-Williams property located in Plattsburgh, NY. This asset was purchased from a group of 7 multi-generational trustees based out of the Northeast and serves as our 8th acquisition in Upstate New York over the last 18 months. We now maintain 15% of our portfolio in the state of New York and 45% of our portfolio in the Northeast.

Continued Interest Rates Expansion and the effect on Net-Lease Real Estate.

The expected update regarding Interest Rates:

After a hotter than expected inflation print for the month of May and a FOMC meeting set to occur this week, most of the coverage has been focused on Jay Powell and his intentions to alter interest rates. It is thought that the Fed will raise rates 50 bps, with economists from Jeffries and Barclays calling for a 75-bps hike, but occurring in conjunction with this is the Fed starting the reduction of their balance sheet. 

Dialysis Net-Lease Properties and the Tenant Success Entanglement

As a result of the COVID-19 pandemic, the net lease medical office market has seen all-time highs in investor demand, transaction volume, and cap rate compression. In 2021, medical office transaction volumes topped $16 billion—the sector’s all-time highest. Previously, the medical office sector saw its best year in 2017 with $15.5 billion in transaction volume. With many retail tenants struggling to pay rent as a result of the pandemic, investors found a safe haven in medical office assets. The medical office sector established itself as an area in which investors could shield themselves from the three main concerns within the retail sector:  the pandemic, a recession, and the Amazon Effect. 

The 1031 Exchange

A 1031 Exchange is a Real Estate investing mechanism that allows investors to swap out one investment property for another, while simultaneously avoiding taxes on capital gains from the transaction. If used correctly, a 1031 exchange can improve an investor’s cash flows from long term investment properties. 


It could well be a solution for those owning a low income producing, or Zero-Cash-Flow property, and swapping out for a higher income producing, or profitable one.


What is a 1031 Exchange and Why is it Useful?