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Basic Training 

Commercial real estate has experienced a dynamic market shift during the past five years that has affected nearly every aspect of the industry. As the slow economic recovery remains fragile, many commercial property owners and investors wonder if they can

Retail Therapy 

The climate for retail real estate deals is improving around the country, as pricing stabilizes and it becomes somewhat easier to forecast the performance of a retail center. With more sellers realizing that now might be a good time to

Self-Rental Rule 

The only thing worse than incurring a loss on investment property is incurring a loss that cannot be deducted for tax purposes. Self rental property may cause this tax result for some property owners if rental arrangements are not strategically

Why Comply? 

Until the financial crisis in 2007, banks and other lenders seldom included restrictive financial debt covenants in their commercial real estate lending agreements. Today, debt covenants are becoming far more commonplace in commercial mortgages. Many property owners who are refinancing

Distressed Decisions 

With the real estate collapse several years behind us, the industry has been riding a wave of available distressed commercial properties. But this groundswell of opportunity also brings a groundswell of risk. Knowing what to look for can ensure that

Energizing Tax Benefits 

In response to the growing focus on energy conservation, Congress passed the Energy Policy Act of 2005 or EPAct, which created tax incentives to encourage the construction and retrofitting of energy efficient buildings. Although initially scheduled to sunset after two

1031 Timing 

Under Internal Revenue Code Section 1031, real property held for productive use in a trade or business or for investment may be exchanged and capital gain taxes deferred through a delayed exchange, which requires the taxpayer to sell the relinquished

Lenders Talk TICs 

Tenancy in common transactions involve a number of unique features. While currently there are no clear cut guidelines on how TIC deals must be structured, lenders that finance such projects are careful to impose certain requirements that usually are not

Loan to Own 

Given the current credit market constraints, seller financing may be a way to bridge the financing gap facing buyers and sellers in today&rsquo s commercial real estate market. Seller financing is a transaction in which the seller makes a secured

Loan Language 

Commercial real estate finance remains in a state of flux. Lenders are re entering the market with new policies and underwriting criteria. Many lenders have toughened the terms of their form loan documents. It is important for borrowers to understand

Low Rates Help Insulate Commercial Markets from Unstable Economy 

Last year, the commercial real estate debt market slowed considerably from the double digit growth the industry experienced the past three years. Overall, at the end of second quarter 2002, the debt market had grown 3.7 percent from the end

Making It Work 

Investors soon may feel the effects of a cooling real estate market through subtle and not so subtle shifts in the way lenders view commercial real estate loans. The industry experienced strong surface growth last year National overall vacancy rates

New Funding for Affordable Housing Encourages Public/Private Partnerships 

Affordable housing is a critical socioeconomic issue in many regions, and demand is rising nationwide. Yet financing and developing affordable housing can be challenging. Many affordable housing projects involve more planning and entail greater risks than similar market rate projects

Institutional Lenders Offer Viable Financing Alternatives 

Institutional lenders such as life insurance companies and Wall Street conduit lenders offer various financing options for commercial real estate ventures. In tight economic circumstances, commercial real estate professionals carefully should study the available options to make wise decisions for

Fannie Mae and Freddie Mac Offer Options for Multifamily Investors 

Property owners with large multifamily portfolios may be aware of the benefits of obtaining financing from the Federal National Mortgage Association, known as Fannie Mae, and the Federal Home Mortgage Corp., dubbed Freddie Mac. Generally, these two organizations can handle

Entrepreneurial Mezzanine Financing Sources Offer Flexible Equity 

In recent years, mezzanine debt and equity financing has been growing steadily into a major source of funding for all types of commercial real estate projects. On a marketwide basis, the real estate mezzanine financing sector represents 10 percent of

Lenders Tighten Loan Standards in Reaction to Uncertain Economy 

With interest rates at record lows, demand for new mortgage loans remains strong. However, in today's anemic economic climate, lenders face increased risk of making non performing loans. Although it is impossible to eliminate this risk entirely, commercial real estate

Back to Basics 

How can commercial real estate borrowers obtain financing and survive the capital markets mess? Is there a secret handshake to get a loan application or a password for a term sheet? In reality, the answer is far simpler Bring in

Agency Programs Provide Financing for Seniors Housing 

Less available capital is the result of overbuilding and profitability woes in today's seniors housing market. However, several viable options remain, including government backed financing. Lenders Change As recently as two years ago, seniors housing developers, owners, and potential buyers

Borrower Beware(1) 

Most commercial mortgage lenders charge application, due diligence, and loan commitment fees, but do your clients know what that money really is buying? Often, it is less than they think. The loan application process is becoming increasingly arduous as lenders

Be Resourceful 

While some commercial real estate investors secure financing through deals with their existing banks, most investors, developers, and owners derive the best terms when lenders compete for their business. Creating a competitive situation is the role of a commercial financing

Bridging the Gap 

The credit crisis has had a significant impact on commercial real estate and the availability of financing. Most lenders have reduced maximum loan to value thresholds to 65 percent and increased debt service coverage ratio minimums. Life insurance lenders are

Before the Build-Out 

In today’s competitive leasing market, build outs or other capital improvements are good ways for property owners to retain current tenants or attract new ones. Creating more open floor plans or providing additional capacity for new technologies can adapt older

Cost-Segregation Advantage 

On Feb. 13, President Bush signed the Economic Stimulus Act of 2008 into law. The legislation is intended to encourage spending by providing advance refund rebates to individual taxpayers along with business tax breaks in the form of accelerated depreciation

Creative Currency 

In today’s real estate climate, making your property more marketable requires creativity and an open mind. Owners need to expand the benefits their properties offer. Along with physical aspects and pricing, the structure of the transaction, and your capabilities and