- Alternative Risk Retention for Commercial Real Estate
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In response to input from the commercial real estate industry, the Dodd Frank Wall Street Reform and Consumer Protection Act expressly contemplates flexibility and custom tailoring for commercial mortgage backed securities risk retention requirements. The contemplated regulations shall specify the
- Best Buys
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In the increasingly competitive commercial real estate marketplace, buyers and sellers continue to seek advantages in the negotiation process. Until recently, structured sales were a concept that resonated primarily with sellers. Yet commercial real estate buyers may be surprised to
- Cap Rate Calculations
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A capitalization rate is the overall or non financed return on a real estate investment, akin to the return on total assets in accounting terms. A cap rate is calculated as a mathematical relationship between net operating income and an
- The Big Fix
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Deferred maintenance in commercial real estate properties poses a significant challenge for market participants over the next several years. While nonrecourse lenders may suffer the most in the short term, this issue will be a serious consideration for property owners,
- Buyers Are Back
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Commercial real estate investors are lumbering out of the woods and back into the game. The menagerie of buyers shopping for properties in today’s market runs the gamut from private individuals to billion dollar institutions. But one thing they all
- The Benefits of Cost-Segregation Studies
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When a commercial property is purchased or constructed, a building asset is created and the dollars are entered into a fixed asset system as 39 or 27.5 year property. Using the straight line method,
- Bid vs. Ask
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Activity within the institutional commercial real estate market is picking up as a result of the abundance of capital seeking real estate opportunities. Property sellers who have been holding firm in their asking prices are being rewarded for their patience
- The Big Picture
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Companies that are real estate users can learn from today’s tough economy and past real estate strategies. Reflecting on best practices can provide insights to defend against future downturns. Real estate decisions, by their very nature, should include long term
- Cost Comparison: A Case Study
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When looking to extinguish fixed rate debt, borrowers have two alternatives yield maintenance or defeasance. Both methods allow the borrower to unencumber the underlying real estate asset, and both compensate for the lender’s reinvestment risk following prepayment. However, each method
- Engineering Value
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It seems like only yesterday that real estate investors and developers breezily talked about easy exit strategies and double digit internal rates of return. When lenders and investors were eager, winning at real estate was more about managing the capital
- Due Diligence: Digging Deeper
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Lenders have overhauled their lending criteria and underwriting guidelines, so why shouldn’t buyers do the same? During these challenging times, property investors must refocus on the fundamental aspects of investment analysis to properly substantiate value in the purchase price. When
- Cost-Segregation Savvy
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If you’ve been using cost segregation studies to accelerate depreciation of your commercial property, you’ve likely cut your taxes considerably. But could you save even more? Not all cost segregation studies are created equal. So what can you do to
- Foreclosure Fortunes
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In today&rsquo s market, the difference between traditional and distressed sales is mostly in the buyer&rsquo s mindset. Traditional sales currently are driven by need &mdash only investors who need to fulfill Section 1031 exchanges or other financial or market
- Investor Insights
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When it comes to investing in today&rsquo s commercial real estate market, industry pro and author Kenneth D. Rosen, CCIM, founder and president of Kendar Realty in Coral Gables, Fla., has some simple advice &ldquo Stick with what you know.&rdquo
- Navigating the Maze
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The labyrinth of rules that taxpayers must follow when completing Internal Revenue Code Section 1031 exchanges can be overwhelming. Commercial real estate developers often prefer to avoid this maze, thinking that most of their work involves non qualified inventory. However,
- Just Due It
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The current economy and the lack of available credit have created a new paradigm for commercial real estate investors. Many lenders are indicating that, in the future, an appraisal won’t be enough to obtain financing Market feasibility studies will be
- Military Maneuvers
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As a result of the U.S. Department of Defense&rsquo s 2005 Base Realignment and Closure proposal, several military facilities across the country have been deemed either obsolete or in possession of surplus lands that hold valuable development potential for the
- Reclassifying REITs
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In today&rsquo s surging and oftentimes turbulent real estate investment market, responsible real estate professionals and investors must make decisions and strategically plan future steps armed with all the relevant facts. One area that consistently baffles the investment press and
- Wealth Management
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During the last several years, America’s high net worth investors have both discreetly weathered the most bearish of conditions and abundantly flourished through the bullish upswings across all market sectors. Now, in an effort to even out the impact that
- Trust-Worthy Tips
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Charitable remainder trusts are unique and powerful giving tools with useful applications in commercial real estate. CRTs often are employed to address the three biggest tax hurdles real estate investors face current income tax, capital gains tax, and estate tax.
- Valuing Vacancy
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A local property owner is anxious to sell his building and contacts you for assistance. The market is strong and the property is in top condition, but there is one catch The building is experiencing a vacancy problem. Should you
- Triple-Net Triple Threat
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Looking for a rock solid investment in a shifting economy? Look no further than single tenant net leased properties. In markets where shopping centers sit empty and office buildings are dark, the lights are on (usually 24 hours) at the
- Where's the Money?
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Asked where real estate investors are putting their money (if unable or unwilling to invest in real estate), Integra analysts ranked the capital vehicles in most to least preferred order. From the looks of REIT prices in April 2009, the
- TICs Today
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Several years ago, tenancy in common 1031 real estate exchanges were on a steady upward trajectory that seemed destined to continue indefinitely. Within the past year, however, the growth curve has flattened, with the securitized TIC market taking the majority
- TIC Tactic
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During the past decade, many investors have taken advantage of Internal Revenue Code Section 1031 tenancy in common exchange strategies. The TIC concept permits small to midsize accredited investors to own and obtain title to professionally managed, potentially institutional quality