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Broward County has its first record sale of 2017 at $163 million

February 8, 2017

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New FASB Standards Are a Potential Game-Changer for Lease Negotiations

October 19, 2016

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The new leasing standard released in February 2016 by the Financial Accounting Standards Board (FASB) will unquestionably change the dynamics of lease negotiations moving forward. Since most businesses are involved in some type of leasing arrangement, you need to prepare for the new FASB standard as it may impact your company’s bottom line.

The new FASB leasing standard takes effect for the interim and annual reporting periods of public business entities, as well as certain not-for-profits and employee benefit plans, for fiscal years beginning after December 15, 2018. For all other entities, including private companies, the new lease accounting standard is effective for annual reporting periods beginning after December 15, 2019 and interim periods beginning after December 15, 2020.

The new standard will require lessees to recognize assets and liabilities on their balance sheets for most of their leases. Regardless of their length and term, all leases are subject to the recognition criteria in the new standard. Under an available accounting policy election, a lessee may elect to not record an asset and a liability for a lease with a term of 12 months or less, as long as the lease does not include a purchase option that the lessee is reasonably certain to exercise.  Source: National Real Estate Investor.  Author:  Howard Barash.  Learn more…

 

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October 18, 2016

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BAYSIDE MARKETPLACE RENOVATIONS START IN OCTOBER

September 19, 2016

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In the first phase of the project, the 140,850 square feet of outdoor common areas will receive a renovation, including a new paint scheme, piers, bulkheads, new flooring on the upper levels, new stairs and railings, improved restrooms, enhanced tenant signage, lighting and landscaping.  In a future phase of the project, Bayside Marketplace would nearly double the size of its parking garage and add retail space along Biscayne Boulevard.  Author:  Brian Bandell.  Source.  South Florida Business Journal.  Learn more…

 

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“REAL PROPERTY” DEFINED UNDER REIT RULES”

September 19, 2016

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Professionals working with REITs now have a bit more of a framework to work with regarding what constitutes “real property” by the US Treasury Department. When the Proposed Regulations were published in 2014, the Treasury Department left open how “real property” would be interpreted for treatment of REITs.  For the past 50 + years, those interested in investing in REITs had to obtain IRS clearance whenever there was insufficient clarity to determine whether or not the property was considered “real property” to qualify for REIT status. Such determinations were published to individual taxpayers in the form of a Private Letter Ruling (PLR) and subsequent taxpayers could not rely on the prior PLR as support for claiming that their property is “real property”. Finally, with the promulgation of the Final Regulations by the IRS, this past August, there should be less need to obtain PLR’s each time a property type needs to be defined. While, of course, it will not eliminate the need for PLR’s, it should greatly reduce the demand.

The definitions for “real property” are to be used strictly for REIT purposes and not for any other tax related issues outside the purview of REITs. The definitions went into effect on August 31, 2016 and pertain to tax years subsequent to that date.  The IRS and Treasury Dept. consider any PLR which is inconsistent with the definitions contained in the Final Regulations as revoked.  Authors:  Thomas Humphreys, Michelle Jewett, Shane Shelley, Shiukay Hung and Clara Kim.  Source:  Morrison Foerster.  Learn more…

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DOWNTOWN FORT LAUDERDALE ATTRACTING DEVELOPERS, BOOMERS & MILLENNIALS

June 29, 2016

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The vacant lots, old warehouses and dilapidated housing that have long characterized much of urban Fort Lauderdale are disappearing quickly. Revitalization of the area known as Flagler Village, west of U.S. 1 and sandwiched between Broward Boulevard and Sunrise Boulevard, got started a few years ago with FAT Village, (Flagler Arts and Technology), a strip of old warehouses that has been converted into galleries, performance spaces and hip businesses that cater to millennials.

Developers have followed, and now the roughly 300-acre neighborhood has 42 projects either in the planning stages or under development. Most are rentals aimed at young professionals, but there are also condo projects like Flagler 626, a 12-story tower at 626 Northeast First Avenue, which is expected to have 97 units including three townhomes at an average price of $350 per square foot. The project, which is in the final stages of the approvals process, is being developed by Israeli investors BRYL Development, LLC, and designed by Stewart Robin of Nest Plan. Units will range from studios to one-and two-bedrooms, with 671 square feet to 1,580 square feet.  Author: James Teeple.  Source.  The Real Deal.  Learn more…

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HOW THE UK’S EXIT BENEFITS US REITS

June 29, 2016

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They are considered safe, and they offer yield. No wonder the stocks of real estate investment trusts ran in the opposite direction of the Brexit-bashed U.S. stock market Friday.

Last fall, interest in REITs had begun to wane, as expectations of higher interest rates outweighed solid fundamentals in the real estate market. Now REITs, and the real estate underlying them, are the power play for the anxious investor.

“Anything that is going to drive the 10 year lower is a positive for REITs. Three-and-a-half percent dividend yield with 6 to 7 percent earnings growth is pretty darned attractive in this environment,” said Alexander Goldfarb, senior REIT analyst at Sandler O’Neill.

REITs will also benefit from rising commercial real estate values, as foreign investors continue to pour money into the U.S. office, retail and even apartment space. They had been doing that already, but Brexit will only accelerate the pace, especially of Chinese and Middle Eastern money entering the U.S. brick-and-mortar markets.  Author:  Diana Olick.  Source:  Realtywealth.com.  Learn more…

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BONUS DEPRECIATION AFTER THE PATH ACT

May 11, 2016

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As part of the Protecting Americans From Tax Hikes (PATH) Act of 2015, P.L. 114-113, Division Q, Congress made a notable change to the definition of qualifying property for bonus depreciation purposes that received little attention, overshadowed by the fanfare given to the extension of bonus depreciation through 2019 (through 2020 for certain longer-lived and transportation property). Applicable to improvements placed in service starting in 2016, Congress created “qualified improvement property,” a class of nonresidential real property now eligible for bonus depreciation irrespective of its recovery period. Taxpayers will have to determine separately if real property improvements are eligible for bonus depreciation and what their applicable recovery period is (generally 15 or 39 years for nonresidential real property). To be clear, not all nonresidential real property is eligible to be classified as qualified improvement property for bonus depreciation purposes.  Author: Nathan P. Clark, CPA.  Source:  The Tax AdviserLearn more…

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