The Loan Committee™

Florida’s industrial markets see increase in spec construction: report

Industrial markets throughout Florida are experiencing a return to pre-recession occupancy levels and rental rates, according to a newly released Cushman & Wakefield report. Statewide, second quarter rents stood at $7.03, with occupancy at 95.1 percent. Year-to-date, industrial absorption inc

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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…

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…

ROBERT SHAPIRO, President with Master Development and PETER FLINT, Director of Development for the Southeast Region with Kimco Realty, were the guest speakers at the April 15th Loan Committee luncheon to discuss their newest project.  Dania Pointe is a 102 acre premier mixed-use development with over 1 million square feet of retail and restaurants in addition to Class A offices, hotels, luxury apartments and public event space. Dania Pointe’s accessibility from Interstate 95 and immediate proximity to the Fort Lauderdale-Hollywood International Airport, Port Everglades Cruise Port and the DCOTA Design Center make it an attractive retail destination in Broward County.

Public cloud has grown exponentially in recent years in sectors such as telecoms, the media, health industry and insurance, and looks set to rise. However public cloud adoption in financial services to-date has been relatively conservative. Financial services companies are demanding leaner, more standardized, interconnected and vendor agnostic systems that will enable broader diversification, fewer manual workarounds and smarter capabilities.  This white paper explores the current state of public cloud adoption by the financial services industry, the technology challenges they face over the next few years and suggests some strategies for navigating a path through public, private and hybrid cloud.  Source:  RiskLibrary.net