September 19, 2016

0 Comments

BAYSIDE MARKETPLACE RENOVATIONS START IN OCTOBER

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…

 

September 19, 2016

0 Comments

“REAL PROPERTY” DEFINED UNDER REIT RULES”

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…

June 29, 2016

0 Comments

DOWNTOWN FORT LAUDERDALE ATTRACTING DEVELOPERS, BOOMERS & MILLENNIALS

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…

June 29, 2016

0 Comments

HOW THE UK’S EXIT BENEFITS US REITS

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…

May 11, 2016

0 Comments

BONUS DEPRECIATION AFTER THE PATH ACT

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…

May 11, 2016

0 Comments

BANKING ON THE CLOUD

Like companies in other industries, banks are racing to take advantage of the opportunities and manage the risks that the digital economy creates. To do so, they will need computing platforms that provide greater agility at lower cost. As global head of Goldman Sachs’s technology division, Don Duet has led the development and execution of the firm’s private-cloud strategy, as well as its thinking about opportunities in the public cloud. “None of this marks a sudden or abrupt shift in strategy for the firm. It’s always been about making continual progress,” he says. In this edited interview conducted by McKinsey’s James Kaplan at Goldman Sachs’s headquarters in New York, Duet discusses the firm’s use of a private-cloud infrastructure—the challenges and risks it faced in conceiving of and launching the platform almost a decade ago and the benefits the firm is realizing through this technology.  Authors:  James Kaplan and Ishaan Seth.  Source:  McKinsey & Company.  Learn more…

May 11, 2016

0 Comments

Invest like Harvard: The Advantages of Direct Real Estate Investing

There are plenty of pundits who offer advice on how to “invest like the pros”. However, investors who are looking to enhance the performance of their investment portfolios probably won’t find a better investment model than the one used by the $37.6 billion endowment for Harvard University.  The methodology behind HMC’s success is the application of what is known as Modern Portfolio Theory. Modern Portfolio Theory is a theory of finance that seeks to maximize portfolio returns by carefully allocating capital across multiple asset classes. Among those asset classes, Modern Portfolio Theory calls for 10% to 20% of a well-diversified portfolio to be allocated into hard real estate assets. Historical results show that strategy to be effective in posting above-market returns in both good and poor market conditions.  Author:  Ian Formigle.  Source:  CrowdStreetLearn more…

May 11, 2016

0 Comments

DANIA POINTE – THE TOPIC AT THE APRIL 15 LOAN COMMITTEE MEETING

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.

%d bloggers like this:
Visit Us On TwitterVisit Us On FacebookVisit Us On Linkedin