A U.S. Tax Court decision from earlier this year, Adams v. Commissioner, T.C. Memo 2013-7, illustrates the importance of the investor / tax payer receiving a fair market rent for their investment property. In the above case the tax payer exchanged into a replacement property that was rented at slightly below market rents to the…
I continue to need corporate leased, triple net retail c-stores such as 7-11, Circle K, Get Go (Giant Eagle) or Turkey Hill (Kroger). Gas preferred on the triple net retail C-stores due to the accelerated cash recovery on the gas related equipment. Single tenant only. S&P BBB or better. This mean investment grade guarantor on the…
According to CoStar News, sales of commercial real estate in the United States reached $64 billion last year, which is the highest since 2004 and increased 22 percent from 2011. The price gains spread beyond multifamily into industrial, office and retail. Even commercial land showed signs of awakening mostly due to demand for multifamily with…
This is review and reminder to a post earlier in the year. A 1031 exchanger must complete the acquisition of a replacement property in a 1031 exchange before midnight on the earlier of the 180th day after the date the relinquished property was transferred, or the due date (including extensions) for the income tax return for…
The IRS has issued Proposed Regulations, REG-130507-11, regarding the new 3.8% Medicare tax on net investment income imposed by IRS Section 1411. The proposed regulations affect individuals, estates and trusts.
What I have been experiencing over the last two or three quarters in regards to triple net or absolute net, single tenant retail seems to be reality according many in the industry, including Mark Heschmeyer of CoStar News. Where are all of the net leased retail opportunities? There’s been strong activity over the last 18…
Single tenant, net leased retail has continued to gain strength as an asset class. With an economy barely growing, one could wonder why is triple net and absolute net retail as strong as it is? Given what else is available as a safe investment, it’s no wonder net leased retail is doing well. Ten year government…
Buyer need – Corporate leased triple net c-store such as 7-11, Circle K, Walgreens or CVS with 8 years or more unexpired absolute net lease for 1031 SoCal buyer. Gas or without gas is fine on the C-stores. Single tenant only. S&P BBB or better. This mean investment grade guarantor on the lease. No franchisees. However, it must…
The National Association of Realtors sums it up pretty well in the attached August 2012 Commercial Real Estate Outlook when they opine that the economy has gone on vacation. That’s pretty much how I would describe it too. True, the triple net or absolute net, single tenant, national investment grade credit tenant retail is still…
The multifamily segment of commercial real estate continues to strengthen in spite of new supply coming on line according to Randyl Drummer of CoStart news. Demand still far outstrips demand. For the sixth consecutive quarter, the National Multi Housing Council Quarterly Survey of Apartment markets showed improvements across all four indices. The indices measure supply,…
I’m not saying that we’re quite back to pre crash levels of pricing but we’re getting there. Given the general malaise in the American economy with job growth, GDP growth and most other indicators, it’s surprising that the commercial real estate recovery has been as strong and broad based as it has. It didn’t start…
The building, which was custom designed and built to high specifications in 2003, is in the Citygate Business Park and located at 2360 Citygate Drive, Columbus Ohio 43219. This is the far northeast Columbus area and boasts close proximity to both the Port Columbus International Airport and the popular Easton Town Center The property has…
7I’ve been writing about this topic for most of the last 18 months. There is very little supply out there of the triple net or absolute net, single tenant, national credit retail opportunities, and that is of course what everyone wants. And what is available gets highly competitive and results in multiple offers and stupid…
There’s a relatively new U. S. Tax Court case Reesink v. Commissioner, (April 23, 2012) T.C. Memo 2012-118, that could be of interest regarding a 1031 exchange. The Reesinks, husband and wife, purchased a residential residence for investment purposes to use as a residential rental. The Reesinks after much effort over a period of eight…
This is part four in my series on 1031 exchanges. Keep in mind that I’m using the current capital gains rate of 15%. Depending what happens on November 6th, these number may change … radically. See attached for calculations One of the primary advantages of a 1031 exchange is not just the tax savings, but…
Unfortunately, we may have a much better reason in a few months to do a 1031 exchange when and if the Bush tax cuts expire. However, there will likely be folks who decide to cash out and sell before the new rates take effect. Frankly, that make a bunch of sense if the new rates…
This allows investors to use all of the sale proceeds to leverage into more valuable real estate, increase cash flow, diversify into other properties, reduce management or consolidate holdings. And notice that I wrote “all of the sales proceeds”. If that rule is not followed, then you would have tp pay ‘boot’ on the proceeds…
This is part four in my series on 1031 exchanges. Keep in mind that I’m using the current capital gains rate of 15%. Depending what happens on November 6th, these number may change … radically. The tax savings versus a taxable sale comparison 1. Calculate Net Adjusted Basis Original Purchase Price + Improvements _________________ – Depreciation _________________ =…
Unfortunately, we may have a much better reason in a few months to do a 1031 exchange when and if the Bush tax cuts expire. However, there will likely be folks who decide to cash out and sell before the new rates take effect. Frankly, that make a bunch of sense if the new rates…
This allows investors to use all of the sale proceeds to leverage into more valuable real estate, increase cash flow, diversify into other properties, reduce management or consolidate holdings. And notice that I wrote “all of the sales proceeds”. If that rule is not followed, then you would have tp pay ‘boot’ on the proceeds…