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New Tax Law Will Boost US Real Estate

January 11, 2016 by Randybaconin Real EstateLeave a Comment

The new tax law recently signed by President Obama will do a lot of good for the US real estate industry, former Congressman and current real estate executive Rick Lazio says. The Foreign Investment in Real Property Tax Act (FIRPTA)—which used to cap foreign investments in REITs at 5%—raised the limit to 10%, a change that could spur a $4.2B cash influx over the next decade. The new rules present “the most significant reforms of FIRPTA since its enactment in 1980,” Real Estate Roundtable president and CEO Jeff DeBoer says. DeBoer co-sponsored the bill with Rep. Joseph Crowley, both of whom will be at Bisnow’s New York Foreign Investment conference on Jan. 19. The new law also extends deductions for energy-efficient commercial and multifamily buildings that come on line before a new Jan. 1, 2017, deadline.

Read more at: https://www.bisnow.com/national/news/state-of-market/former-congressman-says-new-tax-law-will-boost-us-real-estate-54334?utm_source=CopyShare&utm_medium=Browser

To discuss commercial mortgage financing needs contact Liberty Realty Capital Group.

CBD Office Buildings Experienced 10-Year Price Appreciation of More Than 100 Percent

December 11, 2015 by Randybaconin Real EstateLeave a Comment

The latest Commercial Property Prices Indices (CPPI) report produced by Moody’s and Real Capital Analytics (RCA) shows that prices in the commercial real estate universe have experienced double-digit appreciation over the past decade.

According to the report, the national all-property composite index has shown cumulative appreciation of 38.0 percent since October 2005, while the index for core commercial assets has gained by 34.9 percent. Significant price appreciation was evident in the index for apartment properties, as well, which increased by 45.9 percent since a decade ago.

The greatest level of price appreciation over the past 10 years, however, was posted by office buildings in Central Business Districts (CBDs), which posted a 103.2 percent increase over that time period. The index for retail properties, on the other hand, showed appreciation of only 8.6 percent during the past 10 years.

See entire article in National Real Estate investor.

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To discuss commercial mortgage financing needs contact Liberty Realty Capital Group.

How Hotels Can Transform Downtowns

December 10, 2015December 10, 2015 by Randybaconin Real EstateLeave a Comment

Hotel developments and redevelopments can be foundations for turning depressed submarkets into hip, attractive destinations for travelers, local residents and other developers seeking building opportunities. Oxford Capital CEO John Rutledge has contributed to this trend in the nation’s hottest markets and talked to us about projects that’ll spur redevelopment.

John says Oxford loves being a catalyst for transitioning areas and tries to be in early on these developing neighborhoods, repurposing classic buildings for modern uses. He primarily focuses on the top 20 MSAs, with a heavy focus on urban submarkets, but will enter select tourist markets if a deal feels right. One key to being a transformative hotel: creating mixed-use that’s been lacking nearby. John always implements a mixed-use component, whether it’s retail offerings or added residential. John and his team are big believers in building “social hotels” with nice communal spaces, food and beverage components, and a heavy emphasis on rooftop bars. He also feels Oxford’s downtown projects work mainly due to their flexibility.

John sees a similar situation at the Lexington in Boston, where Oxford is working on its 240-key Godfrey Hotel (shown). He believes the Godfrey can be a linchpin in redeveloping Boston’s Downtown Crossing. He says Boston is one of the country’s most coveted, and most supply-constrained, markets. RevPAR growth there is higher than inflation. John tells us the $60M project is a classic Oxford deal: multidimensional and multifaceted, taking advantage of tax credits and emptying out an office for repositioning.

Read more at: https://www.bisnow.com/chicago/news/hotel/oxford-capital-groups-john-rutledge-talks-hotel-strategy-53412?utm_source=CopyShare&utm_medium=Browser

To discuss commercial mortgage financing needs contact Liberty Realty Capital Group.
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Capital Spigot Is Wide Open

December 7, 2015 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

Borrowers are reveling in a market where capital is both cheap and plentiful, and even an expected rise in interest rates is not likely to take the wind out of the sails of the current robust lending climate.

“We’re enjoying the benefits of a great market,” says Ernie Katai, executive vice president and head of production at Berkadia, a commercial real estate company. Although 2014 was a record year for the firm in financing, year-over-year volume surged another 70 percent in 2015. Part of that jump can be attributed to a single $5.1 billion portfolio transaction. But excluding that deal the firm’s numbers would still be up 40 percent for the year, notes Katai.

Based on overall market liquidity, that momentum is expected to carry over into 2016. Lenders are keeping an eye on international headlines, notably the recent terrorist attacks and continued threats in Europe. However, lenders and financial intermediaries remain optimistic about the coming year. “Short of something outside of our control happening, the market for 2016 looks poised for another strong year,” Katai says.

Read entire article in National Real Estate Investor online here http://nreionline.com/finance-investment/capital-spigot-wide-openhttp://nreionline.com/finance-investment/capital-spigot-wide-open

To discuss commercial mortgage financing needs contact Liberty Realty Capital.

Shrinking U.S. Shopping Malls Get Makeovers

December 2, 2015 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

Visitors used to flock to the Highland Mall in Austin, Texas, around the holidays to stroll through the city’s first enclosed shopping complex and admire the giant Christmas tree crafted from poinsettia plants.

But this holiday season, no shopping will be done there. Workers are converting the 600,000-square-foot structure into a campus for Austin Community College with classrooms, lab space and a culinary arts center.

Austin’s economy is strong and its population swelling, but Highland couldn’t attract enough shoppers to stay afloat.

“Competition came up and killed it,” said Matt Whelan, principal at developer Red Leaf Properties LLC, which is working with the college on the project.

An era of relentless expansion for American shopping centers is coming to an end as a toxic brew of overbuilding, the rise of e-commerce and a wave of retailer bankruptcies force landlords to reimagine once-lucrative properties.

Some owners are converting struggling malls into apartments, offices and industrial space, while others are turning big chunks of retail space into parks and playgrounds to keep shoppers interested.

“You have to create an environment that people want to come to,” said Tony Ruggeri, who eliminated about 50,000 square feet of retail space to create an open-air plaza at West Manchester Town Center in York, Pa., which reopened last year.

View entire article here in the Wall Street Journal.

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To discuss commercial mortgage financing needs contact Liberty Realty Capital Group.

Online Shopping Tops Brick-and-Mortar on Black Friday Weekend

December 2, 2015 by Randybaconin Real EstateLeave a Comment

More shoppers did their holiday deal hunting online than in stores, a National Retail Federation survey reveals, with 57% of those shopping on their cell phones. Despite malls being quieter than usual, Black Friday sales still jumped 14% over last year–spending $4.45B total–underscoring a dramatic shift in shopping habits in recent years, the Wall Street Journal reports. On the brick-and-mortar end, holiday sales totaled $12.1B, a dip from last year. “This holiday may be a wake-up call for store-based retailers,” retail consultant at PricewaterhouseCoopers Steve Barr says, “to recognize they are going to have to transform their store models to compete with online retailers.” [WSJ]
Online sales coming from large retailers like Amazon and Wal-Mart and a growing number of smaller online retailers like osiyo computers and video games

Read more at: https://www.bisnow.com/national/news/retail/online-shopping-tops-brick-and-mortar-on-black-friday-weekend-53008?utm_source=CopyShare&utm_medium=Browser