Tag: www.libertyrealtycapital.com

Surge in Commercial Real-Estate Prices Stirs Bubble Worries

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on Surge in Commercial Real-Estate Prices Stirs Bubble Worries

Investors are pushing commercial real-estate prices to record levels in cities around the world, fueling concerns that the global property market is overheating.

The valuations of office buildings sold in London, Hong Kong, Osaka and Chicago hit record highs in the second quarter of this year, on a price per square foot basis, and reached post-2009 highs in New York, Los Angeles, Berlin and Sydney, according to industry tracker Real Capital Analytics.

Read entire article in Wall Street Journal here.

Carried Interest Unexpectedly Re-emerges for CRE

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on Carried Interest Unexpectedly Re-emerges for CRE

WASHINGTON, DC—Congress has been trying to change carried interest’s tax characterization for years and in some instances, came rather close to suceeding. More recently, the issue died down — at least on the Hill — as the conversation shifted to comprehensive tax reform.

‘Carried interest’ is safe for now, has been the unspoken message.

Last week that message changed.

On Wednesday the Internal Revenue Service quietly proposed a rule that would effectively do what numerous proposed acts and measures could not: ban companies such as private equity firms from converting the management fees they receive from their investors — fees that would normally be taxed as ordinary income — into capital contributions invested in their funds. These are taxed at a much lower tax rate.

Read the entire article on GlobeSt.com  here.