Articles

03.01.16

Crowdfunding: Disclosing Both the Pros and the Cons?

Large real estate equity and debt transactions are traditionally funded by large institutions such as REITs and life insurance companies investing in companies or joint ventures with only one or two investors. At the other end of the scale, historically a local real estate developer or investor ...


12.24.15

A Closer Look at 'Accidental Contracts'

It's not all that unusual to see such a term sheet calling for, say, a 20-day due diligence period. This is apparently supposed to be impressive to the seller, showing that the buyer is a can-do player. Unfortunately, unless the title work and survey have already been completed, it is very ...


11.03.15

How to Get in on the Offshore Fund Flow to U.S.

Unlike some countries, the US has minimal legal impediments to offshore investors investing in US properties, says Muller.   A recent report estimates that foreign investors are on track to spend more than $70 billion on US commercial real estate in 2015.  And another report says that ...


06.17.15

As-Is Deals May Not Be So As-Is

Owners of real property rely on "as-is" and "independent investigation" clauses in their real estate contracts and leases to shield them from litigation over mistaken or misinterpreted statements made in the course of negotiations. However, recent court decisions have called ...


04.28.15

What to Do in a Boom to Prepare for a Bust

Now that the Great Recession is fading into the past, and 2015 seems to be shaping up as a boom year in real estate, there is a temptation for real estate developers and investors-eternal optimists-to extrapolate from a few good years into an ever rosier future.


12.31.14

Creative Ways to Put Off the Inevitable

Like-kind exchanges under Section 1031 of the Internal Revenue Code are an excellent way to defer recognition of taxable gain on the sale of real property.   In these transactions, a seller of real property assigns the purchase agreement to an exchange accommodator before the ...


12.23.14

Have You Tried an MOB?

During times of economic uncertainty-or, for that matter, prosperity-diversifying your real estate investments is always a wise move. Often discussions revolve around the typical asset classes-retail, industrial, multifamily and commercial-but have you looked at medical office buildings? Healthcare ...


10.01.14

What Property Did You Think You Were Buying?

EVP for acquisitions calls her favorite lawyer: "We're buying Three Rivers Shopping Center, so get going on due diligence."Favorite lawyer immediately calls title company: "I need a title report on Three Rivers Shopping Center, ASAP," and surveyor: "I need a survey of ...


08.12.14

When Negotiating Your JV, Watch For…

For good reason, one of the most common structures for real estate joint ventures is the limited liability company. After all, it is one of just a few alternatives that provides an enticing blend of limited liability and structural flexibility. Like all joint ventures, though, the LLC is not ...


06.13.14

The Many Ways to do Public Private Partnerships

As local governments face increasing budget pressure, and as tools such as tax increment financing face increasing political hostility, real estate developers should remember that there are many opportunities for private developers to partner with public agencies to finance and build projects. ...