- Donald Trump’s Tax Ideas Could Boost Debt-Laden Real Estate Firms “The Republican presidential nominee appears poised to combine two policies that House Republicans—and tax analysts from both parties—say shouldn’t be paired: letting businesses deduct interest, and allowing expensing, or immediate write-offs, for investments in equipment and buildings. Current law requires businesses to spread those deductions over multiple years. The result would provide negative tax rates for investments financed with debt, creating incentives for companies to pursue projects that wouldn’t make sense economically without the tax benefits. A business would be able to generate significant losses in the first year of an investment and then generate ongoing interest deductions. Those losses could be carried forward and used to offset future income.” (The Wall Street Journal)
- U.S. Architecture Billings Index Moderates in July “According to the AIA, the Architecture Billings Index (ABI) was positive in July 2016 for the sixth consecutive month, and tenth out of the last twelve months as demand across all project types continued to increase. The American Institute of Architects (AIA) reported the July ABI score was 51.5, down from the mark of 52.6 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.5, down from a reading of 58.6 the previous month. ‘The uncertainty surrounding the presidential election is causing some funding decisions regarding larger construction projects to be delayed or put on hold for the time being,’ said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. ‘It's likely that these concerns will persist up until the election, and therefore we would expect higher levels of volatility in the design and construction sector in the months ahead.’” (World Property Journal)
- King of Prussia Mall opens 155,000-sq.-ft. wing “Simon has opened the doors on a new 155,000-sq.-ft. wing at its King of Prussia Mall that connects the five-anchor Plaza and two-anchor Court. The Pennsylvania mega-mall’s footprint now encompasses 2.9 million sq. ft. Longtime tenants Burberry, Hermes, Louis Vuitton, and Tiffany relocated to the new addition. Some 50 new stores will populate the space, led by high-fashion and luxury brands such as Calligaris, David Yurman, Jimmy Choo, CH Caroline Herrera, and Diane von Furstenberg. Innovations in the new wing include Savor King of Prussia, a food court offering regional and national selections, a concierge-level guest service center, and a parking facility with space location technology and valet service.” (Chain Store Age)
- Cuomo offers path to 421a resurrection — but will the real estate industry walk it “After eight months without 421a, and relative silence from Albany on how to revive it, Gov. Andrew Cuomo emerged Wednesday with a possible solution. The proposal echoed past plans for the tax break, but put forward a new wage subsidy for large projects in Brooklyn and Queens. Some industry players regard the proposal as a significant step forward in what has been a stalemate between the Real Estate Board of New York and the Building Construction Trades Council of Greater New York. But the proposal, quietly delivered in the form of a one-page memo to a select group of developers and revealed by the New York Times, leaves several major questions unanswered — including how the state will pay for it. Still, some take heart in the fact that the unions and developers seem to finally be back at the table with a plan that neither side, at least publicly, is denouncing.” (The Real Deal)
- Senior housing in Sonoma County: high occupancy, high rates “A snapshot of Sonoma County senior housing facilities shows the units mirror the conventional apartment market in terms of relatively high occupancy rates and rents. The data also highlight a category where the county differs from other parts of the country: Only 6.7 percent of households with residents ages 75 and older live in senior facilities here. In contrast, the rate of older senior households in such facilities is 10.4 percent for the nation’s 31 largest metropolitan areas and 7.3 percent for 41 smaller metro areas more comparable to Sonoma County, according to the National Investment Center for Seniors Housing & Care, a nonprofit that tracks such data. The rate of older households in such senior facilities gets as high as 14.6 percent in Boulder, Colorado and 18.9 percent in Durham, North Carolina.” (The Press Democrat)
- Southern Nevada wants commercial real estate “Demand is strong for commercial real estate in Southern Nevada, but experts at a commercial real estate development association event on Thursday warned of roadblocks ahead in certain markets. ‘We still have quite a bit of (office space) vacancy,’ said Daniel Palmeri, senior director of the Cushman & Wakefield/Commerce Las Vegas office. ‘Anywhere from 16 to 19 percent (vacancy) depending on whose numbers you look at. A lot of the better properties in town are really filling up,’ he told a crowd of 170 NAIOP members at The Orleans. Filling up so quickly, in fact, that the most in-demand areas may not be able to keep up with demand. ‘We’re kind of in an office pickle, if you will,’ Palmeri said, adding that developers have not developed much office space within the last 10 years in places like Summerlin, and other in-demand areas because land prices are putting a damper on construction.” (Las Vegas Review Journal)
- Opus Launches Big Metro Denver Project “The Opus Group has broken ground on The Glenn, the first project to get under way in a major mixed-use development in Centennial, Colo. The project will feature 306 luxury multifamily units and ground-floor retail space and is scheduled for completion in December 2017. The six-story building will be an integral part of the 42-acre Jones District, a 1.8 million-square-foot master-planned project that will be the largest commercial development in this city located about 15 miles southeast of Denver. Opus has been tapped to bring residential, hotel, office and retail projects to the District, while Opus Design Build will serve as design-builder and Opus AE Group as architect and structural engineer of record. Construction financing for The Jones District will be provided by First National Bank of Omaha.” (MultiHousing News)
- Friedman jumps into fracas over failed O'Hare hotel project “A new character has entered the drama over a failed $912 million hotel project on a property near O'Hare International Airport: Chicago landlord Albert Friedman, who has agreed to buy the vacant parcel out of bankruptcy. Friedman Properties would pay $6.8 million for the 2.8-acre site along the Kennedy Expressway, which sits just west of a SpringHill Suites hotel he owns, according to a motion recently filed in U.S. Bankruptcy Court in Chicago. Developer Anshoo Sethi had planned a 995-room hotel project on the parcel at 8201 W. Higgins Road. But Sethi never broke ground and now faces federal prison after pleading guilty in January to charges that he cheated more than 290 Chinese citizens who had agreed to invest $158 million in the development. He raised the money through a controversial federal visa program that allows foreigners to become permanent U.S. residents if they invest in qualified business ventures in the United States. Complicating matters further, the venture that owns the development site is under pressure from the property's lender, Los Angeles-based Cathay Bank, which won a $9.7 million foreclosure judgment on the site and wants to seize it.” (Crain’s Chicago Business)
- Starwood Capital buys West Palm Beach apartments: $62M “Starwood Capital Group paid $61.5 million for the Turtle Cove Apartments in West Palm Beach as South Florida’s multifamily market remains strong. Records show a Starwood affiliate bought the 444-unit complex at 825 Cotton Bay Drive East for $138,500 per apartment. Harbor Group International sold the 37-acre property, built in 1986. It features two swimming pools, a fitness center, outdoor grilling and entertaining areas and a multi-use sports court, according to the website. Turtle Cove Apartments LLC, an affiliate of Harbor Group International, paid $39.25 million for Turtle Cove in 2012, which means it sold for 57 percent more. Units range from 665-square-foot one-bedroom apartments to 990-square-foot two-bedrooms.” (The Real Deal Miami)
- Logistic Center Changes Hands for $46.2M in Charlotte’s Southwest Industrial Submarket “CBRE recently arranged the sale of a 583,021-square-foot business park and more than 14 acres of additional land in Charlotte’s Southwest Industrial submarket. CLT Logistics Center was sold for $46.2 million to Meritex from Carlson Real Estate. Patrick Gildea, Bryan Crutcher and Anne Johnson of CBRE represented the seller in the transaction. Located at 3100-3401 International Airport Drive and 3100-3140 Yorkmont, the portfolio features high dock-door counts that exceed market average, large truck courts and wide truck entrances. Anchor tenants include Bimbo Bakeries, FedEx and DC74 Data Centers.” (Commercial Property Executive)
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