By Phillip H. Babich and Sara M. Eddy Less parking and more housing, or just less parking? Figuring out parking configurations for development projects in California will get a little easier for developers starting January 1, 2023. The state legislature has adopted Assembly Bill 2097 (AB 2097), and Governor Gavin Newsom (D) signed it into … Continue Reading
By Steven M. Regan and William G. Bornstein on Posted in Real Estate (U.S.)
The Pennsylvania Legislature enacted extensive changes to Title 56 of the Decedents, Estates and Fiduciaries Code affecting powers of attorney, effective as of January 1, 2015. The amendments create a number of issues for creditors in commercial transactions and individuals and businesses engaging in the transfer of equity interests, bonds or other assets of a … Continue Reading
On January 1, 2015, the final Basel III rules regarding regulatory capital for banks with greater than $500 million in assets and all savings and loan holding companies took effect. Basel III imposes new rules for high volatility commercial real estate (HVCRE) which the regulations define as a credit facility that finances the acquisition, development … Continue Reading
When multiple people inherit an interest in real property, each is responsible for their share of the ad valorem taxes of the property. What happens if one party fails to meet its tax obligations? What recourse is available to a party that pays more than its share of the tax obligations? In Texas, a co-owner … Continue Reading
The EB-5 Visa Program has become an increasingly popular vehicle for real estate project financing in the United States. Last year, for the first time in the Program’s history, the annual supply of EB-5 immigrant investor visas, which is capped at 10,000, was fully depleted. More than 11,000 foreign citizens applied for EB-5 Visas in … Continue Reading
In an article published on Law360.com titled "Tech Was ‘Not Tethered To Spreadsheets’ For 2014 RE Buys," Simon Adams of Reed Smith’s Real Estate Practice Group comments on the real estate market effects in Northern California caused by a booming tech industry demand for office space. Tech companies are doing massive deals, often demanding lease terms … Continue Reading
In an article published on Law360 titled "History Complicates San Francisco’s Surging Real Estate Development," Simon Adams of Reed Smith’s Real Estate Practice Group comments on the challenges developers face with historic-designated properties in the city. " I think [the need for housing is] a particular challenge to San Francisco right now,” noting the tension between the … Continue Reading
In an article titled“The State of Compulsory Integration in Pennsylvania” that appears in The Legal Intelligencer, Michael Joy, Robert Jochen and Steven Chadwick of our Pittsburgh office review the challenges oil and natural gas developers face in Pennsylvania. The authors argue that an established compulsory integration process will benefit the industry by providing a predictable permitting … Continue Reading
On August 19, 2014, the Pennsylvania Superior Court affirmed a trial court’s decision not to reduce accelerated damages awarded to a landlord to present value, thereby strengthening the landlord’s position with respect to acceleration clauses in an already landlord-friendly state. The case, Newman Development Group of Pottstown, LLC v. Genuardi’s Family Market, Inc. and Safeway, … Continue Reading
Pennsylvania Act No. 129 of 2012 (effective September 4, 2012), amended the Landlord and Tenant Act of 1951 to provide for the disposition of personal property deemed abandoned by a tenant. The Pennsylvania legislature has returned to this subject with Pennsylvania Act No. 167 of 2014 (effective December 21, 2014). Under the prior law, there … Continue Reading
Under some circumstances recapture provisions can offer substantial benefits to both landlord and tenant. The tenant is relieved of its future performance obligations, and the landlord can put the premises to better use, in a direct relationship with a new tenant, perhaps gaining rent at a newly higher market rate or a lease for a … Continue Reading
In many cases nonprofit organizations do not have large endowments or reserves in place from which they draw upon to readily accomplish and sustain a real estate acquisition. In today’s market, buyers are typically expected to contribute between 10-20% cash equity upfront as well as meet reoccurring payments of debt service, operating expenses and real … Continue Reading
Selecting a title company for a transaction is influenced by a number of factors, including the level of customer service, responsiveness and sophistication (particularly when dealing with complex commercial transactions). Knowledgeable and responsive escrow officers and underwriters can facilitate closings tremendously. However, underwriting guidelines may adversely affect an underwriter’s ability to deliver an acceptable title … Continue Reading
Property owners, lien-holders and community development organizations in Pennsylvania, take note. Governor Corbett recently signed House Bill No. 1363 amending the act of November 26, 2008 (P.L.1672, No.135), also known as the Abandoned and Blighted Property Conservatorship Act. Depending on your viewpoint, the amendment gives much needed teeth to a tool for combating blight, or … Continue Reading
In September, the Pennsylvania Supreme Court unanimously decided in Reading Area Water Authority v. Schuylkill River Greenway, that a “water authority” may not condemn a utility easement over privately-owned land for the sole purpose of providing a private developer sewage and drainage facilities for a proposed residential housing development. The case is important because it … Continue Reading
In an article that appears on Law360.com, Joe Marger of our New York office is quoted in an article titled "Developers Reaching Deep for Rights to Build Sky-High." The demand for sky-high condos and penthouse apartment has changed how property owners look at air rights. They are now valuable real estate assets. In an interview … Continue Reading
On September 18, 2014 Congress amended the Interstate Land Sales Full Disclosure Act (“ILSA”) to exempt condominiums from the filing and registration requirements. Originally intended to protect consumers against fraudulent land sales practices such as selling lots that were underwater or unable to obtain utility services, the federal courts and the Department of Housing and … Continue Reading
This post and related article was also written by Michael Joy and Robert Jochen. In an article that appears in The Legal Intelligencer, the authors discuss the significant impact that will result from a successful PA Supreme Court appeal of the lower court decisions surrounding Shedden v. Anadarko E & P Co., L.P., 88 A.3d 228 … Continue Reading
The Pittsburgh Penguins have finalized a groundbreaking agreement with local community groups after years of negotiations involving the development of the 28 acre site where the former Civic Arena once stood. The agreement provides for, among other things, the inclusion of minority participation in the development of the 28 acres and a percentage of affordable … Continue Reading
In an article appearing on law360.com, Simon Adams of Reed Smith’s Real Estate Practice Group was interviewed on the impact of changes to California green building laws and mandates. In particular, his comments focused on new real estate investors and developers: "Certainly, in terms of counseling anybody particularly coming in from outside of the state, we’re … Continue Reading
Subrogation is the principle under which an insurer that has paid a loss under an insurance policy is entitled to all of the rights and remedies belonging to the insured against a third party with respect to any loss covered by the policy. In simple terms, subrogation means substitution of one person for another. Subrogation … Continue Reading
this is a follow-up to an earlier blog post on this issue from March, 2014 On Thursday, August 14, 2014, the Supreme Court of Pennsylvania advised that it would consider the appeal from the Superior Court determination dated March 14, 2014 in the matter of Sheddon v. Anadarko E&P Co. LP. We will continue to update this … Continue Reading
This entry was written by Lesley Vars and Leah Speckhard Recent years have seen the increase in popularity of pop-up shops as solutions for landlords in need of cash flow. Retailers like pop-ups as a chance to test the waters before signing a long-term lease or to sell seasonal merchandise. Pop-up shops began to take … Continue Reading
