Tag Archives: Real Estate (U.S.)

(US) EB-5 Visas: When Real Estate and Immigration Law Collide

Part 5 of a series on creative Real Estate financing. A developer financing method returns – IRS provides clarity on the use of historical rehabilitation tax credits  Using Crowdfunding to finance real estate projects Using New Market Tax Credits to finance projects Let the Purchaser do the Financing E5-B visas are another growing source of liquidity … Continue Reading

(US) The Keys that Unlock Trapped Commercial Real Estate Value

In an exclusive two-part interview with commercial real estate website GlobeSt.com, Joseph Marger of Reed Smith’s New York office offers his views on sale-leasebacks and the opportunities they represent to free substantial real estate value for companies. Part One of the Interview is concerned with the state of the sale-leaseback market. Part Two addresses when … Continue Reading

(US) Act 13 in the news: Commonwealth Court of Pennsylvania Holds Additional Act 13 Provision Unconstitutional

On Thursday, July 17, 2014, in the matter of Robinson Township, et. al. v. Commonwealth of Pennsylvania, the Commonwealth Court of Pennsylvania issued the latest decision in the state judicial system’s ongoing review of amendments to Pennsylvania’s Oil and Gas Act (“Act 13”). Under a prior decision issued on July 26, 2012, the Commonwealth Court … Continue Reading

(US) Oil and Gas Development on Public Lands Clears the PA State Legislature

On Tuesday, July 8, 2014, the Pennsylvania State Senate passed the Commonwealth’s fiscal code by a margin of 26 to 22. Included within the fiscal code, as a companion piece to the legislation, were provisions critical to the Commonwealth’s commitment to future natural gas development on state lands. Specifically, the fiscal code included measures which: … Continue Reading

(US) Pennsylvania Legislature Clarifies Open-End Mortgage Exception to Priority of Mechanics’ Liens

On July 9, 2014, Governor Corbett signed Act 117 of 2014, amending Pennsylvania’s Mechanics’ Lien Law of 1963 (Act of August 24, 1963, P.L. 1175, No. 497, 49 P.S. §1101, et seq.). One of the principal purposes of the amendments appears to be the overruling of the Pennsylvania Superior Court’s decision in Commerce Bank/Harrisburg, N.A. … Continue Reading

(US) Construction Allowance in Commercial Leases: Do You Want Income Taxes With That?

Negotiation of the construction allowance is an important part of most commercial lease transactions and usually centers around the size of the allowance and the type of improvements to be constructed. However, the tax consequences flowing from the construction allowance are frequently subject to far less negotiation. If the tenant owns the improvements after construction, … Continue Reading

(US) Virginia Zoning: Landowners Can Get Damages from Unconstitutional Government Actions

Effective July 1, 2014, Virginia landowners will have a new mechanism to use to protect their interests when seeking zoning or subdivision approvals. On April 6, 2014, Governor McAuliffe signed SB 578 into law (which will be codified as Virginia Code section 15.2-2208.1). SB 578 provides that an applicant who is disappointed by the grant or … Continue Reading

(US) Not in MY Backyard: Houston Case Signals Increasing Challenges to Development

No zoning, no problem? Think again. The Houston real estate market has seen an escalation of commercial, mixed use, and residential projects. This upturn in overall development activity has been met with increased scrutiny by community groups. At the same time, the proliferation of social media has lowered the barriers to organizing coordinated opposition to … Continue Reading

(US) It’s tax appeal season in Pennsylvania: 2015 Real Property Assessment Appeal Deadlines Are On The Horizon

This post was written by Dusty Elias Kirk and Peter Schnore Pennsylvania real property tax appeal “season” is upon us once again. It’s important that a property owner not take an assessment at face value. For 66 of Pennsylvania’s 67 counties, the 2015 real property tax appeal deadlines fall between August 1 and the first Monday of … Continue Reading

(US) Buy versus Lease: Why Organizations Should Consider Purchasing Their Space

We have been approached by many clients who contemplate the advantages of buying versus leasing space to serve as their headquarters facility. More often than not, the underlying decision is based on the numbers. In order to make a well informed business decision, we recommend a comprehensive side-by-side comparison of each option. WHAT FACTORS TO … Continue Reading

(US) “Rocket-Docket” Launches in New York: Implications for Real Estate Practice

This post was also written by Joshua Leventhal In an effort to expedite the litigation process, reduce court costs and to offer contracting parties an alternative to arbitration, the New York State Supreme Court Commercial Division has adopted an “accelerated adjudication” rule, effective as of June 2, 2014, for all disputes exceeding $500,000. The “accelerated adjudication” … Continue Reading

(US) Foreign Direct Investments get some help from China’s new NDRC system

There is no question that Chinese investors have played an important role in maintaining deal flow over the past several years, especially for trophy properties in gateway cities like London and New York. However, until recently, these investors have been at a competitive disadvantage due to a lengthy government review and approval process. Under prior … Continue Reading

(US) Access To Landlord’s Property by a Tenant’s Lender

Landlords and secured lenders (i.e., lenders with a security interest in tenant’s personal property as collateral for a large loan) should remember to consider underlying applicable state law governing removal of a defaulted tenant’s property when negotiating landlord waivers or collateral access agreements. Competing interests are at play between landlords and secured lenders when it … Continue Reading

(US) San Francisco proposes new legislation to accommodate short-term residential rentals

As a result of the proliferation of on-line hosting platforms (Airbnb, VRBO, Craigslist, etc.) the number of incidents of short-term residential rentals in San Francisco may have reached 100,000 last year. What’s interesting is that the majority of these incidents were illegal under San Francisco law. Indeed, San Francisco currently bans owners and tenants of … Continue Reading

(US) The ‘Good Guy Guaranty’: Covered obligations can differ depending on your perspective

A landlord may request a principal of a tenant or an affiliated entity to guarantee lease obligations if the prospective tenant has a less-than-ideal credit profile. In a tenant-friendly market, few landlords will be successful in this pursuit. Consequently, a savvy landlord may request a sufficient security deposit, plus a limited or “Good Guy” Guaranty … Continue Reading

(US) Tenant Estoppels: Just the Facts Ma’am

Considered boilerplate, lease provisions addressing estoppel certificates are often glossed over during negotiations (or ignored entirely). However, estoppel certificates are important documents in the event a Landlord wants to sell or finance its property. With a bit of consideration during lease negotiations, estoppel clauses can meet a landlord’s needs without being an undue burden to its … Continue Reading

(US) Show me the Money!: Potential Lucrative Compensation for Rails-to-Trails Landowners in US Supreme Court Ruling

If you are a landowner who owns land that came to you or your family through a land grant from the United States government and that land abuts or lies beneath what is now an abandoned railroad, then you might have a legitimate claim to say to the government, “show me the money!” A January … Continue Reading

(US) Commonwealth Court of PA Clarifies the Scope of the Development Permit Extension Act

On April 8, 2014, the Commonwealth Court of Pennsylvania issued its decision in Kraftdev Assoc., LLC v. East Cocalico Township Authority, affirming the trial court’s grant of summary judgment in favor of Kraftdev Associates, LLC (“Kraftdev”). In so doing, the Court clarified some important aspects of the scope and application of the Development Permit Extension … Continue Reading

(US) The Tools of “Inclusionary Eminent Domain (Part 2): How the Concept Works in Practice

This second blog post of the two-part series features just a few of the tools of inclusionary eminent domain that can be retrofitted for purposes of constructing or preserving affordable housing on land condemned for economic development, or new development projects generally. The tools are interrelated and have the ability to operate in tandem to … Continue Reading

(US) Pop-Up Retail: a temporary fix becomes a mainstream development tool

“Pop-Up” retail, the use of short-term sales space to house retailers in connection with a trendy seasonal or up-and-coming product has increased in popularity over the last several years. Target, Nike, Google and Microsoft are recent examples of retailers who have successfully opened pop-up shops. Recently, the concept of the pop-up shop has expanded beyond … Continue Reading

(US) What is “Inclusionary Eminent Domain” (Part 1): Rethinking How to Construct Affordable Housing in Economic Development Projects

This first part of a two-part blog series explores a new concept, “inclusionary eminent domain,” that has emerged in real estate development. The concept serves to temper and reconcile the interests of various stakeholders involved in eminent domain takings for economic development. The concept has evolved in response to the 2005 landmark United States Supreme … Continue Reading

(US) Air Rights: Make Sure You Get What You Pay For

This post was written by Lesley Vars and Leah Speckhard Prices for transferable development rights, commonly referred to as “air rights”, in New York City are reaching sky high numbers as developers scramble to build higher and higher. According to the Wall Street Journal’s April 23, 2014 article, titled “Sky is the Limit for Air … Continue Reading
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