Archives for February 2019

February 2019 CCIM Deal Making Session Properties

February 6, 2019 by CARNM

Thanks to all of the brokers, sponsors, and guests who attended the February 2019 CCIM NM Deal Making Session and to those who shared the February 2019 CCIM NM Properties.

Over 6 million dollars of commercial real estate properties available for sale were presented from all over New Mexico.
Click here to view source PDF.
Click here to view the Thank Yous.

	Name	Property, City	Type	Price
1.	Todd Strickland	10932 Prospect Ave NE Albuquerque, NM 87112	Office	$625,000
2.	Jim Smith, CCIM, SIOR Breken Mallette	3841 Midway Pl NE Albuquerque, NM 87109	Office/Warehouse	$997,000
3.	Eddie Costello Gilbert Chavez	3501-3543 Gibson Blvd SE, Albuquerque, NM 87106	Retail/Land	$100,000 $450,000
4.	Austin Tidwell	2408 Alamo Ave SE Albuquerque, NM 87106	Investment	$1,250,000
5.	Keith Meyer, CCIM, SIOR Jim Wible, CCIM	SEC 98^th St & Bluewater Rd Albuquerque, NM 87121	Retail/Land	$3,866,072

January 2019 Commercial Market Trends

February 4, 2019 by mcarristo

View a New Mexico Market Trends Summary Report, which includes January 2019 Commercial Market Trends. This report includes the total number of listings, asking lease rates, asking sales prices, days on the market and total square feet available.

Disclaimer: All statistics have been gathered from user-loaded listings and user-reported transactions. We have not verified accuracy and make no guarantees. By using the information, the user acknowledges that the data may contain errors or other nonconformities. Brokers should diligently and independently verify the specifics of the information you are using.

Background: Qualified Opportunity Zones

February 2, 2019 by CARNM

What are they?

Congress created the federal Qualified Opportunity Zone (“QOZ”) program in the 2017 “Tax Cuts and Jobs Act” to encourage economic growth in underserved communities through tax benefits to investors. U.S. states and territories, including Washington, DC, nominated areas (by census tract) to be designated as QOZs in 2018, and the IRS and Treasury finalized the designations that year. This program presents opportunities for real estate investment and development in distressed communities.

How does the program work?

Forming an Opportunity Fund:

Investments in QOZs must be made via an Opportunity Fund (“O Fund”) to qualify for tax benefits. There are no statutory limits on who may form an O Fund, but there are other requirements:

May be a partnership or corporation organized for the purpose of investing in QOZ property;
Must hold at least 90% of its assets in QOZ property, which can be stock, partnership interests and/or other tangible property used in a trade or business, (e.g. real estate), within a QOZ; and
Must be certified according to IRS and Treasury regulations.

Proposed rules released by the Treasury Department in October 2018 state that O Funds will be able to self-certify via a form on their federal tax returns (Form 8996), which is also how they will certify that they fulfill the “90% asset” requirement.
Investments in O Funds may be capital gains from a previous sale made within 180 days (see below for more information on the tax benefits), and/or non-gain funds. In the case that both gains and non-gains funds are invested, they are treated as separate investments and receive different tax treatments by the federal government.

Fulfilling the “90% Assets” Requirement:

Under the Treasury’s proposed rules, this will rely on the asset values reported on the O Fund’s applicable financial statements for that year.
There is a “working capital safe harbor” for O Fund investments in QOZ businesses that acquire, construct, or rehabilitate tangible business property, including real property and other tangible property used in a business operating in a QOZ. Cash and cash equivalents qualify as business property for at least 30 months after new capital is raised.

QOZ Business Property Requirements:

The statute requires that QOZ business property, after being acquired by an O Fund, either be new or be substantially improved, which means investing at least as much on the improvement as was paid for the used asset. The proposed rules provide that the basis of the land need not be counted for purposes of determining whether real property has been substantially improved, thus significantly reducing the required investment amounts.
The Treasury is seeking comments on how to define “original use” for purposes of QOZ business property, especially for property that is abandoned, vacant, or portable.
In addition, QOZ business property must be “substantially all” in a QOZ. The proposed rules state that this requirement will be met if 70% or more of the property is in a QOZ.

What are the tax benefits?

Investors in QOZs can receive both deferral on capital gains taxes on investments the profit of which is rolled over into an O Fund (within 180 days of the sale to an unrelated party) as well as an exclusion from tax of up to 15% of those gains. Plus, full exclusion of those gains earned by deferred-gains investments within the O Fund is available. Here is how it works:

For capital gains reinvested into an O Fund:

Temporary deferral (up to nine years) of capital gains reinvested in an O Fund;
A 10% reduction in tax on the gain if the investor holds interest in the O Fund for five years;
An additional 5% reduction in tax if the interest in the O Fund is held for seven years.

For future capital gains on investments accrued while in an O Fund:

If held for at least 10 years, gains realized on investments made in connection with a deferral election (capital gains invested into an O Fund on which tax is deferred) are excluded from tax.
Gains made in connection with investments that were non-gains funds initially are not eligible for this benefit.

What are the state law concerns?

States may attract more investment in QOZs by conforming state tax laws to the federal laws regarding capital gains. They can offer additional incentives by relieving the investor from paying the state capital gains rates on income earned from QOZ investments. States will likely be reviewing their tax codes in response to the federal changes. Visit our page on realtorparty.realtor for more information on the states’ capital gains rates.

What’s next?

Proposed regulations for the QOZ program were released by the Treasury in October 2018 for review and comment by the public, and the IRS will hold a public hearing on the issue on January 10, 2019. Further rulemaking is expected to address other aspects of the program. NAR is closely monitoring this, and will provide feedback on those proposed regulations to ensure the program is successful. This topic will be featured at the November 2018 Realtors® Conference & Expo in Boston.

Additional Resources

Download this document(link is external) (PDF: 145KB)
By: NAR
Click here to view source article.

As the World Turns: RPR Commercial Keeps Getting Better

February 2, 2019 by CARNM

The end of the year is a time to reflect and think back on things from 2018 that grabbed our attention and made headlines. From crashing crypto currencies, to the scooter crisis polluting our city sidewalks, and all the chirping around Twitter’s roll out of bookmarking tweets for later.
This year has been mixed with messages and milestones of all sizes. RPR is no stranger to this trend of piquing interest for a variety of reasons. In fact, here’s a list of the 2018 enhancements that grabbed commercial member’s attention throughout the year:

Custom Trade Area Reports

We started the year with some subtle tweaks to the labeling of the custom areas. But we ended it with a bang, making huge improvements by giving you the opportunity to create reports that show trade area data for a 3, 5, and 10 min drive time, and a 1, 3, and 5 mile radius around your subject property.

New Datasets For Attribute Site Selection

In addition to the refresh of the more than 900 demographic and economic attributes, you have the the ability to glean market intelligence using new attributes that include daytime population, loan debt (education, credit card and vehicle), online spending and more

Print Page

Have you ever run a search in RPR and wished that you could just print out all of the properties on the results screen? Well, now you can! Proof that epic returns exist in simple functions.

Traffic Counts in Reports

In the past, traffic flow around a property was strictly a feature within the RPR maps. Now you can print a property or trade area report, and like magic, the nearest counts appear beautifully within your presentation.

Land Development BOTE’s

BOTE’s, or back of the envelope analysis tools, were introduced in 2017 for multifamily use. In 2018, the team at Valuate® added calculators for condominiums, office and industrial developments. This tool can now help developers analyze three fourths of the major commercial property product types with more to come!

Next Level Analysis for Multifamily

The largest improvement the team at Valuate® made was expanding the capabilities when doing a multifamily analysis. With one giant release, users were to provide unit-by-unit rent roll detail for apartment properties, and analyze the renovation of units and raising of rents, along with a refinancing analysis after the property’s rents are re-stabilized at the higher rates.

Persistent Display of Returns

Few things are more annoying than making a change to something and then having to scroll to the top or bottom of a screen to see the affect. Maybe this isn’t on the top of your annoyance list, but it does bother plenty of users. Now when you change an assumption affecting your investment in Valuate®, you will see the affect instantly on a levered and unlevered basis.

RPR Mobile

Mobile added a bunch of general improvements, from making it easier to toggle from residential to commercial mode to improved maps functionality. However, the biggest thing for commercial users was incorporating tenant data. Now when you are looking at a commercial property, you can create a tenant report for any property when tenant information is available.

All this with Improved Performance

With each release we conduct performance improvements to ensure the site does not slow down as we add new enhancements. On commercial you may have noticed improved run times when doing a market analysis on large geographic areas, with fewer timeouts as well. Our team also squares bugs in each release that can range from data corrections or recalculations, to malfunctioning UI features.

Looking Ahead

Your feedback is key! We will be reaching out for your thoughts on RPR website improvements, or let us know your ideas in the comment section below. Our goal is to create a closer relationship between your evolving needs and enhancements that quickly supply you with the right solution. The name of the game is help us, help you! We’re continuing our mission of collaborate and listen, as we aim to add many more improvements and updates in 2019.
By: RPR
Click here to view source article.