mcarristo

June 3, 2015 | 9:15 – 11:15 a.m
Albuquerque, NM | 2 CE Credits Requested

This two-hour course will update real estate professionals on important tax rules governing real estate transactions as well as planning and structuring alternatives to minimize the tax effects related to the purchase, operation and sale of real estate.

Primary discussion items will center on advantages of different ownership structures, tax deductions available to real estate, tax-free like-kind exchanges, and the IRS passive vs. real estate professional rules.

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NAR’s 2015 Commercial Lending Trends (PDF link below)

Based on the Expectations & Market Realities in Real Estate 2015: Scaling New Heights report—released by Situs, RERC, Deloitte and the National Association of REALTORS®—commercial real estate (CRE) has been riding a wave of improved macroeconomic conditions and bullish capital markets. During 2014, gross domestic product rose, employment growth accelerated toward the latter part of the year, and stock market indices reached new heights. Consumer confidence improved as the year progressed and oil prices sharply declined, offering strong wind in the sails of economic activity. As the Federal Reserve concluded its quantitative easing program, its target funds rate remained unchanged, as inflation continued below its target range of 2 percent.
Commercial vacancy rates declined for the core property types. Availability is expected to continue contracting for office, industrial and retail properties in 2015 and beyond. Vacancies for apartments are estimated to rise, due to gains in supply. Commercial rents have risen across the board, and are projected to advance this year to the tune of 2.5 percent to 3.7 percent.
CRE sales volume continued its positive trend in 2014, with $438 billion in closed transactions, compared with $361 billion in 2013, based on data from Real Capital Analytics (RCA). Most of the transactions reported by RCA are based on data aggregated at the top end of the market—above $2.5 million.
In contrast to the large commercial transactions reported by RCA, commercial REALTORS® managed transactions averaging $1.6 million per deal, frequently located in secondary and tertiary markets, and focused on small businesses and entrepreneurs. The 2015 Commercial Real Estate Lending Trends shines the spotlight on this significant segment of the economy—a segment which tends to be somewhat obscured by reports on large Class A commercial properties.
Lending conditions in REALTOR® markets notched another year of sustainable recovery. As CRE asset prices strengthened, financing and lending conditions improved in 2014. The main sources of capital for commercial REALTORS®’ clients remained local and regional banks, which made up 58 percent of funding in 2014.
The incidence of failed transactions, due to lack of financing reached a new low. REALTORS® cite uncertainty from legislative and regulatory initiatives as the most relevant cause of bank capital shortage for CRE.
By: George Ratiu (National Association of REALTORS®)
Click here to view full PDF.
Click here to view source website.

Courtesy of Rosemann Associates Shown in this computer-generated image is MorningStar of Albuquerque, an assisted living and memory care residential facility currently under construction at 8051 Polomas NE.

The $8.4 million, 61,300-square-foot project at 8051 Palomas NE, which is expected to open in December, is a joint venture of MorningStar Senior Living and Confluent Development Services, both based in Denver.

“Our geographic focus is major markets west of St. Louis,” said Matthew Turner, chief financial and development officer at MorningStar. “Albuquerque fits squarely into that. We love the city — it’s a vibrant city — and the opportunity for us to offer a quality and innovative product.”

MorningStar’s first project in New Mexico, the Palomas facility will have 48 assisted living units, ranging from studio to two-bedroom, in the two-story building as well as a 21-unit “Reflections Neighborhood” where memory care will be provided.

The facility will create about 70 full- and part-time jobs to provide 24/7 staffing, Turner said. Albuquerque resident Larry Mascarenas, who has worked in senior living for 2½ years, is its executive director.

MorningStar will offer upscale amenities including restaurant-style dining with meals prepared by an executive chef, various community spaces and an activities program. A majority of the residents are expected to be drawn from neighborhoods in the Northeast Heights.

“The average age of our residents is north of 80,” Turner said. “We’re really focused not only on providing service to our residents but to their families as well.”

MorningStar’s facility is on the same stretch of Palomas as Paloma Landing Retirement Community, an independent living facility, and Las Palomas Center, a 120-bed residential care and skilled nursing facility.

MorningStar’s new site occupies about 2½ acres of the 3.4-acre site. Turner said the balance of the site likely will be developed separately for retail uses.

MorningStar has 23 properties open or in development in 11 cities in seven states.

By: Richard Metcalf (Albuquerque Journal)

Click here to view source article.

The Rail Runner pulls out of the Santa Fe Railyard earlier this week. (Roberto E. Rosales/Albuquerque Journal)
When launched in 2006, a New Mexico commuter rail line that would connect Albuquerque and Santa Fe was hailed by supporters as a progressive step toward taking people out of cars and putting them on the train.
But as impressive a feat as it was for a poor state’s huge foray into mass public transit, it comes at a price: The train earned $2.8 million last fiscal year in fares from more than a million riders but cost $28.4 million to operate. And even bigger amounts of red ink are looming over the horizon.
Now the question of whether the huge state investment in the 97-mile commuter rail system is worth it will be visited anew after state lawmakers asked the New Mexico Department of Transportation to conduct a study on the long-term finances of the line. The study will look at everything from future costs and debt obligations to examining whether the state should sell the Rail Runner and replace it with a bus service.
The finances surrounding the Rail Runner have created a divide in New Mexico. To some, the price tag makes no sense, especially considering relatively low ridership numbers and little congestion on the roads. Others, pointing out large price tags for road projects, suggest it’s an asset worth keeping.
“I look at it this way: We pay millions of dollars for repairs of the highways,” said Micky Hogue, waiting recently with a friend at an Albuquerque station for a midmorning ride to Santa Fe. Retired from Sandia National Laboratories, she said many of her friends ride the full morning train to work.
For those who ride the train, it’s one of the best deals in the country.
The average fare is $2.47, compared with the average trip length of 40.7 miles. That adds up to 6 cents per passenger mile. A 2011 Department of Transportation study of several train systems around the country found the rates to be among the lowest.
Meanwhile, the costs are rising. On top of operating costs, the state is paying about $28 million a year in debt for the train until 2024, and will have to shell out $112 million in 2025 and 2026 in balloon payments.
Taxpayers are also on the hook for nearly $493 million in infrastructure for the rail line. The Department of Transportation estimates that the total debt repayment over 20 years, including principal and interest, works out to nearly $784 million.
“I don’t know how we’re going to deal with it in those (balloon payment) years,” Transportation Secretary Tom Church said. “There’s no silver bullet.”
A fallback for the state could be to refinance the final two payments, a call that lawmakers will have to make.
Academics and others agree it’s not easy to quantify the value of a rail system, which brings multiple benefits aside from relieving congestion. The benefits include reducing pollution, improving safety and providing transportation for those in need.
University of New Mexico civil engineering professor Gregory Rowangould says it’s difficult to put into perspective because “what’s appropriate for New York City is not appropriate for Albuquerque.”
But he said the rail line has potential, given that population and traffic patterns can change. “I’d think that there’s value in keeping it around,” he said.
But in a state like New Mexico with low population density, it’s questionable whether a train is worth the cost, said Clifford Winston, a senior fellow at the Brookings Institution in Washington, D.C., who studies urban rail systems. “If it is socially undesirable, then cut your losses and no longer incur the cost … and try to recover the capital that you can and walk away,” Winston said.
A House memorial sponsored by Rep. Bill Rehm, R-Albuquerque, which passed 31-13, calls on the Transportation Department to produce a Rail Runner feasibility study by mid-November.
Rehm said he introduced it to highlight the cost of the Rail Runner – especially for new legislators who may not have been aware of the situation.
Rehm said the Rail Runner replaced the Department of Transportation’s Park and Ride commuter bus, which charged a $3 fare for an hourlong, one-way ride from Albuquerque to Santa Fe, with a train ride that costs $9 and takes about 90 minutes.
“I’ve heard some people say it would be cheaper to buy a Prius for each Rail Runner customer and just park the train,” Rehm said. “It’s like when you have a lemon for a car. I know I’m going to lose money, but I just need to move on.”
But Rep. Jeff Steinborn, D-Las Cruces, said he voted against the measure in the recent legislative session because he felt its language created a “negative bias” against subsidies for commuter rail when other forms of transportation are also subsidized.
“As if when we ride on the freeway we’re using Monopoly money,” he said.
By: Vik Jolly (The Associated Press)
Click here to view source article.