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Commercial Property Owners: Capital recovery and distressed property solutions
Buy/Sell Distressed Properties:
There is a $247 billion in aggregate demand now from banks/sellers wanting to move non performing CRE assets off their books. Our private equity group can help with CRE stresses. Our group had $121 billion in closed transactions in 2007 before things fell apart in 2008 and 2009. We represent some of the most respected institutional buyers of CRE in the marketplace today. Our group is not a "debt vulture" looking to buy at 20 cents on the dollar. We are here to offer real-time, fair market value.
Right now is a good time as we are seeing a lot of the "dry powder" coming back to the marketplace. We can help property move quickly and easily.
Internet Based Real-Time Property Evaluation Models:
Our clients will have access to valuable and innovative enhanced software which offers real-time supply and demand Internet MarketPlace for the confidential or public sale and purchase of institutional grade commercial real estate. This new software information is most interesting to commercial property buyers/sellers, banks and bankers.
Investors and Lenders are brought together to provide them with the appropriate market intelligence and minimize the difference in the bid/ask spread. We believe it is this spread that has traditionally broken down communication between Commercial Lenders and Private Equity Investors.
Properties are loaded into a virtual "hold box", a property analysis is completed and you are advised of any investor interest because the investors have also loaded the same criteria they are seeking. We know in real-time the current fair market value, the level of interest and probability of potential sales.
Cost Segregation 101: Reducing Taxes Through Accelerated Depreciation:
The weak economy has prompted the government to expand tax benefits to property owners which can result in substantial tax refunds. Leading commercial property owners are taking advantage of a unique solution created by combing recent tax changes and accelerated depreciation. Blending of the two has created an historic opportunity to access much needed capital.
Our friends in Washington, DC have provided a means to obtain a refund of taxes paid as far back as 5 years ago. New legislation allows for a Net Operating Loss (NOL) to be carried back to 5 years instead of 2. By conducting a cost segregation study for your 2009 tax year, the additional depreciation deduction could generate a loss that can be carried back to previous years; resulting in a refund of taxes paid. This will require the amendment of previous years' tax returns - a small price to pay for a much needed refund check, and the IRS has indicated that they will expedite the processing of these refunds. Many property owners are making the smart decision to utilize this recent window of opportunity to benefit handsomely by receiving a windfall of capital. As one dealer puts it, "it's our lucky day!"
The purpose of Cost Segregation is to identify those assets within an investment property that can be reclassified as personal property or land improvements. The motivation is that, while commercial property is depreciable over 39 years, personal property is depreciable over 5 or 7 years and land improvements are depreciable over 15 years. By reclassifying such assets, property owners can greatly increase their depreciation deduction.
In order to determine if cost segregation is a valuable option, can you answer "Yes" to the following:
~ Is the cost of the building (land excluded) at least $750,000?
~ Have you purchased, constructed or renovated any property in the past 12 years?
~ Do you plan on retaining the property for at least 1 year?
~ Do you have net income that has been taxed in the last 5 years?
Commercial Affiliates, LLC is an advisory firm providing loan workout and capital recovery solutions for banks and commercial property owners.
For further information, send email to Rob West or call Rob direct: 303.472.0531