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How does the tax law enacted in December 2017 impact the value of cost segregation studies? And what exactly is a cost segregation study? As commercial property owners look towards their 2018 tax filing, this is perhaps the most significant new issue effecting their returns…

Seneca, NY The NYS Energy Research and Development Authority (NYSERDA) and Nexamp, Inc., have completed a 2.6 megawatt community solar project, of which one megawatt will be used to provide no-cost solar subscriptions in NYS Electric and Gas Corp.’s (NYSEG) utility territory.

Rochester, NY Listed on the National Register of Historic Places, the one million s/f Sibley Building located downtown, has become a redevelopment touchstone and success story. Now, it’s also the new home for state- and federally-designated business incubator NextCorps, which is supported by the University of Rochester. 

Rochester, NY According to the Upstate New York Chapter of the Appraisal Institute, William Beyerbach, MAI, SRA, is the 2019 president. Beyerbach is owner of Appraisal & Consulting Services.

Rochester, NY According to SWBR, the firm was recognized at the 2018 NAIOP Upstate New York Chapter Awards of Excellence ceremony for two projects: Evergreen Center in Buffalo, and the new American Packaging manufacturing facility in Chili.

Bronx, NY According to Venture Capital Properties, 957-959 Kelly St., a walk-up multifamily building in an opportunity zone (OZ) has sold for $7.8 million. Located between 163rd St. and Westchester Ave. in the Foxhurst neighborhood, the rent-stabilized property consists of 38,237 s/f and contains 42 units, of which 12 one-bedrooms and 30 two-bedrooms. 

New York, NY Yariv Ben-Ari has rejoined Herrick, Feinstein LLP as a partner in the firm’s real estate department, and co-chair of the Israel practice group. Yariv rejoined the firm from Akerman LLP, where he was a partner in the firm’s real estate group.

Hempstead, NY According to Frederick Parola, CEO of the town of Hempstead Local Development Corp. (LDC), the agency has given preliminary approval to the sale of tax-exempt bonds that will preserve the Evergreen Charter School, which serves 500 students.

Wallingford, CT According to Berkshire Hathaway HomeServices New England, New York and Westchester Properties, CEO and president Candace Adams has been named to the board of directors and ethics committee for the Real Estate Board of New York’s (REBNY) Residential Brokerage Division.

Melville, NY Paul Schneider, senior director, and Carmine Inserra, principal, of NAI Long Island, represented the tenant, Routesmart Technologies, Inc., in the lease of 2,079 s/f office space at 35 Pinelawn Rd. The space was leased from landlord Fairfield Properties, which was self-represented.

Bellport, NY Tommy Tsiolis of Diversified Realty LI, Inc. has brokered two leases in Long Island totaling 20,000 s/f. In the first lease, Tsiolis represented the tenant, Equipco LLC, in a 15,000 s/f lease at 4 Pinehurst Dr. Jeremy Hackett of of Metro Realty Services represented the landlord. Equipco is a steel fabrication company.

New York, NY On Tuesday, February 5, 2019, CREW (Commercial Real Estate Women) New York held its first luncheon of 2019 with its event, “How Do We Get to OZ? Opportunity Zones Take Off in 2019,” with panelists who discussed the basics of the new federal Opportunity Zone Program, how the city is responding and the anticipated reaction of the commercial real estate markets.

On Wednesday, December 19th, 2018, the Federal Reserve, under Chairman Jerome Powell, raised interest rates for the fourth and final time for 2018. The Fed increased the target range for its benchmark interest rate by 25 basis points to a range of 2.25%-2.5%. This rate controls the cost of mortgages, credit cards, and other borrowing. This is the interest rates’ highest level since early March 2008 where it was in the 3-3.25% range. This move marked the fourth increase of 2018 and the ninth since the Fed began normalizing rates in December 2015.

Albany, NY The New York State Association of Realtors honored Dawn Carpenter of Staten Island with its 2018 Lawrence Caldwell RPAC Service Award, the highest honor presented by the Realtors Political Action Committee of NY. She received the award during the association’s Mid-Winter Business Meetings.

Nassau County’s property tax appeal deadline has been extended to April 30th this year. Republican legislators pushed for the extension citing numerous errors associated with this year’s countywide revaluation of all properties. The current county executive and her administration, which happens to be Democratic, says they have extended the deadline in order to allow every property owner the opportunity to have their assessment reviewed. Regardless of which side was the true impetus or enactor of the change, the bottom line is that property owners now have an additional sixty days before a grievance must be filed to protest their taxes.

Since the environmental consulting industry is now in its third decade (as far as lending institutions requiring them), many properties have had at least one Environmental Site Assessment (ESA) conducted. As many of the commercial loans available last less than 10 years, some of these properties have been evaluated multiple times. With a prior report (in which the loan closed) comes the question, “the last bank was fine with the environmental report.” Generically referred to as the phase one report, that question is usually asked when a new phase one report presents an Area of Concern (AOC) or Recognized Environmental Condition (REC) not previously identified. 

The New York State Association of Realtors (NYSAR) held its annual Mid-Winters Meetings at the Desmond Hotel in Albany from February 10th to the 14th. The five days of meetings, as usual, were extremely productive. After one of the sessions, I sat down with a well-respected Realtor and friend to discuss the need for co-op transparency. 

Mt Sinai, NY According to Frederick Braun III, chairman of the town of Brookhaven Industrial Development Agency (IDA), the agency has closed on a package of economic incentives for two senior living projects that will soon be constructed. The incentive agreement will assist The Engel Burman Group to develop a 120-unit Bristal Assisted Living facility and a 225-unit rental complex, including a clubhouse, for people age 55 and over on 24 acres.