As has been widely reported, Nassau County recently completed the first county-wide reassessment in eight years. The results of the reassessment were published earlier this month on the 2020/21 Tentative Assessment Roll. The goal of the reassessment is a laudable one in that it aims to provide a fair assessment for every property owner in Nassau County. Unfortunately, based upon our review of the reassessment, we do not believe the county’s goal will be accomplished.
Woodbury, NY Greystone, a leading commercial real estate lending, investment, and advisory company, has provided $78.533 million in HUD-insured financing on a skilled nursing facility (SNF) complex. The transaction was originated by Fred Levine, managing director in Greystone’s Monsey office.
Q: I have hired a commercial real estate broker to sell my industrial building. The building has two tenants. He is asking for all sorts of information that I feel is part of the due diligence that the eventual buyer, not me, should be doing. Why go hunting for problems?
A: It is my experience that problems or issues that need to be resolved late in the due diligence process almost always delay a closing, and sometimes completely sabotage a deal. And they usually result in a financial concession on the part of the seller.
Syosset, NY Milvado Property Group finished up 2018 by signing 30 lease deals during the last two quarters totaling 474,578 s/f. “Leasing velocity since mid-July has exceeded our expectations,” said David Hercman, regional director of Milvado, who explained that the increased demand for industrial space is partially due to e-commerce.
Ronkonkoma, NY Michael Zere, executive VP of Zere Real Estate Services was the exclusive broker for the seller, 1031 Properties 117 LLC, for the $650,000 sale of a 5,000 s/f industrial condo unit on 0.11 of an acre. Built in 1981, the property is located at 700-9 Union Pwy., off of the Veterans Hwy. McArthur Airport Business Corridor.
Great Neck, NY With 500 locations throughout France, Marie Blachère, a French bakery, is making its way to the U.S. with its first location at 550 Middle Neck Rd. The two-floor bakery is 6,000 s/f and will accommodate 40 seats on the first level. The location will also feature rooftop dining beginning next spring that will offer an additional 40 seats.
It is extremely important for an owner to incorporate specific termination provisions in order to protect it from non-performing or under-performing contractors. Without these provisions, an owner may find itself on the defensive and at greater risk when the contractor claims that the termination was wrongful. And, if the owner cannot prove that the termination was proper, it may find itself having to pay the contractor lost profits in addition to sums claimed to be owed for work performed.
As you close the books on 2018, consider what an interesting year it has been. Our President never ceased to amaze us. There were ongoing confrontations with both houses of Congress. Further, the raising of tariffs placed companies, which depend on importing goods from China, in extremely challenging positions on their heels while they tried to determine their next move. Mr. Trump’s persistent negotiating skills, however, do seem to be working and I believe these tariffs will become a thing of the past.
Real estate investors and developers have been flocking to opportunity zone funds to take advantage of the best kept secret within the Tax Cuts and Jobs Act: the Investing in Opportunity Act. By re-investing capital gains into a certified “Opportunity Zone,” to revitalize distressed communities and create jobs, investors have the ability to defer tax, or exclude part or all of the tax on the capital gain invested, as well as the gain earned on their investment. The investment can be passive or active.
In preparing this article, I reference two previous New York Real Estate Journal articles dating back to December 2010 and March 2012, which in certain instances reflect where market conditions are heading in 2019. Question, “is the glass half empty or half full?” The start of 2019 and end of 2018 highlighted volatility in the socio-political arena, economic, financial and equity markets, trade war deficits, fluctuating oil prices, Fed rate hikes, Sovereign stability “deal or no deal” – EUC and Brexit, along with an aging population all point to lower forecasts in most sectors for 2019.
