Ground leases offer both advantages and disadvantages to the building owners that developed the land. Building owners may find that ground leases put a crimp in their income, especially if rent increases are based on a reassessment of the land's "fair market value."
Colleges are finding that off-campus land holdings can bring in more in ground-lease revenues than the institutions see in tuition, as illustrated by Cooper Union in New York City, which owns the land under the Chrysler Building. Other examples include Howard University in Washington, D.C., and the University of Hawaii's business school.
New York apartment landlords are rushing to make capital improvements on rent-stabilized buildings, which allows them to increase rents, out of fear that the opportunity could disappear as part of housing law changes. "Landlords are absolutely scared that the opportunity is going to go away," said Cea Weaver, a campaign coordinator for the Upstate/Downstate Housing Alliance.
Washington Prime Group has sold eight net-leased restaurant properties in Colorado to Four Corners Property Trust in a $9.4 million deal. The transaction is part of a larger deal in which Four Corners is buying 41 restaurant properties from Washington Prime for about $67.2 million in cash.
The Trump administration reportedly is working on a plan to end the conservatorship of Fannie Mae and Freddie Mac that will be released in the coming weeks. Ending the conservatorship has been a long-standing goal of Treasury Secretary Steven Mnuchin.
Though Bangor Mall is listed for auction, other retail in the Maine city is flourishing, with vacancy rates at or below 10%. The city's Main Street and downtown areas have high occupancy rates.
The owners of Rose Hill Plaza in Alexandria, Va., have secured a $25.3 million CMBS refinancing loan from KeyBank. The lender provided a nonrecourse, 10-year loan for the Safeway-anchored, 145,925-square-foot property.
The plan for redevelopment of North DeKalb Mall in Georgia is being withdrawn, said an attorney with property owner Sterling Organization. The owner and Costco could not reach an agreement with the county to move the project forward.
The Internal Revenue Service has provided final regulations for the 20% pass-through deduction outlined in Section 199A of the Tax Cuts and Jobs Act. Here is an in-depth analysis of the final rules and advice on whether the deduction applies to your business.
Tech company Nvidia's new Seattle lab boasts an IKEA kitchen, where it will teach the next generation of robots how to perform tasks in changing environments that require more than repeating the same tasks. In addition to learning a variety of kitchen tasks, the machines will become adept at interacting with people, robotics professor and lab head Dieter Fox said.
- Page 1