Commercial Real Estate Investor Strategies After Prop 19 in California

Under the newly passed Proposition 19 in California, property taxes on commercial real estate will now be reassessed upon any transfer from parent to child.  This new consequence of death will likely lead to the sale of many inherited commercial real estate investment properties because the reassessment renders the property a less desirable investment.  However, can parents still transfer such property to their children without reassessment?  Possibly. Assume, for example, the parents own an apartment ... Read more

How Proposition 19 Affects California Homeowner Property Taxes

Recently passed Proposition 19 in California affects homeowners in 2 key ways: (1) making it easier for owners over 55 or victims of natural disasters to relocate, and (2) restricting the exempt intra-family transfers (aka parent to child or grandparent to grandchild). Primary Residence Transfers Prop. 19 allows persons over 55 and victims of a wildfire or natural disaster to make three transfers per lifetime, in any county in California, and that they may do so ... Read more

1031 Exchange Trap – You Could Have Less Than 180 Days

IRC Section 1031’s regulations state, “The exchange period begins on the date the taxpayer transfers the relinquished property and ends at midnight on the earlier of the 180th day thereafter or the due date (including extensions) for the taxpayer’s return of tax imposed by chapter 1 of subtitle A of the Code for the taxable year in which the transfer of the relinquished property occurs.”  Thus, the regulations generally allow for 180 calendar days for ... Read more

2020 Best

Thank you, clients and peers, for this recognition again in 2020. We look forward to helping you with the purchase, sale, leasing, financing and development of any residential or commercial real estate product type anywhere in the USA in 2021. And to show our gratitude, Regal Properties will continue "Investing in People and Property" by donating 10% of all fees and commissions to charities -- allowing our clients to designate the charity to receive ... Read more

Post-Covid Retail and Industrial Opportunities and Challenges

Mall sales are down 28% year to date, and that's after a recent rally.  Though the need for well-executed experiential retail in excellent locations remains, there's a lot of uncertainty about how and when consumers will be able to revisit their favorite restaurants and shopping centers.  From an underwriting perspective, buyers need to assume much higher vacancies, lower rents, and significant repurposing capital expenditures in even the best retail environments.  Fearful enders have retreated ... Read more

Top 15 Reasons to Invest in San Diego Real Estate

Top 15 Reasons to Invest in San Diego Real Estate Most diverse high-tech sector in the nation” - Milken Institute“Best place in America to launch a startup” - Forbes Magazine“Most attractive metro in U.S. for relocation” – APA Survey“Top U.S. travel destination” – Money MagazineRanked 2nd “safest city” in the U.S. with populations over 500,000266 days of sunshine with an average temperature of 70 degreesOver 70 miles of beautiful southern California coastlineSix major universities, including ... Read more

As Homeownership Declines, Demand for Rental Housing Will Climb for Next 5 Years

A drop in homeownership rates will fuel a significant increase in demand for rental housing over the next five years, according to a study released by apartment properties acquisition and management company Middleburg Communities.The June 11 report projects a decline in U.S. homeownership to 62.1%, the lowest rate in more than 20 years, before a partial recovery to 63.6% in 2025. Depending on the effects of the recession, the demand for rental housing will ... Read more

Post-Pandemic Commercial Real Estate Investing

When ascertaining the impact the coronavirus will have on investment real estate, it is critical to determine the connection between the impacts of the crisis and the type of tenancy in any particular property. Real estate has no intrinsic value, only the use of real estate has value. And this is dependent on demand. Here is what we foresee given the current situation: • Apartments - The spike in joblessness will seriously impact occupancies. A ... Read more

Testing Positive for the Coronavirus

Here’s how we can all test positive for the coronavirus: Recognize the coronavirus demonstrates how CONNECTED we all are, regardless of country, race, religion, gender, sexuality, social-economic status and political affiliation.  We are all connected by our humanity, our health, biology, genetics, spirituality, shared planet, and our individual need for compassion, empathy, love, understanding, nourishment and healing. Welcome this reprieve from daily routines, by relaxing, bonding, healing, meditating, communicating with the divine, contemplating, re-examining and possibly re-charting a course. Find some positives, benefits and meaning from ... Read more

Coronavirus Impacts in the CRE Market

As we predicted, the coronavirus sparked a meteoric drop in the stock market last week, including a more than 4,000-point plunge in the Dow. The question now is how much of that contagion will spill over to impact commercial real estate? So far, CRE capital markets have been less reactionary than the stock market. Lenders have widened spreads to reflect the volatility and heightened risks, but capital is still flowing. For example, CMBS spreads have widened about 15-20 basis points at ... Read more
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