Archive for February, 2012

New Jersey Real Estate Appeal Deadline is April 2nd

Wednesday, February 29th, 2012

Paradigm Tax Group is pleased to remind you that the property tax appeal deadline for properties located in New Jersey is April 2nd.

In today’s economic climate, it is perhaps more important than ever before to confirm the correct appraised value of your property for real estate tax purposes. With this in mind, Paradigm Tax Group has provided our unique brand of results-oriented property valuation reviews, appeals, property tax reductions and status reports to New Jersey property owners and managers. As the provider of property tax consulting services to many of the largest portfolios in the nation, Paradigm has 28 offices strategically located throughout the United States. Our highly credentialed teams of Managing Consultants are intimately familiar with local market values, conditions and legislation, have well-established relationships with local assessors, and an average of over sixteen years of property tax savings experience.

Paradigm Tax Group combines valuable local resources with experienced regional and national portfolio managers and a state-of-the-art online appeal reporting system to deliver unparalleled levels of service, property tax minimization expertise, and unsurpassed results - and our performance based fee structure is designed to provide our clients with exclusive, volume-based, national portfolio contingency fees.

Please don’t hesitate to contact David Munroe, at (610) 409-9838 or dmunroe@paradigmtax.com, for a complimentary review of your property’s market value in comparison to the real estate property tax valuation you will receive.

Posted in Eastern, Paradigm Info, Real Property | No Comments »

Arizona Real Property Tax Appeal Deadline Quickly Approaching

Tuesday, February 28th, 2012

Some of Arizona’s 2013 Real Estate Values have been mailed and Appeal Deadlines are quickly approaching. The new 2013 property values are out in some counties and will continue to be released throughout February. The deadline to appeal these values is 60 days from the date they were postmarked.

Paradigm Tax Group is currently in the process of reviewing properties and financials for our Clients as well as performing workups for the upcoming appeal deadline. If you have property in Arizona that you would like reviewed for property tax savings opportunities, now is the perfect time to speak with us. It is important not to miss the appeal deadline as these values will impact the 2013 tax bill.

Please don’t hesitate to contact Kylie Cook for more information at (480) 302-5039 or kcook@paradigmtax.com. To learn more about Paradigm Tax Group and our Phoenix, AZ office, click here.

Posted in Paradigm Info, Real Property, Western | No Comments »

Washington D.C. Property Appeals Panel without Members

Monday, February 27th, 2012

Washington D.C.’s Real Property Tax Appeals Commission, the eventual replacement to the Board of Real Property Assessments and Appeals (BRPAA), still stands with no members on the panel. According to the Washington Business Journal, the BRPAA was abolished back on October 1st, but was left in place on an interim basis until new leadership was nominated and approved. Now, some five months later, nominations are finally expected within the next 30 days. Until the Commission becomes fully operational, the interim BRPAA has only seven of 18 possible members hearing the 4,563 appeals received for the 2012 tax year. These hearings, which have been going on since September, will continue well into April, far past the February 1st statutory deadline.

The new commission is expected to create a more level playing field in the assessment appeals process in the District. The BRPAA heard 6,178 appeals and reduced real estate assessments by $3.1 billion in 2011, slashing property tax revenue by $52.4 million. The new commission will be comprised of 14 experienced appraisers, lawyers, CPAs and real estate professionals, and is expected to restore order after the BRPAA was found using ineffective records management and failing to use detailed justifications of its decisions.

To read the full article from the Washington Business Journal, click here.

Posted in Eastern, Real Property | No Comments »

California Property Taxes Can Vary Wildly in Silicon Valley

Friday, February 24th, 2012

Some of Silicon Valley’s most valuable commercial real estate is being taxed at rates up to ten times larger than neighboring land that is being taxed at values all but unchanged from what they were decades ago. According to The New York Times, this is because, in 1978, California voters passed Proposition 13, a ballot initiative that allows state and county governments to increase the tax rate on commercial and residential properties based on the value of new buildings constructed, but forbids government to reassess a property’s underlying land to full market value without change of ownership.

Proposition 13 has obviously led to inconsistent property valuations that can sometimes be unbelievably low considering where they are located. These under-valuations have led to California lawmakers closing last year with a $26.6 billion budget deficit entirely with spending cuts. In 2012 it is predicted that California will see an additional $9.2 billion shortfall closing with more cuts and a sales and income tax increase on individuals making more than $250,000 a year.

To read the full article from The New York Times, click here.

Posted in Construction, Real Property, Western | No Comments »

More Capital Expected to be raised for Commercial Real Estate

Thursday, February 23rd, 2012

More capital is expected to come back into commercial real estate in greater volumes and across multiple lending sources throughout the remainder of 2012. According to the CoStar Group, a survey administered by Jones Lang LaSalle of 20 institutional lenders has reported positive expectations for 2012 funding aims including a 12% uptick in expected capital placement this year. Lenders seem to now be more accepting of risk and indicate higher levels of cash flow for secondary markets and property types.

Borrowing rates are still historically low, but lenders are starting to view commercial real estate mortgages as attractive investment opportunities which should lead to larger allocations from life companies, commercial banks, and CMBS originators. Overall financing has been on the rise now for the past couple of years. In 2011, financing increased an average of 11% from 2010 and experts expect an increase in 2012 of 12% over 2011.

To read the full article from the CoStar Group, click here.

Posted in Banks, CMBS, Financial Services, Real Property | No Comments »

Colorado Apartment Vacancies Drop, Rents Rise in Q4

Wednesday, February 22nd, 2012

The apartment vacancy rate in five of six major Colorado metro areas fell in the fourth quarter of 2011 to a combined rate of 5.6%. According to the Denver Business Journal, the 5.6% rate was down from the 5.8% rate at the same time the previous year and was the lowest statewide apartment vacancy rate since measurements began in 2007. Denver specifically fell to 5.4%, the lowest fourth-quarter total in 12 years, where Greeley was the only city to report a year-over-year increase in vacancies from 5.1% to 6.4%.

Additional good news for the Colorado apartment market is that rents rose during the same time period as the average statewide cost per month went from $871 in 2010 to $900 in the fourth quarter of 2011. This trend is predicted to continue as more households look to rental housing and migration from other states remains strong. As vacancies continue to decrease, construction should start to come to the forefront across the state.

Posted in Apartments, Multi Family, Real Property, Western | No Comments »

US Hotel Debt Markets Positioned for 2012 Activity

Tuesday, February 21st, 2012

The current state of the CMBS market could have a serious impact on the pace of US hotel investment in 2012, as it is predicted that $30 billion in CMBS hotel loans maturing this year may be extended. According to Hotel News Resource, the US hotel market went into a two-year slump in 2009 and 2010 before making a comeback in 2011 with around $15.2 billion in transactions. 2012 deal volume should continue at last year’s pace with approximately $15 billion of total transactions, as institutional and foreign investors return to the market while REITs pull back.

The major wild card in the future of hotel transactions lies in the strength of the CMBS market, as CMBS loans represent around a third of US hotel debt. With $30 billion in CMBS loans reaching maturity in 2012, it is likely that many loans will be extended for three or more years, providing additional time for property values to rebound and loans to further deliver. In the meantime, the large overhang of loan maturities in limbo present attractive investment opportunities for investors who are confident that the industry will continue to rebound.

To read the full article from Hotel News Resource, click here.

Posted in CMBS, Economy, Financial Services, Hospitality, Hotels, Real Property | No Comments »

NYC Multi-Family Developers Go Back to Basics

Friday, February 17th, 2012

Complicated deals with multiple moving parts may be a thing of the past as experts agreed that the simpler the transaction, the easier it is to get a loan for multi-family construction and refinancings. According to GlobeSt.com, major multi-family developers are spreading throughout all five New York City boroughs as of late, but the major emphasis still lies in Manhattan. The entire city is becoming more mainstream and diverse with a strong financial presence.

Relationship lending could present problems, however. Lenders now more than ever are going to want to be sure that a company has prior experience in the market and if they have past relationships developing loans with banks. Even though the rental market is getting better, developers are still going to have a hard time getting low-leverage loans and additional investment equity.

Posted in Construction, Eastern, Multi Family, Real Property | No Comments »

Acquisition Cost Does Not Include Intangible Costs in Tennessee

Thursday, February 16th, 2012

A recent tax case before the Tennessee State Board of Equalization had found that tangible personal property must be valued separately from intangible costs incurred to ship, configure or install the property.[1] While this case is on appeal before the Assessment Appeals Commission, the ruling does tend to conform to other similar cases.[2] The record shows that , “…the valuation of an asset for financial reporting “book” purposes was different in purpose and unrelated to determining the fair market value of an asset for Tennessee property tax purposes.”

While the regulations require “gross capitalized costs” in the reporting of assets for taxation, and although the Division of Property Assessments recommends the inclusion of the same, the Administrative Judge found that the inclusion of intangibles as part of the gross capitalized costs was in violation of the legislature’s intent under the State Constitution, Art. II §28.

Tennessee TPP renditions will be due March 1st and Paradigm Tax Group would recommend filing a non-standard valuation request on the initial filing to take advantage of any intangible carve outs.

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Posted in Complex, Industrial & Manufacturing, Mid America, Personal Property | No Comments »

Less Risk with Commercial Mortgage REITs

Wednesday, February 15th, 2012

The most recent crop of commercial mortgage REITs are predicted to be less risky investments than those that operated during the pre-recession real estate boom. According to the National Real Estate Investor, the new commercial mortgage REITs operate more prudently than their predecessors and boast improved transparency, making it easier for investors to understand the fundamentals of business.

Newer mortgage REITs operate with lower leverage, cross-collateralization, and lend to lower loan-to values. During the peak of the real estate industry in 2007, $230 billion in CMBS issuance occurred along with $40 billion in CDO issuance. Since then, with the recession and continued struggle to recovery, 2008-2011 combined has only produced $60 billion with virtually no commercial real estate CDO activity during that timeframe.

To read the full article from the National Real Estate Investor, click here.

Posted in CMBS, Financial Services, Real Property | No Comments »

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