Sunday, June 9, 2013

Will IRS Put the Kibosh on REIT Conversions?

National Commercial Real Estate News From CoStar Group

Will IRS Put the Kibosh on REIT Conversions?

The Internal Revenue Service has raised the yellow caution flag delaying the efforts of three firms racing to convert to real estate investment trusts.

Iron Mountain Inc., Equinix Inc. and Lamar Advertising Co. were each notified this past week by the IRS that the agency has formed a new internal "working group" to study the current legal standards it uses to define "real estate" for purposes of firms qualifying as a REIT under the tax code, and...

Bank CRE Distress Levels Improving; Profits From REO Sales in Sight

Distress levels on commercial real estate loans continued to improve for the nation's banks in the first quarter. Levels of past due and foreclosed CRE fell more than $6 billion to a combined $78.1 billion at banks. However, pockets of weakness (or opportunities, depending on your investment perspective,) continued across the country.

The aggregate amount of foreclosed properties dropped $949 million in the first quarter. Unlike in past quarters...

Morgans Hotel Group Puts Itself Up for Sale

Morgans Hotel Group Co. is exploring a full range of strategic alternatives and has received expressions of interest from five potential buyers.

The New York-based company said that, because of substantial uncertainty around a proposed deleveraging transaction, it decided to consider other strategic alternatives, including a possible sale.

Morgans Hotel Group) is widely credited as the creator of the "boutique" hotel and operates Delano in South...

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