Real Estate Advisor Law Blog

Real Estate Advisor Law Blog

Come Closer, We Have A Secret To Share With You…Fly Over States !

Posted in General Business Issues, Retail Industry Issues

It is no surprise to most real estate professionals that the industry is cyclical. 2008/2009 was rock bottom for the real estate industry. Slowly the industry has made a steady rebound thanks to the private investment. As in many recoveries, the primary major metropolitan areas mostly situated along the East and West Coasts have seen much of the activity in office, industrial, multi-family residential and hospitality. As cap rates in the primary markets have decreased along with investment opportunities, the secondary markets are looking like a very smart investment.

When you think of secondary markets think of metropolitan areas like Cleveland, Columbus, Cincinnati, Indianapolis, Louisville, Oklahoma City, Omaha, Minneapolis and Denver. Cap rates are strong, the local economies are robust and less affected by global volatility. While the activity in the secondary markets has increased, there remain many opportunities to invest in assets which look like a smart move compared to the familiar primary markets.

Another little secret is that transaction costs are typically less. Hence, you can pick up a higher yielding performing asset and not have to spend an arm and a leg to do so. Don’t just fly over us, stop and take a look around, we are sure you will not be dissapointed.

Jason Aldean – Fly Over States

Bourbon Street coming to Ohio?

Posted in Development, New Urbanism

The push in recent years for open container entertainment districts in Ohio, which would allow people to openly drink alcoholic beverages in designated outdoor public areas, took another step forward this past week. The Ohio Senate passed a bill permitting cities and townships with populations greater than 35,000 to create entertainment districts that are exempt from Ohio’s open container law. The designated entertainment districts could be as large as a half mile square. A similar bill was introduced to the House of Representatives but is not likely to be voted upon until the next session of the General Assembly.

The motivation behind such legislation is to provide a boost in tourism and entertainment spending in Ohio communities a la New Orleans’ Bourbon Street or Beale Street in Memphis. An influx of more visitors, proponents say, would lead to an increased demand for additional residences and retail establishments.

The concept would seem to work well with areas that are strictly restaurants and bars. However, an entertainment district in mixed-used neighborhoods would be faced with some practical challenges. Residents and businesses in an open container environment could be concerned about an increase in disorderly conduct and other criminal behaviors as well as creating rowdy evening crowds. Furthermore, containing the flow of alcohol within the entertainment district would likely necessitate closing streets to vehicular traffic and could result in disruptions to nearby communities and an additional burden on public resources.

There is some precedent for amicable co-existence though. The Banks entertainment district in Cincinnati is home to hundreds of residential units which are situated between two sports venues and above dozens of bars and restaurants. There have been frequent festival closures which have permitted partiers to carry open containers in the streets at the Banks with little disruption to neighborhood residents and businesses.

One thing is for certain, the proposed legislation will leave it up to the individual communities to decide if and where such open container districts are located, thereby giving a voice to all concerned parties. And thoughtful and inclusive planning that gathers input from all concerned parties will be necessary to ensure a successful outcome.  Below is an example of the benefits to businesses and the community which entertainment districts can create.

Posted in Uncategorized

In January 2009 we launched the RealEstateAdvisorLaw Blog. Our approach was to bring trends and legal developments related to the real estate industry in a fresh hit and run format. From the re-purposing of under used real estate assets to leasing trends, hospitality industry updates and from fast track construction to environmental regulations, the blog has published over 250 posts which have received in excess of 40,000 unique page views. This leads one to conclude that someone is finding what we have to say useful

Today,  we are proud to announce the RealEstateAdvisorLaw Blog 2.0! We have moved the blog to a WordPress format and freshened up the look and feel. We hope to publish more video content in the future as we continue to dish up fresh, lite and easily digestible business and legal information and trends affecting the real estate industry.

Subscribe to us on Twitter or Facebook, as we push out our content in each of those formats. Of course for those Luddites out there you can always subscribe (click the button on the right sidebar) and receive notifications via email.

Thanks for all of your support and making us a valuable real estate industry tool!

Brad Kaplan, Editor

What I Learned at ICSC

Posted in Retail Industry Issues

Victorian men celebrating with champagneI just attended the ICSC Law conference in Orlando where I led, along with Maggie Sitko of Sitko Bruno in Pittsburgh,  a seminar on letters of intent. Leasing attorneys all appear to be busy and the numbers reflect that as the conference attracted an all-time high attendance.  This is what I learned at the conference:

  1. Consequential damages may not include lost profits in some jurisdictions.
  2. A party to a letter of intent may have an estoppel claim even though the letter of intent provides it is not binding.
  3. The marketing gift of choice is a portable phone charger embossed with the firm logo.
  4. If you provide open bar at night and on-site Starbucks in the morning, every leasing attorney in America will show up to the seminar.
  5. The leasing law conference includes sessions on ethics. Who would have guessed?
  6. The restaurant sector is driving development.
  7. A “license” can really be a lease but it may be a psychological advantage for the landlord/licensor to call it a license anyway.
  8. A retailer needs liquidated damages for any important lease provision other than maintenance.
  9. People (not I) actually pay for and eat blood marrow at a restaurant.

The ICSC law conference is always great for content and networking.  Already looking forward to next year in Phoenix.

2005 Standard for Environmental Assessments Will No Longer be Recognized by USEPA After October 2015

Posted in Environmental Issues

The United States Environmental Protection Agency (“EPA”) took its final step to phase out ASTM E1527-05, the standard for conducting Phase I Environmental Site Assessments utilized by environmental professionals and parties since 2005. Starting October 16, 2015, environmental professionals and parties must use the updated 2013 version of the standard, ASTM E1527-13, or the Federal rule, when conducting Phase I Environmental Site Assessments to potentially qualify for the liability defenses available under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA” a.k.a. “Superfund”). These liability defenses are often essential when acquiring property in real estate or mergers and acquisitions deals.

Final Rule


A final rule published in the Federal Register on October 6, 2014, amended the EPA’s “all appropriate inquiries” (“AAI”) rule under the Superfund by removing recognition of the 2005 standard. As noted above, the final rule will take effect on October 16, 2015, which the EPA believes will give parties enough time to become familiar with, and implement, the 2013 version of the standard. This final EPA rule is the most recent, and likely the last, step in the process of adopting the 2013 standard for conducting environmental assessments and removing use of the 2005 standard


The final rule can be found at this link:


Affected Parties


Several parties and industries will be affected by this final rule including: Real Estate, Insurance, Banking and Investment, Environmental Consulting Services, State and Federal Governments, and parties seeking brownfield funding and/or protection from Superfund liability.


The rule does not, and will not, impact parties who acquire(d) properties between November 1, 2005 and October 16, 2015 (final rule effective date) and used the 2005 ASTM Standard to comply with the AAI rule


What Does it All Mean?  


If your company or organization is looking to hire an environmental professional to conduct a Phase I Environmental Site Assessment, be sure that the chosen environmental professional is using the most up to date standard for conducting that assessment, ASTM E1527-13. 


Along those same lines, it will be important to understand the differences between the new and old standard to ensure that your Phase I Environmental Site Assessment addresses the topics needed to establish your AAI defense. The major differences between the new and old standard are: (1) newly defined and revised terms; (2) a new requirement to assess possible indoor air quality impacts from vapor intrusion pathways; and, (3) changed requirements for the evaluation of past releases of hazardous substances.


Simply put, if your company or organization is in the process of reviewing environmental reports for either the purchase or sale of property, including Phase I Environmental Site Assessments, particular attention should be paid to the standards utilized by the environmental professional and cited in the environmental reports.

Hotel Financing Seminar

Posted in Finance Issues, Hospitality Industry Issues, Tax Credit Issues

Please join us for this informative webinar today.  If you can not participate you can access the webinar through our sponsor. The link is the title to the webinar.


Hotel Financing Structures and Options in the Hospitality Industry Upswing

Leveraging CMBS Capital Market Financing, Preferred Equity, Tax Credit Funds and EB-5 Financing

The hotel industry is in an upswing as this cyclical industry continues to heat up and is one of the most active real estate segments in today’s economy. How can counsel pave the way for hotel clients to identify and negotiate financing deals?

While financing from traditional lenders is relatively scarce, savvy industry insiders are finding additional sources of financing and are driving a new era of innovation in real estate finance. Preferred equity investments, tax credit funds and EB-5 financingare common.

Commercial mortgaged-back-securities loans, historically an important hotel financing source, came back into play in recent years. New CMBS loans are more complex and difficult to navigate than before, but can be a critical source of financing for certain deals.

Listen as our authoritative panel of real estate finance attorneys guides you through the various financing tools and sources of money available for hotel financing, including CMBS financing, tax credit funds, EB-5 financing and preferred equity investments. The panel will also address legal issues that can present financing challenges in this post-recession environment. 


  1. Pre-recession/recession
    1. Easy money
    2. Cleaning out the distressed properties and loans
  2. Current available sources of financing
    1. Private investor dollars (preferred equity)
    2. Tax credit funds (new market/historic tax credits)
    3. EB-5 financing
    4. CMBS capital market financing
  3. CMBS type loan structures and requirements
  4. Collateralizing the management and franchise agreements
    1. Comfort letters
    2. Subordinations
    3. Collateral assignments
  5. Bankruptcy remote organizational structures and covenants


Bradley KaplanPartner
Ulmer & Berne, Cincinnati

Mr. Kaplan assists owners, operators and receivers of hotel, office and industrial properties with their real estate, finance, leasing, construction and organizational challenges; specifically, negotiating and drafting hospitality, purchase, sale, financing, leasing, construction, franchise and management agreements.  He serves as general counsel and national real estate counsel to several domestic and internationally based public and privately held companies.  


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Return of Retail Part Two

Posted in Retail Industry Issues

I recently speculated that retail must be back. I just attended the ICSC Idea Exchange in Columbus, Ohio and got further support for this idea.

Robert Myers, Chief Operating Officer of Philips Edison & Company, said they were now seeing increased occupancy rates in the mid 90% with positive absorption, low interest rates on lending, and high prices on sale. He also said attendance at ICSC events is up.


I met several smart ambitious young guys just getting into retail brokerage. I would not have thought this a good career path just a couple of years ago, so it is instructive to see smart guys choosing to enter the field.


I saw several new retailers looking for new locations. One of them was Fusian – think Chipotle does Sushi. Great idea and great place to eat if you haven’t tried it yet or it hasn’t come to your town yet.


Easton was jamming on a Tuesday night. Most restaurants had a wait – we ate at Cooper’s Hawk and didn’t mind the wait since we drank a couple glasses of wine. Cooper’s Hawk is another great concept. They make their own wine, which is better than you think, and the food was tremendous. But the retail stores were busy too – with a line waiting to get into Victoria’s Secret (although that may have had something to do with the fact they had a Victoria’s Secret model there).  


In fact Easton is expanding. The new Easton Gateway is well under construction. I went into the new Dick’s there which opened ahead of the Center. Must say it may be the best sporting goods store I have ever been in. 


And the mood of the conference was markedly upbeat, which in and of itself is a change.  So maybe cautious optimism is the appropriate byline.

Return of the New Shopping Center

Posted in Development Issues, Mixed Use Development Issues, New Urbanism, Retail Industry Issues

For quite a while there has been very few new shopping centers being developed. Many people may have even questioned whether there would ever be any new significant shopping centers. Apparently, times have changed. In rapid succession, I have been engaged to do the lease up of two brand new, big time, large scale shopping centers.

Liberty Center is a new mixed use center being developed in Liberty Township, Ohio, just north of Cincinnati. Liberty Center will have over 750,000 square feet of retail/restaurant space, together with 75,000 square feet of office space, 240,000 square feet of residential apartments, and a hotel. Construction has started and leases have been executed. Grand Opening is scheduled for October, 2015.

Metropica is a new mixed use center being developed in Sunrise, Florida. Metropica will have over 450,000 square feet of retail/restaurant space, and it too will include office space, residential apartments, and a hotel. This project is just starting development but projects to be an impressive, high profile development. Grand Opening is scheduled for Spring, 2016.


Retail must be back, and not wholly replaced by the internet.

Golf Courses Changing their Swings !

Posted in Development Issues, Retail Industry Issues

While the rest of the real estate industry recovers from the downturn of the last several years, the golf course industry is struggling to emerge; it remains a buyer’s market.  Some golf courses are converting to multi-use/multi-generational activities to attract more members and activity to their properties.  Others are converting from "member-owned equity" clubs to privately owned "non-equity" owned clubs.  Concert Golf Partners  has a interesting comparison in the difference between the two types of club ownership structure on their website.  

The more interesting trend which is affecting valuations is that much like other investment properties, the value of the real estate is now tied more to the cash flow generated by the business activities on the property rather than the raw value of the real estate. 

Foreign buyers have taken notice and have arrived in North America to go shopping for investment properties.  While the pricing may be attractive, deed restrictions requiring  a golfing use may prevent redevelopment. So, to survive and thrive, golf courses need to take a lesson and perhaps change their swing !

The New Water Fountain

Posted in New Urbanism, Office/Industrial Issues

 Recently, I had the opportunity to visit our firm’s new Columbus, Ohio offices.  The office design and space use is so refreshing and sharp.  What caught my attention most was the creative re-design/re-purposing of the office kitchen (picture above).  No longer a galley room with a microwave, refrigerator and a toaster; today’s office kitchen is similar to the open kitchens in our homes and the social collaborative spaces in coffee shops (which many use as defacto offices when out and about).  The New York Times picked up on this trend not long ago in an article describing variations on the theme of social networking spaces.  So, while office size contracts, the space dedicated to collaboration and networking expands.