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Category Archives: Finance Issues

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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 … Continue Reading

The Exception that Swallowed the Rule

Posted in Finance Issues
  Nonrecourse loans are popular among commercial real estate owners because the Lender agrees only to seek recourse against the real estate and other collateral securing the loan in a default or loss situation. Unless the loss is caused by a “bad boy act”, the borrower and/or principal will not be held personally liable. Bad boy … Continue Reading

A Receiver’s Authority to Sell Property Free and Clear of Liens and Encumbrances Gaining Momentum in Ohio

Posted in Bankruptcy/Creditor's Rights Issues, Finance Issues
            As the filing of Chapter 11 cases continues to be rare, state court alternatives for liquidation of assets continue to grow in popularity. State court alternatives typically provide a more expeditious and less expensive forum for secured lenders to direct the liquidation of their collateral—for example, state court receivership sales avoid the United States Trustee … Continue Reading

Foreclosed from Foreclosure?

Posted in Finance Issues, Title Insurance
  Purchasing foreclosed real estate has never been easy or risk-free. In Ohio, all purchases are “AS-IS” and purchasers generally do not have an opportunity to inspect the property. A 10% cash deposit is due upon bidding and payment in full is due within thirty days with the threat of contempt of court if the purchase price … Continue Reading

ELIMINATING OFF-BALANCE-SHEET ACCOUNTING OF LEASES

Posted in Finance Issues, Leasing Issues, Real Estate Tools, Retail Industry Issues, Tax Issues
  Remember Enron and off-balance-sheet accounting scandals? The efforts to clean up these accounting practices are still in the works and are about to hit the world of commercial real estate—arguably at the worst possible time. The Financial Accounting Standards Board (FASB) (which is endowed with the power to decide U.S. generally accepted accounting principles) and its … Continue Reading

Cuyahoga County Land Bank Update

Posted in Conveyancing, Finance Issues, Real Estate Tools
In what has become an ongoing series here on the UB REAL Blog, we wanted to issue another update on the now year old Cuyahoga County Land Reutilization Corporation, better known as the land bank.  Over the past six months, the Cuyahoga County Land Bank has obtained more properties and received millions in funding from … Continue Reading

Audit Those Leases

Posted in Finance Issues, Leasing Issues, Retail Industry Issues
The typical co-tenancy clause provides that if occupancy at a shopping center falls below a certain level and/or certain other key tenants close, the tenant gets rent relief and at some point the right to terminate its lease. In the current retail environment, all sophisticated tenants demand some sort of co-tenancy protection.  Landlords have generally … Continue Reading

FIRST-TIME HOMEBUYER TEMPORARY FEDERAL TAX CREDIT EXTENDED AND EXPANDED FOR MILITARY FAMILIES

Posted in Finance Issues, Legislative Update, Real Estate Tools
Thank you to our friend Drew Stacey of First Place Bank for reminding us of the extension of the The First-Time Homebuyer Credit for the benefit of Military families for an additional year through May 1, 2011.  According to the IRS: "In general, you can claim this credit if: You bought your main home in the United … Continue Reading

The Commercial Real Estate Loan Market, Part 3:Opportunities

Posted in Finance Issues, Legislative Update
Parts 1 and 2 of this series on “The Commercial Real Estate Loan Market” examined differing views on the fallout of current and anticipated loan failures in the commercial real estate (“CRE”) industry. While all agree that losses will be significant, just how significant remains to be seen. Unfortunately, we don’t have a crystal ball … Continue Reading

The Commercial Real Estate Loan Market, Part 2: The Cloudy with Clearing Skies Ahead Scenario

Posted in Finance Issues, Legislative Update
In contrast to the recent position taken by the Congressional Oversight Panel in their February 10, 2010 report mentioned in Part 1 of this series, there are economists, businesspeople and policymakers who have a less bleak forecast for the commercial real estate (“CRE”) loan market. One such example of this “non-crisis” position was presented in … Continue Reading

The Commercial Real Estate Loan Market, Part 1: Cloudy with a Chance of Crisis

Posted in Finance Issues, Legislative Update
The commercial real estate (“CRE”) loan market is floundering and is expected to increasingly experience high levels of losses over the next several years. The question on interested minds is whether the fall-out from CRE loan failures will mimic the devastation caused by the crisis in the residential mortgage loan market. Recently, the Congressional Oversight … Continue Reading

Cognovit Update

Posted in Bankruptcy/Creditor's Rights Issues, Finance Issues, Litigation Issues
Ohio is one of the few remaining states that still enforce cognovit provisions in promissory notes and other loan documents. A cognovit provision allows a creditor to take judgment immediately against a borrower upon the borrower’s default without having to endure the time, expense, and risk of a lawsuit. Cognovit provisions are only enforceable in … Continue Reading

Fannie Mae Partners With Cuyahoga County Landbank

Posted in Bankruptcy/Creditor's Rights Issues, Finance Issues, Legislative Update
The Cleveland Plain Dealer has reported that Fannie Mae, a player in the national secondary mortgage market and unwitting owner of numerous abandoned properties in the Greater Cleveland area, has reached a deal with the newly formed Cuyahoga County Land Reutilization Corporation to sell properties to it for $1 each. Compared with our last report … Continue Reading

Ladies and Gentlemen Start Your Engines !

Posted in Finance Issues, Legislative Update, Real Estate Tools
On October 30, a coalition of federal regulators issued the Policy Statement on Prudent Commercial Real Estate Loan Workouts. The Statement is designed to give greater flexibility to lenders in renegotiating or restructuring loans secured by commercial real estate, and should aid the flow of financing to credit-worthy borrowers.  The first purpose of the Statement is … Continue Reading

First-Time Homebuyer Temporary Federal Tax Credit Extended and Expanded

Posted in Closing/Settlement Issues, Conveyancing, Finance Issues, Tax Credit Issues
On November 6, 2009, President Obama signed the Worker, Homeownership and Business Assistance Act of 2009. The new law extends the first-time homebuyer temporary federal tax credit for qualifying home purchases to April 30, 2010 and expands the eligibility requirements for purchasers. Under the new law an eligible taxpayer must buy, or enter into a binding … Continue Reading

Retail Developer, Investor, Lender and Retailer Must Read

Posted in Finance Issues, Leasing Issues, Retail Industry Issues
In October, 2009 Morgan Stanley published its Mall and Lifestyle Center Handbook.  (Special thanks to Stephen Baumgarten, Senior Vice President Wealth Advisor Morgan Stanley Smith Barney Beachwood, Ohio for sharing the handbook with us).  The handbook is a must read for all retail developers, lenders, investors and retailers to understand the market forces impacting shopping center development and investment.   The … Continue Reading

Ohio Creates New Markets Tax Credit and Revises Historic Tax Credit

Posted in Finance Issues, Legislative Update, Real Estate Tools, Tax Credit Issues
Ohio’s Budget Bill, signed by Governor Ted Strickland on July 17, contained provisions authorizing Ohio’s first state-run New Markets Tax Credit, as well as substantially revising the state’s Historic Preservation Tax Credit. Here is a breakdown of each: New Markets Tax Credit   Modeled after the federal New Markets Tax Credit, the state program allows up … Continue Reading

Cuyahoga County Landbank Update

Posted in Development Issues, Finance Issues, Legislative Update, Real Estate Tools
Some time ago in this space I wrote about the prospects for revitalization from the creation of the Cuyahoga County Land Reutilization Corporation, better known as the County Landbank. Since then the Landbank has gotten up and running, or walking perhaps, but has made little progress toward its goal of returning significant amounts of abandoned and … Continue Reading

Chinese Money coming in for U.S. Real Estate?

Posted in Finance Issues, International
Recently, the news about the $300 billion China Investment Corp. (“CIC”) invested an additional $500 million in Blackstone’s Fund-of-Funds unit and earmarked about $800 million for investing in a Morgan Stanley Global Property Fund has stirred up another round of excited discussions about China’s money pouring into the U.S. Lately, the Wall Street Journal reported that … Continue Reading
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