News you can use...or at least we can make you laugh.


New Acris Disclosure Requirements When Selling or Purchasing Residential Real Estate Through a LLC

(approx. 2 minutes reading time....)
     Effective September 13, 2019, New York City Administrative Code Section 11-2105 and New York State Tax Law Section 1409(a) were amended to require that, henceforth, the New York City Real Property Transfer Tax Return (RPT) and the New York State Combined Transfer Tax Return (TP-584) for the sale of residential real property (i.e., condos and homes) sold or purchased by a limited liability company (“LLC”) must disclose the names and business addresses of all members, managers, and any other authorized persons of the LLC or if none, the business addresses of all shareholders, directors, officers, members, managers, or authorized persons of any LLC or other business entity that are to be the members, managers or authorized persons of such LLC.

     In addition, if any member, manager or authorized person of the LLC is itself an LLC or other business entity, the names and addresses of the shareholders, directors, officers, members, managers and partners of that LLC or other entity must also be disclosed, until full disclosure of the ultimate ownership by natural persons is accomplished.

     The upshot of these changes is that the City and State are effectively no longer permitting sellers and purchasers of condominiums and other residential real property to sell and purchase anonymously—these laws now require both sellers and purchasers that are LLC’s (and/or which include LLC’s as members) to disclose who their members are down to the actual persons.

     * While the amended laws do not specifically mention co-ops, we assume that taxing authorities will apply the laws to co-ops as well, and/or that the laws will be further amended to include co-ops explicitly

If you have any further questions regarding this matter, please contact Daniel Altman, Co-Managing Partner and Chair of the Transactional Department.

- Daniel Altman
(reprinted with permission from

Opportunity in a changing market

(approx. 3 minutes reading time....)

RSM national real estate leaders Stu Taub and Troy Merkel sit down with Preqin to discuss the hottest real estate sectors, Opportunity Zones and where in the US investors are likely to see some big plays.

Preqin:  How attractive is the real estate market looking right now?

For around two years now, the consensus has been that we’re late in the cycle. But looking at the underlying fundamentals and the amount of capital that’s entered the market during this time, we’re seeing that the current cycle still has some legs left.

But we have seen change in the market. Capital will always shift around as industry players look to new markets in search of opportunity. Recently we’ve seen changing macroeconomic factors at play in real estate, but many of these factors have led to increased activity in the market.

Take the tariff and trade discussion in the US. As investors look to be more conservative and position themselves away from the public market, they look to real estate. In the year to May 2019 we’ve seen property valuations up 15%, compared to the S&P 500 which is down 10% over this period. We’ve also seen interest rates level off and look to be holding at the current rate, or maybe even going down a little, which helps significantly within the real estate market.

So yes, we’ve seen a prolonged period of growth. But there's a lot of strong fundamentals showing that real estate overall, and more specifically in the US, is in good health.

“We’ve seen a prolonged period of growth, but there’s still a lot of strong fundamentals showing real estate is in good health."

Preqin:  You mentioned the tariff and trade discussions going on in the US. Has this affected the real estate market?

There isn’t a huge impact on the real estate market here, certainly from a tariff point of view.

However, one thing we are seeing is that there is an almost hidden change currently being seen in the flow of capital into US real estate. We’ve seen a reduction in the amount capital entering the market from China-based investors but because of how attractive US real estate remains, investors from Canada and the EU have come in and filled that void.

So even though there's that hidden equity war within the trade war, we have other countries that are filling that gap and maintaining the valuations that we see in US real estate.

Preqin:  Which real estate sectors are hot right now?

In terms of traditional core investing and steady cash flow, the hottest markets right now are multi-family, senior housing, healthcare and industrial. Although you have to be careful when you talk about the industrial market – really the attention is specifically logistics.

Industrial can be seen as a couple of different asset classes. You have logistics and distribution, which is the area most exposed to e-commerce, hence the greater attention from investors. You also have traditional manufacturing, data warehouses, storage warehouses and manufacturing plants. The point here is that not all these industrial sectors provide the appropriate risk/return for core investors. Institutions seeking core opportunities in industrial will largely target logistics, and that is the growth market.

If you look at the value-add and the opportunistic markets, then you see a lot of office transactions. A big trend we’re seeing in the market is the repositioning of office assets to be flexible work space, creating an open-space, entrepreneurial-type concept.


Outside of office, we’re seeing movement in retail. Not necessarily your big-box retailers, but that next-class retail, where it's more of a scatter site and managers can look to create an experiential center. This of course brings risk, but we’re seeing strong returns in this sector.

Preqin:  What about Opportunity Zone regulations – how is it shaping the US market?

In some respects, Opportunity Zones have been seen as a way to improve the terms and attractiveness of a deal that was likely to be completed without the regulation. If you look at the location of some of these Zones in areas such as Portland, Nashville, Denver or Los Angeles, these areas were already in the path of development before Opportunity Zones came into play, simply because the regulation was created using data stretching back to 2011.

There’s a lot of demand for Opportunity Zone strategies and there's empirical evidence that property prices in some of these Zones have been outpacing the non-Opportunity Zone development projects in the last few years. When looking at actual activity in these Zones though, you can see activity has recently spiked.

One driver is that, until recently, it’s probably fair to say Opportunity Zones had been largely considered ‘hype’, but when the new set of regulations came out in April 2019 we saw them land significantly on the side of investors, so much so that the program is probably one of the most investor-friendly initiatives to come out of the IRS in a long time.

Another driver of recent activity is the 180-day window investors have to reinvest any realized capital gains into a Qualified Opportunity Fund. Many investors access real estate via LLC structures with capital gains realized on 31 December 2018. This puts the 180-day window closing at the end of June, and we've seen a significant spike in the amount of funds that are trying to close taking advantage of this.

So we’re seeing a lot of Opportunity Zone ‘build-up’ coming to fruition now and we expect that to continue through June, with investment increasing through the second half of 2019 and 2020.

Preqin:  Do you see REITs being a bigger part of investor portfolios going forward?

REITs are a great investment in the current market which is evidenced by the uptick in REIT valuations that we’ve seen in 2019. Given some of the uncertainty and volatility seen in other markets, REITs have been able to provide a secure investment. For example, good economic growth, low unemployment and low interest rates have provided a really strong environment for real estate in the US. Investors that operate a diversified portfolio have likely shifted their allocation from industries that continue to be impacted by the ongoing trade war with China to the security of US real estate.

You might be sacrificing a little bit of return, but the volatility is significantly less.

How do you see real estate investment evolving in the US?

A trend we’re likely to see play out is the movement of activity from coastal areas of the US to the interior of the country.

Throughout most of the current cycle, the focus on US real estate has really been in coastal markets. But housing affordability in some of these areas is an issue, and given the high mobility of the millennial workforce, we’re likely to see some big plays in tertiary markets. Take Denver, Nashville and the Research Triangle in North Carolina: these areas are all seeing increased investment as investors look for exposure to these rising technology centres.

We’re also seeing the challenges surrounding US immigration drive activity in cities like Toronto. Toronto is thriving and quickly growing into a key market for real estate investment.

Preqin:  How important is ESG for real estate investors?

It’s certainly something that institutions look at and it will be the investor universe that will drive future growth in ESG investing.

At the asset level, we’re seeing most new projects that are going up incorporating ESG, and actually in some markets if you're not putting significant effort into renewable energy or reducing your carbon footprint, you're not getting the deal done in those geographies.

ESG investing in real estate actually ties in a lot with Opportunity Zones. As the Opportunity Zone program matures, we will see this regulation driving greater activity in terms of ESG investing in real estate. When you make ESG investments utilizing the Opportunity Zone program, the investment becomes not only a positive story but can provide a greater return than a more ‘vanilla’ ESG investment.

Take workforce housing investment. There is a huge market for the almost-forgotten middle class – our teachers, our firefighters, our police. Opportunity Zones will drive investment in workforce housing and because of the regulation, asset owners will see the positive story and investors will see the IRR.

- by Stu Taub and Troy Merkel
(reprinted with permission from

Forward Forward
Tweet Tweet
Share Share
Forward Forward
Tweet Tweet
Share Share

Please file directly in Dept. 47, confirm copy, and have the Judge executed.
Thank you.

Attorney tells accused: "I have some good news and some bad news."
Accused: "What's the the bad news?"
Attorney: "The bad news is that your blood is all over the crime scene, and the DNA tests prove you did it."
Accused: "What's the good news?
Attorney: "Your cholesterol is 130."

An year-old woman was called for jury duty and had to submit to questioning by opposing lawyers.
Plaintiff's Lawyer: "Have you ever dealt with an attorney?"

Woman: "Yes. I had an attorney write my living trust.

Lawyer: "How did that turn out?"
Woman: "I don't know. Ask me when I'm dead."

The importance of proofreading the results of an attorney's dictation was highlighted in the reminder to a client's tenant to pay her rent or suffer eviction. It was transcribed as follows:

"You are hereby notified that if payment is not received within 5 business days, I will have no choice but to commence with execution proceedings."

What does an appraiser's wife say if she can't sleep?

"Honey, tell me about your day at work."

Judge: I know you, don’t I?
Defendant: Uh, yes.
Judge: All right, tell me, how do I know you?
Defendant: Judge, do I have to tell you?
Judge: Of course, you might be obstructing justice not to tell me.
Defendant: Okay. I was your bookie.

From a defendant representing himself:

Defendant: Did you get a good look at me when I stole your purse?
Victim: Yes, I saw you clearly. You are the one who stole my purse.
Defendant: I should have shot you while I had the chance.

Judge: The charge here is theft of frozen chickens. Are you the defendant?
Defendant: No, sir, I’m the guy who stole the chickens.


Attorney: At the scene of the accident, did you tell the constable you had never felt better in your life?
Farmer: That’s right.
Attorney: Well, then, how is it that you are now claiming you were seriously injured when my client’s auto hit your wagon?
Farmer: When the constable arrived, he went over to my horse, who had a broken leg, and shot him. Then he went over to Rover, my dog, who was all banged up, and shot him. When he asked me how I felt, I just thought under the circumstances, it was a wise choice of words to say I’ve never felt better in my life.

Lawyer questioning his client on the witness stand:

Plaintiff’s Lawyer: What doctor treated you for the injuries you sustained while at work?
Plaintiff: Dr. J.
Plaintiff’s Lawyer: And what kind of physician is Dr. J?
Plaintiff: Well, I’m not sure, but I remember that you said he was a good plaintiff’s doctor.

Judge: Is there any reason you could not serve as a juror in this case?
Juror: I don’t want to be away from my job that long.
Judge: Can’t they do without you at work?
Juror: Yes, but I don’t want them to know it.

Lawyer: Tell us about the fight.
Witness: I didn’t see no fight.
Lawyer: Well, tell us what you did see.
Witness: I went to a dance at the Turner house, and as the men swung around and changed partners, they would slap each other, and one fellow hit harder than the other one liked, and so the other one hit back and somebody pulled a knife and someone else drew a six-shooter and another guy came up with a rifle that had been hidden under a bed, and the air was filled with yelling and smoke and bullets.
Lawyer: You, too were shot in the fracas?
Witness: No sir, I was shot midway between the fracas and the navel.

Defendant: Judge, I want you to appoint me another lawyer.
Judge: And why is that?
Defendant: Because the public defender isn’t interested in my case.
Judge (to public defender): Do you have any comments on the defendant’s motion?
Public Defender: I’m sorry, Your Honor. I wasn’t listening.

Judge: Please identify yourself for the record.
Defendant: Colonel Ebenezer Jackson.
Judge: What does the “Colonel” stand for?
Defendant: Well, it’s kinda like the “Honorable” in front of your name. Not a damn thing.

We provide the subject matter expertise and expert testimony indispensable to successfully litigating complex cases, civil and criminal,  involving  a diverse range of issues relating directly or indirectly to real property or interests in real property. 

We support your litigation from the beginning with thorough research by experienced investigators, following through with expertly developed reports and culminating in confident data driven supportable and credible expert testimony. 

We bring the same thoroughness and meticulous research and preparation to real property related valuation based tax issues. We also bring the same thoroughly researched data driven approach to  zoning  applications and   land use issues. 

Visit us online or contact us to find out more about our services.
We are seeking submissions.  If you would like to write the feature article in a future edition, please read our submission instructions and editorial guidelines.

If you have a case you  think is important or interesting we would be glad to post it on our web site (where it would also be archived). We will credit you for the submission.  Please send it to us.
5 Latonia Road
Rye Brook, NY 10573

    Copyright © 2019 | Real Estate Solutions |, All rights reserved. 

    subscription preferences