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Immediate Action Required • Offers currently being considered Portfolio of Environmentally ImpactedDevelopment Sites Three Sites Located in New Jersey BANKRUPTCY SALE (Subject to Bankruptcy Court Approval) Offer Deadline: March 22, 2017 n Kearny, Hudson County, NJ – Belleville Turnpike 28.65 Acres Across 4 Parcels n Kearny, Hudson County, NJ – O’Brien Road 6.76 Acres Across 5 Parcels n Newark, Essex County, NJ – 5.82 Acres Across 2 Parcels All Environmental Issues Have an Active Responsible 3 rd Party

Mid Atlantic R eal E state J ournal Publisher ............................................................................ Linda Christman Associate Publisher ................................................................ Steve Kelley Associate Publisher ..........................................................Barbara Holyoke Associate Publisher ...................................................................Kim Brunet Associate Publisher ............................................................. Lea Christman Senior Editor/Graphic Artist .................................................Karen Vachon Office Manager .................................................................... Joanne Gavaza Sales Intern ........................................................................ Kevin Minassian Contributing Columnist .......................... Michael Greenwald, MPPM, CPA Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1005 Hingham, MA 02043 USPS #22-358 | Vol. 29 Issue 6 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: 781-740-2900 | Fax: 781-740-2929 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

Mid Atlantic Real Estate Journal

The Trump Impact on Real Estate -- Uncertainty Abounds M Michael Greenwald uch like the rest of the country, the real estate industry is try- ing to figure out how it will be affected by the Trump presi- dency. Noting that Trump is a life-long real estate mogul from a real estate family, one might surmise that his presidency would benefit the real estate market. However, the effects of his proposed policies combined with other economic factors are still unclear. The real estate industry seems most focused on the effect of deregulation and the repeal of Dodd-Frank, the possibility of significant infrastructure spending and related job growth, as well as the direction of interest rates. The President has taken the first step, signing an executive order rolling back the 2010 Dodd-Frank financial-overhaul law, in a sweeping plan to dis- mantle much of the regulatory system put in place after the financial crisis of 2008. During a Strategy and Policy Forum, Trump stated, “Frankly I have so many people, friends of mine, that have nice businesses and they can’t borrow money. They just can’t get any money because the banks just won’t let them borrow because of the rules and regulations in Dodd- Frank.” Like others in the Re- publican Party, Trump believes the banking reform is hindering lending, stifling growth, and harming the economy. On the

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other hand, eData from the Federal Reserve indicates that commercial lending in general and lending for commercial real estate are at higher lev- els now than before the 2008 financial crisis. And accord- ing to some economists, more stringent lending requirements for residential mortgages have helped to strengthen the hous- ing market. The stock market is already reacting to the President’s executive order, reducing the burden of regulations and ex- pediting high priority energy and infrastructure projects that will create jobs, including the Dakota Access and Keystone XL pipelines. Mining, steel, engineering, construction com- panies and others also expect to benefit from the anticipated construction boom. Although the Fed is cur- rently keeping interest rates steady, expectations for eco- nomic growth from President Trump’s proposed policies have introduced a greater uncer- tainty about the direction of the economy--leading to a muddled interest rate market. The Presi- dent’s plan to cut individual and corporate tax rates, along with increased infrastructure

spending, could spark economic growth but could also prove in- flationary. On the other hand, the President’s proposal for import tariffs could have the opposite effect on inflation, the value of the dollar, and inter- est rates. Ultimately, Trump's impact will depend upon his ability to formulate policies and suc- cessfully persuade Congress to enact them. With Repub- lican control of the House and Senate, it will be easier for him than for some recent presidents. For the moment, Trump’s direction is unclear and Congress and the presi- dent do not appear to have identical priorities. Though Trump brings a high level of uncertainty to the presidency and the real estate industry, this is a market he knows well. Time will tell whether his policies and real estate know-how will ultimately have a positive or negative impact. Mi chae l Greenwald , MPPM, CPA is partner at Friedman LLP. n Copyright © 2017 Friedman LLP. All Rights Reserved. Friedman LLP reserves the right to reproduce our material as it appears in other print or electronic media.

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