18A — August 20 - September 16, 2021 — M id A tlantic Real Estate Journal
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M id A tlantic R eal E state J ournal
Industry veteran to further elevate growth& expansion plans JRT Realty Group appoints Judd Chief Operating Officer
How Biden’s Tax Plan could affect your . . .
consult your tax or legal adviser as you consider the options, because everyone’s individual situation is different. Biden also has proposed curtailing the use of 1031 like- kind exchanges. To be clear, he has not proposed eliminating them, but limiting their use. In the administration’s budget released in late May, there is a proposal to limit the amount of capital gains from invest- ment property sales that can be deferred to $500,000 per year for individuals and $1 million per year for married couples. (Today there is no limit on the amount of capital gains from the sale of investment real es- tate that can be sheltered using 1031 exchanges.) Notably, 1031 exchanges provide a host of benefits to the real estate market and the national economy, among them facilitating the redeployment of investment capital into more productive assets. They also are very popular among property owners, including family farm owners and small rental home and apartment building own- ers, to help build wealth. DSTs Could Become Even More Attractive If the use of 1031s becomes limited, one investment vehicle likely to become even more at- tractive is the Delaware Statu- tory Trust (DST). DSTs are a form of fractional real estate ownership that is 1031 eligible, unlike many other real estate co-investment structures. DSTs can be a great way to invest in real estate, including an im- portant part of a diversification strategy. I mention them because DST interests have relatively low minimum investment amounts — typically $100,000 — so corresponding gains could be below any new thresholds that may be set to qualify for 1031 tax treatment. Also, many investors own shares of mul- tiple DSTs as a diversification strategy. So if an investor’s real estate holdings are across mul- tiple DSTs with different sale timelines, gains in any one year could potentially not exceed whatever limit may be imposed in order to qualify for 1031 tax- deferral treatment. To learn more about DSTs and how they can be used in a 1031 exchange, visit www.kpi1031.com. One Strategy Investors are Considering Now Many investors are consider- ing selling larger real estate holdings now and 1031 ex- changing into a number of Del- continued from page 14A
aware Statutory Trust invest- ments at smaller price points in an effort to potentially protect themselves from 1031 exchange limitations in the future. For example, if an investor had a $3 million property that they sold and exchanged into six different DST investments in $500,000 increments, they would potentially be setting themselves up to continue to defer gains via 1031 exchanges in the future even if limitations proposed by the Biden admin- istration go into effect. This is also because each DST has its own business plan and time- line, with property sales likely to occur at different times and in different years in the future. What will happen on these federal tax policy issues this year? Nothing, or something — no one knows for sure. In the meantime, investment property owners and investors should make the best decisions they can today given what we know now, recognizing that regard- less of the tax policy, real estate is likely to remain an attractive asset class for many investors interested in diversification and the pursuit of income and appreciation. As always, diver- sification does not guarantee profits or protect against losses, and income and appreciation are never guaranteed with any investments. *Diversification does not guarantee profits or protect against losses. Dwi ght Kay , CEO & Founder, Kay Properties & Investments, LLC. MARE This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal profes- sional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market con- ditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multi- family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold pe- riods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Nothing contained on this website con- stitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. If you are not the intended recipient of this message, any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immediately notify the sender and permanently delete all copies that you may have. Securities offered through Growth Capital Services, member FINRA, SIPC, Office of Supervisory Jurisdiction located at 582 Market Street, Suite 300, San Francisco, CA 94104.
the industry in order to create generational wealth. “Andrew shares my vision for the future of commercial real estate,” Pulice said. “We both believe we have a moral and ethical responsibility to change the narrative—and the reality. The more you diversify the makeup of your teams, the more you broaden your opportunities and the service provided to clients. Being in- clusive isn’t just the right thing to do. It’s also good business.” Prior to joining JRT, Judd spent 17 years with Cushman & Wakefield, most recently serving as Senior Manag- ing Director and Managing Principal for the firm’s New Jersey region. In this position, he managed brokerage and business line professionals, and oversaw all organiza- tional activities affecting more than 250 employees across the company’s three New Jersey offices, which consistently ranked among the most profit - able markets in the company. Judd began his real estate ca - reer at CBRE in the New York City office, where he served as managing director of market- ing services. Judd received an M.B.A. degree and bachelor’s degree from Fordham University. He is a member of CoreNet Glob- al and the National Associa- tion of Office and Industrial Properties (NAIOP) . MAREJ to get back to doing business as usual – albeit, at a much more accelerative pace for no other reason than to catch up from last year’s economic and physical shutdown.” For 46 years, Gebroe-Ham- mer’s brokerage activities have concentrated on all multifamily types to serve the investment needs of a long-term client base of institutional investors, private equity funds, REITs, family offic - es and private individuals. While initially focused on New Jersey, the Livingston, NJ-based firm has evolved to also dominate the Eastern PA and New York State submarkets as well as represent client interests nationally. Wide- ly recognized for its consistent sales performance, the firm is a 17-time CoStar Power Broker and is credited with arranging the largest portfolio sale in 2020 with the highest per-unit price for the MidAtlantic Region and in NJ. MAREJ
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will be responsible for business strategies, operating plans and procedures, new business development and existing ac- count oversight, recruitment and retention initiatives, and cross-selling the firm’s breadth of real estate services to its clients. He will also oversee the firm’s staff, including leas - ing and sales brokers, account managers, marketing and corporate communications specialists, and support per- sonnel. “This is an incredible op- portunity to join a mission- driven organization and work together with the leadership team to chart the path for- ward for JRT, which is on an upward trajectory,” Judd said. “My career has come full circle, returning to the New York City market where I first got my start in the industry. I’m excited for our growth plans and the opportunity to have a direct and meaningful impact nationally, in New York City and within the commercial real estate industry at large.” Pulice noted that while di - versity and inclusion have historically been treated as afterthoughts or as ideas that merely “check off the box,” one of JRT’s core principles is to create new and lasting opportunities in commercial real estate for women, people of color, and other groups who are often under-represented in a downpayment. Consequently, established millennials have remained an important part of the renter pool. “The tenant pipeline is ex- tremely healthy, extending across two highly educated cohorts with existing or im- mediate-future upper-income earning potential,” said Joseph Brecher , executive managing director. “Consequently, there is tremendous investor inter- est in class A new-construction product as well as older existing properties that have been re- cently renovated with – or have the potential to benefit from implementation of – at-market features, especially in kitchens and baths and other in-demand amenities.” Uranowitz added, “The psy- chological effect of getting vac- cinated, returning to the office, dining in restaurants and a more normal way of life in general is boosting the desire
EW YORK, NY — JRT Realty Group , one of the nation’s
largest certi- fied woman- owned com- mercial real estate firms, announ c ed t he h i r i ng of Andrew J u d d a s COO. He will
Andrew Judd
be based in New York City and report to Jodi Pulice , founder and CEO of JRT Realty. “Andrew has been a friend and colleague for more than twenty years and, along with JRT’s strategic alliance with Cushman & Wakefield, he has consistently supported our mission to bring diversity into the realm of commercial real estate,” Pulice said. “Andrew’s combination of skills, experi- ence, and industry stature will be leveraged immediately as our firm is poised for rapid growth.” An industry veteran with more than 30 years of experi- ence, Judd will spearhead the firm’s efforts to help Fortune 500 firms and others maximize their Tier 1 and Tier 2 supplier diversity spending mandates as many seek to be part of the Billion Dollar Roundtable, an elite group of companies that reach $1 billion in spending with minority- and women- owned firms. Internally, he lifestyle amenity – access to outdoor spaces for gatherings and recreation.” Another phenomenon feed- ing the tenant cohort in urban suburbia is “unbundling,” which refers to the wave of post-bache- lor’s degree career starters who are moving out of their parents’ homes. This mid-20-something Gen-Z cohort benefitted from telecommuting, sought comfort with family and established a nest egg during the past 12-14 months that is now being allo- cated for apartment rent. As a result, Gen Z is filling the gap left by midlife millennials driven into the single-family homebuying market during the pandemic. Despite the surge of millennials who sought to buy a home, many were unable to do so in a market where sup- ply is falling extremely short of demand and a significant per - centage lacked enough cash for
continued from FC-A Gebroe-Hammer marks midyear with $917+ Million in . . .
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