16A — March 24 - April 13, 2017 — M id A tlantic
Real Estate Journal
www.marejournal.com
M id A tlantic R eal E state J ournal
8.75-acre site on the Camden Waterfront NJEDAextendsRFQdeadline for waterfront redev. plan
Hoboken, NJ affordable portfolio NorthMarq Capital arranges$80mrefinance
any investment. There are material risks associated with investing in real estate, Delaware Statu- tory Trust (DST) and 1031 Exchange properties. These include, but are not limited to, tenant vacancies; declining market values; potential loss of entire investment principal; that past performance is not a guarantee of future results; that potential cash flow, po- tential returns, and potential appreciation are not guaran- teed in any way; adverse tax consequences and that real estate is typically an illiquid investment. Please read carefully the Memorandum and/or invest- ment prospectus in its entirety before making an investment decision. Please pay careful attention to the “Risk” section of the PPM/Prospectus. This material is not intended as tax or legal advice so please do speak with your attorney and CPA prior to considering an investment. IRC Section 1031, IRC Sec- tion 1033, and IRC Section 721 are complex tax codes; therefore, you should consult New Jersey — Lee & As- sociates has announced that Brian Lynch , president of Lee & Associates New Jersey, has been named Chief Strategy Officer in charge of East Coast expansion. “After continued successful U.S. expansion and growth into Canada and Europe, Lee & As- sociates is committing additional resources to continue expanding our East Coast presence,” said Jeffrey Rinkov , CEO of Lee & Associates. “Brian brings an excellent understanding of the landscape and a keen eye on the dynamics of this broker market. We are excited to have him lead NEW JERSEY — Gary Cohen , senior vice president/ managing director of North- Marq Capital’s New Jersey- based regional office, arranged the $80 million refinance of a portfolio of five affordable properties, containing a com- bined 519 units. The proper- ties are located throughout Hoboken. The transaction was structured with a 12-year term on a 25-year amortization schedule. NorthMarq arranged financing for the borrower, Ap- plied Housing Management, through its correspondent re- lationship with a life insurance
your tax and legal professional for details regarding your situ- ation. Securities offered through registered representatives of Colorado Financial Service Corporation, Member FINRA / SIPC. Kay Properties and In- vestments, LLC and Colorado Financial Service Corporation are separate entities. OSJ Ad- dress: 304 Inverness Way S, Ste 355, Centennial, Colorado. Kay Properties & Invest- ments, LLC, is registered to sell securities in all 50 states. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and ac- credited entities only (generally described as an entity owned entirely by accredited individu- als and/or an entity with gross assets of greater than $5 mil- lion dollars). If you are unsure if you are an accredited inves- tor and/or an accredited entity please verify with your CPA and Attorney prior to consider- ing an investment. You may be required to verify your status as an accredited investor. Prior to joining Lee & Asso- ciates in 2009, Lynch founded Commercial Realty Associates in 1995 and was the leader of this multifaceted boutique firm providing landlord representa- tion, property management, and construction management services. company. “The properties have been managed by Applied Housing since the early 1970’s and were initially subject to Housing Assistance Payment (HAP) contracts,” explained Cohen. “Presently, each property is subject to regulatory agree- ments where 40 percent of the units must be rented to Section 8 tenants while the remaining units can be rented at market. The lender was very impressed with the condition of the assets and locked the rates on the loans in the fall, prior to the run up in treasuries.” n our expansion efforts.” According to Rinkov, the pri- mary push will be focused on the Boston, Washington DC, Charlotte, Raleigh Durham, and Miami markets, with an additional 10 to 12 Eastern markets expected to be added in the next two years.
to Kay Properties and Invest- ments, LLC by his CPA, as he was able to learn the ramifica- tions of going from an unlever- aged position in his rental prop- erties to a leveraged position in DST properties with 5-10 year balloon mortgages. At best he would have had to replace the mortgages with equal or greater debt upon the DSTs sale. At worst he would be looking at a potential foreclosure if things didn’t proceed as planned at the property and with the economy. The client opted to invest in a diversified portfolio of Kay Properties’ all-cash/debt-free DST properties. He now had the peace of mind of NOT having to take on debt upon the sale of the DSTs, NOT having the risk of a lender foreclosure and NOT having the risk of a 5-10 year balloon mortgage upon the DST’s sale. Through Kay Prop- erties’ debt free DST properties the client was able to stay in a completely debt free position as well as increase his projected cash flow considerably. Challenge: The client was a real estate investor that had previously RENTON, NJ — The New Jersey Econom- ic Development Au- thority (EDA) has extended the deadline for a Request for Qualifications (RFQ) related to the purchase and develop- ment of an 8.75-acre site on the Camden Waterfront. Eligible respondents must now submit qualifications by 2 p.m. on April 12, 2017. The RFQ, 2016-RED- RFQ-DEV-061, can be found on the EDA’s website at www. njeda.com/bidding. Boasting views of the Phila- delphia skyline and 8.75 acres of prime developable land, the site also will benefit from a newly established public park and roadway improvements. The site’s location in the City of Camden also presents an opportunity for developers to take advantage of the highest amount of incentives, as well as property tax abatements, available through the New Jersey Economic Opportunity Act of 2013. The sale is governed by P.L. 2013 c. 22, as well as the New Jersey State House Commis- sion-approved procedures for the disposition of property. This includes a two-step RFQ/ T
Dwight Kay is founder of Kay Properties & Invest- ments, LLC. n Past performance is no guar- antee of future results. 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 be aware that this material can- not and does not replace the Memorandum and is qualified in its entirety by the Memoran- dum. This material is not intended as tax or legal advice so please do speak with your attorney and CPA prior to considering an investment. This material contains infor- mation that has been obtained from sources believed to be reliable. However, Kay Prop- erties and Investments, LLC, Colorado Financial Services Corporation and their repre- sentatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own in- vestigations before considering The question and answer period related to the RFQ has also been extended until March 15, 2017. For a complete list of qualification submission requirements and other infor- mation pertinent to this RFQ, visit http://www.njeda.com/ bidding. n ware River Port Authority Com- missioned the Riverfront State Prison Reuse Study to analyze the reuse potential of the North Camden Riverfront. In 2010, demolition of the prison was completed, paving the way for future redevelopment. Qualifications must be re- ceived by 2 p.m. on April 12, 2017 in a securely SEALED envelope or carton. Qualifica- tions should be shipped or delivered to: New Jersey Economic Develop- ment Authority Real Estate Division REF # 2 0 1 6 - RED - RFQ - DEV-061 Due Date: April 12, 2017 at 2 p.m. 36 West State Street Trenton, NJ 08625-0990 Submissions will be publicly opened on April 12, 2017 at the 36 West State Street location at 2 p.m.
invested in a basket of student housing, senior care, hospital- ity, regional mall and oil and gas 1031 properties in 2005 with a broker that touted his group’s due diligence as being second to none. Fast-forward to 2009 and 2010 and the investor lost millions of dollars of equity due to the higher risk nature of these asset classes combined with the great recession and credit crunch. Result: The client was intro- duced to Kay Properties and Investments, LLC by a CPA who had been working with Kay Properties for years. The client was able to build a diver- sified DST portfolio consisting of all-cash/debt-free properties, multifamily apartment proper- ties in growing locations and long-term corporate-backed single-tenant retail properties leased to credit tenants. The client said over and over that he had wished he had been able to invest with Kay Properties the first time around. Since his first 1031 exchange with Kay Properties the client has done multiple subsequent 1031 exchanges into Kay Properties recommended DSTs. Sealed Bid process: • Step 1 –EDA will accept qualifications through April 12, 2017 at 2 p.m. Based on the criteria outlined in the RFQ, the EDA will establish a shortlist of eligible respondents. • Step 2 - EDA will issue a bid package to eligible respondents and accept sealed bids. If necessary, the EDA will issue and accept best and fi- nal offers. The final sale and development will be subject to various approvals, including the Review Committee designated for this purpose, the New Jersey Department of the Treasury, the EDA Board, and the State House Commission. The sale and development of the property must also be con- sistent with the North Camden Waterfront Study Area Redevel- opment Plan. The Plan’s vision is to create a vibrant, mixed-use district that provides new op- portunities for riverfront recre- ation and attracts sustainable development while connecting existing residential neighbor- hoods to the waterfront. The former prison site ac- counts for roughly one third of the North Camden Waterfront Study Area. In 2006, the Dela-
Lee & Associates names Lynch to head East Coast expansion efforts
DST 1031 Exchange Case Studies . . . continued from page 2A
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