16A — May 16 - 29, 2014 — M id A tlantic
Real Estate Journal
www.marejournal.com
F inancial D igest
Nickerson closes $10.8 million refinance NorthMarq Capital closes $19.4 million bridge loan
P
ing of 38,301 s/f or 21.8% of the building. “NorthMarq’s life company correspondent had already granted one, 4-year exten- sion to their prior loan and wanted to be refinanced out,” said Nalbandian. “Given the outstanding mortgage balance and current 75% occupancy, the asset did not qualify for a traditional permanent mortgage. North- Marq successfully identified a non-recourse debt fund who was willing to lend at 80% LTV on an As Is basis with a good news facility to be earned out for tenant improvements and leasing commissions.” SHIRLEY, MA — Doug Nickerson , vice president of tion recapture, on the sale of their property. Depreciation recapture is a Federal tax over and above the Federal Capital Gain Tax described below. 2. Federal Capital Gain Taxes: Next, investors owe Federal capital gain taxes on the remaining gain above that depreciated. The rate of such tax will depend upon their taxable income. Investors exceeding $400,000 adjusted gross income for single filers and married couples filing jointly with over $450,000 in adjusted gross income will be subject to a 20% tax rate. A 15% capital gain tax rate generally applies to investors below these threshold income amounts. 3. Net Investment Income Tax Pursuant to IRC Section 1411: When applicable, an ad- ditional 3.8% surtax applies to taxpayers with “net invest- ment income” who exceed threshold income amounts of $200,000 (adjusted gross income) for single filers and $250,000 for married couples filing jointly. Pursuant to IRC Section 1411, “net investment income” includes interest, dividends, capital gains, re- tirement income and income from partnerships (as well as other forms of “unearned income”). 4. State and Local Taxes: Last, taxpayers must also take into account the appli- cable state and local taxes, if any, to determine the total
NorthMarq Capital’s Boston regional office arranged the $10.8 million refinance for Birchwood Hills Apartments, a 68-unit multifamily prop- erty located in Shirley, MA. The transaction was struc- tured with a 7-year term and 25-year amortization sched- ule and was arranged for the borrower, Birchwood Hills Corporation by NorthMarq through its seller/servicer re- lationship with Freddie Mac. “Freddie Mac beat out sig- nificant competition on this transaction. They priced the loan aggressively based on an existing relationship with the borrower, proactive property management and superior asset quality,” said Nickerson. n taxes owed. In many jurisdic- tions in the Northeast, this can add an additional 6-12% in taxes to the taxpayers’s total liability. Also, in most cases, state and local taxes will apply whether the proper- ty is located in the jurisdiction or the investor resides there. Despite high overall taxes owed when combining these four levels of taxation at the disposition of an invest- ment property, one aspect of the tax code provides real estate investors with a huge tax advantage. Section 1031 allows property owners hold- ing property for investment purposes to potentially defer all taxes that would otherwise be recognized upon the sale of investment property. Defer- ral is provided under Section 1031 to State and local taxes in most cases as well as Fed- eral taxes. Savvy investors use 1031 exchanges to deploy their investment capital into better performing or diverse investment properties. As noted above, State and local tax rates must be added to the above rates to deter- mine an investor’s total tax liability. As always, taxpayers should consult with a com- petent tax advisor to review their specific circumstances. Pamela A. Michaels is an attorney and VP of Asset Preservation, Inc. This information is not intended to re- place qualified legal and/or tax advisors. Every taxpayer should review their specific transaction with their own legal and/or tax counsel. © 2014 Asset Pres- ervation, Inc. All rights reserved. n
ARSIPPANY, NJ — Greg Nalbandian , senior vice president/
managing d i r e c t o r of North- M a r q Capital ’ s New Jersey regional of- fice closed a $19.4 mil- lion short-
Greg Nalbandian
term non-recourse bridge loan for 45 Eisenhower Dr., a class-A, 175,575 s/f office building located in Para- mus. Working for Bergman Realty Group , Nalbandian structured the transaction with a 3-year interest only loan with a national debt fund. The structure provided
45 Eisenhower Dr.
sponsorship with a very ag- gressive 5% interest only rate, flexible prepayment and no requirement to con-
tribute fresh equity as part of the refinance. Hudson City Savings Bank is a major ten- ant at the property, consist-
Navesink River Capital closes loan for industrial building acquisition
Capital Gain Tax Rates... continued from page 3A
are pleased that this financ- ing will enable the borrower to complete the acquisition.” The building at 11 Carn- egie St., a single-tenant fa- cility being acquired from Carolina Classic Realty, was constructed in 1957. It features 12-foot, four-inch clear ceiling heights, a 400 s/f office component, and two parking areas on either side, fenced for security. Purchased as an invest- ment, the property is leased to DiNucci Foods, Inc., dba C&D Foods. The latter, a family business owned by the DiIorio family, is a whole- saler/distributor, primarily for Italian restaurants, that
has operated in the tri-state area since 1982. Navesink River Capital, LLC is a direct private com- mercial lender servicing the real estate and other indus- tries, specializing in provid- ing loans to entities and busi- nesses that cannot obtain conventional financing from traditional lending institu- tions in today’s current tight credit markets brought about by the soft economy. When traditional lending institu- tions will not lend, Navesink River Capital can provide or arrange funding of $100,000 and up quickly, in an easy and coordinated streamlined closing procedure. n
LINDEN, NJ — Navesink River Capital has complet- ed a $195,000 loan for the
acquisition of 11 Carn- egie St., a 3,920 s / f , single-sto- ry industri- al building in Linden, announced Jonathan
Jonathan Hornik
Hornik , the firm’s founder and CEO. The borrower is 11 Carnegie, LLC, a New Jersey group headed by Peter DiIorio. “The borrower is under contract to purchase the property,” said Hornik. “We WASHINGTON, DC — Cassidy Turley has arranged financing totaling $48.75 mil- lion for One East Pratt St. in Baltimore. Executive managing director John Campanella and VP Paul Spellman of Cassidy Turley arranged the bridge financing on behalf of Emmes Asset Management Company LLC. One East Pratt St. is a 355,779 s/f , class A office building. In 2009, the building under- went renovations, which include a new lobby with destination elevators, façade, entryway and LEED Gold Certification. n
CassidyTurley arranges $48.75minfinancing
One East Pratt St.
Made with FlippingBook - Online magazine maker