Mid Atlantic Real Estate Journal — September 13 - 26, 2013 — 13A
www.marejournal.com
F inAnciAl d igest
Amsel originates and arranges loan Eastern Union Funding arranges $. million for flagged hotel in monroeville, PA
M
OnROEViLLE, PA — Eastern Union Funding has nego-
arranged by moti Amsel , a director based out of Eastern Union’s Howell office. A 187 room hotel located in Monroeville, the property is centrally located in a very busy retail area adjacent to the Pennsylvania Turnpike. The property had recently undergone extensive renova- tions, with the remaining renovations to be completed by the buyer. Due to a TOE closing, the borrower required a lender who could close within 45 days, and would lend PIP funds to finish the remaining
renovations needed. Amsel was able to quickly place the deal with a Wall Street lender who was comfortable with the borrower ’s experience and track record, along with the property’s location and strong historical performance. The lender provided a fixed rate loan at 75% Loan-to-Cost for the purchase of the property, over a two year term. The pro- cess was smooth and the loan closed within the timeframe required by the TOE. The bor- rower is projecting a 10% to 15% increase in revenue after renovations are completed. n
tiated a $5.55 million acquisi- tion bridge loan on a Holiday Inn property near Pittsburgh. The loan was originated and continued from page 12A Substantiating intent in a § . . . or after the exchange are fair game for the IRS, even the taxpayer’s discussions with a qualified intermediary. In a 2012 Tax Court case, Re- esink v. Commissioner, (April 23, 2012) T.C. Memo 2012-118, husband and wife purchased a residential house as a replace- ment property with the intent to rent the property. Unfor- tunately, the Reesinks were unable to find a tenant and obtain the rent they wanted, so they decided to sell their current residence and move into the rental home that they acquired in the 1031 exchange. They moved into the rental home only 8 months after it was purchased in a tax deferred ex- change. Nevertheless, the Tax Court found that the Reesinks intended to hold the rental property as an investment at the time they engaged in the 1031 exchange. In deciding the case for the taxpayer, the Tax Court dis- tinguished Goolsby v. Com- missioner, (April 1, 2010); T.C. Memo 2010-64, a case in which a series of factors established that the taxpayers intended to use the replacement prop- erty as a residence following a 1031 exchange. The Tax Court found the following evidence persuasive: • The Reesinks placed many rental flyers throughout the town advertising the house as available for rent; • The Reesinks showed the house to two different potential tenants; • The taxpayers refrained from using the property for recreational use prior to moving into the property; • The Reesinks decided to sell their personal residence almost 6 months after purchasing the replacement property; • The Reesinks waited over 8 months after acquiring the property to move in. The Reesinks also presented corroborative testimony sup- porting the foregoing facts. Like Goolsby, the Reesi- nk case shows the need for continued on page 1A
A 187 room hotel located in Monroeville
Progress has closed over $150 million in Multi-Family Loans at interest rates starting as low as 2.99%
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