MAY 2024

20A — May 2024 — Owners, Developers & Managers — M id A tlantic Real Estate Journal

O wners , D evelopers & M anagers

Surety Title Co. welcomes Friedman as dir. of commercial ops. & counsel

Dan Fenelon commissioned to create a mural Reynolds unveils The Mural Apartments in Orange Valley O RANGE, NJ — Reyn- olds Asset Manage- ment (Reynolds)

liquidity benefits that are not standard with DST or property ownership. Partial or full li- quidity may be achieved, poten- tially depending on availability determined by the company, by converting the OP Units to shares of the REIT. Estate Planning - Upon death, shares can be equally split and either held or liqui- dated by the beneficiaries of the trust. Because these shares are passed through a trust, the beneficiaries receive a step-up basis and can avoid capital gains taxes and depreciation recapture. One Important Ca- veat for Investors Interested in 721 Exchanges is that REIT shares themselves are not eligible to be used in a 1031 Exchange, and therefore once a 721 Exchange is completed, this is the end of the line for deferral of capital gains taxes. If the shares of the REIT are sold, or the REIT sells a por- tion of the portfolio and re- turns the investor’s capital, the investors will be required to recognize any capital gains or loss when they file their taxes. Dwight Kay is founder and CEO of Kay Properties and Investments. MAREJ which is crucial for real estate developers who need quick turnaround on projects. “Having complete control over our funds makes all the difference,” Kaufman empha- sized. “This autonomy allows us to close loans on oneto four-family properties within a mere 72 hours.” Despite challenges like low supply and high interest rates, Kaufman again remains bull- ish about the resilience and future growth of New Jersey’s real estate market. “Our commitment to New Jersey is unwavering; we’re not fleeing to other states when faced with challenges,” Kaufman declared. “We stand firm, supporting our borrow - ers right here in New Jersey, stronger and more determined than ever.” MAREJ in both the legal and title insurance industries and is well-versed in underwriting complex commercial transac- tions. His industry knowledge is matched with a creative, customer-focused approach, recognizing that no two trans- actions are the same and work- ing hand-in-hand with clients, partners and team members is the key to finding the best- suited solutions. MAREJ

MARLTON, NJ — Surety Title Co. welcomed Jonathan Friedman as its director of

commercial operations & counsel. A NJ licensed attorney and title produc- er, Friedman brings over 17 years of experience

celebrated the grand opening of The Mural with a ribbon- cutting ceremony and recep- tion. Situated on the site of the former Orange Valley Hardware Store, the new mul- tifamily apartment complex is located at 606 Freeman Street in Orange, New Jersey, and features 103 units – a mix of studio, one-bedroom, and two-bedroom apartments and offers covered ground floor parking, a rooftop lounge, grilling areas as well as a mod- ern fitness facility. The event included remarks from the Reynolds Asset Management team, including CEO/Founder, Lou Reynolds , and chief operating officer, Matthew Earl as well as City of Orange business administrator, Chris Hartwyk and Dan Fenelon , a local artist commissioned to create a mural paying tribute to the area’s rich art history for the building’s main lobby. The units, which are conveniently located two blocks from the Highland Avenue Train Sta- tion, as well as several restau- rants and shops are currently available for leasing. MAREJ

Jonathan Friedman

continued from page 2A The 721 Exchange UPREIT Exit . . .

as depreciation recapture. This leaves the investor with less capital for reinvestment. With the 721 exchange, the investor can avoid this hefty tax through a tax-deferred exchange of ap- preciated real estate for shares in an operating partnership. These operating partnership units are also known as OP Units. Capital gains can be deferred until the investor sells the OP Units, converts the OP Units to REIT shares, or the con- tributed property is sold by the acquiring operating partnership. Diversification - Many investors incur concentration risk by owning one property in a single market. REITs tend to own many assets diversified through different markets. The 721 Transaction into a REIT can provide greater diversification for an indi- vidual’s portfolio, which may reduce concentration risk.* Income Potential - Inves- tors potentially will receive income generated through distributions to the holders of the OP Units. Liquidity - The ability to convert OP Units of the REIT to shares can provide potential to New Jersey because there’s a lot of opportunity here from a supply perspective, where New York is much tighter in supply,” Kaufman said. “Many of our New York clients have pivoted to places like Jersey City, where they’re building bigger multifamily projects… they’ll find one or two one- family or two-family homes next to each other, and then they’ll demolish them and build a multifamily property on that plot of land. We see this trend all over New Jersey and New York.” Notably, as a balance sheet lender, Bayport Funding does not sell off loans to others, nor are they tied to third par- ties for approval. Their total control of funding quickly speeds up the time to closing,

Members of the Reynolds Asset Management team, including founder & CEO, Lou Reynolds, Chris Hartwyk, City of Orange Business Administrator, local artist, Dan Fenelon, alongside members of the Reynolds team, residents of The Mural, among other attendees (Photo credit: George Kopp)

The Mural painted by artist Dan Fenelon. (Photo credit: George Kopp)

The Hampshire Cos. sells 85-unit multifamily community

MORRISTOWN, NJ — The Hampshire Companies an- nounced the sale of Max on Mor- ris, a stabilized 85-unit luxury multifamily community located at 175 Morris St. in Morristown. Cushman & Wakefield repre- sented The Hampshire Compa- nies and the private buyer in the transaction. Completed by The Hamp- shire Companies in 2023, Max on Morris’ 85 studio, one and two-bedroom residences were meticulously designed to set a new standard for multifamily construction in one of New Jersey’s most dynamic towns. Residents enjoy highly adapt- able floorplans with in-unit washers and dryers, quartz countertops, tile backsplashes and luxury plank flooring. For residents looking to un- wind, the building's amenity package includes a second-floor entertainment lounge and a break room with a banquette that opens to a spacious out- door amenity deck with BBQ grilling stations. Bike storage and EV charging stations are also available for residents. Beyond the building, down-

continued from page 6A Bayport Funding leads a fix-and-. . .

Max on Morris

“Max on Morris’ contempo - rary design and cutting-edge functionality around how peo- ple live, work and play today made it a highly attractive asset in the current market,” said James E. Hanson , Presi- dent & CEO of The Hampshire Companies. “I’d like to thank our team for their hard work and shared vision in success- fully executing our investment strategy for this property and I look forward to continuing to work with them to bring simi- larly transformative real estate investments to life in our home state of New Jersey and across the United States.” MAREJ

town Morristown’s wide vari - ety of dining, entertainment and cultural experiences are just steps away. Residents can also easily access New York City and Hoboken via the Mor- ristown Train Station located one block from the property. The community also features four affordable residences and 14 supportive housing units designed for residents with special needs operated by Cohome, a Morristown-based organization that provides adults with disabilities mean- ingful opportunities to fully engage with their communities and lead fulfilling lives.

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