Leases often form the start of a long term relationship between a landlord and tenant. This dynamic is much more critical in the life sciences context, and the process of lease negotiation and implementation requires integration and cooperation between the landlord and tenant teams. The lease creates a roadmap for what can be a very long tenancy, and needs to be carefully thought through and negotiated.

Due to the higher capital infrastructure required for life sciences companies, lease terms are typically longer than other types of leases and the motivation to renew in place is much higher, so having a good underlying lease is critical. The following outline some of the commonly negotiated areas in life sciences leases: Continue Reading The Life Sciences Lease: A Marathon, Not a Sprint

Beginning on February 16 of this year, the rate of tax withholding required by the Foreign Investment in Real Property Tax Act (FIRPTA) will increase from 10% to 15%.  FIRPTA imposes federal tax on the sale of an interest in real property located in the United States by a foreign seller. Continue Reading FIRPTA Tax Withholding Set to Increase Effective February 16, 2016

Mintz Levin was a sponsor of IMN‘s 13th Annual Winter Forum on Real Estate Opportunity & Private Fund Investing held at the Montage resort in Laguna Beach.  The IMN conference is the premier West Coast conference on real estate investing and is attended by the most influential voices in the real estate industry. Continue Reading Costs and Practicalities of Utilizing Alternative Sources of Capital for New Acquisitions, Refinancings & Development

On February 23, 2016, the 2016 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys will become effective (superseding the 2011 ALTA/ACSM standards).

An overview of the changes (courtesy of Chicago Title Insurance Company) can be found at this LINK, and include (among others): Continue Reading 2016 ALTA/NSPS (formerly ALTA/ACSM) Land Title Survey Standards

A sophisticated (and effective) wire-fraud scam targeting real estate (and other) transactions is on the rise, and mostly occurring in the United States.

Here’s a Wire Fraud Alert from Chicago Title explaining how the scam works.

The National Association of Realtors suggests following this guidance to avoid becoming a victim: Continue Reading Sophisticated Email Scams Targeting the Real Estate Industry

Earlier today our colleagues in the Energy Technology practice posted an article regarding this morning’s congressional agreement on a year-end spending and massive tax deal that will bring 5-year extensions to both the Investment Tax Credit and Production Tax Credit. If passed through Congress and signed into law by President Obama, these agreements have major implications for commercial and residential real estate.

Click here to access the full article and see what the buzz is all about!

Our colleague Steve Friedberg recently spoke at the ICSC Shopping Center Law Conference in Phoenix, Arizona on the topic of “Financeable Retail Leases: A Guide to the Perplexed”.  The seminar explored the requirements for creating financeable retail leases from the perspectives of landlords, tenants and leasehold and fee mortgage lenders. Five key takeaways from Steve’s presentation were:

  1. The users of these leases are generally national credit tenants who require control over the construction of their buildings through long-term ground leases (the term generally is at least 25 years, plus 4 or more 5 year renewal options—the term, including options, has to be at least 20-30 years longer than the term of a leasehold mortgage to satisfy rating agency requirements). Because of their credit standing, these tenants can build their improvements much less expensively than a landlord (and the landlord does not have the risk of construction and its cost). Continue Reading Financeable Retail Leases: A Guide to the Perplexed

Our colleague, Steve Friedberg will be speaking tomorrow during a seminar at this year’s US Shopping Center Law Conference put on by the International Council of Shopping Centers (ICSC). The seminar, “Financeable Retail Leases: A Guide for the Perplexed” will explore the requirements for creating financeable retail leases from the perspectives of landlords, tenants and leasehold and fee mortgage lenders. It will provide practical advice for representing landlords and tenants in these hybrid leases, as well as underlying case law, clauses and regulatory requirements. It will also provide examples of what can be negotiated and when these leases are most commonly utilized.  Additional speakers include Gregory Gosfield of Klehr Harrison Harvey Branzburg LLP and Elliot Hurwitz of Chicago Title Insurance.

Our colleague Jeff Moerdler was recently quoted in Law 360’s article, “NYC Transportation Infrastructure Needs Innovation: Panel” after speaking on transportation infrastructure issues at the EisnerAmper’s Real Estate Private Equity Summit this past Wednesday.  Alongside Former NY Governor David Patterson and Red Apple Group head John Catsimatidis, Moerdler focused on the need for innovative solutions, fast timelines and a hard push on existing projects to rectify current issues and those going forward.

 

Since February 2015, California state legislators have proposed several bills to modify the limitations on property tax increases established by Proposition 13 (Prop. 13). These bills include Senate Constitutional Amendment 5 (SCA-5) by State Senators Holly Mitchell (D-Los Angeles) and Loni Hancock (D-Berkeley), Assembly Bill 1040 (AB 1040) by State Assemblyman Phil Ting (D-San Francisco), and Senate Bill 259 (SB 259) by State Senator Patricia Bates (R-Laguna Niguel).

Commercial and industrial properties will be most affected by an annual reassessment but less affected by proposed redefinitions of “change in ownership”

Currently, property taxes are reassessed only when the property changes ownership, defined as a single purchaser buying more than 50 percent of a property. Of the three bills, two would redefine “change in ownership” and the third would calculate business and industrial property tax differently than residential and agricultural property tax. Continue Reading Proposed Prop 13 Reforms in California