Eastern's new 1031 group.
R. Stuart Gross, senior director who is a CPA and former tax partner with Arthur Andersen, and Benjamin Alex Tapper, director, are spearheading the new initiative.
The thrust of the service line is to provide buyers and sellers with a range of alternative properties to facilitate timely completion of exchanges.
Because these transactions are often time sensitive and complex, involving reverse exchanges, tenancies in common and financing issues, expertise and experience in structuring are key to successful completion.
"We're very excited that Stuart and Ben are focusing on this area of our real estate services," said Peter Hauspurg, Chairman and CEO of Eastern Consolidated.
"Stuart is knowledgeable about the federal tax issues relating to these transactions and Ben is concentrating on sourcing product to satisfy the exchange needs of our clients. We are excited about the growth in this area and the prospects for helping our clients meet their real estate objectives. We have a number of clients who wish to defer their tax liability and increase their owned real estate rather than making current tax payments."
"We have many who are interested in exchanging properties that require active management and which have leasing risk for more passive assets,"
Mr. Gross observed, "such as properties which are leased to credit worthy tenants on a triple net basis. These may be clients who are managing their estates for the next generation or simply diversifying their geographic or product type risk."
"With the current value of New York City real estate, many sellers are acquiring properties in other metropolitan and suburban markets, where the cost barrier for entry is not nearly as high. Many properties can be acquired in other locations at lower cost per square foot, thus lowering the long-term risk," said Mr. Tapper. Mr. Gross and Mr. Tapper have completed fourteen 1031 exchange transactions for over $70 Million since January of 2005.
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|Publication:||Real Estate Weekly|
|Date:||Dec 21, 2005|
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