Commercial Real Estate Loans & Investment Sales

Ninety Percent of Real Estate Owners Over-Pay Federal Income Taxes

Article Via RISMedia

At least 90 percent of commercial property owners are paying too much in federal income tax because they fail to take the tax deductions that are available on real estate.

In analyses of property depreciation during the past four years, consultants found that at least nine out of 10 owners of commercial real estate were improperly reporting depreciation on federal income tax returns. As a result they paid too much in tax dollars.

IRS guidelines on depreciation are clear. They delineate which building components may be depreciated over a shorter life. The reclassification of short-life items into correct asset classes leads to higher depreciation and lower federal taxable income. However, many real estate investors and accountants disregard these IRS guidelines.

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To learn more about commercial real estate advisory services from Pacific Security Capital, please visit www.pacificsecuritycapital.com or call 1-800-844-6085.

Commercial Real Estate Favored Despite Rising Interest Rates

A recent bank survey - The Survey of Lenders' Commercial Real Estate Perspectives for 2006 - has revealed that higher interest rates will not deter investors' appetites for commercial real estate.

Article Via Yahoo Finance

While slightly more than 60% of bankers surveyed anticipate higher interest rates in 2006, they expect that commercial real estate will remain relatively healthy with no increases in delinquencies and defaults. Three-quarters of respondents foresee continued stability in rents and occupancy levels in 2006. Almost 60% of bankers expect cap rates to rise in 2006, and 37% believe they will stabilize at current levels.

Not a single banker projects lower interest rates in 2006.

Despite the specter of rising rates, acquisition activity will remain at current levels, according to 61% of bankers. However, rising rates could chill refinancing activity, with most bankers expecting refinancing to trend flat or down compared with 2005.

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To learn more about commercial real estate loans from Pacific Security Capital, please visit www.pacificsecuritycapital.com or call 1-800-844-6085.

Why The Investment Community Should Value "Green"

Pacific Security Capital is focused on educating business investors in the true value of “green” property development.

Many investors are discouraged by the upfront costs of building green without taking into account the considerable return-on-investment. Recent studies show that green properties can hold and potentially increase their value much more than traditional buildings.

“The problem is that the investment community lacks a formal framework for analyzing and valuing green property development from a business investment perspective,” said Theddi Wright Chappell, Pacific Security Capital’s Managing Director of Advisory Services. “Many investors use the terms cost and value interchangeably without realizing that they mean different things.”

The value of developing properties that conserve water, generate better air quality and are more energy efficient far surpasses the upfront costs associated with building green.

Investors, landlords, employers and occupants can all enjoy the benefits of a green building, such as:
-    Significantly reduced utility bills
-    Extended property lifecycle
-    Increased employee productivity and less absenteeism due to better air quality that prevents airborne sickness
-    Reduced maintenance costs
-    Less tenant turnover

Pacific Security Capital is currently working with Scott Muldavin, a respected investment consultant who created a commercial mortgage risk rating system for Standard & Poors back in the 1980s. Together, Pacific Security Capital and Muldavin are forming the Green Building Finance Consortium to develop evaluation and underwriting tools and practices necessary for the investment community to measure the true value of building green.

“The Green Building Finance Consortium will pool together the expertise of organizations and individuals serving the business investment community to offer expert advice to investors interested in going green,” said Wright Chappell.

Theddi Wright Chappell will be speaking at the 2006 Swinerton Green Building Summit, March 22 – 24, about why the investment community should value green and the industry’s need for a formal mechanism that enables investors to evaluate green development investments.

“The Investment Community Values Green”
Thursday, March 23, 2006
2 pm – 2:30 p.m.
Asilomar Conference Center, Pacific Grove, California

To learn more about Pacific Security Capital’s commercial real estate advisory services, please visit www.PacificSecurityCapital.com or call 1-800-844-6085.

Hunt for Real-Estate Profits Takes Investors to New Frontiers

Article By Steve Levine and Christine Haughney Via RealEstate Journal

When David Mitzner went to Poland in the late 1980s, he saw a developer's dream: a chessboard of empty lots and little-used offices, warehouses and factories, and scant competition from other investors. Yet when he sought financial backing in the U.S., he felt as though he were promoting property "on the moon," he recalls.

Today, the Polish real-estate market is so awash in foreign capital that it has gotten hard for Mr. Mitzner to find high returns. Last year, foreign investment in Polish property doubled from 2004 to about $3.5 billion, according to the New York real-estate firm Cushman & Wakefield Inc. New property investors are settling for annual returns below 7%, not much better than yields available in Western markets, and far below the double-digits Mr. Mitzner collected early on.

In the 1990s, global investors hunting for high returns flocked to stock markets. When those markets plunged, capital poured into commercial real estate, pushing up prices and reducing investment returns in top U.S. and Western European markets. Now, a wave of capital from American and European pension and investment funds is flowing into once-fringe markets such as Poland, the Czech Republic, Mexico and China. As prices in those markets rise, yield-hungry investors have begun venturing into even dicier markets, such as Russia and Bosnia, driving up prices, and pushing down profits, there, too.

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For more information on Emerging Markets services from Pacific Security Capital, visit www.pacificsecuritycapital.com or call 1-800-844-6085.

Positive Outlook for the Commercial Real Estate Market

According to a recent survey by the National Association of Realtors (NAR), the commercial real estate market is improving.  Driving this improvement is the growing demand for space and increasing investment into commercial sectors.

The NAR forecast expanded to five major commercial sectors:

• Office
• Industrial
• Retail
• Multi-family
• Hospitality

Find out more on the NAR Commercial Real Estate Outlook by reading Commercial Real Estate Market Continues to Improve, NAR Survey Shows in Commercial Property News.

To find out more about commercial real estate loans from Pacific Security Capital, visit www.pacificsecuritycapital.com or call 1-800-844-6085.

Apartment Development Heats Up on U.S. Coasts

Article by Michael Corkery via the RealEstate Journal

Many multifamily real-estate investment trusts have been ramping up their development pipelines, but increasingly are building in only a handful of U.S. cities along the coasts.

About 96% of the new apartments being built by REITs at the end of the fourth quarter were concentrated along the East and West coasts. That compares with about 87% in the fourth quarter of 2004.

Click here for full article.

For more information on Apartment Loans from Pacific Security Capital, visit http//www.pacificsecuritycapital.com or call 1-800-844-6085.

The Growing TIC Trend

Tenant-In-Common (TIC) investments are set to be increasingly popular in 2006.  This growth in popularity can be attributed to their ease of management and their promise of deferred tax payment on capital gains.

Matthew Padilla recently wrote an article entitled "Tenancy-In-Common Deals Grow" in the Washington Post, in which he describes the lure of TIC ownership.

Click here to read the full article.

For more information on commercial real estate services available from Pacific Security Capital, visit www.pacificsecuritycapital.com or call 1-800-844-6085.

2 new twists to real-estate investing

Article by Timothy Middleton Via MSN Money

Amid all the talk about a home-price bubble, commercial and overseas real estate are areas that could still handsomely reward investors.

The six-year rampage staged by real-estate stocks is showing no signs of fatigue.  Doubters, including me, have been proved wrong again as returns from mutaul funds investing in the group have rocketed ahead more than 20% annually.

Click here to read the full article.

To learn more about Pacific Security Capital's Commercial Real Estate Advisory Services, visit www.pacificsecuritycapital.com or call 1-800-844-6085.

Pacific Security Capital Predicts Stronger Multi-Family Market - Why Rental Real Estate is Thriving

San Diego, CA, March 8, 2006 –- http://www.pacificsecuritycapital.com – Pacific Security Capital, a leading commercial real estate services company, announced today that there is strength in the outlook for the multifamily sector, despite cap rate compression in most major markets.

While many speculate over the single family home bubble, apartment owners and developers expect business to thrive during 2006.

“The strong demand for ownership housing has pushed prices beyond the reach of a larger percentage of the nation’s population and above what some consider sustainable values,” said Simon Acheson, Director of Pacific Security Capital. “As the economy continues to strengthen and the workforce expands, the demand for housing remains strong but inventory is priced at levels that more and more people can‘t afford or won’t spend.”

Pacific Security Capital believes that this growing trend is like to renew strength in the multi-family market.

“The single family home bubble is deflating and the condo market is saturated,” said Acheson.

Acheson will be presenting a session on Equity Financing for Multi-Family Projects at the upcoming Apartment Finance Today Developer Conference in San Diego, CA, March 8 – 10, 2006. Acheson will discuss the growth of rental real estate, including key questions, such as:
-    How high rent will rise
-    How developers can meet the increasing need for affordable housing
-    How long before rent prices peak

Join Simon Acheson at Apartment Finance Today’s Developer Conference.

Session Title: Equity Financing: Take an In-Depth Look at Equity Investor Trends and Deal terms in 2006.
Date: Wednesday March 8, 2006
Time: 4 – 5:30 p.m. PST
Omni San Diego Hotel, San Diego, CA
Register at http://www.housingfinance.com/aftdc/03_register.html

To learn more about Pacific Security Capital’s commercial real estate advisory services, please visit www.PacificSecurityCapital.com or call 1-800-844-6085.