Development Magazine Winter 2013

Finance

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Investing in Secondary Markets: Timing Is Everything 

With so much public and private capital chasing commercial real estate investment opportunities in the primary markets, is this the right time to focus attention on the secondary markets? Yes, according to Sam Chandan, Ph.D., president and chief economist of Chandan Economics.

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Is Credit Loose or Tight? 

Panelists at a Development ‘13 session on capital markets agreed that as of fall 2013, credit is neither too loose nor too tight; it is just right.

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Real Estate Investors Face New Investment Income Tax 

Just as the real estate industry is beginning to experience a long-awaited recovery, a new investment income tax is poised to lighten the wallets of many real estate investors.

Meridian Cool Springs Mixed-Use Development, Franklin, Tenn.

Financing Large-Scale MXDs 

Financing mixed-use developments (MXDs) that may span many city blocks and take decades to develop is significantly more complex than financing single-use projects. In a session titled “Mixed-Use Case Studies: The Price of Success” at Development ‘13, three developers described their large-scale mixed-use projects and Kevin Jennings, Bank of America Merrill Lynch reacted to each project, offering comments about how lenders approach financing these and similar types of projects, and describing some of the unique financing vehicles employed.

From the Archives: Finance Articles from the Previous Issue

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Crowdfunding: A Game-Changer in Finance?  

Ask Benjamin Miller, co-founder of the Washington, D.C.-based online real estate finance company Fundrise about crowdfunding and he will tell you, as he told the House Committee on Small Business several months ago, that “the Internet will do to capital what it did to media and commerce: it will completely disrupt the status quo.” In short, it will be transformative.

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Tax Abatements as a Shield for Looming Property Tax Increases 

Throughout the Great Recession and well into what has become an extended period of slow recovery, the tax revenue base for municipal governments has been shrinking. According to a 2012 National League of Cities year-end survey, “National League of Cities Research Brief on America’s Cities,” 2012 was expected to be the sixth consecutive year of year-over-year declining municipal revenues. Municipal revenues are not expected to rebound in real time with the economy.