Ares Commercial Real Estate Corporation, a specialty finance company that invests in and manages middle-market commercial real estate loans has priced its initial public offering (IPO) of 7,700,000 shares of common stock at $18.50 per share, raising approximately $142.5 million … Continue reading →
A $2.4-million judgment against real estate developer David Schostak (of Schostak Brothers & Co.) is the subject of controversy and a legal battle in Michigan. Schostak guaranteed a loan that was pooled with others as a commercial mortgage-backed security (CMBS). … Continue reading →
The Richmond Times-Dispatch reports that with an increase in debt capital availability and a decrease in the number of high return yet low-leveraged commercial real estate investment options in the “fortress” markets, investors are looking to second-tier markets for opportunities. … Continue reading →
1. Cap Rate Method Cap rate = Net operating income (NOI) / purchase price. NOI = Net income + interest expenses + depreciation. High Cap rates are associated with higher risk and low demand while low cap rates are associated … Continue reading →
A brief overview of the Section 1031 exchange rules: 1. The exchange must involve “like-kind” properties. All properties must be held for a productive purpose in business or trade, as an investment. 2. Within 45 days from the day of … Continue reading →