Adding solar energy facilities to a rooftop or a parking lot can put developed land to even more productive use while creating value for a property via a new revenue stream—rent payments—or from the energy savings and environmental benefits realized by using the generated power on site. Though similar to typical commercial leases and to
Washington’s Capital Gains Tax Implications on the Transfer of Ownership Interests in Entities That Own Real Property
In addition to Washington’s real estate excise tax (REET), transferors of ownership interests in entities that own real property in Washington must also factor in Washington’s capital gains tax when making such transfers. The Washington Supreme Court upheld the capital gains tax as a constitutional excise tax earlier this year. See Quinn v. State, 1 Wn.3d 453, 526 P.3d 1 (2023). The tax is a flat tax of 7% of all adjusted long-term capital gains over $250,000 allocated to the state. RCW 82.87.010.
Gains from the sale of real estate are generally exempt from Washington’s capital gains tax. RCW 82.87.050(1). The tax also does not apply to the sale or exchange of an interest in a privately held entity, if the gain or loss from such sale or exchange is attributable to real estate directly owned by such entity. RCW 82.87.050(2). But what does this mean in the context of multi-tiered ownership structures, where a party desires to sell membership interests in a subsidiary that owns real estate?
Understanding the Nuances of Post-Closing Obligations in Oregon Real Estate Contracts: Lessons from Freeborn v. Dow
In the busy world of commercial real estate, buyers and sellers may be unable to complete all contractual obligations before closing. In those instances, parties often identify certain “post-closing” matters in the contract. Typically, if those provisions are not carefully drafted to “survive” the closing, then the terms may merge with the deed and be deemed satisfied at closing. However, in a 2022 Oregon case, Freeborn v. Dow, the Oregon Court of Appeals identified a nuance to that rule and explained that certain contractual matters may survive closing and not merge with the deed, regardless of the presence or lack of a survival clause.
4 New Washington Bills Affecting Common Interest Communities That Developers Should Be Aware Of
Washington’s legislators had their eye on common interest communities (CICs) during the 2023 regular session, which ended on April 23, 2023. Three bills relating to or affecting CICs become effective on July 23, 2023. One became effective immediately. Here is a brief summary of the new laws.
Deal Sweeteners for Clean Energy Development on Brownfield Sites
Originally published by the Daily Journal of Commerce on February 28, 2023.
Owning or developing a parcel of contaminated real property, or a “brownfield,” has historically been a risky endeavor. But brownfields are abundant in the United States, and there are several incentives available to those who develop clean energy facilities on a dirty project
Some Commercial Property Owners Can Go Green With ‘Propertyfit’
Originally published by the Daily Journal of Commerce on December 6, 2022.
With more and more corporate tenants and institutional owners looking to reduce their carbon footprints, clean energy improvements in initial project development as well as upgrades to existing projects have become more appealing. However, with interest rates and material costs on the rise
Financing Options Affordable Housing Developers Should Consider
According to the latest figures from organizations such as the National Low Income Housing Coalition, Oregon needs tens of thousands of additional affordable rental homes just to meet the current housing demand, a demand that continues to rise. And while the need for additional rental units remains as great as it has ever been, affordable
Commercial Lease Improvements
On December 13, 2019, I will be giving a presentation on construction-related topics arising from commercial lease improvements. The presentation is part of a two-day seminar on Advanced Commercial Real Estate Leases, co-chaired by my colleague, John A. Fandel, and hosted by Law Seminars International. Topic will include insurance coverage, mechanic’s liens, scheduling, indemnity, safety,
What International Developers Needs to Know About Condo Liability in Washington
An international developer considering condominium projects in Washington should be abreast of the potential risks and liabilities arising from the Washington Condominium Act (“WCA”), which provides a broad array of warranty protections for condominium purchasers. The WCA has given rise to a significant increase in the number of construction defect lawsuits — a deterrent to
Washington Court of Appeals Provides Guidance Regarding Frivolous and Excessive Lien Claims Against Condominium Projects
Recently, Division One of the Washington Court of Appeals issued an opinion providing guidance regarding the scope of Washington’s frivolous lien statute and the subtle intricacies of preparing and filing a construction lien against a condominium project. This article provides a high-level overview of how to file a lien against a condominium project in Washington