Real Estate Transactions With REITs: Selling, Leasing or Lending Deals With REITs
Navigating Unique Organizational, Operational and Tax Issues When Dealing With REITs
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Real Property - Transactions
- event Date
Thursday, June 16, 2016
- schedule Time
1:00 PM E.T.
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE course will prepare real estate counsel to handle a lending, leasing or sale transaction involving property owned by a REIT. The program will analyze unique REIT organizational, operating and tax rules that may impact terms of the transaction and outline best practices for counsel to address these challenges.
As the number of REIT entities proliferates, real estate counsel must increasingly deal with a REIT on the other side of the transaction whether leasing, selling or lending to a REIT. Counsel must understand the unique organizational, operating and tax REIT rules that may impact the structure and terms of the transaction.
In the leasing context, REITs will be concerned with impermissible tenant services that will not qualify as passive rental income. Selling property to a REIT provides the seller opportunities for tax-deferred income if the REIT holds its assets in an UPREIT that owns the LLC holding title to the property. Seller’s counsel must understand how and when the tax deferral will end and take steps to protect the seller’s tax deferral advantage.
Lending to a REIT will require some modifications to the loan documents to allow the REIT borrower to pay dividends. REIT borrowers will also be concerned with financial reporting obligations and the flexibility to transfer REIT property, issue new ownership interests, and engage in mergers and consolidations.
Listen as our authoritative panel of REIT practitioners discusses the unique issues counsel will face in leasing, sale and lending transactions with REIT entities. The panel will provide strategies for dealing with the issues that may impact the structure and terms of the deal.
- Overview of REIT entities
- Leasing property to a REIT
- Selling property to a REIT
- Lending to a REIT
The panel will review these and other key issues:
- What are the key organizational, operating and tax REIT rules that may impact the structure or terms of a real estate transaction with a REIT entity?
- How can the leasing transaction be structured to avoid impermissible tenant services?
- What are the tax deferral opportunities for sellers of property to a REIT entity?
- What of loan document terms will need to be negotiated to satisfy operational and tax concerns of the REIT entity?
