The Mystique of 1031’s

The Mystique of 1031's

Mention tax exchanges or 1031’s and most people feel like they must be from another planet, or at least a complex financial animal to be deciphered by a tax accountant or lawyer. In fact, on the surface at least, a tax exchange is merely selling property, usually real estate, and replacing with another according to a simple set of guidelines.

This is not to say the IRS regulation can’t get complicated, because it can in some cases, but for a novice to have a mind-freeze at the very thought of a 1031 exchange should not be necessary. This article from the Realtor Magazine goes even further to explain why exchanges on balance are actually revenue positive, rather than an evil vehicle shorting the US Treasury coffers.


Scott Elkins is a commercial real estate practitioner with a combined  57-years of financial and real estate experience.

2700 S. Quincy Street in Arlington, Virginia.

2700 South Quincy

Weichert Realtors, Commercial Division-Elkins Lane Realty Advisors is pleased to announce that it represented Hammes Healthcare in a successful lease renewal at 2700 S. Quincy Street in Arlington, Virginia. Hammes is a national healthcare real estate consulting, development, investment and management firm with headquarters in Milwaukee, Wisconsin.

Covid has made it difficult for people and businesses, but it has also created opportunities. Now is one of the best times in recent memory for commercial office tenants to reduce occupancy costs on lease renewals and relocations. For details please contact us at:

Weichert Realtors-Commercial Division

Elkins Lane Realty Advisors

121 N. Pitt Street, 1st Floor

Alexandria, VA 22314

Richard Lane, Esq. Scott Elkins

Direct: 703.626.6691 Direct: 703.725.8901

Email: ricklane@elkins-lane.com Email: scott@elkins-lane.com

O) 703.549.8700 O) 703.549.8700

Commercial-Land-Off-I95-for-Sale

321-Walker-Drive

321 Walker Drive, Warrenton, VA 20186


629 King Street – ONCE in a Blue Moon


“ONCE IN A BLUE MOON”
DOES A RETAIL BUILDING ON “KING” BECOME AVAILABLE
FOR SALE
Former Nine West space
629 King Street
3200 GSF 2 level
Building is ready for finishes!

10 QUESTIONS ANY TENANT SHOULD BE PREPARED

TEN LANDLORD QUESTIONS ANY TENANT SHOULD BE PREPARED TO ANSWER WHEN LEASING COMMERCIAL REAL ESTATE

For a business to lease commercial office space, or any commercial space, successfully, it helps immensely if the tenant realizes the landlord will base much of its decision on the credit worthiness of the tenant.  I usually tell my tenant clients to view the process much like applying for a bank loan.  Towards that end, below are ten landlord questions/concerns a tenant should be prepared to address along with some tips on handling them.

1.  Will the tenant be able to pay rent as specified in the lease?

  • The gold standard in answering this question is to provide the landlord with two to three years of audited financial statements if available.  This may be easy for established businesses with a long-standing track record. If audited statements are not available, the tenant needs to provide whatever financial information it does have which can include unaudited statements, “Quickbooks” profit and loss statements and balance sheet, and tax returns.  However, addressing this issue for young companies or start-ups is more problematic but not insurmountable.  Providing information on the source of funding and bank statements should enable the start up to overcome this obstacle.  Work with your broker for guidance as he/she often has past experience with the particular landlords involved.

2.  What are the tenant’s strengths, what are its primary sources of revenue, and are these services likely to continue to benefit the company?

  • Marketing/promotional materials should usually be submitted to the landlord to help with this.  The tenant’s website can also be instrumental here.  For non-profits, it is important to explain how the non-profit generates its revenue:  dues, grants, contracts, or a combination along with some history of its revenue from these sources.

3.  Are there any key individuals in the tenant’s company that it could not afford to lose without losing revenue?

  • If the company or organization is in the news or generating press releases on staff changes, the tenant can explain the plan to replace such key people.  Curriculum vitaes of those currently in charge or soon to replace such people is also helpful.

4.  What type and amount of security is the tenant willing to provide; what type and amount of security should be required?

  • The landlord’s decision on this issue will depend on the financial capability and stability of the tenant and the concessions the landlord makes to get the tenant to sign the lease:  free rent, build out allowances, the current market for commercial space, and rent to be paid by the tenant.

5.  Does the tenant have a reputation for dealing honestly and fairly with the business community?

  • Constant attention to the firm’s social media profile is very important here.  The tenant should expect the landlord to Google the tenant.  If there is negative material on the internet, the firm should make sure it is addressed and explained.

6.  What are the tenant’s economic requirements of the transaction (e.g., minimal rental and improvement allowances versus higher rent and larger concessions)?

  • In searching for space, it is very helpful if the tenant can find space that meets its needs as close as possible to the “as built” condition of the premises.  For example, if the space needs only new paint and carpet as opposed to a complete build out from “shell” condition, there will be more landlord dollars available to the tenant for things like free rent, lower rental rates, or lower rent escalations.

7.  Are there any unusual requirements that need to be addressed?

  • This can be anything.  We once had a tenant that insisted on the right to smoke cigars on the balcony adjacent to its space.  Unusual is ok; unreasonable is not.

8.  What type of tenant improvement work will be required?

  • The landlord is concerned not only with the cost of the tenant improvements it pays for, but also that the dollars it spends have some benefit to the residual value of the landlord’s building.  If the build out required is one that would be attractive to follow on tenants after expiration of the existing tenant’s term, the landlord may be able to refill the space with a new tenant with minimal improvement costs rather than demolishing the existing build out and starting over from shell condition.  Also, trends in design and décor change over time, but  outlandish or bizarre design will not help to keep the landlord flexible and open to the deal.

9.  Does the tenant grow its business from within or by acquiring other companies; has it incurred significant debts as it has expanded its operations?

  • Debt will be a key line item in the landlord’s financial review of the tenant.

10.  What are the long and short-term projections for the tenant’s business operations?

  • About fifteen years ago, we were involved in a lease where the tenant was an association representing phone booth manufacturers.  Even then, the association’s members were dying due to the growth of cell phones.  Whether the landlord is a single individual, a partnership, a large equity firm, a life insurance company, pension fund or real estate investment firm, they are business people.  Landlords will look at the tenant’s business with an experienced critical eye, often with a battery of paid experts to assist in the analysis.  The tenant must be prepared to answer some tough questions.

VOTED – “Best Real Estate Firm”

FOR IMMEDIATE RELEASE!

Alexandria Real Estate Award winners

Alexandria, VA January 10, 2018

ELKINS LANE REALTY ADVISORS, LLC named “Best Real Estate Firm
After receiving over 3400 ballots, the results of Zebra Magazine’s annual Reader’s Choice poll are now in and posted in the January 2018 issue of the magazine. In it, Elkins Lane Realty Advisors at Weichert Realtors was named the readers’ favorite commercial realtors. Elkins Lane is the leading commercial real estate team for Weichert Realtors throughout the D, strict, Maryland and Virginia.

Principals Scott Elkins and Rick Lane launched their commercial real estate practice nearly 20 years ago. The firm’s core business is comprised of commercial tenant representation, sale and purchase of commercial buildings, commercial real estate portfolio acquisition, IRS 1031 transaction management, and asset repositioning.

They may be contacted at:
Rick Lane, Esq.
Cell: 703.626.6691; Office: 703.549.8700
Scott Elkins
Cell: 703.725.8901; Office 703.549.8700
www.elkins-lane.com

Old Town Alexandria, Virginia 1601 Duke St – SOLD

For Immediate Release:
Alexandria, VA August 2017
ELKINS LANE REALTY ADVISORS
Weichert Commercial

Completes Second Old Town Alexandria, Virginia Purchase for VInci


Completes Second Old Town Alexandria, Virginia Purchase for VInci

Elkins Lane Weichert Commercial recently represented Vinci School in the purchase of 1001 North Fairfax Street, Alexandria. This 5000 SF facility will serve as complementary classrooms for the 1601 Duke Street location and traded for $1,450,000.

1601 Duke, an 11,000 SF building, formerly the headquarters for The Society of American Florists, was purchased last year for $4,450,000.

With schools in China and Ottawa, Vinci curriculum is based on a strong art-infused STEM format using Montessori methods for children 18 months through elementary.

Elkins Lane Realty Advisors, LLC, a multi-service CRE firm. works exclusively with the Weichert Commercial Brokerage for transaction

ELKINS LANE REALTY ADVISORS
Weichert Commercial
Completes Second Old Town Alexandria, Virginia Purchase for VInci

SOLD – 1101 Queen Street, Alexandria, Virginia

For Immediate Release:
Alexandria, VA August 2017

ELKINS LANE REALTY ADVISORS
Weichert Commercial

Completes sale of
1101 Queen Street,

Alexandria, Virginia.

Elkins-Lane Real Estate Advisors
Review our office video
Elkins Lane Weichert Commercial announces the sale of 1101 Queen Street, Alexandria, VA, a 6800 SF multi-use building in Old Town Alexandria for $2,550,000.

The fully leased 2-level building received a base-building renovation in 2008 and is home to ARC Document Solutions (NYSE), Pilates ProWorks, and a Salon & Spa.

The property was purchased by local investors.

Elkins Lane Realty Advisors, LLC, a multi-service commercial real estate firm, works exclusivity with Weichert Commercial Brokerage for transactions.


For Immediate Release:
Alexandria, VA August 2017

ELKINS LANE REALTY ADVISORS
Weichert Commercial
Completes Second Old Town Alexandria,
Virginia Purchase for VInci

NEW Hotel – Old Town Alexandria, 1600 Block

For Immediate Release:
Alexandria, VA August 2017

ELKINS LANE REALTY ADVISORS
Weichert Commercial


Represents Seller in the proposed

Hyatt Centric in Alexandria



Elkins Lane

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Elkins Lane worked with the Association of the United States Navy as part of the assemblage for the new hotel in the 1600 block of King Street in Old Town Alexandria.


The 135 room 4-Star facility is slated for completion in late 2018. Donohoe Hospitality Group represented the buyer, Magna Hospitality Group headquartered in Rhode Island.


Elkins Lane Realty Advisors, LLC., a multi-service CRE firm, works exclusively with Weichert Commercial Brokerage for Transactions.

Elkins Lane worked with the Association of the United States Navy as part of the assemblage for the new hotel in the 1600 block of King Street in Old Town Alexandria.