SEAMAN REALTY & MANAGEMENT COMPANY REPRESENTING SUN-RAY CINEMA AND IT'S EXPANSION TO MANDARIN FOR IT'S BONANZA DINE-IN-IF-YOU-WISH MINI PLEX!
"PANDEMIC UPDATE: Sun Ray Cinema is awaiting the public response to attending movies in theaters before they open their MANDARIN BONANZA DINE-IN-IF-YOU-CHOOSE MINI PLEX. This location, which our firm is proud to represent, will be Sun-Ray's foray into Mandarin, and will imprint its magical formula that makes it the most beloved and wonderful cinema imaginable - with the most DELICIOUS popcorn and REAL butter you've ever had. Anyway, enough about popcorn. Let's go back to the movies!"
1031 EXCHANGE. TRENDS and INFO for 2021
As we start 2021, below are key trends, issues and points to remember regarding 1031 Exchanges.
2020 was yet again another record year for 1031 Exchanges. What’s in store for 2021?
Commercial real estate is predicted to have a mixed forecast in 2021 with certain sectors, such as industrial, experiencing robust growth while others continue to struggle. With low interest rates expected to continue and the economy recovering, many CRE sectors should normalize by mid to late 2021 if the vaccines are widely available.
Another strong year for 1031 Tax Deferred Exchange transactional activity is anticipated in 2021. Two factors will drive significant transactional activity. First, borrowing rates remain historically low. Second, the pandemic has created an unprecedented need to repurpose and renovate commercial real estate to meet post-pandemic business models.
Particularly impacted are office, retail and hotel properties, given the successes of widespread working from home and use of virtual meeting technology. Even multi-family and single family rental properties now need space for use as a home office.
Section 1031 Like-Kind Exchanges provide incentive for owners who are not in a position to make significant building modifications to transfer properties into the hands of buyers willing and able to invest fresh capital and take these properties to their highest and best use for future tenant needs.
Given the dueling pandemic and economic crises, major tax reform does not appear to be a current priority of the new Administration. Nevertheless, the need to pay for pandemic relief and new legislative initiatives could make Section 1031 a target for tax revenue seekers. Our efforts to educate our policy makers to the legitimate, economically important benefits of Section 1031 continue.
1031 trends we are anticipating:
Continued 1031 growth in industrial, self-storage, R&D, medical/office, and multi-family sectors.
Individual exchangers will continue to sell investment property and purchase Replacement Property in warmer climates or other locations with high vacation rental income.
Continued increase of Replacement Property purchases of qualifying vacation home rental properties.
An uptick in Build-to-Suit Exchanges where clients make improvements to their Replacement Properties.
Reverse Exchange momentum will continue to grow with a shortage of Replacement Property inventory and a competitive buyers market.
Retirement/Estate planning with Exchanged property will drive much investor 1031 transactional activity.
Especially while the interest rates on financing are low and favorable, more taxpayers maximizing their 1031 tax deferral potential to grow their portfolios by selling while prices stay high, preserving their equity by using all proceeds to exchange into the purchase of larger or multiple Replacement Properties.
With expected recovery and overall growth in investment and commercial real estate transactions, we are forecasting another strong year for 1031 Tax Deferred Exchange transactional activity.
2021 CAPITAL GAINS TAX BRACKETS
2017 tax reform indexed the Long-Term Capital Gain rate breakpoints (whether a 15% or 20% rate) to inflation. The rates didn't change for 2021, but the income brackets did adjust. The breakpoints for 2021 are as follows: married filing jointly 501,601+ dollars and single filers 445,851+ dollars. The capital gains brackets are based on “Taxable Income” whereas the Net Investment Income Tax thresholds are based on “Adjusted Gross Income”. For more information
1031 EXCHANGE CHECKLIST
A 1031 Exchange transaction requires planning, expertise and support. Here’s a checklist outlining key steps in your exchange.
Choose your 1031 Qualified Intermediary (QI)
Consult with your tax professionals
Include Cooperation Clause language in your purchase and sale agreement
QI prepares your exchange documents
Start searching for Replacement Property
Sign all documents QI prepares
Sell your Relinquished Property
Identify your Replacement Property
Enter into contract on Replacement Property
Contact QI once Replacement Property escrow is opened
Close on Replacement Property
QI transfers funds to complete your purchase
Your exchange is complete
DEFINITION OF REAL PROPERTY?
The IRS issued Final Regulations, TD 9935, effective Dec 2, 2020, defining real property for purposes of §1031. Read details here. Download PDF Exchange Topic here.
SEAMAN REALTY AND MANAGEMENT COMPANY RECEIVES BEST OF 2019 JACKSONVILLE AWARD!!!!
Recognized for their quality of services and general impact on the local community Seaman Realty and Management Company was honored and deeply touched to receive this wonderful award in the category of Commercial Real Estate Agency.
The Treasury Department Released its Long Awaited 2nd Installment of Proposed Regulations...
...in what is likely to be a series of Opportunity Zone Guidance aimed at clarifying the rules of Qualified Opportunity Zones (QOZ's) and Qualified Opportunity Funds (QOFs). #opportunityzones CREModels
Photo credit: Max Marbut
BAP Sign Design: David Storey, Graphics Garage
New Marketing Initiative - Downtown Property and Artists
Seaman Realty and Management Company's Building Art Program (BAP) is a great equalizer for artists, property owners, and real estate agents by showing that the property owner supports the artist community in giving artists free gallery space in buildings we are marketing for sale of for lease on the theory that 1. Art deserves to be seen. 2. Most artists are unable to afford gallery space; 3. By filling an otherwise empty building with art during the process of marketing the space for sale or for lease it could make a difference in the final success of selling or leasing the building. The artist vacates upon a deal being signed.
Thanks to Michael Langton, The Space Gallery operated for over two years in Downtown Jacksonville at no charge in 120 East Forsyth Street, a property that Seaman Realty and Management Company represented and finally sold, located immediately adjacent to The Florida Theatre and backing on to The Cowford Chophouse courtyard. Matthew S. Bennett and Laura Bennett, artist partners in The Space Gallery, transformed our beautiful building into something magical! The program has now successfully operated in several buildings downtown. Look for the iconic sign!
"Making a Difference"- MARGIE SEAMAN OF SEAMAN REALTY AND MANAGEMENT COMPANY INTERVIEWED ON BUZZ TV
Margie Seaman speaks about her dedication to her community, family, and company. Genuine!
2018 SALES TAX RATE CHANGE FOR COMMERCIAL LEASES
Effective January 1, 2018, Florida's state tax rate on commercial real property rentals is reduced. The state sales tax rate for renting, leasing, letting or granting license to use real property decreases from 6% to 5.8%. The local option discretionary sales surtax imposed by the county where the real property is located will continue to be added to the state rate.
HOW DID 1031 FARE IN TAX REFORM
It’s official. The tax reform bill was passed in Congress and will become law effective 2018 once signed by the President.
The very good news is that 1031 advocacy efforts were successful for real estate! There will be no changes in the tax code for like-kind exchanges of real estate.
However, starting Jan 1, 2018, all personal property assets (such as autos, trucks, heavy equipment, farm machinery, artwork, collectibles and intangibles like fast-food restaurant franchise licenses) will no longer qualify for Section 1031 tax-deferral treatment. If you could benefit from an exchange of a personal property asset, you can still qualify if 1) you enter into the exchange before year-end and 2) either the relinquished property is sold OR the replacement property is acquired by the taxpayer by 12/31/17.
From Claudia Kiernan, Atty. and 1031 Tax Expert
FOR REAL ESTATE INVESTORS who relish the 1031 tax exchange vehicle, NOW IS YOUR TIME TO EMPLOY THIS MARVELOUS TAX AVOIDANCE MECHANISM or forever hold your peace, as the program is, most likely, going to be DISCONTINUED... and soon.
1031 EXCHANGE, A CHERISHED REAL ESTATE TAX BREAK, FACES EXTINCTION
To finance a possible tax rate cut, some in Congress are eyeing the provision, which allows sellers to defer capital-gains taxes by reinvesting in other properties
A much-loved tax advantage in the commercial real-estate industry is on the chopping block even as chances dim for the passage of a broad federal tax overhaul this year.
Why? If a sweeping bill doesn’t get traction in Congress, there is still a decent chance a narrower tax rate cut will get passed, according to lobbyists and Capitol Hill officials working on tax legislation.
To finance such a rate cut, some in Congress have in their sights what’s known as the 1031 exchange provision, which enables sellers of real estate and other assets to defer capital-gains taxes by reinvesting the proceeds in “like-kind” properties....
Jan. 31, 2017
CLICK ON PDF TO READ FULL ARTICLE
Issues of NearShore Magazine
can be purchased via
NearShore Magazine - The Art Issue
Features the Space Gallery at 120 E. Forsyth & Building Art Program (BAP).
Nestled a few doors down from the electric Florida Theater in Downtown Jacksonville sits an unassuming space, literally and figuratively. If you weren't looking for it intently the matte grey facade might fade into the street noise of the Elbow District. Pausing a moment to peek into the windows however, it's impossible not to notice the draw and beauty of this raw yet vibrant art gallery. Rough plywood still covers patches in the floor of the brick walls, uncovered after 50 years of near neglect., look as if they could all but crumble at the touch. This hidden gem is none other than The Space Gallery, one of the newest additions to Jacksonville's urban core.
Margie Seaman, of Seaman Realty and Management Company, a powerhouse in commercial downtown real estate, currently manages the blank building at 120 E. Forsyth Street. When faced with the struggle of selling this somewhat forgotten locale Margie needed an outlet to showcase everything the building and the neighborhood had to offer. Thankfully she had experience. Enter the Building Art Program...
Jan. 25, 2017
WALL STREET IS HIRING IN FLORIDA
The nearshoring strategy is aligned with President Trump’s push to keep jobs in the U.S.
When Deutsche Bank sent senior Wall Street executive Leslie Slover to run its expanding outpost in Jacksonville, Fla., she wasn’t entirely ready for the lifestyle. Gone were the skyscrapers and subways. In their place was a corporate campus with a pond and vast parking lots, flanked by rows of new town houses, some inhabited by employees. The on-site culinary options? A cafeteria and some food trucks. Suddenly, Slover had to relearn to drive....
Jan. 4, 2017
SARASOTA AFFORDABLE HOUSING COMPANY CLOSES ON LA VILLA PROPERTY IN DOWNTOWN JAX
A Sarasota-based multifamily company has purchased three lots in the Downtown neighborhood of LaVilla, according to property records. Beneficial Communities through the Houston Street Manor LP bought three lots near Houston and Jefferson streets from the Downtown Station LLC. The development, Houston Street Manor, will be senior apartments consisting of five levels of residential over two levels of parking. The development will be 72 units....
Dec. 30, 2016
FORMER HISTORIC BROTHEL PROPERTY SOLD FOR DEVELOPMENT
The property at 615 Houston Street has just been sold at a real estate closing say sources close to the deal. One of the last remaining bordellos of the Ward Street (now Houston Street) Bordello district is slated for demolition.
The building was part of a three parcel sale, and the developer plans on building a multi story senior citizen housing complex on the combined property....
SEAMAN REALTY BUILDING ART PROGRAM
ART EXHIBIT AT 120 E. FORSYTH STREET
Seaman Realty in conjunction with property owners are supporting the Downtown Jacksonville artists by providing free
exhibition space for local artists to feature their work. 120 E. Forsyth St. was one of these locations. The artists beautifully transformed the historic building's raw open space into a stunning gallery. The original brick walls was the perfect backdrop to showcase the impressive collection of contemporary artwork.
Rain or shine, downtown Jacksonville holds it's Monthly First Wednesday Artwalk showcasing it's creative talent of both
visual and performing artists for more information on the Jacksonville artwalk visit www.jacksonvilleartwalk.com
SAN MARCO KIWANIS CLUB OF JAX
Margie of Seaman Realty and Management Company presented an impressive downtown development update to the San Marco Kiwanis Club on Oct. 31st. The Kiwanis Club mission is to have a positive impact on the lives and educational growth possibilities for children and young adults. Local businesses and dedicated volunteers work together generously donating their time or money to help bring many youth programs and educational scholarships to our community.
PLANS TO LIGHT UP JACKSONVILLE'S
SKYLINE RESURRECTED AND GAINING SUPPORT
A revitalized project that would light up Jacksonville’s Downtown is gaining some traction as the Jacksonville Jaguars and city officials contemplate the plan...
SEAMAN REALTY BUILDING ART PROGRAM
A new initiative of Seaman Realty and Management Company, reflecting private property owners' support of local artists and an effort to combine that commitment with an attempt to provide free exhibition space for local artists while improving the appearance of the empty interiors of buildings for sale or lease by featuring beautiful artwork.
The first building to step up to the plate is Mike Langton's New York Steam Laundry building, located at 120 E. Forsyth St. next to the beautiful Florida Theater. Artists will take over the building October 1, 2016. Please stay tuned for more!"
JACKSONVILLE PORCH FEST 2015
Seaman Realty & Management Company is proud to be one of the many sponsors of the Jacksonville Porch Fest 2015
Our collective sponsorship dollars made it possible for all of the muscians performing to be paid.
Photo credit: Jacksonville Business Journal. © Bloomberg Finance LP
HOW GOOGLE FIBER COULD BE A GAME CHANGER FOR JACKSONVILLE
Heading up the exploration for Google Fiber in Jacksonville is Sunny Gettinger, who has worked remotely for Google for eight years. Gettinger said Jacksonville has a reputation for always looking to grow – and this is obviously an opportunity to leverage. "Leaders in....
INNOVATION DISTRICT IN THE WORKS
FOR DOWNTOWN JACKSONVILLE
The people behind Jacksonville’s first Innovation Connection Conference are working to create an innovation district Downtown. Ed Baldwin, founder of the Jacksonville tech startup Profile Gorilla, announced at the convention today plans for a clustered grid within the city’s urban core that will promote existing sites and resources that support startup culture and activity...
Photo credit: Jacksonville Business Journal
5 REASONS TO LOVE JACKSONVILLE'S 5 POINTS
Photo credit: ©Visit Jacksonville
Following the great Jacksonville moss fire that destroyed a majority of downtown in 1901, residents flocked a few miles southwest to the quiet neighborhood of Riverside/Avondale to rebuild. By the 1930s, a small pocket of the Riverside region had transformed into the first bustling shopping area outside of downtown, which became known as 5 Points...
A GUIDE TO JACKSONVILLE'S NEIGHBORHOODS
Photo credit: ©Visit Jacksonville
Jacksonville, the largest city by landmass in the nation and Northeast Florida’s historic urban economic engine, is a naturalwater wonderland that sports more shoreline than any other city in the U.S., with 22 miles of beaches, 40 miles of the Intracoastal Waterway and the longest stretch of the St. Johns River in the state of Florida....
ROTARY NEWS NETWORK TV PROGRAM
Comcast Ch.99 | First Monday | 8:00pm with MARGIE SEAMAN
Seaman is host and program director for The Rotary News Network, a television program aired 20x monthly by The Rotary Club of Jacksonville, of which she is a member. Feel free to watch different programs she hosted by logging on to jaxrotary.org Here, below, is her show from Monday, June 1, in which she interviewed standing president, Pierre Allaire, Dir. of Development for Baptist Hospitals.
ROTARY FROM A
Guest: Pierre Allair -
Pres., Rotary Club of Jax, FL
Redevelopment plans for the historic Laura Street Trio have recently been announced. The project will encompass a multi-building complex featuring a Courtyard Marriott, two restaurants, a commercial bank, a rooftop bar and a parking garage, projected cost of $40 million.
Construction completed to renovate the historic Old Federal Courthouse to house the State Attorney’s Office at the cost of about $26 Million.
The Jesse Ball DuPont Foundation completed construction on the Haydon Burns Library. Occupancy began May 2015 with a fully leased 80,000 square feet of rental space for an array of eminent nonprofit organizations.
The Jaguars and the City completed an approximately $63 million in major enhancements to EverBank Field, including two new end-zone video scoreboards and a major renovation of the north end zone for a world- class entertainment and viewing area for fans.
EverBank leased an additional 62,7968 square feet (two floors) in EverBank Center, 301 W. Bay Street.
Citizens Property Insurance Corporation leased close to 100,000 SF and moved approximately 1,000 employees to the EverBank building to replace space recently vacated by EverBank.
Downtown Jacksonville has a new enhancement program in place, known as the Retail Enhancement Program, and I am happy to say that I played a roll in its creation. This program was recently voted favorably by both the Downtown Investment Authority and the City Council, and is now in effect, with many applicants already receiving benefits. How does it work, and why is it necessary?
Until Downtown Jax hits a "critical mass" or retail storefronts, we will continue to face a reputation that services are lacking (which they are), The key is in housing development, as retail follows rooftops, as the saying goes. Once housing is in place, with residents needing services, the retailers naturally come. At present, there are entrepreneurs who nonetheless wish to take space at their own risk. These are not triple net credit tenants, national in nature, but more, "mom and pop" operators who believe in their vision and in our great historic city. They are unable to pay market rents, and this is partially due to the excessive renovation costs most property owners face, in order to get their storefronts in shape for occupancy. The Retail Enhancement Program recognizes that the gap needs a helping hand, until the market correction can take place. The program allows a landlord to access up to $50,000 towards the renovation of their retail storefront, to offset their outlays and enable the tenant to move in at a rent that they can afford. Presumably, over time, as many retail tenants take advantage of this novel program, it will no longer be necessary, and retailers will see the cluster of new retailers here and sign on to join them.
KEEPING IT CURRENT
In 2013 a new Federal GAAP accounting regulation may go into effect which will directly change the way the IRS treats long term commercial real estate leases. From that point onwards all leases in effect must be recorded not as an expense but as a liability on a balance sheet. The thrust of this news is that all leases will obligate you to pay rent in a very similar way to paying debt service, but instead of paying to a bank; you are seen -- and treated by the IRS--as borrowing from your landlord.
This will be VERY costly to all businesses with existing leases. All commercial leases in effect then, no matter when they began, would need to immediately begin recording the value of their lease on their balance sheet as a liability. If this passes, we can expect to see the start of a bunch of short term leases with loads of renewal options.
One would think this also means most companies would seek to only buy from now on--and not lease --OR, if they lease, take much shorter leases. You should speak with your accountant ASAP about this BRAND NEW NEWS.
DOES THIS MEAN YOU SHOULD NOT RENEW YOUR CURRENT LEASE, OR THAT YOU SHOULD STOP LOOKING TO LEASE PROPERTY? NO! BUYING AND OWNING real estate is not always a good thing for a business. It is not always the right time for YOU to own real estate, and it may surprise you to know, that the time may have NOTHING to do with the economy at all. It is not really about finding a "great deal" in a location, location, location anymore…it is more TIMING, TIMING, TIMING and where YOU fit into that picture.
Maybe RIGHT NOW, you want to grow your business, and need the cash. You would not be buying. Maybe RIGHT NOW, your kids are heading to college next year, or graduate school, and you need the cash. You would not be buying. Maybe RIGHT NOW, you are planning to travel, retire, or get a divorce. For any number of reasons, this may NOT be the time RIGHT NOW, for YOU to OWN your real estate.
Then we need to speak. I can find you buyers who will pay you market prices for the commercial property you own right now, and enable you to find competitive rentals, freeing up your cash. Until these Federal accounting rulings are determined, you cannot sit idly waiting. You need to make informed decisions, but the decision is different for each of us.
Check out the slew of press for more information on the IlluminateJAX program:
FIRST COAST NEWS (ABC & NBC): http://www.firstcoastnews.com/news/local/article/329106/3/Illuminate-Jax-wants-to-add-lights-to-downtown-buildings
JACKSONVILLE BUSINESS JOURNAL
On September 20, 2013, SEAMAN led a team who unveiled a new program to Jacksonville called IlluminteJax! to a standing room only crowd of 100 downtown stakeholders, which was held at The University Club, for the JaxChamber's Downtown Council Breakfast series. The goals of artful illumination are many, but include:
Branding opportunities for corporations;
A means of marketing buildings with excessive office vacancy rates;
With new technology available, our city can be placed on the global stage, with the flick of a button;
Enhances civic pride
Enables broader messages to be communicated through lighting, i.e. game day lighting in teal (with underwriting support from the Jaguar Organization).
We have been astonished by the positive and exuberant reaction we have had to IlluminateJax, and ENCOURAGE YOUR BUILDING OWNERSHIP TO enable our team to come in and present our vision to you.
Our team consists of David Lafitte, an architect and lighting consultant, formerly with RS & H, who is directly responsible for the blue neon lighting on our bridges at present; Jeremy Marquis, an internet guru and landscape architect from Marquis Hallback, who recently was awarded the contract for parking lot and building exterior renovations by the JaxChamber, as part of their "Downtown's New Front Door" project (now completed and beautiful!), Mark Kingsnorth, a lighting rep from Sesco Lighting, who provides the light fixtures and does the actual installation, and myself, a downtown commercial realtor and champion of our yearning revitalization.
We have been meeting with tower owners and/or major office tenants, and will soon have some very exciting announcements to make in this respect.
Our IlluminateJax team hopes to come in and present our beautiful and visual Power Point presentation of the IlluminateJax concept to the YOUR organization for consideration as an upgrade to your
OFFICE TOWER. View our IlluminateJAX pdf presentation.