Tax plan crowns a big winner: Trump’s industry

As Tax Reform moves forward it is clear that Commercial Real Estate will be an even more attractive asset class. Some things that look baked in include the continuation of 1031 tax free exchanges, some sort of reduced tax rate on "pass through" entity income (which comprise all of our deals), and likely accelerated depreciation on retail investments from 39 years to maybe 25 years. All of these changes will enhance the returns of future deals - still unsure about how many of these will be retroactive or not. From the Article: The real estate industry ended up with an even more generous depreciation timetable, allowing owners to shelter more income. And in a break from previous practice, r

Mom-and-pop stores could be prime for a renaissance

Great article on the impact of local small businesses on the retail landscape. Much of this is focused on higher-rent shopping districts, but the principal for our properties is the same: well run, locally owned and operated stores have some real staying power in the market. They are turning out to be "Amazon proof" ... almost all of our retail tenants are service based businesses and fall into this category as well. From the article: For years, pundits have predicted the continued demise of independent retailers. The arrival of shopping malls and power centers drew foot traffic away from the neighborhood Mom-and-Pop stores. Next came the axe wielded by e-commerce giants, notably Amazon.

Retail Cap Rates Trend Lower

Some surprising data released in a report by REIS - an industry leader in providing comprehensive and unbiased data that is used by commercial real estate professionals. Despite the onslaught of negative publicity for the retail sector, cap rates continued to decline in the most recent quarter. I believe there is a lot of confusion about what, exactly, people are speaking of when they discuss "retail". Are we speaking of single-tenant properties occupied by stores that actually sell things - like a Best Buy or Dicks Sporting Goods? Are we speaking of malls with lots of clothing and shoe stores? Are we speaking of grocery anchored centers? Are we speaking of neighborhood retail strip cen

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    Prudent Growth Partners, LLC  (2017)    1829 E. Franklin St, Suite 800-F, Chapel Hill, NC 27514  (919) 590-4119