Tag: #propertymanagement

1031 Exchanges Help Defer Certain Tax Liabilities

Brokerage, property management, development management, consulting

For all of your commercial real estate questions, ask a professional at Kelley Commercial Partners

A 1031 exchange, also known as a tax-deferred exchange, gets its name from the Internal Revenue Code 1031. Essentially, this rule in the tax code allows investors to defer certain tax liabilities they would otherwise incur after making a profit from a real estate investment. This can be an incredibly effective tool for investors who find themselves in a situation in which they would like to sell a real estate holding, but do not want to incur the tax burdens such a transaction would create.

In order to take advantage of the 1031 exchange rule, you must replace the property you are selling (the relinquished property) by purchasing another property (the replacement property) with one of equal or greater value and similar in kind and use. For example, if you are relinquishing a rental property for $100,000, you must replace it with another rental property with one valued at $100,000 or more. (You may also have the option to buy several rental properties, so long as the sum total of their value is $100,000 or more). So, unfortunately, you cannot relinquish a rental property and replace it with a vacation home because those two properties would not be alike in kind and use.

In addition to these restrictions, there is a set time frame in which all of these transactions must occur. Once the relinquished property has closed, investors have 45 days to identify the replacement property and 180 days to close that transaction.

Finding buyers for the properties you wish to relinquish, while at the same time attempting to identify equitable exchange properties can be challenging, especially considering the time restrictions. Proper attention must be paid to the details of how 1031 exchanges work and how using them might affect your long-term plans. This is why it is so important to find an experienced CRE professional you can trust to help you with the due diligence commercial real estate transactions require.

If you have any questions regarding a tax-deferred exchange or any other commercial real estate issue, Kelley Commercial Partners brokers and associates are here to provide the answers and support you need to make successful decisions.

Tenant Estoppel Certificates

Are you a tenant? A landlord thinking about selling? Or an investor looking to buy a leased property? If you have answered “yes” to any of these questions, it is important that you understand what a tenant estoppel certificate is and the benefits and protections it offers.

What is a tenant estoppel certificate?

A tenant estoppel certificate is a legally binding document signed by a tenant verifying the current status and terms of a lease and specifying any modifications to the original agreement, defaults by the landlord, or other issues relating to the lease. Typically, an estoppel certificate is requested by the landlord as part of the due diligence process before closing on the sale of a property. This statement of facts regarding the lease and the premises estops either party from making a claim that contradicts those facts post transaction.

Tenant Estoppel Certificates Include

If you lease, own, or want to purchase a tenant-occupied property, it’s important to understand how a Tenant Estoppel Certificate can protect you.

Most commercial real estate lease agreements include a provision requiring a tenant to complete an estoppel certificate within a specified amount of time after receiving the Landlord’s request. However, only a landlord wishing to sell or refinance the property would request the estoppel. If a lease does not have a provision requiring a tenant to complete an estoppel certificate, it is in the best interest of the tenant to carefully review and complete the estoppel certificate to verify all pertinent lease information.

Why sign a tenant estoppel certificate?

From the tenant’s perspective, an estoppel certificate informs and certifies to the purchaser of the property (i.e., the new landlord under the lease) and, in the event of financing, the lender of any existing issues they will need to address after closing. For lenders and purchasers, the estoppel certificate verifies information presented by the landlord regarding the tenant, the premises, and certain material terms of the lease, which helps prevent any costly surprises after closing.

As a full-service commercial real estate firm, Kelley Commercial Partners provides landlord and tenant representation. And no matter which side we represent, we are committed to successfully guiding you through the process from the beginning through closing. For all your commercial real estate needs, let us be your partner to success.

Stretch Zone Opens in West Cantrell Plaza

Stretch Zone Staff

Stretch. Work. Play. Repeat. That is the mantra at Stretch Zone, a practitioner-assisted stretching facility that recently opened its first Arkansas location in West Cantrell Plaza at 14300 Cantrell Rd. in Little Rock.

Blake Mack, the general manger of the new West Little Rock location explains practitioner-assisted stretching as “a life-changing stretch experience that can provide clients with immediate relief from muscle pain and tension, improve pain-free range of motion, and enhance physical and athletic skills.” And the best part is, you see results from day one. Mack described his session with a client recently saying, “I had to remove her socks when we first began because she could not bend over to do that herself, but by the time we were done, she was putting on her own socks!” That’s a fairly impressive accomplishment after a single session.

Stretch Zone Patented Strapping System

Stretch Zone uses a patented strapping system and proprietary tables that position, stabilize, and isolate muscles.

Stretch Zone uses a patented strapping system and proprietary tables that position, stabilize, and isolate muscles, allowing practitioners to provide a unique stretching experience that simply cannot be accomplished at home. This unique approach is designed to help just about anyone, from professional athletes to those recovering from surgery, and even a completely unconditioned person with very limited mobility.

All Stretch Zone practitioners receive hands-on training and are certified by the National Board of Therapeutic Massage and Bodywork, which means you are always in good hands. They work with professional sports teams in the NBA and the NFL. Stretch Zone services are also included in some of the best spas around the world, from Miami, to New York City, to Italy. And if you’re looking to improve your golf swing, Stretch Zone has you covered. They work closely with Palm Beach Gardens, the PGA National Resort and Spa!

Stretch Zone’s operating hours are flexible enough to work just about anyone’s schedule. They are open from 7 a.m. to 7 p.m. Monday through Friday and 7 a.m. to 5 p.m. Saturday and Sunday. You can try your first stretch session for free. To book an appointment, call 501.812.3931 or visit their website.

Brandon Sheard and Kindley Wasson of Kelley Commercial Partners represented Stretch Zone, and Eric Varner of Kelley Commercial Partners represented the landlord. Welcome to West Cantrell Plaza, Stretch Zone, and welcome to Arkansas!

Abby Turner Promoted to Assistant Property Manager

Capitol Center Executive Suites

Last May, Abby Turner interviewed with Kelley Commercial Partners for the position of tenant relations manager, and it didn’t take long for us to figure out that Abby would be a great addition to our team and a perfect fit for the job. Immediately following her graduation from Ouachita Baptist University, the Arkadelphia-native packed up and moved to the big city to start her new job in Arkansas’s tallest building. She would assist tenants of the three floors in Simmons Tower dedicated to executive suites: Level Two Executive Suites, 15th Floor Executive Suites, and the new Capital Center 12th Floor Executive Suites.

When Abby started, we had nearly completed the conversion of 19,100 square feet of office space on the 12th floor to 50 executive suites. One month later, with Abby’s help, we began leasing the Capitol Center 12th Floor Executive Suites, which is now 80 percent occupied.

As the tenant relations manager, Abby welcomed new tenants to executive suites on floors 2, 12, and 15 and made sure they had everything they needed to get right to work, but she didn’t stop there. Abby also helped coordinate the annual Christmas Tree Lighting celebration and established the very popular “Food Truck Tuesday,” which takes place every other Tuesday. She even brought in a trainer and a yoga instructor to teach classes in the gym on the second floor. And on top of all of that, she still finds time to manage Simmons Tower’s social media accounts. (Follow them on Facebook and Instagram.)

In less than a year, Abby was promoted to assistant property manager, and she has just earned her real estate license. She looks forward to planning more events for the Tower and reestablishing a sense of community for the building. She says meeting new tenants is her favorite part of the job, plus she says she really likes her KCP teammates. Really.

Abby, we are so pleased to have you on our team and congratulate you on your achievements so far. We really like having you on our team. Really.

 

Ageless Health & Fitness Relocates to Village@PV

Edward Drangle andn Delena Morrison

Ageless Health & Fitness, the newest business to move into the Village@PV (formerly, Village at Pleasant Valley) is a gym, but it’s not just any ordinary gym. Far from it. Delena Morrison, co-owner with her husband, Edward Drangle, calls it an “upscale boutique fitness center,” which is without a doubt a far better description.

So, what sets Ageless Fitness apart from your average gym? Well, first and foremost it’s owned and operated by a physical therapist with over 35 years of experience with functional fitness. Each new member receives a full assessment by a physical therapist who then uses that information to create a personalized fitness program that is based on each individual’s goals and needs, as well as their limitations. “We are the only gym to combine physical therapy with fitness. No one else does that. That’s what sets us apart” Morrison says.

Ageless Fitness focuses on functional fitness – a combination of strength training, posture, flexibility, and coordination. Trainers guide members through techniques and movements that are designed to address all these areas and work several parts of the body all at once. Special attention is paid to developing core strength, one of the most important aspects of keeping the body fit and functional at any age.

n addition to their unique fitness program, Ageless Fitness offers massage therapy, specialized classes including Pilates, group training, personal training, cardio, strength and flexibility programs, as well as nutritional counseling. They also sell a wide variety of wellness products including stretch bands, heel lifts, and CBD products.

Morrison describes their new space as more open and brighter than their previous space. “The signaled intersection at the entrance to the shopping center has also made a lot of difference,” she said. “It provides much easier access.”

Ageless Health & Fitness Center is located at 10700 N. Rodney Parham Rd., Suite C in Little Rock. They are open Monday-Thursday from 6 a.m. to 8 p.m., Friday from 6 a.m. to 6 p.m., and Saturday from 8 a.m. to 2 p.m. For more information, call 501-225-9996 or email info@agelesshealthandfitness.com.

For leasing information at the Village@PV, contact Brooke Miller or Drew Laning at 501.375.3200.