Post Brothers’ Post

As Colorado continues to struggle with a housing shortage and affordability issues, Davis Partnership is proud to be leading the effort to convert office buildings in Denver into much-needed residences. Current efforts include the adaptive reuse of 475 17th Street (with Revesco Properties) into affordable and market-rate units and a conversion of a four-story property in the Tech Center (Shea Properties) into an option for lower-income renters. Lawmakers in Colorado are working on an initiative that would provide millions in tax incentives in hopes jumpstarting a conversion process that developers say is plagued with high costs and delays.   https://lnkd.in/gQgP8iVf

Arlington leaders in November approved policy changes aimed at streamlining the repurposing of commercial buildings into residential use. State leaders could aid the process by making appropriate tweaks to Virginia’s building codes, Coffey said.

THANK YOU to Pittsburgh City Council for passing this important program to help large, costly Downtown redevelopment projects make the math work! Now, BULLET POINT SUMMARY: - Must be located in Downtown Pittsburgh (aka Central Business District) - For new construction or adaptive reuse, commercial or residential projects - Projects can qualify under new "Standard Tax Exemption" or "Enhanced Tax Exemption" - Standard: 50% exemption per year for up to 6 years; applicable only to that portion of the assessed valuation attributable to the construction and/or improvement that exceeds 100% percent of the assessed value. - Enhanced: Up to 100% exemption per year for up to 10 years, under the following tiers and conditions (Residential affordability or creation of Full-time equivalent jobs): 1) 10-20% of residential units at or below 50% AMI = 100% exemption, 2) 10% of residential units at or below 60% AMI = 95% exemption, 3) 10% of residential units at or below 70% AMI = 90% exemption, 4) 10% of residential units at or below 80% AMI = 80% exemption, 5) create 30-39 FTEs = 90% exemption, 6) create 40-49 FTEs = 95% exemption, 7) create 50+ FTEs = 100% exemption. Mohammed Burny Lauren Connelly Council members: Bobby Wilson Robert Daniel Lavelle Erika Staaf Strassburger Bob Charland Khari Mosley Deborah Gross Anthony Coghill Barb Warwick & Theresa Kail Smith https://lnkd.in/gDzdRus4

The city of Chicago, renowned for its vibrant Commercial Real Estate (CRE) landscape, is presently encountering unique developmental hurdles. Increasing construction costs, complex zoning regulations, and economic uncertainties have led many industry players to reconsider their investment strategies. These challenges are amplified due to the city's specific regulatory environment and market conditions, causing some stakeholders to contemplate exiting the market. Regardless, these obstacles also present an opportunity for resilience and innovation within Chicago's CRE sector. The city's dynamic market still holds immense potential for those willing to adapt and explore unconventional strategies. By staying updated with industry trends, leveraging technology, and embracing the unique aspects of the Chicago market, businesses can navigate these challenges and find success in the Windy City's competitive real estate scene. #ChicagoCRE #RealEstateChallenges #InnovationInRealEstate

NYC Moves to offer more Tax advantages for Office to Residential Conversions, but it comes with a lot of Catches & Hooks! #commercialrealestate #commercialbuildings ##officebuildings #commercialoffice #Conversions #adaptivereuse #NYC #housing #housingcrisis

Thought of the Week Recent reporting indicates that Center City office buildings have lost over $1 Billion in assessed value. That translates into about $14M in lost real estate taxes and about $12M in lost Use and Occupancy taxes for Philadelphia. That's a lot of lost revenue for a city that is already struggling with a nine-figure loss in wage taxes from remote work and corporate relocations outside the city. What can we do? I'll tell you one thing you DON'T do --- discourage any kind of real estate investment in the city. Cities have the luxury of thinking in 100-year time-frames when it comes to income generation. We aren't going away in five or 10 years. That means you can give developers full 10-year tax abatements knowing it will provide a significant revenue stream in perpetuity after the abatement period ends. A vacant lot or dilapidated building that has been generating $14000/year in taxes can become a new condominium project that, after 10 years, will generate $140,000/yr or more in perpetuity. In the business world, we call that a great return to the investor. However, in their infinite wisdom, some City Council members decided a few years ago that giving real estate developers tax incentives was a bad idea despite the fact that the incentives did exactly what they were intended to do-- spur record development in our city. Certain members were so focused on the benefit the "rich people" were getting from the abatement that they ignored the significantly greater long-term benefits the city was going to receive. In addition to creating large future revenue streams for the city, development of multi-family projects organically helps create more affordable housing. When shiny, new apartment buildings open up, older building stock needs to drop their rents to compete, thereby making them more affordable to working class families. If and when City Council decides it's more productive to focus on the long-term financial health of the city and increasing our affordable housing stock than it is to worry about the small incentives they had to provide to help solve these problems, we may be able to make up for the lost revenues from declining office buildings. Reinstate the full tax abatements for multi-family and residential projects. It's time to do the smart thing. It's ok to have win-win transactions in business. #taxabatements #philadelpia #taxes

New in Contrarian Boston: -A sign of things to come? Looming tax crisis in Boston a warning for cities and towns across the region -Not so fast: Wu’s controversial plan to boost tax rates on reeling office buildings not likely to get a quick green light -Corporate deadbeat: Steward hits curious new low as reeling hospital chain is slammed with yet another lawsuit for unpaid bills -Just not good enough: New owner of $18 million Nantucket seaside mansion now wants to tear it down and start over #mapoli #bospoli #massachusetts #boston #steward #hospitals #taxes #Nantucket #mansions #commercialrealestate #remotework #construction #development #contractors #Construction #healthcare #teardowns #suburbs #propertytaxes Charlie Greco Charles Chieppo Mark Pickering Jim Stergios

SF's latest Measure C could just make the cut. Mayor Breed's policy is eyeing the transformation of vacant office buildings into residential units. Promising, isn't it? Well, hold on—currently securing just over 53% of the vote, it's not exactly a slam dunk. SF's office spaces are eerily empty—a 35.9% vacancy rate to be exact. The proposed solution? Eliminate transfer taxes for the initial sale after conversion. Seems straightforward, right? Yet, there's a snag: landlords are hesitant to join the movement. Steep renovation costs and lengthy waits for tax incentives pose significant hurdles. Meanwhile, the lending world is divided. While some lenders are on board, others remain skeptical. Measure C is drawing parallels with NYC's approach in the 90s. It's a scenario where developers potentially reap substantial benefits amidst crisis, as cities clear the path with scant consideration of their own potential gains from an economic upswing. We need to look beyond mere tax incentives and truly address what it means to rejuvenate city centers into vibrant living spaces, not mere tourist attractions. Measure C might be a step forward, but it's not the cure-all. For a genuine transformation, we need comprehensive strategies that address more than just fiscal incentives. https://lnkd.in/dJCRnb7i #MeasureC #SanFranciscoHousing #OfficeToResidential #UrbanRevival #HousingCrisis #RealEstateReform #SFRealEstate #DowntownRevitalization #UrbanDevelopment #CommunityTransformation

The California Building Industry Association is driving positive change for access to housing across the state! 🏡 New laws set to take effect in 2025 will reduce delays, cut costs, and help ease California's housing crisis by making home construction more efficient and cost-effective. These changes are a step forward in addressing the state's ongoing housing challenges. https://lnkd.in/g88_eRqk

"The office-to-residential product is uniquely difficult - highlighting a stark 30% cost hike over new builds" In response, Denver's new adaptive reuse policy introduces a new approach with House Bill 24-1125, diverging from conventional urban strategies and igniting both curiosity and debate. The pioneering "5 for 5" incentive aims to rejuvenate vacant buildings, yet omits affordable housing mandates. Developers can gain up to $5 million over five years, encouraging innovative urban conversions. Credits from the bill are stackable, enabling developers to combine multiple financial aids. Plus a hidden perk - shifts in tax classification could quietly encourage more developers to dive in. Yet, the $5 million program cap raises eyebrows – is this enough to tackle extensive conversion costs? Skepticism remains: adaptive reuse projects are notoriously pricier, challenging budget expectations. Critics argue the absence of an affordability clause could sidestep crucial housing needs. Will Denver's bold strategy pay off as anticipated? More crucially, who stands to gain? Could it be developers, maneuvering through complex terrain with little regard for affordability? Will this policy carve significant new paths in housing, or just scratch the surface? #DenverDevelopment #HouseBill241125 #AdaptiveReuse #UrbanStrategy #RealEstateInnovation #CityRevitalization #EconomicDevelopment #UrbanHousing #PolicyChange #DenverRealEstate