News:
Spotlight Content
Posted: December 31, 2019
2019 Year in Review: Jason Hoffman, Janover LLC
Name: Jason Hoffman
Company: Janover LLC
What was your greatest professional accomplishment in 2019?
Recognition as an expert in real estate to the point where I become the chairman of the NYSSCPAS Real Estate Committee. I was also able to develop off my real estate work and start a cannabis group which started with the focus toward real estate needs in the cannabis industry and lead to a whole new service line in the firm.
What was your most notable project, deal, or transaction in 2019?
We have a cannabis company as a client that needed capital and funding. Since my background and initial instinct is always real estate focused, we were able to help them with a multi-million dollar sales leaseback transaction. That transaction enabled them to secure the funds they needed to build multiple greenhouses with equipment and operating capital for over a year. Another notable transaction was our assistance for a client selling half of their company to a hedge fund. We were able to increase the multiple on EBITDA while at the same time lower working capital calculations which netted the client over $4 million of additional cash on the sale!
What are your predictions for commercial real estate in 2020?
I break commercial real estate down into three major categories, retail, office space and residential. For retail space it all depends on the location. Class A locations will still find they have some price elasticity and will not increase or decrease over the next year. Class B and C locations will continue to be hit hard similar to the past few years. Office space looks to be getting better. There are always companies moving out which for 2020 looks to be the financial service firms in NYC but technology companies are quickly picking up space for a net gain to the square feet rented. The recent Facebook and Google office space rentals is good news at the end of 2019 and shows that 2020 could be another good year. The residential sector is getting hit hard by many outside forces. EB-5 changes, rent stabilization law changes and lack of wage increase with inflation are all going to hurt this market. Should interest rates remain low it might minimize the drop in prices but I expect another 8-15% drop in 2020.
Tags:
Spotlight Content
MORE FROM Spotlight Content
Over half of Long Island towns vote to exceed the tax cap - Here’s how owners can respond - by Brad and Sean Cronin
When New York permanently adopted the 2% property tax cap more than a decade ago, many owners hoped it would finally end the relentless climb in tax bills. But in the last couple of years, that “cap” has started to look more like a speed bump. Property owners are seeing taxes increase even when an
.png)
.jpg)
Columns and Thought Leadership
Oldies but goodies: The value of long-term ownership in rent-stabilized assets - by Shallini Mehra
Active investors seeking rent-stabilized properties often gravitate toward buildings that have been held under long-term ownership — and for good reasons. These properties tend to be well-maintained, both physically and operationally, offering a level of stability
How much power does the NYC mayor really have over real estate policy? - by Ron Cohen
The mayor of New York City holds significant influence over real estate policy — but not absolute legislative power. Here’s how it breaks down:
Formal Legislative Role
• Limited direct lawmaking power: The NYC Council is the primary
The strategy of co-op busting in commercial real estate - by Robert Khodadadian
In New York City’s competitive real estate market, particularly in prime neighborhoods like Midtown Manhattan, investors are constantly seeking new ways to unlock property value. One such strategy — often overlooked but
Properly serving a lien law Section 59 Demand - by Bret McCabe
Many attorneys operating within the construction space are familiar with the provisions of New York Lien Law, which allow for the discharge of a Mechanic’s Lien in the event the lienor does not commence an action to enforce following the service of a “Section 59 Demand”.
.gif)