ARLINGTON, Va. – As U.S. real estate becomes an increasingly attractive component of a well-diversified investment portfolio, private real estate investment trusts (REITs) with their unique tax planning opportunities are becoming an increasingly popular option for private investors looking to structure their investments efficiently. BNA's latest analysis, Structuring Real Estate Joint Ventures with Private REITs (Portfolio 743 in the Real Estate Portfolios Library) by Scott L. Semer and Michele J. Alexander, serves as a guidebook for tax practitioners advising client investors in this area.
Authors Scott L. Semer and Michele Alexander address how the goals of investors are achieved by entering into joint ventures using non-publicly traded or "private" REITs. They include a discussion of the unique issues that private REITs confront in complying with the Code qualification requirements, including issues relating to forming the REIT and ensuring that the REIT earns qualifying income, while obtaining an ownership structure that serves participant business objectives.
The Portfolio also addresses issues unique to UPREITs and DownREITs - issues that arise in taking a public REIT or UPREIT private, and issues presented in selling or otherwise exiting from a private REIT. In addition, Structuring Real Estate Joint Ventures with Private REITs discusses the particular issues that arise for foreign investors, including withholding, the branch profits tax, issues under U.S. tax treaties, and issues for foreign governmental investors under Section 892 of the Code.
Both Scott L. Semer and Michele J. Alexander practice law in New York City. Mr. Semer is an attorney and partner with Davies Ward Phillips & Vineberg LLP. Ms. Alexander is an attorney with Wachtell, Lipton, Rosen & Katz and a member of the New York State Bar Association.