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New BNA Analysis Guides Tax Pros Through Private REIT Opportunities

NEWS RELEASE

Contacts:
Mark Carrington
(703) 341.5880
mcarrington@bna.com

Arlington, Va. (June 22, 2009) – 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.

“Unique real estate tax planning opportunities provided by REITs call for expert guidance, says BNA Karen Fickes. “This is a transaction-oriented guide for the structuring of joint venture investments in U.S. real property with private REITs, as an acquiror or as a partner, including tax protection agreements, allocation of nonrecourse liabilities, pre-closing agreements, break-up fee provisions, and exit scenarios.”

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.

About BNA Tax & Accounting
BNA Tax & Accounting is the foremost source of news, analysis, and practice tools for tax attorneys, estate planners, accountants, and corporate tax and financial accounting professionals. For more than 50 years, BNA Tax & Accounting has offered practitioners expert insights and guidance on every significant issue in tax planning and financial accounting. Written by practitioners for practitioners, BNA’s award-winning Portfolios offer topic-driven, in-depth guidance on transactions designed to help tax professionals achieve new levels of excellence and client service. Visit BNA Tax & Accounting online at www.bnatax.com.

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BNA is the leading independent publisher of print and electronic news and information for professionals in business and government. BNA produces more than 300 news services, including the highly respected Daily Labor Report, U.S. Law Week,and Daily Report for Executives. Visit BNA online at www.bna.com