Real Estate Syndication – Entity Structuring, Legal Issues, & Tax Strategies

Are you on the brink of making a move on a corporate real estate venture? If so, it’s highly likely that you’ve encountered a myriad of questions and your research has quickly tripled or quadrupled in size. We’ve prepared some information that should help.

Contacting a Corporate Real Estate Attorney

One of the first issues you may face is deciding when to contact a corporate real estate attorney. Trey Chancellor of the Caiaccio Law Firm suggests to “bring us in when you’re comfortable you may have a deal so you can have us draft an early access agreement”. Named partner Kevin Caiaccio cautions about dead deal costs, “you don’t want to get into a deal, run up a legal bill and then it doesn’t pencil out the way you expect it and have to terminate.” 

There’s no question about it, legal issues related to acquiring and disposing of properties, entity structuring, and tax strategies tied to real estate syndication can be quite complex. 

Entity Structuring

Although there are some common characteristics such as dealing with LLCs; when it comes to entity structures “it’s certainly not one size fits all” explains Mr. Caiaccio. “Every structure has some nuances and unique qualities.” As a limited partner in a deal, Mr. Chancellor advises following the simple but extremely important step of “knowing who the syndicator or general partner (GP) is.”

Avoiding Legal Issues

From a legal expert’s perspective, “we approach when we are buying as if we could sell the property,” says Trey Chancellor. With this strategy in mind, plan ahead to mitigate any legal issues that may arise when it comes time to sell. Verify that titles, zoning, surveys, etc. are all clearly defined, accurate, and up to date. 

Planning Tax Strategies

Mr. Caiaccio and Mr. Chancellor both agree “there are a lot of attorneys out there who draft these operating agreements who do not fully understand the tax allocations.” They both advocate having a CPA in the “org chart from the outset.” Have your CPA make suggestions on how to word certain allocations as opposed to doing so when the first tax season rolls around after the deal is complete.  

For more information on this topic, check out the latest podcast from The Real Estate CPA with guests Kevin Caiaccio and Trey Chancellor. In the market for a Real Estate Attorney? Visit Caiaccio Law Firm at http://clf-attorneys.com/.

Grand Opening of the Drayton Hotel

The Maypole Group has breathed new life into a beautiful piece of history nestled in downtown Savannah, Georgia. The Drayton Hotel, one of the oldest buildings in Savannah, has been stunningly reborn thanks to the efforts of Raghav Sapra, founder of Maypole Group. His firm, which will also operate this lovely boutique hotel, spared no expense creating a luxury lodging that captures the soul of its historic community.

On the outside, this new 50 room hotel stays true to its 19th-century origins with traditional Victorian architecture. The restoration process carefully preserved the exterior design responsible for the rich nostalgia that is represented throughout the first city of Georgia. On the inside, Mr. Sapra and the Maypole Group added luxury features while still preserving the iconic southern charm. The result is a contemporary aesthetic touched with classic Savannah style.

Don’t let the 130-year-old architecture fool you, this hotel features all the modern amenities guests want. In addition to luxurious rooms and suites, there is also a brasserie, coffee bar, downstairs cocktail lounge, and a breathtaking rooftop experience with 360 views of the Savannah River and cityscape. Mr. Sapra paid special attention to detail with custom furniture in almost every room and antiques or found objects accented throughout.

The Drayton’s restaurant, named St. Neo’s, after the patron saint of fish, will be a seafood brasserie and oyster bar. It will showcase fresh local seafood cooked to mimic the flavors of the old south. The ground floor coffee bar features freshly baked pastries and premium coffee available for guests to enjoy in the newly decorated lobby or on the go. The beautiful rooftop offers unmatched views of Savannah and picturesque sunsets– a perfect backdrop for evening cocktails. It also features several private and semi-private areas that are perfect for private events.

Rooms start off around $259 a night depending on the time of stay and room type. Reservations are available on The Drayton Hotel website.

The Caiaccio Law Firm provides comprehensive and sophisticated legal services to our clients in transactions involving commercial real estate assets throughout the U.S. We enhance their reputation while providing security and peace of mind. Our experts translate legal language to business terms, enabling our clients to completely understand every step of their transactions. We strive to be the most sophisticated boutique law firm in the Atlanta area, providing diversified risk management navigation to clients. Call us today at 404.846.4990 or visit our website.