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Event

Human Behavior Behind the Winners & Losers of Commercial Real Estate

Hosted by Engineered TaxServices, Inc.
January 21, 2021
11:00 AM - 12:00 PM
Panel
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With many headwinds facing the commercial real estate market, the landscape will never be the same. In this panel, we will be exploring the following topics:

  • Review of 2020 Performance
  • Outlook for CRE in 2021
  • How has COVID-19 affected valuations of various real estate assets since the beginning of 2020
  • Misconceptions and reality
  • Historical events that caused opportunities to make money in CRE

Recording

Human Behavior Behind the Winners & Losers of Commercial Real Estate

Attachments

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Speakers

Michael D’Onofrio
Managing Director @ Engineered TaxServices, Inc.
Joseph W. DeMatteo Sr.
Founder & President @ JDM Capital Hospitality Management
Elizabeth Fujino
Chief Operating Officer @ Sunstone Properties Trust
Lisa Forster
VP, Family Office & Advisor Relations
Larry Genet
Senior Vice President @ CBRE Group, Inc

About

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JDM Capital Hospitality Management Group provides operating and financial support for the day to day management and asset oversight of Hospitality assets. We are actively seeking Redevelopment, Re-Purposing and Acquisitions to be repositioned as a *participating mezzanine, *preferred equity, *GP, and *co-GP partner with a focus on operational control positions.

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Sunstone is a fully integrated real estate operator, developer and fund sponsor in business since 2012. After 30 years in the commercial real estate business, the founders of Sunstone chose workforce multifamily housing as a sector because of its solid performance throughout varying economic cycles. Sunstone performs its own architectural design work, construction, asset management and fund management to achieve maximum efficiency, cost containment and investor returns. Its acquisition team sources transactions with proprietary software and a network of local brokers. Capital markets works with investors and lenders to optimize Sunstone's access to debt and equity. Risk is managed through a comprehensive due diligence and underwriting process with investment committee oversight. Hands-on portfolio management is effected from acquisition through disposition. Sunstone's markets include Texas, Florida, California, Arizona and Nevada.

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Engineered TaxServices, Inc. (ETS) is a licensed engineering firm that focuses on federal, state, and local tax benefits. Engineered Tax Services was founded by CEO, Julio Gonzalez, to bring specialty tax engineering services to mainstream America. There are several federal tax incentives in which the IRS requires professional engineers and scientists to determine the tax benefits in the areas of real estate and manufacturing. Specific to real estate is the ability to depreciate real estate investments by components vs. the traditional expensing of real estate over a 39 or 27.5-year period. A forensic engineering study of a real estate property, in which the building is depreciated component by component, allows investors to expense up to 50% (and in some cases, more because of 100% bonus depreciation) of the purchase of their building up front.Decades ago, cost segregation was only available to real estate investors who worked with the Big 4 accounting firms who had dedicated engineering staffs. Mr. Gonzalez’s goal was to be a resource to the CPA community so that these services could be available to all real estate investors, big or small. Cost segregation continues to be one of the largest tax incentives for wealth preservation. There are very few investments that the United States Federal government allows investors to expense dollar for dollar. Real estate is the one investment from which you can deduct 100% of the purchase price against taxable income. Inherently, this allows for a 50% return on investment at a 50% federal and state tax bracket. Cost segregation allows the investor the ability to mitigate tax liabilities and preserve wealth by accelerating these deductions much quicker. Engineered Tax Services also uses its engineering, scientific and tax team to provide one of the most important federal and state tax credits available to United States businesses in the form of research and development tax credits (R&D). R&D Tax Credits are meant to incentivize manufacturing, innovation and technical design in the United States. These credits are essential to keep labor and promote job creation in the United States. Qualifying activities include developing new or improved products or manufacturing processes, tool and die development, technical design in the construction industry, software development, fracking and drilling technique development, and developing new or improved drugs or formulas, just to name a few. The R&D Tax Credit is a very important federal incentive meant to ensure that US companies remain competitive globally.

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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.