Press Releases

By Dave DeWitte, Assistant Financial Editor
 
CEDAR RAPIDS -- A California firm sees fertile fields in Iowa for a tax and estate-planning tool that is helping some Iowa farmers sell their property for retirement without a big tax bill.

Argus Realty Investors, LP is one of several companies marketing “tenant in common” real estate investments for use with Internal Revenue Code Section 1031 tax-deferred real estate exchanges.

Building Value / By Ray A. Smith

Some industry participants also are trying to create a tenant-in-common association. "We have to establish a code of ethics, a code of conduct to make sure we're meeting all our fiduciary and legal responsibilities," says Argus Realty President Timothy E. Snodgrass, who will be chairman of the TIC trade group.

After years of being landlords, Steve and Sue Taylor no longer were interested in the time and effort involved in managing two rental homes in Lehi.
 
But if they sold the properties, the couple faced a big federal and state income tax bill of more than $200,000 because the value of the 6 acres upon which the homes had been built had climbed in value over the years to $1.1 million.

"We wanted another type of investment that we didn't have to worry so much about and still have some income," Sue Taylor said. "But we did not want to pay so much in taxes."

See how Argus provided the solution.   

Investors looking to get quality, stabilized industrial properties are using the back-door approach with sellers more frequently.  But in this tight real estate market, expect buyers to pony up substantial, non-refundable deposits and remain aggressive to prevent sellers from marketing the property publicly where they might easily get a better price.  Argus Realty Investors makes its first Mid-Atlantic acquisition by obtaining the Worth Avenue Technology Center in Woodbridge, Va., from Macfarlan Real Estate Investment Management for more than $23.5M.

From staff writers

"This is an excellent example of how the conversion of a retail building can meet all the multi-functional requirements of a large employer in this market ranging from a government services business to major manufacturers with U.S. military contracts," Jean Murphy, Argus Realty's vice president of acquisitions-East Coast, said.

By Donald Jay Korn

Tim Snodgrass, chief operating officer of Argus Realty Investors in San Juan Capistrano, Calif., estimates that TIC exchanges raised around $500 million of investors' equity last year.