Know Your (REIT) Partner
By NATHALIA BERNARDO & MEYER MINTZ (FROM BERDON LLP)
Real estate owners seeking capital are increasingly encountering a different kind of prospective partner – a real estate investment trust, or “REIT.” While REITs generally make good partners from an operational standpoint, it is important to be aware of the possible tax issues a REIT may have and how legal mandates affecting REITs are likely to result in a set of special requirements when partnering with a REIT. Due diligence and negotiations for transactions with REITs can be made easier if these requirements are clearly understood.
This article originally appeared in Real Estate Weekly, Vol. 59, No. 22.