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V&E REIT and Real Estate partners, Brent Abbott at Pacolet-Milliken, and Anthony Scavo at Basis Industrial discussed Preferred Equity and Mezzanine Debt Investments in Commercial Real Estate.

On April 25, 2024, the Department of the Treasury and the Internal Revenue Service issued final regulations (T.D. 9993) (the “Final Transfer Regulations”) regarding the transfer election for certain tax credits by eligible taxpayers available under section 6418 of the Internal Revenue Code of 1986, as amended (the “Code”).

On April 24, 2024, the Treasury Department (“Treasury”) and the Internal Revenue Service (IRS) released final regulations (“Final Regulations”) under Section 897 of the Internal Revenue Code of 1986, as amended, addressing when a real estate investment trust (“REIT”) is considered domestically controlled.

As the electric vehicle (“EV”) market gains traction, real estate investment trusts (“REITs”) appear to be stepping in to alleviate a common concern of current and potential EV drivers: Where will I charge?

The Corporate Transparency Act (the “CTA”), a new federal law, went into effect on January 1, 2024.  The CTA requires that certain entities file Beneficial Ownership Information Reports (“BOI Reports”) with the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of the Treasury.

Vinson & Elkins attorneys discussed commercial real estate loan workouts and amendments: the path most often taken by commercial real estate lenders in 2023 when a borrower is facing a default.

Along with the broader market, real estate investment trusts (“REITs”) and publicly traded partnerships, frequently referred to as master limited partnerships (“MLPs”), have increasingly embraced the principles of environmental, social, and governance (“ESG”) in their operations and investment strategies.

Vinson & Elkins attorneys discuss the various out of court considerations that commercial real estate enterprises will want to consider as they navigate the distressed environment that may lie ahead.

Public REITs should take steps to enhance their financial reporting processes to ensure that they will be able to provide daily quantitative share repurchase information and comply with additional new disclosure requirements regarding the objectives or rationales for repurchase programs and adoption or termination of Rule 10b5-1 trading plans.

In this program, the V&E team discussed the current and future impact of the recently proposed Treasury Regulations under Sections 897 and 892 on foreign investment in real estate.

Partner Chris Mangin, with assistance from Partner Paige Anderson, led the ABA Section of Taxation’s comment letter (the “Comments”) on Treasury and the IRS’s recently proposed regulations under Sections 897 and 892 (the “Proposed Regulations”) regarding issues affecting foreign investment in U.S. real estate.

On December 29, 2022, the Treasury Department and the Internal Revenue Service (IRS) published proposed regulations (the Proposed Regulations) under Section 897 of the Internal Revenue Code of 1986, as amended (the Code), which would significantly change the current interpretation of when a REIT is considered “domestically controlled” and thus when gains from the sale of such REIT interests may be exempt to foreign investors.