THE BRANDS BELOW ARE AMONG THE
Early Adoptors of Our Economic Framework.
Our Framework complies with Existing tax laws.
On a $100M construction project, our development framework and trade partner’s expertise creates a five-year depreciation benefit of $30M. The most commonly used standards on a comparable project would deliver a five-year depreciation benefit of $12M to $15M. Our framework delivers twice the applicable depreciation in the most common standard.
As the astute investor, your follow on question should be about Capital Gains and depreciation recapture. It is important to note that this important financial consideration has been favorably resolved for Developers given the 17 year history and early adoption by the brands above. We are open to collaboration with any organization active in real estate development. Whether the plan is to develop raw land, or acquire and repurpose an existing property our advantages represent significant value and leverage.
Let’s explore material changes in the performance, value and exit price of commercial real estate development.
COLLABORATION WITH MOMENTOUS WILL POSITION OUR PARTNERS TO
Sell Stabilized Properties At A Premium Price.
A real estate property’s notably higher financial performance will naturally raise the final negotiated purchase price. But imagine holding powerful leverage to lead a prospective buyer through their own two-part due diligence as a bargaining chip in their buying process.
Part One of Discovery (P+V): part one of discovery is that our property is performing well above other properties in this asset class. Therefore, naturally the elevated performance sets our market value higher.
Part Two of Discovery (Exit): the exit price of stabilized properties will likely be higher given part one buyer is able to leverage a significant portion of the final sale price as a lump sum depreciation benefit in whatever timeframe suits their present taxation. This conveyance was approved and encouraged by the IRS as environmental policy. Our trade partner created a sustainable architectural design with a vision foster environmental stewardship. He won the support of the IRS that landfill contamination would decrease if the IRS granted conveyance of significant depreciation to all subsequent buyers of commercial property developed with his design.
IN THE FINAL ANALYSIS…
Performance Is the Only Thing That Matters!
In all pre-development planning we have standardized the sustainable architectural design as one of two pillars in our development model. It is the economic basis to materially change the viability of all commercial real estate we develop. Our sole ambition is to create a tangible distinction of high performance and value within our company’s portfolio.