Living La Vida Local
...continued  

• See the National Association of Home Builders/Bank of America 2007 Study of Life Expectancy of Home Components: www.nahb.org/fileUpload_details.aspx?contentID=72475/.

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Hi Jodi,
 
While browsing through search engines, I came across your blog, which really has great resources. We just posted an article on buying a home in a down market. I thought I'd bring it to your attention just in case you think your readers would find it interesting.
 
Title: 5 Tips for Buying a Home in a Down Market
URL: http://www.bankaholic.com/2008/buying-home-down-market/

Thanks for your precious time!

Thanks,
Helen Anderson

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101 Quick Fixes - Solve All Your Problems in 5 Minutes or Less 
( http://www.businesscreditcards.com/bootstrapper/101-quick-fixes-solve-all-your-problems-in-5-minutes-or-less/ ).
I thought I’d bring it to your attention just in case you think your readers would find it interesting.
Either way, thanks for your time!
Amy S Quinn

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TRADING HOUSES? AVOID TAX PITFALLS

Q: My son and I own rental houses. Both houses are of equal value and paid for. I want to exchange my house for his rental house so my wife and I can move in; it's a one-story house whereas our current home has two stories. For health reasons, I need to live in a one-story house. No cash will be involved in the transaction. Will there be any Internal Revenue Service consequences?  - M.T.

A: There is no problem with an even exchange as you contemplate under Internal Revenue Code 1031. But, please be advised, as you are "related parties," if either of you sells the property acquired in the tax-deferred exchange within 24 months after acquisition, your sale profit will be taxed back to the original owner.

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CAPITAL GAINS EXCLUSIONS

Q: I am a single mom struggling to make ends meet. I bought a condo in 1999 for $315,000 that now is worth close to $700,000. I am considering selling but was dismayed to learn that because I am single I can only exclude $250,000 profit from capital gains taxes, although my friends who have husbands can exclude $500,000. Can I add my son to the title when he turns 18? - C.J.
A: How we miss the late Real Estate sage Bob Bruss. He had an answer for everything: Without a spouse, there's no easy way to increase your Internal Revenue Code 121 principal residence sale exemption from $250,000 to $500,000.

But your son need not be 18 for you to add his name to your title. Minors can hold title; they just cannot convey title. However, for him to qualify for an additional $250,000 home sale tax exemption, he must own and occupy the home as his principal residence at least 24 of the 60 months before its sale. If you add him to your title now, be sure you don't plan to sell the house before he becomes 18 when he can convey title. If he is now 16 or 17 years old, and if he will be 18 or older when you plan to sell the home, you could add him to the title so he can qualify in 24 months for the extra $250,000 principal residence sale tax exemption.

Please consult a tax advisor or real estate attorney can give you more details.

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LAND IS SELLING AT $19,230,000 PER ACRE IN SANTA MONICA
http://www.santamonicapropertyblog.com/?p=209#comments

Congratulations to all who own land west of the 405 freeway…prices are still escalating. You + your portfolios are still rocking!
 
CoStar.com Commercial Real Estate Information Service reports that Randall Miller of Arnon Development Group purchased a .69-acre parcel in Santa Monica from Arnold Porath of Spruce Realty Group for $13.25 million, or about $19.23 million per acre.
 
Miller plans to build a three-story, 50,000-square-foot medical center on the $30,000+ s.f. parcel located at 1223 16th St. across from the new UCLA hospital, just south of Wilshire Blvd.
 
Previously, the property held a multi-family building with 3,534 SF of rentable building area.  No one tried to landmark the site, and apparently there are no questionable trees located there, so there were no societal obstacles to hold up the sale.
 
Miller is already working with the gracious planning department for the City of Santa Monica to obtain approvals and permits for the proposed building. The ground break is scheduled to commence in the second quarter of 2009. No word yet on how environmentally friendly the property will be…but we’re hoping for an LEED certified building so SM holds to their Net Zero by 2020 vision (without supplying subsidies).

Those in the know say the building will feature surgery, imaging, outpatient, clinical and medical laboratory capabilities and subterranean parking. Medical buildings requires 1 parking space for every 350 sq.ft. of medical space. The completion date is scheduled for 2Q  2010.

This off-market transaction was the downleg in a 1031 exchange for the seller.
Anyone who ones an acre of land in Santa Monica, we want to honor you. Please let us know (jodi@jodisummers.com) - so we can applaud you. 

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LOS ANGELES SHOPPING CENTERS RATED

The city of Los Angeles defines the urban sprawl phenomenon in America. Downtown shopping is not significant. Beverly Hills, however, houses the second most important collection of street luxury shops in the United States.

Street shopping has come and gone and is back again with projects replacing or reconfiguring street locations, including Farmers Market, Hollywood and Highland, Third Street Promenade and Montana Avenue in Santa Monica. Malls abound, pushed by department stores, and developers have typically followed the freeway path. Los Angeles has a huge appetite for retailers of all price points and most have very successful locations.

Century City has a new second level, and Topanga is undergoing a major expansion, adding nearly 600,000 square feet. When completed it will include 100 new specialty shops, a new Neiman Marcus and an expanded Nordstrom. Victoria Gardens has just opened, while Mills is undertaking a major redevelopment of Del Amo Fashion Center.

The information presented for traffic estimates and regional malls is gained from a variety of sources used in developing the Bieri Market Reports. These sources are public and private, and may even include the developers themselves. When traffic counts are not available, grades are determined by reviewing sales of anchor stores and specialty tenants within a subject project, and then comparing those with like projects.

SHOPPING CENTER

RANKING

Ontario Mills

A+

Century City

A

Glendale Galleria

A

Beverly Center

A

Third Street Promenade

A

Lakewood Center

A

Del Amo Fashion Center

A

Topanga Plaza

A-

Victoria Gardens

A-

Grove at Farmers Market

B+

Westside Pavilion

B+

The Oaks

B

Northridge Fashion Center

B

Galleria at South Bay

B

Los Cerritos Center

B

Montclair Plaza

B

Santa Monica Promenade

B

Fox Hills Mall

B

Manhattan Village

B-

Montebello Town Center

B-

Puente Hills Mall

B-

Santa Anita Fashion Park

C+

Media City Center

C+

West Covina Fashion Plaza

C+

Antelope Valley Mall

C+

Eagle Rock Plaza

C+

Promenade at Woodland Hills

C

Avenue of the Peninsula

C

Stonewood Center

C