During their careers, members of Rachlin's
real estate team have directed the evaluation, structure, development, management and
disposition of thousands of real estate-related assets. They have also directed the build-out
of both residential and commercial projects, managed portfolios of non-performing loans,
created public-purpose tax districts and participated in the development of historic and
municipal real estate projects. They speak the language and understand the issues facing
developers, investors and financial institutions.
From concept to completion, the real estate team at Rachlin can provide valuable
advisory services during each phase of the project development cycle. Here is just a
sampling of what we offer.
Phase I: Concept/Design/Analysis
As developers and property owners plan commercial, residential and mixed-use projects,
Rachlin is regularly called upon to prepare financial models and highest- and best-use
analyses, while devising tax-efficient structures. Our deep contacts in the architectural,
engineering, construction, insurance and marketing disciplines also allow us to provide
valuable input as developers assemble their projects. Possessing a team that includes
former developers, asset managers and financiers, Rachlin can add the edge required to
make your project a success.
Phase II: Capital Formation
Rachlin's real estate team prides itself in
maintaining dozens of institutional and private equity
relationships, including Wall Street investment banks,
insurance companies, commercial banks, private
investors and private equity entities. Through these
relationships, Rachlin acts as a financial advisor in
arranging long-term commercial real estate loans,
construction loans, mezzanine loans and project
equity. The Rachlin real estate team keeps abreast
of both local and national market changes and
yield requirements of lenders.
Phase III: Construction
In addition to providing oversight and general
contractor administration during the execution of
construction projects, Rachlin is often engaged to
manage the construction bid process. Through
experiences gained as court-appointed receiver
and/or asset manager for numerous troubled
construction projects, Rachlin can assist the
developer in minimizing the risks attendant to
the construction process.
Phase IV: Hold/Sell/Exchange Analyses
As real estate owners are confronted with
the age-old challenge of whether to hold, sell or
exchange their properties, Rachlin can provide
strategic advice regarding value, market conditions
and the tax implications of the transactional
process. Our real estate tax professionals have
experience in like-kind exchanges, involuntary
conversions, capital gains analyses, tax planning,
cost-segregation studies and much more.
Phase V: Asset Management & Financial Reporting
As asset managers for both individual and
portfolio property owners, Rachlin's real estate
team identifies property limitations, changing market
conditions and repositioning opportunities-all in the interest of improving property performance
and attendant value. The team gained much of
its experience from serving financial institutions
burdened with non-performing loans as well as
federal regulatory agencies such as the FSLIC,
RTC and FDIC. The Rachlin real estate team can
also handle all of your financial statement and tax
compliance reporting needs.
Rachlin professionals service the needs
of hundreds of clients involved in the real estate
industry, including:
- Real estate investors and developers
- Property owners and management companies
- REITs
- Mortgage lenders
- Construction companies
- Partnerships designed to own real estate
- Commercial and residential real estate brokers
- Condominium converters
- Condominium associations
A significant part of our international
tax planning practice is focused on foreign
investments in U.S. real estate. Rachlin represents
a wide array of clients ranging from first-time
individual investors to multi-national corporations
with hundreds of millions of dollars in investments.
We help foreign clients identify the entity structure
that fits the tax profile of the business and its
owners. During the ownership phase, we provide
tax planning and tax preparation services. At the
time of sale, we focus on minimizing the tax
impact of the sale and enhancing the after-tax
cash flow to the business owners.
Appointment in Bankruptcy Court as Plan Administrator of a Consensual Plan of Reorganization
Appointment in bankruptcy court as plan administrator of a consensual plan of reorganization. Responsibilities included completing construction of a $100 million-plus interrupted condominium project and completing and closing project sales, while maximizing the value of the project for interested creditors.
Advisory on Increasing Franchise Value of South Florida General Contractor
Provided consulting services to a South Florida general contractor on increasing the operational efficiency to his accounting and contact management systems and policies and procedures to better position his company for increased growth, all in the interest of increasing franchise value to position the company for sale in three to five years.
Expert Witness & Testimony Services for South Florida Condominium Developer
Engaged by a South Florida developer of a $4 million high-end residential condominium project to provide expert witness consulting and testimony to delineate and quantity cost overruns and defective work as an offset to the general contractor’s claim for contract and delay damages. Rachlin’s work formed the basis for the client’s claim that the general contractor owed over $4.7 million (including liquidated damages of $1.7 million).
Damage Model Developed to Review Cost Overruns
Rachlin was retained by counsel for a large contractor that specializes in both interior and exterior building finishes in connection with claims asserted against a major national general contractor. The claims related to cost overruns caused by deficient preparatory leveling and surfacing work performed by the general contractor. We developed a damage model relating to the cost overruns and quantified amounts relating to additional framing, drywall finishing, scaffolding and corrective leveling.
Receivership for High Profile Medicare Fraud Conviction
Receivership for forfeited assets from a high profile medicare fraud conviction in South Florida. Liquidated over $44 million worth of assets. Within a year, the $44 million included:
- $16 million business as a going concern (approx). Post receivership, this business continued operating in an effort to keep the employees employed, avoid creditors losing money, and to get as much value from the business towards the forfeiture amount. The forensic team helped run the business to keep it afloat until the sale of the assets.
- $21 million commercial building in Miami with tenants
- $5.5 million in 3 warehouses/ commercial property in Miami
- $3 million in personal property including a plane, cars and a yacht Close to $400,000 residential property in Savannah, GA
- $5.1 million residential property in the Florida Keys is under contract and ready for closing. $800,000 commercial property is under contract in Georgia
The firm was commended by the Federal Judge for liquidating the highest amount of assets of this type of forfeiture for medicare fraud ever in the United States.
Appointed Receiver for $80 Million in Fortified Assets
Appointment in federal district court as receiver for $80 million in forfeited assets, which are being liquidated under order of the court, and include $45 million in commercial and residential real estate. The receivership has successfully liquidated or is liquidating these assets and is realizing over 90% of appraised values for this estate.
Review of Operations and Financial Structure of Major Florida Condominium Developer
Directed a team of real estate, audit, finance, tax and technology professionals to critically review the operations and financial structure of a major Florida condominium developer. Rachlin’s recommendations resulted in the developer streamlining its accounting procedures, updating information systems, improving investor communications, creating a more tax-efficient structure and establishing human resource and loan compliance departments.
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