PRO Perspective: Steven Williams, Jeff Hertz, and Tax Advantages in CRE

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In the latest PRO Perspective video, Steven Williams and Jeff Hurtz of Cantor Fitzgerald Capital discuss various tax incentives and programs available to commercial real estate investors. The episode explores Opportunity Zones, Delaware Statutory Trusts, and other tax advantages available to CRE investors, particularly amidst the uncertainty following the coronavirus pandemic.

Key takeaways

  • Opportunity Zones and Delaware Statutory Trusts (DST) can serve as viable alternatives to 1031 exchanges, particularly in the current environment affected by COVID-19.
  • Instead of paying taxes on a 1031 property exchange that’s past the 45-day identification period,  investors may be able to profit from the property sale and a portion of the depreciation then invest those proceeds into a Qualified Opportunity Fund (QOF) under the Qualified Opportunity Zone Program. QOFs offer unique tax benefits that could be advantageous depending on the investor’s state of affairs.
  • The Qualified Opportunity Zone Program allows commercial real estate investors to defer, reduce, and even eliminate capital gains taxes.
  • An investor has 180 days to invest in a QOF after the sale of their property to receive tax benefits from the Qualified Opportunity Zone Program.
  • A DST is a passive, turnkey version of a 1031 exchange transaction where investors aren’t owners of commercial property but instead own an undivided interest in the assets within the trust. The IRS recognizes DSTs as qualified replacements for commercial properties that work for many different property types.
  • Very specific real estate interest groups qualify for 1031 exchanges: fractional interest, leasehold interest, mineral rights, water rights, oil & gas interests, business properties, and rental homes.

Check out the PRO Perspective episode here:

Steve Williams is currently President of Cantor Fitzgerald Capital, the financial division of Cantor Fitzgerald, a global, middle-market focused financial services organization. In his leadership role, Steve provides strategic guidance surrounding business planning, product development, sales management, and oversight of the firm’s wholesaling operations and strategic activities. Before joining Cantor Fitzgerald, Steve worked at Realty Capital Securities, leading their national sales division. He also served Senior Vice President at KBS Capital Market Groups and VP of Private Banking at Deutsche Bank.

Jeff Hertz is Senior Vice President in the National Investment Specialist division at Cantor Fitzgerald Capital. Jeff oversees the firm’s national sales team, working with broker-dealers, RIAs, and financial advisors to connect clients with useful commercial real estate based opportunities. Jeff specializes in tax-advantaged strategies such as 1031 Exchanges, Qualified Opportunity Zones, and Real Estate Investment Trusts. Before joining Cantor Capital, Jeff served as First VP at Inland Securities Corporation, leading operations in seller consulting and business development. He also worked as a client advisor at Nuveen Investments.

As always, we welcome your feedback and invite you to share your great ideas with our product team. Feel free to reach out to support@crexi.com.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads CREXi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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