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Date: Mon, 30 Mar 98 09:18 IST
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Subject: InvestPro Real Estate Bulletin: REPACs offers new ways to sell old property
Message-Id: <199803302245BAA5736@post.inco.com.lb>

NEWARK, NJ (IP) -- Finally there may be a resource for commercial and multi-family real estate owners who want to sell their undervalued, hard-to-move property but avoid a loss.  A new breed of consultants called Real Estate Property Acquisition Consultants, or "REPACs", are popping up around the country with new innovative ways to purchase old office buildings, apartment complexes and warehouses nationwide.

One company who represents a select group of publicly-traded real estate investment firms, says their clients are eager to "cash-out" disinterested parties of their commercial and multi-tenant properties.  "Some people just don't want to be in the real estate business," explained Jay Wade, President of USAcquisitions, a REPAC firm specializing in multi-family and mid-rise office buildings.  "Perhaps they've inherited an old building or apartment complex and don't know what to do with it.  Or perhaps they're just tired of property management and ready to retire, but can't get the price they are looking for in a timely manner.  That's where we come in," Wade said.   

REPAC representatives are different from traditional real estate agents.  Real estate agents typically only deal with cash and financing, whereas REPAC representatives negotiate structured deals involving equity swaps, trades and tax structures.  "A REPAC rep is more of a merger and acquisitions specialist," Wade said.  "They negotiate deals involving the transfer of other assets, including marketable securities held by the buyer."  

Another concern REPAC reps address is tax liability of the seller.  REPAC representatives structure deals that assist the seller from getting slammed by the IRS through '"tax-free exchanges" with Starker Trusts and stair-stepped profit taking.  This benefits both the buyer and seller.

"Building owners who want to sell 'B', 'C' or 'D' properties have to consider alternatives to simple cash transactions," Wade said.  "If they want to move the property quickly, then they need to consider other possibilities such as trade.  Most real estate companies are only interested in cash transactions, but we handle a wide range of possibilities."  Wade also advised there are trade alternatives that can turn to cash easily over time, giving the seller a market-valued exit strategy over a year or two, and many times an equity bonus.

According to Wade, USAcquisitions is currently seeking $1 billion in buildings and multi-family properties for their clients.  "Loft conversions is a really hot concept right now," Wade said.  "We're finding a great amount of interest from the investment community in converting old office buildings and warehouses into apartment housing."  

Unfortunately most REPACs like USAcquisitions aren't interested in negotiating for individual homes.  "There's just not enough resources for our clients to get involved in single houses," Wade said.  "Of course, large groups of homes in one area is a different story."

USAcquisitions is currently concentrating on investment opportunities in the southwest, but the company is open to looking anywhere in the United States.  "The southwest is experiencing an enormous resurgence in the real estate market right now," Wade said.  "We definitely are keeping our eyes out for properties in major urban markets like Houston, Dallas, Atlanta and Phoenix, but we'll travel to Buffalo if we need to."
 
For more information about USAcquisitions or REPACs you can reach Jay Wade at (817) 318-2300 or e-mail him at Jwade@USAcquisitions.com.or P.O. Box 130537 Dallas, Texas 75313.

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