Value innovators
Been there, done that. Or, something just like it.
The principals of Somerstone have been involved in over $4 billion worth of investment real estate transactions from both sides of the closing table. The emphasis is very much on the involved part.
The things we do
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Acquisitions
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Leasing
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Property management
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Equity syndication
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Dispositions
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Build-to-suit
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Asset management
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Land development
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Adaptive re-use
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1031 exchange
Investment sponsors
What is your investment edge?
We source, analyze and acquire/develop well-located properties for the purpose of investment syndication. Once acquired, as sponsor, we manage all aspects of property operations, tenant relations, leasing, financing, accounting, investment reporting, tax prep/compliance and dispositions. There is a simpler way to own real estate. We can show you how.
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Limited partnerships
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Defined exit strategies
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Monthly distributions
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Prudent leverage
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Attractive returns
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Tenants-in-common
The many advantages of real estate investments
Whether it’s controlling tax exposure or utilizing inside information about a tenant or an asset to gain a competitive market edge, real estate investing can offer unmatched risk-adjusted returns.
Opportunity is missed by most people because it is dressed in overalls and looks like work.
– Thomas Edison
In inflationary times, real estate traditionally proves to be an attractive inflation hedge. As construction costs increase, rents tend to rise to justify investment. Accounting methods for booking depreciation (standard, cost segregation, and bonus) and amortization help to shelter a significant portion of annual taxable income, providing vastly superior after-tax returns when compared to other investments. Quality real estate assets provide stable current income streams. The cash flow stability and underlying value of real property provides investors the opportunity to utilize leverage to dramatically increase overall investment returns.
Real estate is one of very few asset classes that can be fully insured against economic loss due to a physical impairment of use. It also offers a higher degree of control as it’s inherent value is far less susceptible to short-term market whims, the outside influence of institutional investors, or high-volume trading algorithims. Further, the scarcity of quality commercial land and regulatory development requirements can create barriers to entry in many markets, bolstering property values due to supply restrictions. Perhaps, the single greatest advantage of investing in commercial real estate is the tremendous wealth-building potential afforded to investors by the like-kind, tax-deferred exchange rules. The 1031 exchange is an incomparable tool for creating and preserving wealth and can prove to be an essential component of smart estate planning.
But what if you don’t know anything about investing in real estate? You’re in luck — we do!
Pewaukee Commons — 19,277 SF retail center
Pewaukee, Wisconsin
Development specialists
Underwriting so accurate, you'll think we own a time machine.
Somerstone offers a full range of real estate development services with the capabilities to conceive, plan, manage, finance, and construct development projects efficiently and cost effectively.
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Entitlements
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Land assemblage
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Parcel splits
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Tax increment financing
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Budgeting and forecasts
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Project management
The Den at Fox Run — 72-unit multi-family development
Waukesha, Wisconsin
Property and asset managers
You don't have to settle for marginal advice and canned excuses.
Work with a manager that understands what it means to be an owner and knows how to create and maintain asset value through operational efficiencies, vendor relationships, and proactive lease management. Every property needs an edge. We can provide it.
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Lease administration
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Vendor supervision
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Tenant relations
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Accounting
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Capital cost planning
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CAM reconciliations
Brokers and leasing agents
Stop losing value to the status quo.
Today, there are simply better, more efficient, and more economical ways of conducting our business. Whether you are buying, selling, in the market to lease space or need help leasing space you already own, we can help. We strive to provide our clients with simpler ways to expedite decisions and get results.
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Deal sourcing
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Market studies
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Due diligence review
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Comparative lease analysis
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DCF/Argus modeling
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Digital marketing plans
Tell us what you're looking for and we'll find it. We hate paying taxes too.
At Somerstone, we have a proven track record of sourcing, structuring and closing valid 1031 exchanges without the hysteria that typically surrounds 1031 transactions.
There are two systems of taxation in our country: one for the informed and one for the uninformed. Both are legal.
— Learned Hand
So, you bought a small multi-family rental 30 years ago. Smart. It’s been a nice investment for you over the years and the neighborhood has now turned into the “it” place to be in the city. The time is right to sell. But, with your negligible basis in the property, you’re looking at a huge tax hit, not to mention depreciation recapture. Sure, you can take the money and run. But, you’ll need to pay your silent partner, the one who put up no equity and did no work — Uncle Sam. How about you stiff him instead?
Through Section 1031 of the Internal Revenue Code, Congress has provided that a real property owner who sells property and reinvests the proceeds in ownership of like-kind property can do so without paying any capital gains tax. Think about that. If you take the proceeds from the sale and invest them into another property, the taxes are deferred. No check to write to the IRS. That’s right, your entire equity stake can be invested into a new property and no taxes are due on the gain. More importantly, all of your equity earns a new return, not just what the government lets you keep! And, the best part is the property basis steps up when inherited by your heirs. That means they’ll have no tax problem to deal with either. Genius estate planning.
Of course, there is a catch since the IRS is involved. There are specific identification rules, timelines, and boot regulations that must be adhered to in order to effectuate a valid exchange. Even more challenging, sourcing viable properties to complete the exchange can prove to be a daunting task. Matching equity and debt and avoiding boot often leads to a lot of head scratching. Fortunately, in the early days of our sponsor work, we worked almost exclusively with 1031 exchange buyers. As a result, we know the rules; and, for those rare occasions where we might get stumped, we know people that know the rules. We think beyond the mainstream and can help you take advantage of a 1031 exchange.
Let us help protect your wealth!
