Measure ULA stays in LA; NJ investor pleads guilty to $55 million fraud... and more

The best national real estate stories from The Real Deal Jun 24, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In this week’s newsletter, industry hopes are [dashed]( in California. Plus, one investor pleads guilty to a [$55 million fraud]( scheme; [more]( [allegations]( come out against the Alexanders; and landlords set [record asking prices]( in Miami’s Brickell. These and more below.   Ballot measure to overturn ULA struck down by California Supreme Court In 2023, Measure ULA put Los Angeles’ commercial and residential real estate markets on ice. Now, one of the last hopes for a thaw is dead. The measure added a 4 percent transfer tax on all residential and commercial sales over $5 million and a 5.5 percent tax on sales over $10 million when it went into effect in April 2023. It was [approved]( with a simple majority vote in 2022 and marketed largely as a “mansion tax” meant to fund affordable housing development. At the time, a UCLA report estimated it would provide $900 million towards that program annually. The city’s estimate was more conservative – it anticipated some $671 million. In Measure ULA’s first year of existence, the sales market [seized up](. The program brought in [just $176.3 million]( and was lambasted by the industry. “It’s probably the dumbest thing we’ve ever seen,” CBRE’s Lew Horne [said]( at a TRD event last September. “It was posed as a mansion tax … the truth is it’s a tax on development, it’s a tax on land, it’s a tax on office, retail and multifamily.” Real estate interest groups have not taken this lying down. [Challenges]( started before the measure even went into effect. But most have [failed](, and this week one more door closed when the California Supreme Court [blocked]( the Taxpayer Protection and Government Accountability Act from heading to the November ballot. Real estate companies, including Douglas Emmett, Kilroy Realty, Shorenstein Properties and Hudson Pacific Properties had collectively [poured millions]( into the effort to pass the measure, according to donation records from the secretary of state. If the act had gone to the ballot and passed, all taxes passed by voters on a simple majority after January 2022 would be overturned, and any new local taxes proposed on ballot measures could only be passed by a two-thirds majority. That would include Measure ULA, plus 40 other initiatives across the state. Governor Gavin Newsom sued over the measure last year, arguing it would “affect nearly every revenue source.” The California Supreme Court agreed. “Those changes would substantially alter our basic plan of government, the proposal cannot be enacted by initiative,” Justice Goodwin Liu wrote in his opinion. Across the country, real estate is now keeping a much closer eye on the threat of transfer taxes. In Chicago, a similar ballot measure [did not pass]( in March. But it still hangs over the LA market, keeping deal volume low. So Measure ULA stays – at least for now. [One]( challenge still has a shot when it’s heard at the Ninth Circuit Court of Appeals later this year. We’ll be watching.   Together with Nuveen Nuveen redefines real assets in new Megatrends series [Nuveen]( Nuveen’s[Megatrends series](, a new nine-part thought leadership series where the megatrends that shape our investment landscape are re-examined to uncover new opportunities – and new risks – that should be considered when investing in real assets. In the first two of this nine-part series, Nuveen unpicks what a megatrend is and how they are changing in reaction to global events, before diving into how digitalization megatrend could affect real assets. The next articles in the series will be released over the year followed by a whitepaper wrapping up all the highlights from across the series.   [I'm an image]( [Lakewood, NJ investor Aron Puretz pleads guilty in $55M fraud scheme]( Lakewood, NJ investor Aron Puretz pleaded guilty for his role in a $55 million mortgage fraud scheme. [I'm an image]( [Tal Alexander accused of rape in alleged coordinated attack]( A New York lawsuit accuses top broker Tal Alexander and his brother Alon Alexander of raping and assaulting a woman in 2012. [I'm an image]( [More women come forward alleging Oren Alexander raped them]( More women have alleged they were sexually assaulted by top South Florida broker Oren Alexander, the Wall Street Journal reported.   Advertisement   [I'm an image]( [Brand Studio At Bentley Residences, Even Your Kitchen Is a Convertible]( [I'm an image]( [“Aggressive pricing”: Brickell landlords list sites at record asking pricesÂ]( Aimco wants to sell a 4.3-acre site for $650 million, and Nuveen wants to sell an office tower for over $500 million. Deals at these prices would set new records. [I'm an image]( [Receiver takes over Lerner multifamily portfolio amid $10M family feud]( A lawsuit filed by Jamie Lerner alleges her son, former MCZ Development executive Michael N. Lerner, wrongly siphoned $10M away from Chicago properties. [I'm an image]( [Gov. Ron DeSantis signs bill tied to controversial balance of power at condo-hotels]( A bill signed into law codifies investors’ greater control over common areas and amenities at condo-hotel complexes in Florida. [I'm an image]( [Sponsored Meet The Company Auditing Rental Leases for Free with AI](     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2024 TheRealDeal. All rights reserved. [View Online](