Category: Real Estate

Navigating the Impact of Executive Orders on Shore Rentals and Hotels

Navigating the Impact of Executive Orders on Shore Rentals and Hotels

With prom season and summer approaching, the COVID-19 pandemic has created challenges and confusion for shore rentals and hotels. Unlike the regulation of most other businesses during the pandemic, the regulation of short-term lodging and hotels has been delegated to municipalities and counties by the state. As a result, there now exists a patchwork of varying regulations on a county-by-county and town-by-town basis. Those who own hotels or rental properties, and thwarted travelers looking for remedies, must undertake a careful evaluation of municipal and county directives in effect for the relevant locations. Executive Orders No. 107 and No. 108 and Administrative Order No. 2020-8 Executive Order No. 107, entered March 21, 2020, expressly closed all “non-essential retail businesses” and all recreational and entertainment businesses. In an effort to standardize restrictions throughout the state, Executive Order No. 108, entered on the same day, invalidated any existing or future restriction by a county or municipality that “in any way will or might conflict with any of the provisions of Executive Order No. 107, or which will or might interfere with or impede its achievement, or the achievement of Administrative Orders issued as authorized by [the Governor’s] Executive Orders.” Executive Order No. 108,...

COVID-19 – The “Real World” Market Impact We See To Date

COVID-19 – The “Real World” Market Impact We See To Date

Over the last several weeks, our phones have been ringing – a lot. Landlords and tenants want to know what lease obligations they can temporarily forego and what rights they do or do not have, given all that has been wrought by COVID-19, including mandatory closures, suggested closures, social distancing, and the inability to access government offices or courts, to travel, to obtain inventory, supplies, or materials, and, generally, to conduct business and meet responsibilities as contemplated when the governing document was signed. In the last four weeks, there has been much written about the lease clauses and avenues to pursue that are the most relevant to a technical analysis of the questions posed – the force majeure (a/k/a impossibility of performance) clause; the long-shot condemnation clause; the equitable theories based on impossibility, mutual mistake, or simple fairness; insurance recovery; and bankruptcy. So what’s happening in the “real world”? Here’s what we are seeing in our practice. 1. Everyone is nervous. Although this anxiety is, in large measure, due to the facts that we know, it is also clearly driven in large measure by having to plan for the unknown – how bad, how long, what does the “recovery” look...

IRS Extends Deadlines for Section 1031 Exchanges and Investments in Qualified Opportunity Funds

IRS Extends Deadlines for Section 1031 Exchanges and Investments in Qualified Opportunity Funds

In response to the challenges faced by taxpayers as a result of the COVID-19 pandemic, the IRS issued Notice 2020-23 on April 10, 2020, which extends many tax filing and payment due dates to as late as July 15, 2020. Notably, this guidance includes deadlines associated with like-kind property exchanges under Section 1031 and investments in Qualified Opportunity Funds (QOFs) under the Qualified Opportunity Zone (QOZ) regime. A like-kind exchange is a tax-deferred transaction that allows for the disposal of an asset, typically real property, and the subsequent acquisition of another similar asset without generating capital gains tax liability from the sale of the initial asset. QOFs allow taxpayers to invest qualified capital gains into real property or businesses located in QOZs, and to defer and partially reduce taxation on the original capital gain while potentially eliminating all taxation on appreciation while in the QOF. Under Notice 2020-23, any person with a specified federal tax payment obligation or a federal tax return or other form filing obligation that would otherwise be due to be performed (originally or pursuant to a valid extension) on or after April 1, 2020 and before July 15, 2020 is deemed to be an affected taxpayer...

Relaxation of Notary Rules Allows Remote Notarization in New Jersey and New York

Relaxation of Notary Rules Allows Remote Notarization in New Jersey and New York

With some banks and municipal offices closed to walk-ins, non-essential employees working from home, and social distancing requirements in place, the ordinarily mundane task of having documents notarized has become much more challenging. The very act of taking an acknowledgment requires that the notary personally interact with the signatory, verify identity, and witness document execution. This, of course, is wholly inconsistent with the COVID-19 world in which we find ourselves. Although electronic (rather than pen and ink) notarization has become more common in many jurisdictions, few states permit online or webcam notarization where the person signing a document is not in the physical presence of the notary. As a result of COVID-19, the rules have been relaxed in New Jersey and New York in order to permit video notarization in some instances. New Jersey New Jersey is utilizing a legislative process to amend the Notaries Public Act of 1979 (the “Act”). A bill designated as A-3903 was signed into law on April 14, 2020, as P.L. 2020, ch. 26. It takes effect immediately and will remain in effect for the duration of the COVID-19 emergency as declared by the Governor in Executive Order 103. It provides that a notary appointed...

Legislative Update: NJ Assembly Passes Proposed Legislation Extending Municipal Land Use Deadlines

Legislative Update: NJ Assembly Passes Proposed Legislation Extending Municipal Land Use Deadlines

The New Jersey Assembly on March 25 unanimously passed Assembly Bill No A-3902, which proposes to vest in the Director of Local Government Services the ability to extend the deadlines under the Municipal Land Use Law and other statutes that require certain municipal action before a given deadline during a declared state of emergency or public health emergency. This would effectively suspend all timeframes for determining completeness or requiring a vote by the zoning or planning board on a given application. This legislation now moves to the Senate for consideration, and we will continue to monitor various legislative and regulatory updates.

Successfully Navigating Troubled Real Estate Waters in Novel Times

Successfully Navigating Troubled Real Estate Waters in Novel Times

The novel coronavirus is leaving its mark on all aspects of our lives, and the real estate industry is certainly no exception. Whether you’re in the initial planning stages of a mixed-use redevelopment, the mid-point of a lease term, or the final stages of a construction project, the challenges presented by our current environment can make you feel like you’re at the end of your rope. No need. While some of today’s issues are indeed novel, many can be viewed as a 2020 version of past issues that we have helped clients to not only weather successfully but also used as a springboard to advance projects forward as those troubled waters receded. The Gibbons Real Property Department relies on its transactional, development, redevelopment, and financing attorneys to bring a comprehensive and seamless approach to advancing the interests of our clients. To give some idea as to the breadth of experience we bring to help us identify current issues and strategies, some of the industry areas where we regularly practice include: Public/private infrastructure projects (P3s) Commercial leasing, conveyancing, and financing Redevelopment projects, including PILOT applications, redevelopment, and financial agreements and RAB bonds Mixed-use retail/multi-family residential, including affordable housing Healthcare facilities, including...

Eight Gibbons Real Property and Environmental Attorneys Selected to 2020 New Jersey Super Lawyers and Rising Stars

Eight Gibbons Real Property and Environmental Attorneys Selected to 2020 New Jersey Super Lawyers and Rising Stars

Attorneys from the Gibbons Real Property and Environmental Departments were featured in New Jersey Super Lawyers and New Jersey Super Lawyers Rising Stars, with five attorneys on the 2020 Super Lawyers list and three on the 2020 Rising Stars list. These attorneys were listed in a wide range of categories, including Environmental, Land Use/Zoning, and Real Estate. The Gibbons attorneys listed in the 2020 issue of New Jersey Super Lawyers are Russell B. Bershad, Howard D. Geneslaw, William S. Hatfield, John H. Klock, and Susanne Peticolas. Jordan M. Asch, Andrew J. Camelotto, and Cameron W. MacLeod were selected to the 2020 New Jersey Super Lawyers Rising Stars section. For the full release, please see here.

NJBIZ Lists Patrick Dunican and Jennifer Phillips Smith  Among Its 2020 “Power 100”

NJBIZ Lists Patrick Dunican and Jennifer Phillips Smith Among Its 2020 “Power 100”

For the tenth consecutive year, NJBIZ has featured attorneys from Gibbons P.C. on its annual “Power 100” list of the most influential people in New Jersey business. Patrick C. Dunican Jr., the firm’s Chairman and Managing Director, is one of a select few people to be named to this list every year it has been published, while Jennifer Phillips Smith, a Director in the firm’s Real Property Department, makes her debut on the 2020 list. This year, NJBIZ notes of Mr. Dunican: The influence of Gibbons PC, one of the state’s biggest law firms, grew this year with the addition of an office in Red Bank. The 94-year-old Newark firm, which has a Trenton outpost that opened in 2002, expanded to Red Bank because it’s a linchpin of Monmouth County and home to some of its most significant clients—nearly half of the county’s top 10 employers are Gibbons clients. Patrick Dunican has been at the helm since 2004 and his business influence extends internationally: he was recognized in August for promoting business ties between New Jersey and Ireland by Donegal County Council with the 2019 Tip O’Neill Irish Diaspora Award. From 2017 to 2018, exports from the Garden State to...

Join Us at the ICSC New York Deal Making Conference – December 11 & 12

Join Us at the ICSC New York Deal Making Conference – December 11 & 12

The Gibbons Real Property Department will once again exhibit at the upcoming International Council of Shopping Centers (ICSC) New York Deal Making Conference at the Jacob K. Javits Convention Center on December 11-12. Stop by our booth, #2411, to meet some of the Department’s attorneys who will be in attendance (Click here to view our booth location marked as the red circle). Deal Making hours are Wednesday, December 11, from 8:00 am to 5:00 pm, and Thursday, December 12, from 8:00 am to 3:00 pm. We look forward to seeing you there!

Gibbons Real Property Department Attorney Publishes in New Jersey Law Journal

Gibbons Real Property Department Attorney Publishes in New Jersey Law Journal

Cameron W. MacLeod, an Associate in the firm’s Real Property Department, authored an article, “Finding the Outer Edges of ‘Good Faith’ in ‘Mt. Laurel’ Litigation” in this week’s New Jersey Law Journal. An excerpt from the article can be found below. To view the full article, click here. In 2015, the court directed that municipalities revise their housing elements and fair share plans “with good faith” and with “reasonable speed.” In re: N.J.A.C. 5:96 & 5:97, 221 N.J. 1, 33 (2015). Now, four and a half years later, the question of what constitutes “good faith” in these constitutional compliance cases is paramount, as the trial courts are now faced with whether a municipality’s housing element and fair share plan are consistent with the Mount Laurel obligations. The recent trial court decision in In re Englewood Cliffs, as well as the 2016 decision from Judge Wolfson in In the Matter of the Application of South Brunswick, both demonstrate what steps are necessary to establish “good faith” in these cases. Of the 300-plus declaratory judgment actions commenced in the wake of the Supreme Court’s decision in In re: N.J.A.C. 5:96 & 5:97, 221 N.J. 1 (2015), many have now settled, or are...