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Tag Archive: 2024

  2. Summer of 2024

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    Check Out What Our Team has Been up to This Summer

    The Nesselroad summer was filled with lots of travel, kickstarted with Mark and Lauren having a fun-filled day at the Kenny Chesney concert with close friends. Being a sports family, their daughter’s swim practices were ongoing, and there were many soccer events, including traveling to CT and Canada for their son’s soccer ID invite camps.  While in Canada, the crew thoroughly enjoyed touring and learning about Niagara Falls.  As the summer wound down, there were takeout/pizza dinners at the beach, bike rides, visits to the zoo, frog and lizard catching, and back-to-school activities.  Many great memories were had and more are sure to come. – Mark

    We started the summer with our annual trip to Kennywood with our girls and their friends the day after school! Then we headed to OBX for a perfect family vacation with some of our family and friends (of course our dog, Bo came too). There was lots of swimming at the house and an amazing adventure trip to New River Gorge with family. Towards the end of the summer we celebrated the wedding of dear friends, where the girls were the bride’s ‘something blue’ and we even squeezed in a boat trip at deep creek before the first football game of the season – David

    I managed to weave in the perfect blend of relaxation and fun amidst my usual full schedule focused on work. I soaked up the sunshine at Cheat Lake and sharpened my golf game with a few rounds alongside friends. In August, my family and I set off for a much-anticipated beach vacation to Hilton Head, SC, only to have a tropical storm throw a thrilling curveball our way. Although the storm kept us indoors, we turned it into a cozy adventure, filled with laughter and bonding over cards and board games. – Jeff

    This summer was filled with memorable experiences. I attended the Jefferson County Chamber’s Diamonds and Denim event and enjoyed kayaking with friends in Harpers Ferry. My husband and I celebrated the Fourth of July at a baseball game in DC, and I also completed the Leadership Berkeley program. We later relaxed at Deep Creek Lake, where we rented a boat and soaked up the sunshine on the water. – Andrea

    The Zeoli family kicked off summer with their annual trip to the Chesapeake bay over Memorial Day weekend. In June, after weeks of preparation and help from her amazing husband, Janelle planted seeds in her first garden which included four large, raised beds and high hopes for a plentiful harvest. On the hot days, trips to the movie theater and back yard sprinklers were a saving grace. To round out the summer, the family enjoyed a little R&R on the beaches of Wildwood, NJ. – Janelle

    We had such a fun summer! Two beach trips, one fishing trip to Lake Erie, lots of pool time, boat rides, trail riding, and made it to two different county fairs! Definitely was a summer to remember with lots of awesome memories. – Zach

    Over the summer: I moved from Charleston to Morgantown and started working at Black Diamond! I celebrated my birthday in June with my friends and family and have spent the summer getting settled in Morgantown and have gotten to go to a lot of concerts and got to watch summer basketball. – Rachael

    This summer in Morgantown was simple yet fulfilling. I balanced work, hit the gym, and spent my evenings catching up on reading. Not a flashy summer, but one that left me feeling recharged and focused. – Caleb

    Another summer on the go with these amazing kiddos, full of smiles, sunshine, and salty ocean breezes. Feeling so blessed to soak in every joyful moment!– Kim

    Our Family spent time together in Hilton Head, at the lake, bowling almost every day, and camping. We really enjoyed the beauty and fun West Virginia has to offer!– Anna

     

    Check out some of our favorite moments below.

    2024-06-09 14.50.582024-06-01 21.17.062024-08-01 11.25.422024-07-14 08.43.182024-08-01 11.19.212024-08-01 15.05.52IMG_1709IMG_9814IMG_9820IMG_4527IMG_2065THE STAFFORDSIMG_7014IMG_7590IMG_7551IMG_8439AttachmentIMG_8090IMG_5293image000000IMG_3312IMG_2883IMG_3117IMG_2538IMG_2847IMG_2886IMG_2930IMG_0406[62]IMG_1362Resized_20240802_122033[21]IMG_0046[47]IMG_0285[86]IMG_6145IMG_6141IMG_6142IMG_6793IMG_3510IMG_3562IMG_7772IMG_7812IMG_6708IMG_6697IMG_8295IMG_938674500395213__C2E5AE0F-9457-4B23-A67E-D04DA5CDF197IMG_9079IMG_9043

  5. Tax Incentives on Opportunity Zones Sunset in 2026, But There Is Still Time to Invest

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    Qualified Opportunity Zones (QOZs) were created by Congress in the 2017 Tax Cuts and Jobs Act to spur investment into distressed communities around the country. Investors are allowed to place capital gains from the sale of stocks, real estate or businesses into OZ funds without having to pay taxes on those capital gains. This is an investment strategy similar to 1031 exchanges except OZs allow the elimination of tax obligation whereas 1031s only defer tax obligations.

    If the investment is held for five years, a 10% exclusion of the deferred gain is realized; after 7 years that exclusion increases to 15%. After holding the investment in the fund for 10 or more years, the investor can realize a benefit of paying no taxes on the investment.

    Seven years into the 2017 Act, what do investors, future investors and potential land holders in QOZ areas need to know now, and is it still a wise investment?

    While one of the bigger benefits of investing in OZ funds expired at the end of 2021 (the ability to qualify for a 10 percent step-up in investment), the opportunity provided in the 2017 Tax Cuts and Jobs Act is still beneficial. The tax cut incentive has gained traction slowly, but 2022 marked the strongest year for OZ investment since its inception. Through 2026, investors can still access OZ incentives with no capital gains taxation if they hold the investment for at least a decade. The 2017 Tax Cuts and Jobs Act was designed with a 10-year lifespan and will sunset on December 31, 2026. Investing in Opportunity Zones is a generational opportunity to improve your community and reap tax incentives, and, with the Act sunsetting in 2026, investors have a limited time to take advantage. How to get started:

    To invest in an OZ, the investor must either:

    Create a Qualified Opportunity Zone Fund or

    Invest directly into a QOZ fund where at least 90% of the holdings are invested into businesses located within a QOZ.

    OZ funds can invest in either real estate development or start-up/spin-off businesses whose primary office/place of business is located inside the boundaries of the OZ.

    In West Virginia, 55 areas have been designated as Opportunity Zones over 30 counties. Regionally, parts of Morgantown, Fairmont, Clarksburg, and Grafton have been designated as OZs. Click here for a map of OZs.

    In commercial real estate, there are a couple ways to invest into a QOZ. The goal of the program is to spur development into distressed communities; therefore, one cannot purchase land under the QOZ program and just sit and hold the property. A developer can purchase raw land and make improvements to the land by developing a site where a working business entity is to be located. A developer can also purchase property with existing structures but must make investment into the property to ‘significantly’ increase the value of the property; significant is defined as at least doubling the value of the property.

    A popular new trend in Opportunity Zone investing is the chance to take advantage of the Act’s class of land identified as “the energy sector”. The energy sector includes fossil fuels and many designated QOZs are in areas renowned for energy production, like the Marcellus Formation in Pennsylvania.

    The details of the OZ fund program are fairly extensive. Please contact us at Black Diamond Realty or call your accountant or financial planner/advisor to further discuss the benefits of the OZ program.

    The properties below are Black Diamond Realty offerings that are available and located with an Opportunity Zone. Click on the addresses below to learn more about each offering.

    MORGANTOWN

    FAIRMONT

    CLARKSBURG

    GRAFTON

    MARTINSBURG

    Important Dates
    June 28, 2025 – Eligible capital gains recognized in 2024 must be invested by this date.
    June 28, 2026 – Eligible capital gains recognized in 2025 must be invested by this date.
    December 31, 2026 – Capital gains deferral benefit on Opportunity Zones expires.
    December 31, 2047 – The program is scheduled to fully sunset; after this date QOZ zones designations become inactive.

    Helpful Links
    IRS Website – Opportunity Zones
    Map of Opportunity Zones

  7. CCIM Institute President’s Message | June 2024

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    CCIM Institute President’s Message  | June 2024

    Dear CCIMs,

    Reflecting on last month’s accomplishments, I am incredibly proud of our continuous efforts as an organization and our CCIM community. From our most talked-about booth at ICSC Las Vegas to our Designees and candidates taking part in the REALTORS® Legislative Meetings in Washington, each step we take to further the industry it propels us forward in becoming the premier source for commercial real estate education and expertise.

    I am excited for June because it marks the start of summer and the release of the summer issue of CCIM Connections magazine. This issue highlights the contributions of our members and chapters, showcasing their individual experiences and illustrating The CCIM Institute’s global influence on commercial real estate.

    This month we are also gearing up for the C5+CCIM Global Summit, a partnership with the National Association of REALTORS® bringing the best and the brightest in the industry together, September 17-19 in Hollywood, Florida. This year’s event will feature keynote speaker Dan Marino, pro football Hall of Famer and legendary quarterback, as well as Tiffani Bova and Paco Underhill, experts in top-line growth and consumer behavior. Save on registration by taking advantage of the advanced rate, which ends Aug. 16.

    What I am most excited to celebrate this month, though, is the launch of the CCIM Designee Marketing Campaign. This nationwide initiative aims to nationally recognize the value and strength that a CCIM brings to a deal. The campaign targets our allied partners, helping them understand the opportunities partnering with a CCIM can bring to maximizing client returns and investments. This three-year campaign will also provide valuable insights into how the Designation is perceived and understood in the marketplace and help us better position ourselves for the future.

    As we look ahead at the second half of 2024, I always like to reflect on where I have been and where I am headed. As your Global President, I am proud of the progress we’ve made the first half of this year and excited for the opportunities that lie ahead. Thank you for your support and commitment to being a member of The CCIM Institute.

    Sincerely,

    D’Etta Casto-DeLeon, CCIM

    d_etta_president_signature_205x64px_2700462.png

    2024 Global President
    The CCIM Institute

     

    See the Newsletter Email

  16. BDR Reward Trip 2024: Bahamas

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    Black Diamond Realty Travels to the Bahamas for their 2024 Reward Trip

    Reward Trip 2024 – Bahamas

    Each year, Black Diamond Realty provides an incentive trip intended to reward team members who meet individual and company goals. 2024’s destination was Paradise Island of the Bahamas. The six days included lots of sun, playing beach volleyball, endless beverages, exploring the shops over at Atlantis and so much more! Our team returned to Morgantown recharged and excited for another successful year.

    Black Diamond Realty has created a family-like, teamwork-oriented culture in which our team is vested in each other’s success. Our process is detailed and diligent but it surrounds core values and beliefs that are summarized by the acronym, HIT. “ H ” stands for honesty, hard work and humility. “ I ” stands for integrity, intelligence and innovation. “ T ” stands for teamwork, tenacity and technology. Maintaining a consistent focus on honoring our HIT value system, BDR’s team works tirelessly to achieve our clients’ goals. Recharging the battery is paramount to providing a high level of service.

    Thank you to all our clients and referral sources for trusting us with your projects. Check out some of our favorite moments below.

    IMG_1341IMG_3268IMG_7327IMG_3317(1)IMG_3334IMG_7290IMG_1175IMG_3307IMG_1235IMG_122620240131_154311_OriginalIMG_5519IMG_1223IMG_3161IMG_3291IMG_3427424679464_10113212530090643_8156169262807747778_n424785164_10113212530295233_2172673454612846608_n424996448_10113212530210403_883187828977083634_nIMG_3331

  19. Reflecting and Projecting 2023 – 2024

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    As humans, it is natural for us to take things for granted.  Our children will stay young forever.  A business will continue on its current growth trajectory.  2023’s rapidly changing interest rate environment served as a reminder that things can change quickly.  On March 17, 2022, the federal government set out to slow down an economy that was growing at an unsustainable rate.  The federal funds rate rose from 0.25% to 0.50% in March 2022 to 5.25 to 5.50% on July 26, 2023 which represents the last rate hike (https://www.forbes.com/advisor/investing/fed-funds-rate-history/).  That’s 500 basis points in 16 months!  Rapidly increasing the federal funds rate achieved the government’s goal of slowing inflation.  The speed of change was rapid, being the fastest in multiple decades, and sent shock waves throughout the commercial real estate world. Some of Black Diamond Realty’s observations are captured in the bullet points below.

    • Buyers were forced to adjust their internal underwriting to account for higher borrowing costs, due to higher interest rates, which ultimately led to rising cap rates.
    • Sellers are also forced to adjust value expectations when evaluating their assets and pricing to meet required DSC for Buyers of their assets (making it a bankable deal). Sellers are slow to adjust to a changing economy.  Human nature protects our psyche resulting in most sellers reluctancy to accept the fact that asset valuations from mid-2022 are no longer an accurate representation of today’s market value.
    • The buyer-seller gap was wide at the beginning of early 2023 but slowly shrunk. Like many things in life, time heals wounds or, in this case, narrows the buyer-seller value expectation gap.
    • Banks are quick to adjust pricing and risk tolerance guidance and adjust required DSC levels and reprice assets.
    • Banks struggle with nonperforming assets and collections.
    • Metro markets often rise faster than tertiary markets and, therefore, tend to fall faster when economic conditions adjust. The markets Black Diamond Realty services experienced a slowdown in activity but it was much less profound than many metro markets consuming national media.
    • Greater increase in creative deal structures including seller financing.
    • Higher interest rates make leasing a more attractive option for some businesses. In comparison to sale volume, leasing activity has experienced increased transactions across most sectors of commercial real estate.
    • High borrowing costs, combined with increased labor and material costs, have resulted in a significant slowdown in new construction starts. This is a national trend in most markets.
    • Land sales have slowed. Higher interest rates and increased construction costs make it more difficult to “pencil” returns that meet developer hurdle (internal return) rates.
    • Less individuals can afford to buy their “dream home” because of rising home prices and rapidly changing interest rates which has resulted in many potential buyers sitting on the sidelines and renting longer. Market rents have continued to tick up in most markets helping to create greater demand in CRE’s multifamily sector . Market inventory continues to be the key struggle leading to lower transaction volume this sector.

    2023’s theme was rapid change.  What will 2024 look and feel like?  Predicting the future is impossible, but national trends and experience allow us to make educated guesses.  Please bear in mind you should always complete your own due diligence before making an investment decision.  Black Diamond Realty’s 2024 predictions are as follows:

    • The Federal government is anticipated to lower interest rates three to six times throughout the year. BDR anticipates four lowering events with a final result between 100 to 150 basis points.
    • Election years usually create uncertainty and fear which causes many investors and businesses to adopt a holding pattern. Declining interest rates should create a market buzz but uncertain political outcomes will soften 2024’s activity.  In comparison to 2023, greater CRE deal volume is anticipated.
    • Combined with high bank CD and money market rates, 2023’s slowdown in CRE activity has led to pent up demand with a lot of “powder” sitting on the sidelines. Cash is, once again, king/queen.  “One person’s demise is another’s potential treasure.”  Many adjustable and/or maturing loans will present buying opportunities over the next 12-24 months.
    • Banks will be quick to move nonperforming/uncollectable assets off their books. This will create opportunities for buyers to pick up properties at a discount…timing and connections will be key to buying up these assets.
    • Office assets, overleveraged real estate and properties financed with short-term debt all face headwinds in 2024. Distress, leading to buying opportunities, is anticipated across these categories.
    • User demand for industrial/logistics, retail and residential is anticipated to remain strong.
    • Cash buyers and international investors are anticipated to be more prevalent.
    • Banks will continue to tighten their lending belts and stress properties at higher interest rates (8-9%). Debt service coverage ratio (DSCR) levels will continue to be higher than pre-COVID levels.  Most banks will require a 1.25 DSCR

    We often joke Black Diamond Realty is not a group of magicians.  We are skilled CRE professionals whose job is to maximize exposure, navigate complicated processes and provide sound consultative investment and decision-making guidance based upon experience.  We are in the commercial real estate trenches every day.  We do not sell homes.

    Diversifying investments, pursuit of passive income, filling a void in your portfolio’s performance (leasing) and liquidating an asset to meet long-term goals are all reasons to contact our Black Diamond Realty team.  Call our team of experts today to set up a consultation.  We look forward to serving you in 2024 and beyond.

    Article by:
    David Lorenze, CCIM Principal, and team.

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