If You Are in Real Estate – What You Need to Know About the Coronavirus Relief Package

With shutdowns leading to a decrease in economic activity, the United States is expected to see one of the largest economic contractions in history, an echo from the great depression, according to Representative Don. Beyer.

The 2 trillion Coronavirus relief package will provide a stimulus to 10% of the U.S. economy and it will, directly and indirectly, benefit the commercial real estate industry. The package is meant to support the economy after COVID-19 hopefully leading to a rebound in real estate, travel, retail, and other business activity affected by shutdowns.

However, the bill really only acts as a floor to prevent economic collapse instead of spurring economic activity. It is unlikely that consumers or businesses will use government money to spend on non-essentials.

According to Oxford Economics, the bill includes tax breaks for corporations up to $232 billion and allows businesses to apply losses from 2018 to 2020 to offset income. In addition, a provision in the relief package allows property owners to write off building improvements while Real Estate investment trusts are excluded.

Is this all enough?

The Relief Package includes $1 Trillion dollars in loans, $350 billion of which are meant for small businesses with fewer than 500 employees through the end of this year. If used for rent, utility, payrolls and interest payments for an eight-week period, the loans will be forgiven, but the amount of forgiveness would be reduced if workers are laid off or have significantly reduced hours.

Without more help, it is hard to see small businesses surviving a prolonged shutdown, we don’t even know yet what life will be life after we manage to flatten the curve. Luckily, the federal government is looking to expand relief for small businesses.

Overall, time will tell how effective the current and future relief packages are for the United States economy.

Main Street Property in Poughkeepsie Purchased by Herb Redl Properties

This past January, 795-811 Main Street in Poughkeepsie, NY was purchased by Herb Redl Properties (HRP), opening up potential new development in the Arlington District of Poughkeepsie. The property encompasses 2.6 acres in the Town of Poughkeepsie and includes six buildings.

The Main Street property is prime real estate for redevelopment and Herb Redl Properties welcomes banks, restaurants, bakeries, offices, auto sales, auto repair, laundromats, and national brands to inquire more. HRP is actively seeking the redevelopment of the property and is eager to move forward.

The Arlington District has recently been part of an epicenter of new development in the area including other projects such as planet wings, popeyes, multistory apartment building, and an expansive development project encompassing the Arthur May School property located on Raymond Ave, hundreds of feet away from the 797-811 portfolio purchased. The Arthur May project calls for 187 apartments. While Vassar College just down the road has plans to build a hotel along Raymond avenue across from its main campus.

Herb Redl Properties is actively seeking to sell four buildings that are part of the portfolio and retaining ownership of two buildings located on the corner of Main Street and Raymond Ave, a lighted intersection. The four buildings include six residential units and four commercial units. Highlights of the property include high road exposure, parking in the back, parking along the street, Arlington School District, and an active Arlington District Improvement project Here.