Appraisal Matters

So we’ve trudged through lots of quotes to get us this far.  We know what synthetic leases are, their characteristics, advantages, disadvantages and seen some examples of how they’re used.
So, What’s My Opinion?
In all the literature I’ve found on the topic, there is one sentence that says it all (sorry… last quote).
“The “synthetic” structure [...]

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In my research of these financing vehicles, I’ve found some great quotes that explain the characteristics of synthetic leases and apply them to some deals that have been done.  Permit me to give you an example.

“SGI [Silicon Graphics, Inc.] had financed the complex through an arrangement known as a synthetic lease. Under GAAP, the [...]

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Have you ever wondered why Enron managed to keep so much of its liabilities off the books?  Look no further - it was through the use of synthetic leases. The synthetic lease is another one of those abstract and creative financial vehicles that Wall Street types have created.  Having dealt with them in depth, I’d [...]

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What Is an Economic Incentive?

What comprises incentives?  On more than one occasion in our appraisal practice, I’ve interviewed various Economic Development Officers who are directly involved with offering incentives to companies in return for jobs.  They’ve indicated that the following options are available to them as economic incentives:

Tax credits, often carry forward provisions, [...]

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Over the years, I have found one property type that seems plagued by a riddle.  Not the riddle of the sphinx, but one almost as difficult to solve.  The riddle applies to industrial properties and it goes like this:  When does real estate become business?  The answer is when many of its components are so [...]

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