Grand Prairie 2nd

NEW LISTING: 4,408 SF Medical-Dental | Dallas-Fort Worth Market
eXp Commercial is pleased to present to the market a fully built-out, free-standing 4,408-square-foot medical/dental office building in Grand Prairie, Texas, centrally located 22 miles southwest of downtown Dallas and 26 miles southeast of downtown Fort Worth. Though the current use is for a dental office, the property is zoned PD267A (commercial development), allowing for a variety of medical and dental uses. The property is owner-occupied and will be vacated at closing, providing an ideal opportunity for another dental practice or any number of medical office users to utilize the property for their practice or an investor who works with medical office tenants to take advantage of an investment opportunity.
Listing Brokers:
Tyson Grona | tyson@tysongronagroup.com | 936.444.3635
Randolph Taylor | rtaylor@creconsult.net | 630.474.6441
https://properties.expcommercial.com/1253332-sale

Just Sold Net Leased Industrial Akhan Semiconductor Gurnee IL

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Gurnee, IL, November 2nd, 2023 eXp Commercial (NASDAQ: EXPI), the fastest-growing national commercial real estate brokerage firm, announced today the sale of an 18,504 SF net-leased industrial property in Gurnee, IL.

The property is located at 940 Lakeside Drive in Gurnee, IL The property is a single-tenant net-leased industrial property occupied by Akhan Semiconductor.

The property was exclusively listed and sold by Randolph Taylor CCIM Senior Associate and Commercial Real Estate Broker with the eXp Commercial Chicago office.

Randolph can be contacted at rtaylor@creconsult.net or (630) 474-6441

[/col] [/row] https://www.creconsult.net/company-news/just-sold-net-leased-industrial-akhan-semiconductor-gurnee-il/

Bonus Depreciation – Overview & FAQs

Bonus depreciation

Bonus depreciation is a tax incentive designed to stimulate business investment by allowing companies to accelerate the depreciation of qualifying assets, such as equipment, rather than write them off over the useful life of the asset. This strategy can reduce a company's income tax, which in turn reduces its tax liability.

What is bonus depreciation?

Bonus depreciation — also known as the additional first-year depreciation deduction or the 168(k) allowance — accelerates by allowing businesses to write off a large percentage of an eligible asset's cost in the first year it was purchased. The remaining cost can be deducted over multiple years using regular depreciation methods until it phases out.

The passage of the Tax Cuts and Jobs Act (TCJA) in 2017 significantly changed the rules for bonus depreciation by allowing businesses to immediately write off 100% of the cost of eligible property acquired and placed in service after September 27, 2017, and before January 1, 2023. Prior to TCJA, it was 50%.

The 100% write-off of eligible property expired December 31, 2022. Unless the law changes, the bonus percentage will decrease by 20 points each year for property placed in service after December 31, 2022, and before January 1, 2027. The phase-out schedule is as follows:

• 2022: 100%
• 2023: 80%
• 2024: 60%
• 2025: 40%
• 2026: 20%
• 2027: 0%

How does bonus depreciation work?

Bonus depreciation works by first purchasing qualified business property and then putting that asset into service before year-end.

Bonus depreciation is then reported to the IRS.

For example, if a business purchased new computer software in December 2023 but didn’t put it into service until January 2024, it would be required to wait until it filed its 2024 tax return to claim bonus depreciation on the software. Since the bonus depreciation phase-out begins in January 2024, the business would then be eligible for 60% bonus depreciation — not 100%.

For more information, check out the accountants’ guide to calculating depreciation for different property types.

What are the tax benefits of bonus depreciation?

Bonus depreciation is an important tax-saving tool for businesses, allowing them to take an immediate deduction on the cost of eligible business property in the first year. This lowers a company’s tax liability because it reduces its taxable income.

What qualifies for bonus depreciation?

In order to qualify for bonus depreciation deduction, certain criteria must be met. Qualifying assets can include:

• Modified Accelerated Cost Recovery System (MACRS) property with a recovery period of 20 years or less. This includes such property as computer equipment and office furniture.
• Depreciable computer software.
• Water utility property.
• Qualified leasehold improvement property, like any improvement to the interior portion of a nonresidential building. The improvement must be placed in service more than three years after the date the building was first placed in service.
• Costs of certain film, television, and live theatrical productions.
• Vacation property if a taxpayer uses the vacation property as a short-term rental, such as an Airbnb, etc. The passage of the TCJA created the property class known as Qualified Leasehold Improvement Property. If the short-term rental is a commercial property and the taxpayer improves the interior of the building, it may qualify for bonus depreciation.
• Residential rental estate if the taxpayer conducts a cost-segregation study.
• Vehicles which have a useful life of 20 years or less.
• Used equipment if it was not used by the taxpayer at any time prior to the acquisition.

Additional information about eligibility requirements can be found at Proposed Treas. Reg. § 1.168(k)-2(b)) and on the IRS’ additional first-year depreciation deduction FAQ page.

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What is the difference between bonus depreciation and section 179?

While bonus depreciation and Section 179 are both immediate expense deductions, bonus depreciation allows taxpayers to deduct a percentage of an asset’s cost upfront. In contrast, Section 179 allows taxpayers to deduct a set dollar amount. There are additional notable differences.

• Section 179 has a limit on the annual deduction. In 2022, the maximum Section 179 expense deduction was $1,080,000. To take the full deduction, the purchase price of the eligible property cannot exceed $2,700,000. For tax years beginning in 2023, the maximum Section 179 expense deduction is $1,160,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,890,000. Bonus depreciation has no annual limit on the deduction.
• Section 179 deductions are also limited to annual taxable business income, meaning that a business cannot deduct more money than it made. Bonus depreciation does not have this limit and can be used to create a net loss.

Businesses may be able to combine bonus depreciation and Section 179 deductions to claim both deductions in the same tax year. As bonus depreciation phases out in the coming years, some taxpayers may be able to maintain some initial-year expensing through Section 179 rules.

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How do you calculate bonus depreciation?

To calculate the bonus depreciation, you need to multiply the bonus depreciation rate — which is prevailing in the market — by the cost of the business asset. Then, deduct the tax of the property from the cost of the asset.

For example:

• Amount of bonus depreciation: Cost of asset $1,000,000 x 21% tax rate = $210,000 bonus depreciation can be claimed
• Cost of asset $1,000,000 - $210,000 bonus depreciation = $790,000 depreciated value of the asset

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How do you report bonus depreciation?

To report a bonus depreciation, the election must be made by filing a statement with IRS Form 4562, “Depreciation and Amortization,” by the due date — including extensions — of the Federal tax return for the taxable year in which the qualified property is placed in service by the taxpayer.

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Can bonus depreciation create a loss?

Yes, bonus depreciation can be used to create a net loss. If the bonus depreciation deduction creates a net operating loss for the year, the company can carry forward the net operating loss to offset future income.

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Is bonus depreciation subject to recapture?

Yes, when the property for which bonus depreciation was claimed is sold, that depreciation is recaptured and taxed as regular income. However, there’s a cap on the tax rate of 25%.

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When does bonus depreciation expire?

Unless the law changes, the bonus depreciation percentage will decrease by 20 points each year over the next several years until it phases out entirely for property placed in service after December 31, 2026. Bonus depreciation will be 0% for property placed in service on January 1, 2027, and later.

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Which states allow bonus depreciation?

The state tax treatment of bonus depreciation provisions depends on the state’s conformity to the Internal Revenue Code (IRC) and each state’s decoupling provisions.

States follow different approaches in adopting conformity to the IRC, resulting in inconsistent state tax treatment of federal expensing and bonus depreciation rules. Some states conform to the current IRC, for example, Colorado, Kansas, and Louisiana; other states have decoupled from the IRC provisions, for example, Illinois, New Jersey, New York, and Pennsylvania; and others have enacted legislation that allows partial conformity or conformity in some but not all tax years covered by the federal rule, for example, Arkansas, Connecticut, and Kentucky.

https://www.creconsult.net/market-trends/bonus-depreciation-overview-faqs/

eXp World Holdings Reports Q3 2023 Results

Agent Count Grew 5% Compared to Q3 2022 to More Than 89,000 Agents in 24 Global Markets

International Realty Revenue Increased 47% Compared to Q3 2022 to an All-Time Record

Company Declares Cash Dividend for Q4 2023 of $0.05 per Share of Common Stock

BELLINGHAM, Wash. — Nov. 2, 2023 — eXp World Holdings, Inc. (Nasdaq: EXPI), or the “Company”, the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises, today announced financial results for the third quarter ended Sept. 30, 2023.

Third Quarter 2023 Consolidated Financial Highlights as Compared to the Same Year-Ago Quarter:

• • Revenue decreased 2% to $1.2 billion.
  • Gross profit decreased 10% to $83.6 million.
  • Net income of $1.3 million. Earnings per diluted share of $0.01 compared to earnings per diluted share of $0.03 in the year-ago quarter.
  • Adjusted EBITDA (a non-GAAP financial measure) increased 53% to $19.0 million.
  • Generated $56.8 million of Adjusted Operating Cash Flow (a non-GAAP financial measure).
  • As of Sept. 30, 2023, cash and cash equivalents totaled $120.1 million, compared to $121.6 million as of Dec. 31, 2022. The Company repurchased approximately $55.9 million of common stock during the third quarter of 2023.
  • The Company paid a cash dividend for the third quarter of 2023 of $0.05 per share of common stock on Sept. 4, 2023. On Oct. 25, 2023, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock for the fourth quarter of 2023, expected to be paid on Nov. 30, 2023 to stockholders of record on Nov. 16, 2023.

Management Commentary

“During the third quarter, we continued to focus on agent-centric innovation that drove meaningful results, as we once again increased eXp’s agent Net Promoter Score (aNPS) while extending our market share gains,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “In a slower market environment where every transaction counts, eXp’s agents in the U.S. significantly outperformed the market during the third quarter. This outstanding performance speaks to the differentiated nature of eXp’s platform and the power of our unique, success-oriented culture.

“Moving forward, we see many opportunities to further iterate on our agent-centric value proposition with programs like Boost, Accelerate, Thrive, and eXp exclusives and partnerships with Opendoor and the HomeRiver Group. Internationally, we recently announced a partnership with HomeHunter Global. All of this ultimately empowers our agents to spend more of their time on revenue-generating opportunities. We continue to believe that our investments in agent success are the key to driving superior growth over the long term.”

“We delivered solid financial performance during the third quarter, with year-over-year Adjusted EBITDA growth of 53% despite challenging market conditions as we continued to improve the efficiency of our operations,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “We once again gained market share, despite lower market activity due to elevated mortgage rates, which resulted in decreased transaction value compared to the prior year quarter.

“While we continue to prudently manage expenses, our strong cash flow profile enables us to simultaneously pursue an ambitious and innovative agent-centric agenda while allocating capital to our shareholders through share repurchases and cash dividends. By continuing to invest in our agents through the current market cycle, we are building a strong foundation for accelerated growth and continued share gains despite fluctuations in the market.”

Third Quarter 2023 Operational Highlights as Compared to the Same Year-Ago Period:

• • • eXp Realty ended the third quarter of 2023 with a global agent Net Promoter Score of 74, up from 71 a year ago. NPS is a measure of agent satisfaction and an important key performance indicator (KPI) given the Company’s intense focus on improving the agent experience.
    • Agents and brokers on the eXp Realty platform increased 5% to 89,156 as of Sept. 30, 2023.
    • Transactions increased 1% to 139,480.
    • Transaction volume decreased 4% to $48.5 billion.
    • Announced the first brokerage, The Bean Group, to join eXp Realty through the Boost program on Sept. 12, 2023.
    • Hosted the inaugural EXPCON Canada, the Company’s first signature event held outside the United States, on Sept. 6-8, 2023.
    • Announced the expansion of its partnership with Realty.com into Canada with the launch of Realty.ca on Sept. 7, 2023.
    • Appointed Bain Fellow and NPS creator Fred Reichheld to the eXp World Holdings Board of Directors on Sept. 7, 2023.
    • Announced eXp Realty exceeded the 1,000-agent milestone in South Africa on Aug. 10, 2023.
    • Launched eXp Luxury Division in Canada on Sept. 7, 2023.

Third Quarter 2023 Results – Virtual Fireside Chat

The Company will hold a virtual fireside chat and investor Q&A with eXp World Holdings Founder and CEO Glenn Sanford and CFO Jeff Whiteside on Thursday, Nov. 2, 2023 at 2 p.m. PT / 5 p.m. ET.

The investor Q&A is open to investors, current shareholders and anyone interested in learning more about eXp World Holdings and its companies. Submit questions in advance for inclusion to [email protected].

Date: Thursday, Nov. 2, 2023
Time: 2 p.m. PT / 5 p.m. ET
Location: EXPI Campus. Join at https://expworldholdings.com/contact/download/
Livestream: expworldholdings.com/events

About eXp World Holdings, Inc.

eXp World Holdings, Inc. (Nasdaq: EXPI) is the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises.

eXp Realty is the largest independent real estate company in the world with more than 89,000 agents in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai and continues to scale internationally. As a publicly traded Company, eXp World Holdings provides real estate professionals the unique opportunity to earn equity awards for production goals and contributions to overall Company growth. eXp World Holdings and its businesses offer a full suite of brokerage and real estate tech solutions, including its innovative residential and commercial brokerage model, professional services, collaborative tools and personal development. The cloud-based brokerage is powered by Virbela, an immersive 3D platform that is deeply social and collaborative, enabling agents to be more connected and productive. SUCCESS® Enterprises, anchored by SUCCESS® magazine and its related media properties, was established in 1897 and is a leading personal and professional development brand and publication.

For more information, visit https://expworldholdings.com.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA and Adjusted Operating Cash Flow, which are  non-U.S. GAAP financial measures that may be different than similarly titled measures used by other companies. These measures are presented to enhance investors’ overall understanding of the Company’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

The Company’s Adjusted EBITDA provides useful information about financial performance, enhances the overall understanding of past performance and future prospects, and allows for greater transparency with respect to a key metric used by management for financial and operational decision-making. Adjusted EBITDA helps identify underlying trends in the business that otherwise could be masked by the effect of the expenses that are excluded in Adjusted EBITDA. In particular, the Company believes the exclusion of stock and stock option expenses provides a useful supplemental measure in evaluating the performance of operations and provides better transparency into results of operations.

The Company defines the non-U.S. GAAP financial measure of Adjusted EBITDA to mean net income (loss), excluding other income (expense), income tax benefit (expense), depreciation,  amortization, impairment charges, stock-based compensation expense, and stock option expense. The Company defines the non-U.S. GAAP financial measure of Adjusted Operating Cash Flow to mean net cash provided by operating activities, excluding the change in customer deposits. Adjusted EBITDA and Adjusted Operating Cash Flow may assist investors in seeing financial performance through the eyes of management, and may provide an additional tool for investors to use in comparing core financial performance over multiple periods with other companies in the industry.

Adjusted EBITDA and Adjusted Operating Cash Flow should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to Net Income (loss), the closest comparable U.S. GAAP measure. Some of these limitations are:

• • Adjusted EBITDA excludes stock-based compensation expense and stock option expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses in the business and an important part of the compensation strategy; and
  • Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets, amortization of acquired intangible assets, and impairment charges related to these long-lived assets, and, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future.

Safe Harbor Statement

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. These statements include, but are not limited to, statements about the continued growth of our agent and broker base; engagement in third party affiliations; improvements in technology and operational processes; expansion of our residential real estate brokerage business into foreign markets; revenue growth; share repurchases; dividends; and financial performance. Such forward-looking statements speak only as of the date hereof, and the Company undertakes no obligation to revise or update them. Such statements are not guarantees of future performance. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include changes in business or other market conditions; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings, including but not limited to the most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K.

Media Relations Contact:
eXp World Holdings, Inc.
[email protected]

Investor Relations Contact:
Denise Garcia
[email protected]

Source: eXp World Holdings Reports Q3 2023 Results

https://www.creconsult.net/company-news/exp-world-holdings-reports-q3-2023-results/

1120 E Ogden Ave

New Listing | Retail-Office For Sale Naperville IL
eXp Commercial is pleased to present to market 1120 E Ogden Avenue, a highly visible 10,860 square foot retail-office property on 1.26 acres in desirable affluent Naperville, Illinois, along the I-88 E-W corridor approximately 28 miles west of Chicago. The property is currently owner-occupied and will be fully vacated shortly after closing, with the seller seeking approximately 60 days of post-closing possession. Flexible B3 zoning allows for a number of retail and office uses, ideal for an investor, owner-user, or redevelopment of the property.
Listing Broker: Randolph Taylor | rtaylor@creconsult.net

https://www.creconsult.net/retail-office-for-sale-1120-e-ogden-ave-naperville-il-60563/

Multifamily Sales to Pick Up Mid-2024

One reason is loan maturities, which will create transaction opportunities.

The predictions about commercial real estate’s recovery have not been pretty. CBRE, Cushman & Wakefield, and JLL all believe that any improvements will not become apparent until the second half of next year. Worse, CBRE anticipates that there will be a 5% drop in transactions next year due to rising Treasury yields that are making the cost of borrowing even more prohibitive. Meanwhile, BlackRock is forecasting that borrowing rates will remain at levels hovering around 5.5% for the foreseeable future.

But multifamily may escape this doom and gloom. Always the industry’s golden child, multifamily transactions are expected to pick up in mid-2024, according to Kelli Carhart, leader of multifamily capital markets for CBRE. These deals will be driven by an end to the Fed’s rate-hiking cycle and improved capital markets conditions, as well as loan maturities that will create transaction opportunities, she says.

We may be beginning to see signs of a gradual increase in transactions in this category. Deal volume decreased by 8.5% quarter over quarter in Q3, but that was 6% more than in Q1. Also, apartments accounted for the largest share of investment (34%) in Q3, which equaled Q2.

Still. Deal flow is down 38% from the average share between 2020 and 2022, and market-specific data for some locales reflects that.

For example, gateway cities such as New York, Boston, Washington, DC, Chicago, Los Angeles, and San Francisco tumbled 13% quarter-over-quarter. Meanwhile, Atlanta, Raleigh-Durham, Phoenix, and Dallas had the biggest quarterly gains.

Dallas-Fort Worth led all markets in investment volume over the past four quarters, accounting for 71% of the US total.

 

Source: Multifamily Sales to Pick Up Mid-2024

https://www.creconsult.net/market-trends/multifamily-sales-to-pick-up-mid-2024/

Just Sold 12-Unit Multifamily Property Aurora IL

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Aurora, IL, November 9th, 2023 eXp Commercial (NASDAQ: EXPI)  the fastest-growing national commercial real estate brokerage firm, announced the sale of a 12-unit multifamily property located at 557-559 Ashland Ave. in Aurora, IL, for $1,395,000.

The property was exclusively listed and sold by Randolph Taylor CCIM Senior Associate and Commercial Real Estate Broker with the eXp Commercial Chicago office.

Randolph can be contacted at rtaylor@creconsult.net | (630) 474-6441

[/col] [/row] https://www.creconsult.net/company-news/just-sold-12-unit-multifamily-property-aurora-il/