JVs For Partial NYC Tower Stakes Pose Control, Tax Puzzles

The opportunity to acquire a 49 percent stake in New York commercial real estate is particularly suited to Israeli insurance companies and pension funds. Under Israeli regulations, these institutional investors are not permitted to acquire a majority interest in real estate that is  subject to a mortgage loan.  While U.S. real estate developers are often more attracted to investors who will fund 80 percent or more of the equity in an investment, the tax incentives…