Property taxes and multifamily entity transfers

3 Replies

Does anyone have experience with entity transfers vs actual sales of multifamily properties in Ohio? I'm aware of the pros and cons of both, but have heard that entity transfers are common in Ohio. What I haven't heard are specific outcomes as it affected property tax in the end. I'm curious if anyone has seen a significant increase in property taxes either way, how their lender evaluated the potential increase, and if their lender was on board with an entity transfer.

@John L.   In my experience, Entity transfers will deter most municipalities from a reassessment in RE taxes.  However, I am seeing more municipalities / school boards annually review larger properties (>$1mm) titles for any changes and will reassess based on what they dig up.  It all depends on the city / school board and its aggressiveness in Northeast Ohio.  

I have yet to work with a lender that has successfully made a loan on a member stock sale transaction less than $10mm.  However, I am working on a transaction now that the lender is willing to move forward using this purchasing method.  I will be happy to post the results and if successful, the lender providing the loan.