VOLUME 30, NUMBER 1
©2014 Law Bulletin Publishing Co.
January 2014
Krause-Anderson, Elion Partners to bring new life to 700,000-square-foot corporate campus
By Dan Rafter, Staff Writer
A
key corner in the Minneapolis market will soon be home to a mixed-use development including offices, shops, restaurants and a future hotel, thanks to a partnership between Minneapolis' Kraus-Anderson and Aventura, Fla.-based Elion Partners. The two companies will work together to redevelop a 100-acre corporate campus at Interstate-94 and Radio Drive in Woodbury, Minn. The plan is to
turn the campus into a 700,000-square-foot commercial development with shops, restaurants, new office space, a hotel, bank, two medical office buildings and a day-care center. Once completed, the new development will include 300,000 square feet of new construction to supplement an existing 400,000-square-foot office building. According to the partnership, Kraus-Anderson will develop the grounds into pad-ready sites for the development of the project's new retail, grocery, restauCampus to page 25
Oil and gas royalties can energize your 1031 exchange with zero drilling risk By Parker Hallam, president of Crude Royalties
S
o often we come across folks who are unaware oil royalties or gas royalties qualify for like – kind exchanges. Indeed, they’ve been utilized for years, contributing to a well-diversified investment portfolio of stocks, bonds, cash and traditional real estate while also helping to defer taxes through a 1031 exchange. Here are just a few examples of the guidance pro-
Hallam
vided by the IRS for utilizing oil and gas minerals and royalties as replacement property:
Revenue Rule 55-526 IRS held that a royalty interest in oil and gas in place constitutes real property for federal income tax purposes.
Private Letter Ruling 8135048 The exchange of overriding royalty interests for an apartment building, office building and 50 percent interest in a condominium is of like-kind.
Revenue Rule 73-248 IRS held that a royalty interest is an interest in real property for federal tax purposes. We’re helping with a 1031 exchange right now for Royalties to page 22