Threat of higher taxes pushing apartment owners to sell now

Some apartment owners are getting some extra prodding to sell from the tax man. With the potential end of the Bush era tax cuts at the end of the year, capital gains taxes for commercial real estate are set to increase from 15% to 25%.

The influence isn't huge, given the number of methods sophisticated investors have to avoid the tax, but it does appear to be stoking the fire for the always active fourth quarter.

“This is impacting the decision to sell right now,” says Darron Kattan of Franklin Street Real Estate Services. “I know of at least one owner that's willing to take a lower price now to avoid the added taxes.”