Overview

Patrick McNerney, a partner in the Chicago office, founded and manages the firm's Property & Transfer Tax practice. The practice concentrates on property and transfer tax planning, structuring, analysis, minimization, state and municipal incentives, and litigation. Patrick’s experience includes multi-state ad valorem tax litigation, real and personal property valuation and tax appeals, tax abatement, real estate tax sale, delinquency and tax exemption litigation. He has extensive experience contesting valuation assessments on large office, retail, hotel, mulitfamily, industrial, manufacturing, warehousing, telecommunications, medical office buildings, nursing, long-term health and life care facilities, low income, sanitary landfill, leasehold, agricultural, and special use properties. Patrick and his team of lawyers and tax professionals represent Fortune 100-500 companies in multi-million dollar tax disputes in multiple jurisdictions. Patrick’s litigation experience includes jury trials and Illinois Appellate and Supreme Court cases and his property tax experience extends to numerous states including California, Georgia, Illinois, Indiana, Iowa, Michigan, Minnesota, New York, North Dakota, Pennsylvania, Texas, and Wisconsin.

Patrick has national specialized expertise in state, county, and municipal real estate transfer/recordation taxes. He devises tax management and reduction strategies on large real estate fund transactions and has significant transfer/recordation tax management and litigation experience in all 50 states.

As a former prosecutor, Patrick successfully tried 24 criminal jury trials and hundreds of bench trials to verdict.

Spoken Languages

  • English

Experience

  • Currently represents a significant number of the most prominent office, retail, hotel and multifamily real estate assets located in the Central Business District of Chicago, Illinois.
  • Recently successfully resolved a multi-million dollar tax exemption litigation for a large medical services provider which had been ongoing for many years and was resolved in the client’s favor.
  • Represented a large publicly traded real estate investment fund in connection with transfer/recordation tax, property tax, and mortgage tax issues associated with the repositioning of a $16 billion portfolio of real estate assets located in 47 states and hundreds of counties and municipalities.
  • Represented a large real estate investment fund seeded with unique multi-state property investments in dispute with California assessment and taxing authorities contesting multi-billion dollar entity interest transfer and Proposition 13 change in ownership issues.
  • Represented a large publicly traded real estate investment fund in connection with the transfer/recordation tax, and mortgage tax implications and potential property tax liabilities presented by the $7.9 billion dollar merger of two entities. The real estate assets are located in 41 different states and hundreds of counties and municipalities.
  • Represented a large publicly traded real estate investment trust in connection with the transfer/recordation tax, and mortgage tax implications and potential tax liabilities presented by the $3.2 billion dollar merger of two entities. The real estate assets are located in numerous states, counties, and municipalities.
  • Represented a pre-eminent owner of an assemblage of properties comprising a prestigious and diverse integrated vertical retail mall and mixed-use development. Secured over $17M in property tax savings and refunds.
  • Represented a private real estate fund in connection with managing the property tax issues associated with a large commercial office property; secured in excess of $12 million in property tax reductions and refunds.
  • Represent a major entertainment company: provide property tax management services and assessment appeal services; challenge property tax burdens on commercial properties located in California, Illinois, Indiana and New York – secured multiple millions of dollars in property tax savings.
  • Represented a numerous charitable/educational institutions; secure property tax exemptions on properties used for charitable, educational, religious, and other tax exempt purposes.
  • Secured in excess of a $5.5 million transfer tax refund for a large, publically traded, satellite communication and entertainment company based in Washington DC.
  • Represented large, multi-state telecommunications network; devised innovative personal property tax depreciation argument; negotiated with local and state assessment/taxing officials; filed assessment challenge in court and negotiated a tax refund of almost $37 million.
  • Represented major oil refinery in Indiana Tax Court and secured property tax refund of more than $18 million.
  • Represented major waste disposal company in property tax case of first impression; case tried in circuit court and twice appealed to the Illinois Appellate Court and once to the Illinois Supreme Court - victory resulted in tax savings of more than $16 million.
  • Represented major telecommunications company in a property tax case of first impression in Wisconsin Circuit Court that resulted in a $1.6 million tax refund.
  • Represented major entertainment company in an assessment appeal which challenged the property tax burden on a large commercial property - saved in excess of $1.5 million.
  • Represented major international electrical component manufacturer and food processing company in Illinois property tax cases of first impression and secured tax refunds of more than $1 million.
  • Represented major telecommunications company before the Michigan Tax Tribunal and secured a property tax refund of more than $1 million.
  • Structured $900 million acquisition of a large, multi-state hotel property portfolio to efficiently manage transfer/recordation tax exposure. The hotel assets were located in 29 different states and numerous counties and municipalities, most with unique transfer/recordation tax laws and regulations.
  • Advised large, private, multi-billion dollar real estate fund on restructuring from a real estate separate account investment format to an open-end, commingled investment fund and secured millions of dollars in transfer tax savings.
  • Devised transfer tax efficient structures on multiple, multi-state portfolio and real estate fund transactions securing millions of dollars in transfer tax savings.
  • Resolved multiple Illinois transfer tax litigation cases; in one dispute our client saved more than $800,000 in taxes, penalties and interest.
  • Co-authored United States Supreme Court Petition for Writ of Certiorari and Reply Brief regarding a property tax case for a major tool and hardware manufacturer.

Education

The John Marshall Law School, JD

Loyola University Chicago, BS

Admissions

  • Illinois

Court

  • US District Court for the Northern District of Illinois

Memberships

  • Member of the Building Owners and Managers Association (BOMA) Tax Committee
  • Lead team that proposed and secured passage of new legislation affecting Illinois Captive REITs. (2015)
  • NAREIM (National Association of Real Estate Investment Managers) (2013)