Yes, the 'non-profit' status has excellent advantages. My point was that it is harder to justify that status the more 'business oriented' it becomes.
I would assume if you dont pay tax then you cant claim mortgage interest deductions - you cant 'have your cake and eat it'

Whilst there are advantages to ownership of property for private individuals/sole traders etc. this is not always the case for businesses. I dont know how 'capital gains' taxes operate in the US but you would normally be allowed to offset the full 100% of leasing costs against tax.
However, if you own the building, and it appreciates, then surely you will be taxed on that annually, and then any correction adjustments are made at disposal.

Our Treasurer Mike Q, also in the working party, will no doubt know all the ins and outs of this.