Using a 1031 Exchange to Sell and Buy

“INVESTMENT” Property

1031 Exchanges are used to sell your current property and defer the capital gains with a re-investment in a similar property. Meaning, if you own a multi-family property, you may be able to sell the property and invest the equity into a different apartment building or other investment property, all while deferring taxes on the original sale.

By deferring your capital gains tax, your returns can be magnified by 20% (typical long-term capital gains rate) or more depending on your situation. If you have a $500,000 gain on an apartment building that has been held for 10 years, that’s $100,000 of tax (at a minimum) deferred and fully re-investable, providing more income and equity in future growth.

We have assisted many clients looking to sell apartment buildings and re-deploy the equity into larger apartment buildings. This is a good strategy for apartment building owners looking to grow while also not creating a tax liability. We also have assisted apartment building owners in selling their apartment buildings and 1031 exchanging into single tenant NNN retail properties. This allows owners to go from an investment that requires management (apartments) into a truly passive real estate investment all while avoiding capital gains. Below is a list of the successful 1031 transactions we have completed taking clients from apartments and into single tenant retail.

Recently Closed 1031 Exchanges

Walgreens

$8,250,000
7921 SW Highway 200
Ocala, FL

Walgreens

$8,770,000
9268 Chamberlayne Road
Mechanicsville, VA

Dollar General

$1,693,292
2445 N. US Highway 21
Orange Springs, FL

Walgreens

$1,563,291
24710 SE Highway 42
Umatilla, FL

Walgreens

$7,075,000
3008 Union Road
Orchard Park, NY

Walgreens

$7,500,000
3880 Brian Jordan Place
High Point, NC

Walgreens

$6,450,000
1455 Upper Manatee River Road
Bradenton, FL

Chili’s

$5,075,000
800 Oviedo Mall Blvd
Oviedo, FL

Are you qualified for

a 1031 Exchange?

Not everyone is qualified to receive a 1031 Exchange. To determine your status, there are questions that I need to ask, such as if you have an unsold current property and discussions about the investment identification window that need to be clarified.

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