Kay Properties announced the successful completion of five debt-free DST purchases for a couple selling a single-family home in Southern California. They were excited to be able to defer the accumulated capital gains and depreciation recapture taxes that they have accumulated over the many years of owning and managing the property by utilizing Internal Revenue Code, Section 1031. Read More #DST #1031Exchange
By Scott R. Saunders, Asset Preservation, Inc. The 1031 exchange market nationally has been like a roller coaster this past spring and summer, plummeting down in April and roaring back up starting in June.
In late March and April exchange activity dropped off significantly as a result of the COVID-19 pandemic which forced the entire nation to work from home and/or shelter at home. Read More #1031Exchange #realestateinvestment
Investors generally think 1031 Exchange Qualified Intermediaries are the same – but they’re absolutely not created equal – and the differences can be significant and critical. Did you know there is no regulatory or governmental oversight of Qualified Intermediaries; that only about 1% are licensed, regulated, audited and have minimum equity capital requirements? Scary, when you consider how much money they are holding for investors’ 1031 Exchanges.
I have seen numerous Q
BROOKLYN, NY — Redwood Realty Advisors has assisted its client in successfully completing a 1031 Exchange following the sale of a multifamily property in Brooklyn. The client reinvested proceeds in a multi-tenant retail center which includes a ground lease on a Dunkin’ Donuts in St. Petersburg, Florida. The investor acquired the property for $3.625 million and a 6.4% capitalization rate.
“The property boasts a prime downtown St. Petersburg location in the 4th St. North Corr
Why can’t you convince your prospect to list their property with you? The highly appreciated property they’ve owned for years. You’ve told them about the great resources you have to market that property and secure the best price for them, and that now is the time to sell. Everything points to selling, yet they won’t do it. Why? Well, the problem may very well be that they actually want to sell but are concerned about capital gains taxes draining their sales proceeds and deple
From eliminating the struggles of property management to owning investment grade real estate, the potential benefits of opting to 1031 exchange into DST properties are many. At Kay Properties and Investments, we’re specialists in the DST 1031 exchange marketplace, and provide our clients with superior, knowledgeable advice to help them make informed decisions about their investments. We also are careful to help our investors understand the risks and disadvantages of real esta
Using a qualified intermediary (“QI”) can be an effective tool to give a property owner the choice of the year in which to recognize a gain, even if the exchange is not completed. The regulations under Section 1031 are very specific as far as setting forth the requirements and duties of QIs. One such requirement is that once the replacement properties are identified within the first 45 days, the QI is required to hold onto the cash until the earlier of acquisition of replacem
You may be wondering why an architectural consulting and interior design firm is providing information on 1031. Well, at Gacek Design Group, we not only believe that information is knowledge, we also know that the more we understand the commercial landscape, the more we are able to collaborate as partners and work towards a successful result. A differentiating feature of our firm is the value we place on research, so we reviewed some credible sources and as a result outlined
IRS Form 8824, the tax form filed with IRS to report a §1031 exchange transaction, provides that exchange expenses are to be deducted from the contract price in the determination of realized gain. In this context, the term exchange expense is not defined but appears to mean an expense of sale that would be excluded from amount realized in a taxable sale transaction. Examples of these expenses include qualified intermediary fees, escrow closing costs and broker commissions. Se
Part 1 In order to obtain complete deferral of capital gain taxes in an exchange otherwise meeting the requirements of Internal Revenue Code §1031, a taxpayer is generally required to reinvest all net sale proceeds generated by the sale of relinquished property in like-kind replacement property within the applicable exchange period (a maximum 180 calendar days). In addition, the taxpayer must not have a direct or indirect right to receive or otherwise obtain the benefit of th
FREDERICK, MD — Marcus & Millichap announced the sale of The Westerleigh, a 30-unit apartment property located in Frederick, according to Bryn Merrey, regional manager of the firm’s Washington, DC office. The asset sold for $1,787,500, which is approximately 98% of the listing price.Cameron Webb, associate and Stacey Milam, first vice president investments, both in Marcus & Millichap’s Washington, DC office, had the listing to market the property on behalf of the seller, a lo
ALLENTOWN, PA — Patterson-Woods Commercial Properties/CORFAC International, a full-service commercial real estate provider serving the Mid-Atlantic market, announced the sale of a nursing home facility, Liberty Nursing & Rehabilitation Center, located in Allentown, PA. The four-story property measures 43,420 s/f.
The property was sold by Liberty Allen Square, LLC to Owl’s Next Properties, LLC, a 1031 exchange-triple net investor with investments in the greater Wilmington,
Lower Bucks County, PA — Stuart Conston and Edward Ginn of Equity Retail Brokers recently represented the seller of a net leased Wawa ground lease in Lower Bucks County. The 4,983 s/f building with gasoline pumps is highly visible, and located on a major commercial corridor directly across from a major community shopping center in a densely populated area. The transaction was part of a 1031 exchange for the buyer, a New York based owner. #LowerBucksCountyPA #StuartConston #Ed
VIRGINIA BEACH, VA — Gerald Divaris, chairman and CEO of Divaris Real Estate, Inc. (DRE), announced that Armada Hoffler Properties has acquired two grocery-anchored shopping centers in Maryland, totaling 186,583 s/f. The properties were acquired for an aggregate of $20.2 million in cash, net of $15.2 million in 1031 exchange proceeds, and 415,500 shares of Armada Hoffler common stock.The two acquired properties include Perry Hall Marketplace, a 74,256 s/f, Safeway-anchored ce