Simultaneous 1031 Exchange Transactions

Challenge

An owner of a single-tenant NNN investment property, McAllister’s Deli, located in College Station, TX, was interested in selling his property due to the short lease-term left.

However, the sale proceeds calculated to be left over would not meet his required returns on the property and he did not wish to do another 1031 exchange due to the risks of finding a new property.

 

Action

The owner engaged with Alex Eberhardt to sell the property. Alex first contacted the franchisee/operator of the property as well as other College Station/Bryan, TX retail property owners. The Operator was interested but pricing could not meet the Seller’s expectations.

Alex Eberhardt and the operator discussed the possible idea of the Seller completing a ‘simultaneous 1031 exchange’ from the College Station property into a brand-new McAlister’s Deli in Muskogee, OK owned and built by the same franchisee/operator purchasing College Station’s McAlister Deli.

 

Result

  • The Seller and operator agreed to terms to sell the College Station, TX McAlister’s Deli and 1031 exchange into a brand-new McAlister’s Deli in Muskogee, OK
  • There were no risk of 1031 time constraints due to the simultaneous feasibility timelines on both properties.
  • A long-term NNN lease was successfully negotiated to insure long-term stability.
Alex Eberhardt

For More Information, contact:

Alex Eberhardt, CCIM –
Investment and Leasing
Specialist
alexe@cbcworldwide.com
(806) 784-3258 direct