Large Permian Basin 1031 Exchange
Challenge
Our client, an out of town investor, reached out to the Coldwell Banker Commercial, Capital Advisors because he was looking for a company to help in the lease up of his shopping center in Midland, TX.
He owned a shopping center with several vacancies as well as an industrial park there. A broker in our office had a client that wanted to purchase the whole portfolio and we approached us to discuss with our client.
Action
We worked with our client and discussed the portfolio sale in great detail, we also put together several different analysis for our client, and discussed the 1031 exchange option with him to buy something on the back-end with more passive income and less management intensive than the industrial park.
We were constantly in contact with our client and his CPA regarding our numbers and making sure we put together the best 1031 option for our him. There were many different moving parts on this transaction, as there was a partnership on the disposition side and one partner wanted to do a 1031 exchange, and the other did not.
Result
- We were able to get the property under contract with our client and successfully close. Throughout the transaction process we were in constant communication with all parties of the transaction including our client, his CPA.
- We were able to find two new construction off-market shopping centers to acquire for our client and another new construction single Tenant NNN to complete his 1031 exchange.
For More Information, contact:
Eric Eberhardt, CCIM
Investment Specialist
erice@cbcworldwide.com
(806) 784-3239