1031 Tax Deferred Exchange

Client

When our Client, a local owner of a successful HVAC company who sold the business and underlying real estate in the early 90s, needed to complete a property exchange and to produce a reliable source of investment income, WYSE led a process to evaluate a large number of opportunities, and negotiated the acquisition of a property that has provided a stable return under our watchful asset management team for nearly two decades.

Challenge

After selling the business and underlying real estate, our client needed to reinvest significant sums in replacement real estate to defer capital gains tax.

Solution

WYSE developed criteria for evaluating dozens of potential replacement properties and led an efficient process for optioning selected properties and completing due diligence and underwriting for each. WYSE determined that a multi tenant commercial real estate property would meet the majority of our client’s investment objectives including risk tolerance. Three suitable exchange properties were ultimately identified though us with an exchange accommodator. Following identification, the client used WYSE’s comparative analyses to select the most desirable property on the most competitive terms, and closed the purchase of an institutional grade business park for over 9 million.

Results

The acquisition of a well located class A and/or institutional grade, multi tenant industrial investment property has resulted in a steady source of substantial income for our client since the early 90s. The stability of the investment is attributed to both the quality of the property and WYSE’s continued asset management services. The property remains a key asset in our client’s portfolio to this day.