1031 PlusAdvisory / Brokerage Services
At Equity Retail Brokers, our Advisors take the guess work out of the equation. From the valuation of your current (down-leg) property, until settlement on your replacement asset, we have you covered.
A detailed step-by-step approach is customized for each client’s needs.
Our hands on approach, market knowledge, and industry relationships ensure you will maximize your return when working with Equity Retail Brokers.
The 1031 exchange specialists at Equity Retail Brokers maintain a dedicated platform focused specifically on these opportunities in commercial real estate markets, not just in eastern Pennsylvania, New Jersey and Delaware, but nationally as well.
For more than 25 years, our firm has forged ties with buyers and sellers of diverse commercial properties. We maintain extensive, up-to-date listings of assets for sale—everything from shopping centers and standalone retail buildings, to convenience stores, medical office buildings, second-generation restaurant spaces and more.
THE HISTORY OF 1031 EXCHANGE REAL ESTATE TRANSACTIONS
Believe it or not, investors have been able to protect their equity through these transactions going all the way back to 1921. But as noted by the Federation of Exchange Accommodators (FEA), for most of the history of 1031 exchanges, making use of the incentive was complicated—so much so, that until about 1990 only a small minority of highly knowledgeable investors regularly took advantage of the opportunity.
But in that year—a significant milestone in the history of 1031 like-kind exchanges—Congress moved to clarify ambiguities in the law and simplify the process; 1031 exchanges took off as more people became familiar with how to conduct them.
1031 EXCHANGES: BASICS AND UNDERLYING THEORY
1031 exchanges, of course, allow investors to avoid paying hefty capital gains taxes when selling investment properties—so long as they reinvest the proceeds of those sales into replacement assets acquired at the same time.
In one fell swoop, a 1031 exchange gives commercial real estate investors the opportunity to replace lower-tier properties with assets that have higher potential for performance and growth. It’s part of what makes these transactions so efficient for operators aiming to expand or relocate existing businesses.
As an aside, throughout the history of 1031 like-kind exchanges, critics have periodically attacked this incentive as a “giveaway” to investors. But as noted by FEA,
[t]he theory behind Section 1031 is that when a property owner has reinvested the sale proceeds into another property, the economic gain has not been realized in a way that generates funds to pay any tax. In other words, the taxpayer’s investment is still the same, only the form has changed (e.g. vacant land exchanged for apartment building). Therefore, it would be unfair to force the taxpayer to pay tax on a ‘paper’ gain.
The like-kind exchange under Section 1031 is tax-deferred, not tax-free [emphasis added]. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.
WORKING WITH PROFESSIONAL BROKERS ON A 1031 EXCHANGE
Efficiently conducting a 1031 exchange requires specific expertise and strong networks of investors and properties.
Because our 1031 exchange specialists closely track comp sales and pricing, they are able to accurately and objectively analyze target commercial real estate properties. Through their extensive market connections, they also have access to a wide array of deals that are either off-market or soon to be on the market. In addition, they closely follow the ever-shifting requirements of the U.S. tax code with respect to these transactions.
The net effect is to achieve your goals while saving you an enormous amount of time and money. This, in turn, helps you avoid a potential risk associated with 1031 commercial real estate transactions—ending up in a frenzied scramble to find the replacement property before the onset of the federally imposed, 45-day deadline.
At Equity Retail Brokers, our advisors take the guesswork out of the 1031 exchange process. From the valuation of your current (down-leg) property, until settlement on your replacement (up-leg) commercial real estate asset, we have you covered.
Their communication was great, including rare weekend emails as necessary.” - RB, Los Angeles, CA
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