The situation
A longtime client sold several out-of-state holdings and needed two replacement properties to complete a 1031 exchange: both investment-grade, corporate-guaranteed NNN retail leases with Dollar General and T-Mobile, in two different Florida markets.
The challenge
Two simultaneous closings against a single IRS clock, 45 days to identify and 180 to close. On one leg, diligence uncovered a permitting non-compliance issue in work the seller had represented as approved, forcing a rebuilt purchase contract and a renegotiated lease with the tenant after the agreement was executed.
The outcome
Both properties closed within the same year, inside the exchange deadline, with the lease terms corrected before closing, at $3,000,000 and $1,638,000.
Results reflect this property's conditions and scope. Other properties will differ.
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A longtime client had just sold several out-of-state holdings and needed two replacement properties, fast, to complete a 1031 exchange. Both had to be investment-grade, corporate-guaranteed leases: a Dollar General, and a T-Mobile store, in two different Florida markets.
That meant two closings, running against one IRS clock, forty-five days to identify the properties, a hundred eighty to close.
On one leg, our diligence found a permitting problem in work the seller had told us was already approved. We rebuilt the purchase contract and renegotiated the lease with the tenant, after the purchase agreement was already signed.
Both properties closed the same year, inside the deadline, for a combined four point six four million dollars.
That's what it takes when the clock doesn't wait for problems to get fixed.
