1031 Exchange into Net Lease

 Two of the three owners wanted to reinvest their equity out of Scott Street by doing a 1031 exchange.  The primary motivation for the sale of Scott Street was to move away from management and increase cash flow; therefore, net lease investments provided an ideal solution to achieve the clients’ objectives.  By engaging Net Lease Exchange, the clients successfully closed on two (2) net lease properties—the Wendy’s property closed within the clients’ 45-Day ID period, and the First National Bank closed only a week after the ID period ended, well before the expiration of the 180 day exchange deadline.  By successfully accomplishing their 1031 exchange, the clients were able to defer capital gains of nearly $1M, increase their cash flow and eliminate all property management responsibilities. 

Property Sold

2321 Scott St

10 units | San Francisco, CA

Sale Price: $6,750,000

Ownership Interest: 67%

COE Date: Aug 2018

Properties Acquired

Wendy's | First National Bank

Memphis, TN | Omaha, NE

Sale Price: $2,000,000 | $4,900,000

Ownership Interest: 100%

COE Date: Sep 2018 | Oct 2018

Net Income (before)

$130,840

Net Income (after)

$359,900

“Thank you for all your help and guidance. You were truly professional from beginning to end.” – Tom

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©2018 by NLX | Colliers International | Net Lease Exchange

San Francisco, CA | info@thenlx.com | (415) 723-1554