1031 Exchange into Net Lease

Paul and his wife had a fractional interest in their apartment building located at 3366 Pierce Street and had realized significant growth in their equity position without much growth in their cash flow.  Tired of fluctuating owner’s distribution checks, and looking to dissolve their partnership, Paul engaged NLX to identify a suitable replacement property that would satisfy his family’s 1031 exchange out of Pierce Street.  The Sleep Number in Murray, UT offered reliable and consistent cash flow, a growing income stream due to rent increases in the lease, and limited management responsibilities.  Paul managed to defer his capital gains, and increased his cash flow position by nearly double, while creating additional tax shelters that improved his overall return on equity. 

Property Sold

Property Acquired

3366 Pierce St

12 units | San Francisco, CA

Sale Price: $8,150,000

Ownership Interest: 25%

COE Date: Oct 2018

Net Income (before)

$61,250

Sleep Number

Murray, UT

Sale Price: $3,350,000

Ownership Interest: 100%

COE Date: Dec 2018

Net Income (after)

$220,000

“NLX was able to 'zero' into what I wanted by their professional process. It started with an initial meeting educating me to the current commercial real estate market which included a thorough interview about my investment goals and property requirements. Once NLX understood the goal, they were off and running. The rest is history.” – Paul A.

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