1031 Exchange into Net Lease
Our client meticulously managed and maintained his trophy apartment building in Hayes Valley for over fifteen (15) years. Ultimately, the appeal of moving his equity position on a tax-deferred basis into a management-free investment, while increasing his cash flow position, motivated the 1031 exchange into three (3) triple net properties. In doing so, he diversified geographically, and across three (3) different tenant profiles: quick service restaurant, bank, and drugstore. As a result of our client's 1031 exchange, he increased his cash flow, eliminated management responsibilities, and diversified his real estate holdings out of one (1) property into three (3) properties.
Sale Price: $5,200,000
Cap Rate: 5.37%
Guarantor: Credit: BBB
Term Remaining: 20 years
Rent Increases: 2% x 5-years
Sale Price: $5,025,000
Cap Rate: 6.03%
Guarantor: Corporate
Term Remaining: 15 years
Rent Increases: 10% x 5-years
​​Sale Price: $3,030,000
Cap Rate: 6.15%
Guarantor: Credit: A+
Term Remaining: 12 years
Rent Increases: 7.5% x 5-years
Client Testimonial:
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“For someone who had never done anything like this before, NLX made the whole experience very non-stressful for me. I will be eternally grateful, because I can see how this could be a real nightmare in the wrong hands.”