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Case Study: A 1031 Exchange Property in 5 Days

Popeye’s, Shelbyville, Tennessee

Spring 2019
Price: 2,168,700
Cap rate: 6%

St. Louis Buyer Secures a 1031 Exchange Property in 5 Days

A buyer local to Westwood Net Lease Advisors’ home office in St. Louis had worked for many weeks with his long-time real estate broker to identify and buy a commercial property using the 1031 exchange benefit. To utilize the tax law and defer capital gains taxes he had to identify, in writing, the property he intended to buy within 45 days of the sale of his previous property. The buyer hadn’t found exactly what he was looking for and time was running out. With only five days left, he contacted Mike Kocur at Westwood for help.

Once this experienced investor, who had not worked with anyone but his regular broker in five years, reached out to Westwood Net Lease Advisors, our team went to work. We quickly utilized our market knowledge, connections, and tools to investigate the nationwide selection and locate a property that met his goals. We found Popeye’s in Shelbyville, Tennessee, with a NNN lease, strong financials, and a 6% cap rate, and forged ahead to make the deal happen.

Businessman making handshake after closing deal

From Property Search to Closing

Though this client was a savvy investor, he benefitted greatly from partnering with our specialized net-lease buyer’s advisor to ensure his time-sensitive 1031 exchange investment goals were met. As with any investor – experienced or brand new to the market – we worked with him to find the Popeye’s property, negotiate the best price and lease terms, evaluate tenant financials and credit ratings, draft and present the Letter of Intent (LOI), and navigate the complex process through closing – all at no cost to him.

It’s important to note that before an LOI is presented, we always verify essential factors like creditworthiness and sales numbers, tenant financials, cap rate, and an analysis of the real estate. This is something that many brokers do not do that we feel is critical to ensure a strong investment.

“We believe in the personal approach to investing. Our team is in-tune with our clients as we get to know them and their objectives throughout the entire process. We keep in touch daily, advice, educate, and advocate for each investor and make the process as seamless as possible.” – Mike Kocur, Buyer’s Advisor & Broker

money and time saving

To Wrap it Up – Money Saved, Taxes Deferred, Solid Investment

Even with the 5-day crunch, we did not skip any steps in the process and our happy client is now enjoying his hands-off investment and reliable monthly income. He deferred capital gains on the sale of his former property in the 1031 exchange 45-day requirement and saved many thousands of dollars.

Download our 1031 Exchange e-book for all the details and benefits of this tax code!

Nothing outweighs the benefits of a dedicated net-lease buyer’s advisor as a partner when it comes to investing your hard-earned money in NNN properties. Our Westwood Net Lease Advisors team has decades of NNN lease expertise and specializes in 1031 exchanges. Contact Mike today at 314-584-9857 or 314-997-5227 for a free consultation.

 

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Tags: 1031 exchange, 1031 exchange properties, nnn investment properties