1031 Exchange Replacement Properties.

A 1031 exchange (under Internal Revenue Code Section 1031) allows an investor to sell an investment property and reinvest the proceeds into another “like-kind” property while deferring capital gains taxes.

Why it’s valuable:

• Defers taxes, keeping more capital working for you
• Builds wealth faster through reinvestment and compounding
• Lets you upgrade or reposition your portfolio without a tax hit

How it works:

1. Sell your current investment property (downleg)
2. Identify a replacement property within 45 days
3. Close on the new property (upleg) within 180 days
4. Use a qualified intermediary to hold the funds (you can’t touch the money)

Bottom line: It’s one of the most powerful strategies in real estate to grow, scale, and optimize assets while deferring taxes.

Under a 1031 exchange (per Internal Revenue Code Section 1031), almost all real estate held for investment or business purposes qualifies — as long as you exchange it for another “like-kind” investment property.

Common qualifying property types:

• Retail (shopping centers, strip malls, single-tenant NNN)
• Office (multi-tenant or single-user)
• Industrial (warehouses, flex, distribution)
• Multifamily (apartments)
• Land (raw or entitled)
• Hospitality (hotels, motels)
• Special-use (self-storage, mobile home parks, gas stations)

The “like-kind” rule: It’s very broad — you can exchange almost any real estate for any other real estate. Example: Apartment → Retail, or Land → Industrial.

What does NOT qualify:

• Primary residences
• Fix-and-flips (held for resale)
• Stocks, REIT shares, or partnerships
• Property held for personal use

Bottom line: If it’s held for investment or business, it likely qualifies — and that flexibility is what makes 1031 exchanges so powerful for repositioning a portfolio.

In a 1031 exchange, these two terms describe the direction of your deal.

Upleg property: The replacement property you’re acquiring.

• This is where your money is going into
• Typically equal or greater in value than what you sold (to defer all taxes)

Downleg property: The relinquished property you’re selling.

• This is where your money is coming out of
• The starting point of the exchange

Simple way to remember:

• Downleg = Sale (going down / out)
• Upleg = Purchase (going up / into new asset)

Yes. An accommodator — also called a Qualified Intermediary (QI) — is the independent third party who facilitates the exchange.

What they do:

• Hold the sale proceeds so you don’t take constructive receipt (which would trigger taxes)
• Prepare the exchange documents
• Transfer funds from your sale (downleg) to your purchase (upleg)
• Ensure the transaction stays IRS-compliant

Why they matter: You’re not allowed to touch the money during a 1031 exchange — using an accommodator is what keeps the deal tax-deferred and valid.

We coordinate with whichever QI you’ve engaged, or recommend a few we trust if you haven’t selected one.

We’ve closed 1031 exchanges in as little as 21 days from first call. Speed comes from our underwriting infrastructure, lender relationships, and not waiting on third parties.

We handle a full range of investment-grade real estate, including:

• Retail (shopping centers, strip malls, single-tenant NNN)
• Office (multi-tenant or single-user)
• Industrial (warehouses, flex, distribution)
• Multifamily (apartment communities)
• Land (raw or entitled)
• Hospitality (hotels, motels)
• Special-use (self-storage, mobile home parks, gas stations)

Yes. Most of our exchange volume is in California, but we've closed exchanges nationwide — including the Bay Area, Texas, and the Midwest. Our affiliations (CoStar, LoopNet, AIR CRE, ICSC) give us national deal flow.

Standard CRE brokerage commission, paid by seller in most replacement-property transactions. No retainer or fee to engage us as your buyer's broker.