1031 Exchange

1031 Exchange

  • 1031 Exchange
  • Benefits
  • We Can Help
  • Track Record

What is a 1031 Exchange?

A 1031 exchange is a strategic real estate transaction that involves selling one qualifying property and subsequently buying another qualifying property within a 45-day period. Because the entire 1031 exchange transaction is treated as an exchange and not a simple sale, the taxpayer can defer capital gains.

How Can I Benefit?

Because the 1031 exchange is treated as an exchange and not a sale, you do not pay capital gains tax, which is currently 15%, but may be as high as 20% in the future. Additionally, you will save on federal and state taxes.

How We Can Help

We offer the expertise needed to help you smoothly execute your 1031 exchange. With tight timelines and strict rules to follow, you need a partner who provide you with the most investment property options and who can assure flawless execution.

Our Recent Track Record

In the third quarter of 2015, the Jonna Group facilitated a near $90 million 1031 exchange for a New York-based private partnership that sold a landmark high-rise building in the heart of downtown San Diego. Proceeds from the sale were nearly $45 million. The client’s primary 1031 objectives, in addition to a significant tax deferment, was to arbitrage the money extracted from the sale into absolute-net assets free of management responsibilities.

One of the nation’s largest and most reputable private property landlords personally recommended The Jonna Group due to the massive assignment at hand. He required an active group with expansive tentacles in the NNN segment, national spheres of influence including owners and developers, an infrastructure for handling 20 or more deals at once, expert negotiation skills to o deal with multiple sellers and seller brokers, sophistication to manage ongoing attorney dialogue and interaction and competence to oversee third-party proceedings while administering lender requests.

The Jonna Group sourced more than 100 deals for client review and secured more than over 30 deals in advance of the client’s ID period. In addition, we provided immediate access to interactive spreadsheets and updates for instant feeds to the client, his partners and his team of attorneys and accountants. Product sourced included freestanding Olive Gardens, Applebee’s, Walgreens, CVS, Family Dollar, Dairy Queen, Dollar General and other segment-related national users across the United States.

The Jonna Group’s brokerage efforts resulted in generating a multi-million dollar property portfolio for our client and his family. This tax-free exchange will provide a safety net that preserves and grows wealth for generations to come. Each acquisition represents equity build-up through appreciation, diversification, passive cash flow, principal reduction and rental-stream growth. The private partnership and their families are now positioned with a sizable income stream backed by corporate guarantors and viable freestanding real estate within primary metropolitan areas of the U.S.