1031 Exchange and Los Angeles Commercial Properties

Los Angeles, California – Our 1031 Exchange information is from the exciting City of Los Angeles. Many 1031 Exchange Investors find a construction project that they want for a 1031 exchange replacement property. This is possible as long as the time constraints fit into the 1031 Exchange rules. The Construction 1031 Exchange or Build-to-Suit Exchange is the strategy that allows the commercial property investor to build on, or make improvements to, the 1031 Exchange replacement property. This process allows the commercial property investor to use the 1031 exchange proceeds from another commercial property.

The IRS has set forth the proper procedures to accomplish what may be known as a “construction 1031 exchange”. When preparing to perform a construction 1031 exchange, the commercial property investor cannot improve upon a commercial property that they already own. So the 1031 Exchange replacement property must be held, temporarily, by a holding company known as an Exchange Accommodation Titleholder or the “EAT”.

We have researched a major commercial property improvement project in Los Angeles, California. This is not currently a 1031 Exchange construction project although it gives the idea of what an investor can move up to. The 1031 Exchange is a fantastic wealth building tool and allows many investors to get into a more expensive property. One point that can be made is that the higher the property value, the higher commercial loan amount is also being paid down (when the commercial loan is amortized). The retail shopping center at 7th and Figueroa is having a major makeover.

The Los Angeles net lease property is owned by Brookfield Office Properties. This commercial real estate firm has started a $40 million renovation on the retail shopping center. The Los Angeles 1031 Exchange candidate is approximately 330,111-square-feet and Target has recently signed a net lease for about 100,111 square feet. The new net lease with Target as anchor should send this 1031 Exchange candidate into prosperous (NOI) net operating income schedule.

This Los Angeles net lease property will be known as FIGat7th as many knew it as 7+FIG. This Los Angeles net lease property is conveniently situated off the Harbor Freeway at 7th and Figueroa retail district. The Los Angeles 1031 Exchange candidate is just a few paces from the Staples Center, the Convention Center and many major hotels. This Los Angeles 1031 Exchange candidate will also benefit from retail foot traffic from many surrounding residential properties in this Downtown area. This Los Angeles net lease property is also a few blocks from the Los Angeles Central Library.

This Los Angeles commercial property under construction is planned to be completed by the fall of 2012. This Los Angeles Commercial Property completion should be on time with Target’s grand opening. This Los Angeles Target will be one of the prized retailer’s first stores nationwide that will be the new CityTarget format. These “CityTargets” will be convenient and have a smaller-format with merchandise and fresh grocery items to supply the downtown Los Angeles citizens and workers.

This Los Angeles net lease property will also be a new start for a 500-seat indoor/outdoor dining area, which will be called Taste. This Los Angeles 1031 Exchange candidate will have a new 60-foot-wide stairway that descends off of Figueroa Street to the second level of the retail shopping center. Also architectures have designed a gorgeous structural glass canopy that will display the grand stairway and new retail shopping concourse.

The commercial property owner, Brookfield Office Properties has retained Gensler of Los Angeles for the architecture designs. Gensler describe themselves as partners with their clients, offering architect designs, planners and architecture consultants. Gensler’s projects might be as small as a wine label or a huge, new urban district. Gensler architecture firm has over 2,516 professionals networked across 35 locations. They serve their clients as trusted advisors, as they offer localized expertise and global perspectives, wherever new projects arise.

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O’Reilly Commercial Realty LLC
Patrick O’Reilly
Phone: (352) 237-2222
Email: OreillyCommercialRE@gmail.com

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