Los Angeles, California – We have many commercial real estate investors seeking apartment building complexes, triple net lease properties and retail shopping centers for their 1031 Exchange replacement property. A triple net lease does require that the tenant pays some or all of the property expenses. The tenant would also pay fixed rent as well as expenses. These expenses can include property taxes, insurance, maintenance, repairs, utilities and other items agreed upon when the lease is signed. So an 1031 Exchange investor can go from an apartment building to a NNN Lease Property.
The definition of “like-kind” has been misunderstood to mean “The requirement of the acquisition of property to be utilized in the same form as the exchange property”. Some investors think it must be a hotel for a hotels, apartments are for apartments, and so on. When preparing for a 1031 Exchange remember that commercial properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. This 1031 exchange strategy allows apartment building owners to get an asset that lending institutions trust more with a credit rating (Net lease Tenants like Walgreen’s).
We have news on an apartment building purchase in the O.C. (Orange County). Although it is not reported as a 1031 Exchange, this property could be a 1031 Exchange replacement property. The Crystal View apartments have sold for $53 million. Phoenix Realty Group (PRG) and MG Properties Group (MGPG) are the investors who acquired the Crystal View apartments.
This 1031 exchange candidate is said to offer quality and affordable apartment units to residents of Garden Grove, California’s. This 1031 exchange candidate was built in 1968 and has undergone extensive renovations over the years. The Apartment Building complex is located at 12091 Bayport Street in Garden Grove, California with the zip code of 92840. The Investment Property, Crystal View, has 402 Units. The apartment complex offers one-bedroom and two bedroom apartments and studios. This 1031 exchange candidate also offers high-end amenities including tennis and basketball courts, fitness center, movie room and clubhouse.
This Investment Property was acquired on behalf of a Phoenix Realty Group institutional real estate fund. The commercial property buyers believe the property will provide affordable housing and is ideally located for people working at the Disney Resort, resort hotels, UC Irvine Medical Center or The Block at Orange. The commercial property investors will keep approximately a fifth of the units, to be saved for people making half of the area’s median income. That would be Tenants who earn approximately $30,000 a year or less.
Phoenix Realty Group is a national commercial real estate investment manager. Phoenix Realty Group also provide capital and expertise for the development and operation of apartment rental properties, and low-income tax-credit housing. They also invest in mixed-use properties and commercial projects in urban areas across the Country. Phoenix Realty Group maintains extensive fund management, underwriting, development, construction management and asset management capabilities.
Phoenix Realty Group has proven themselves, as they have attracted investments from America’s leading public pension funds, banks and insurance companies. Phoenix Realty Group is involved with discretionary funds that invest in opportunistic and value-added commercial real estate developments. PRG currently manages investments representing $2 billion in commercial real estate development and acquisitions.
Call us for 1031 Exchange Properties in Florida.
O’Reilly Commercial Realty LLC
Phone: (352) 237-2222