Miami Beach, Florida – We have 1031 Exchange news on the 1031 Construction Exchange. The 1031 Exchange is one of the greatest wealth building tools that is currently available. In a 1031 construction exchange the exchanger has found a commercial site. The Commercial Property that the investor prepares to buy for a 1031 Exchange replacement property, before improvements, must be required to meet or exceed the value of the relinquished property.
In 2000 in Rev, Proc. 2000-36 the IRS set forth the procedures to safely accomplish what can be defined as a construction 1031 exchange. In a construction 1031 exchange, the exchanger cannot improve upon a property that the investor already owns. Therefore the replacement property must be held, temporarily, by a holding company known as an Exchange Accommodation Titleholder (EAT).
Investors Solution to 1031 Exchange Properties
A transfer of relinquished property in a 1031 exchange will not fail to qualify under section 1031 merely because the replacement property is not in existence or is being constructed at the time the commercial property is identified as replacement property. In any tax deferred exchange, investors must be very specific when identifying replacement property to be acquired. When identifying replacement property to be built, investors must provide the legal description for the underlying land and detail regarding construction of the improvements as is practicable at the time the identification is made. This would include providing detailed plans and specifications for the structure to be built or repaired.
We have news on a possible Candidate for a 1031 Construction Exchange. A Commercial Real Estate development in Miami was in need of capital to finish their construction project. This project was formerly known as the Brickell Financial Center, now called 600 Brickell Avenue received the construction loan to finish their project. This Commercial Real Estate development was at a standstill due to Investment Property financing tightening up. Now Commercial Mortgage Lenders have arranged capital to fund this $130 million senior construction loan. Brickell Holdings, LLC signed for this Commercial Loan for use to develop 600 Brickell Avenue, the 40-story, Class A office tower. Brickell Holdings, an affiliate of Miami-based Foram Group.
Miami Commercial Real Estate Project
Miami-based Foram Group (Foram) is the commercial real estate developer of this Miami project. Bilzin Sumberg had signed a net lease contract for over 114,000 square feet at the Miami Office tower. However their 10.5 year, $58 million net lease was mutually canceled when it appeared that the Office Building would not be completed as planned. Currently we are not aware of any Tenants yet they have started marketing the property for leasing to be prepared for the project’s completion.The Cheap Miami Car Insurance Company is handling quotes for this area.
The Commercial Loan Collateral is approximately 79% complete. Some reports have the project to be finished within ten months to one and a half years. The Foram Group is handling the retail net leased property leasing aspect of the property. The Commercial Loan collateral, 600 Brickell Avenue, will be a beautiful commercial real estate development and a tenant-friendly building.
The 1031 Exchange candidate will consists of a 40-story building with 26 office floors. These Class A Offices will be located above the parking garage, which will provide gorgeous, panoramic views of Miami from the lowest floor to the highest floor. The Commercial Real Estate development is about a half-mile of I-95 for easy freeway access. 600 Brickell’s core and shell are LEED precertified, which can be defined as the site development, design, resources and materials incorporate systems for sustainability and energy- and water-efficiency that complies with criteria developed by the U.S. Green Building Council (USGBC).
600 Brickell Property in Miami Florida
600 Brickell is built and designed to attract the type of tenants who share Foram Group’s green values. A company’s decision to have their offices at 600 Brickell indicates that the CEOs and decision makers have an environmental awareness. 600 Brickell incorporates a very unique feature that is a sleek, onyx-paneled grid on the parking garage façade. This Property grid will be illuminated from behind to shine beautifully in the vibrant Miami night. A Metrorail stop at the Seventh Street corner of this Investment property makes public transportation an easy option for the people to patronize in the complex or work there.
Commercial Real Estate Developments for 1031 Exchange
The engineering expertise for this commercial real estate development was from Edwards & Zuck. Edwards & Zuck brings a high level of engineering expertise to this project through their innovative design approaches. The Edwards & Zuck team offers the Commercial Property Owner the experience with their knowledge of the local governmental code requirements. Edwards & Zuck also has a proven track record for obtaining a LEEDTM Platinum rating for Class A office buildings. This Commercial Property will be designed with special sustainable features that include storm water collection for irrigation.
The 600 Brickell Project Highlights:
•536,000 square feet of office space
•Ground floor retail space for lease
•Multibay truck loading dock ramp
•Easy access with Above and below ground parking
•Enhanced BMS & monitoring control systems
•Enhanced ventilation & filtration system
•Enhanced lighting control systems
•Dual Flush Plumbing fixtures
•High efficiency chilled water plant
•Ultra low flush fixtures
•LEEDTM Platinum Rating PHASE II
•250 room 5-star hotel w/conference facility
•Banquet hall & meeting
Call us for 1031 Exchange Properties in Florida.
O’Reilly Commercial Realty LLC
Phone: (352) 237-2222