Understanding the Reverse 1031 Exchange in Florida

Some Commercial Property Investors feel uneasy about the 1031 exchange mostly because they have not had a good experience using the 1031. Now we have information on a Reverse Exchange with the 1031 prerequisites. Well the Reverse Exchange is can be more confusing than a Forward Exchange but does not have to be. Investors working with an appropriate intermediary will see that a Reverse Exchange is the mirror image of a Forward 1031 Exchange. This situation applies when your Replacement Property is acquired first.

So given the 1031 Exchange codes, we know that the Investor can’t own both the Relinquishing Commercial Property and the Replacement Property at the exact same time. The code will demand that either your Replacement Property must be transferred to an “Exchange Accommodation Titleholder” (“EAT”) while you still hold on to the Relinquished Property. While your new property is what we call parked with the EAT, well then the old property must be identified as the commercial property to be sold.

This 1031 Internal Revenue Code offers the necessary procedures to defer your capital gain and recapture depreciation taxes.

Contact us to assist you with your next 1031 exchange in Florida. We can assist you with selling your existing property or finding the perfect fit for your new investment properties.

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

The information below is an example of a Florida Investment Property which was previously available. We are able to find you new current Listings once you contact us.

Commercial Property with American Tire Distributors – 10 Year Lease

Price $12,000,000 estimated Property Sub-type Retail (Other)
Building Size 130,000 SF Property Use Type Net Lease Investment with 10+ years left on lease
Price per SF $93.05 estimated Cap Rate 5.90% estimated
Property Type Retail Tenancy Single

 

Florida Commercial Property Description

New 10 Year Lease which came with 2% Annual Increases

This Investment Property is located between Interstates 10 and 295 in the growing area of Jacksonville.

This was a Brand New Addition of 50,000 Square Feet American Tire Distributors, which is the leading replacement Tire Distributor in the United States.
The Company had 2014 Sales of $3.6 Billion.
The Company Originally filed for a $230 Million IPO in February 2010 as American Tire Distributors but that April it was Acquired by the Private Equity Firm TPG for $1.3 Billion. TPG is a Leading Global Private Investment Firm with $65 Billion of Capital Under Management.

Jacksonville, the largest city in area in the continental United States, is a rapidly growing metropolitan city in Northeast Florida, with approximately 850,000 residents.

The commercial property was located in the industrial area of Jacksonville, which is conveniently just off Interstate 10 and Interstate 295. The commercial building is currently being expanded with an additional 50,000 rentable square feet. ATD has agreed to extend for an additional 10 years commencing on completion date of the new addition. The lease features 2% annual increases with two (five year) option periods.

American Tire Distributors is the leading replacement tire distributor in the United States. Founded in 1935 as the J.H. Heafner Company, Inc, we have grown from a regional family-owned company to a successful nationwide distribution enterprise. With fiscal year 2012 sales of over $3.4 billion, we serve approximately 70,000 customers through a network of distribution centers throughout the United States and Canada.

Financial Summary of the Florida Investment Listing (Actual)

Net Operating Income $715,000 estimated for a Like Kind Property

 

7051 Stuart Avenue, Jacksonville, Florida 32254 (Duval County)

This information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. The information above is provided for consumer personal, solely to identify potential properties for potential purchase.

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