1031 Exchange

Diversified Client’s Portfolio

RELINQUISHED PROPERTY

VACANT LAND • 774,932 SF (17.79 AC)

ALESSANDRO BOULEVARD & SINCLAIR STREET

MORENO VALLEY, CA 92555

  • Transaction Value: $17,823,500
  • Transaction Type: Exclusively Represented the Seller & Buyer
  • Price/Land SF: $23.00
  • Cap Rate: N/A
  • Net Operating Income: $0

Exclusively represented the seller & buyer. The buyer is a national based developer. The property will become a part of world logistic center, a 40.6 million square foot project in Moreno Valley that will provide a $2 billion annual economic benefit to the city. 75% of the seller partnership decided to cash out. The remaining 25% decided to pursue 1031 exchange as a strategy to diversify and substitute their retirement income.

REPLACEMENT PROPERTY

CHICK-FIL-A | GROUND LEASED QSR • 5,000 SF

1409 NORTHWEST EXPRESSWAY

OKLAHOMA CITY, OK 73118

  • Transaction Value: $3,806,000
  • Transaction Type: Exclusively Represented the Buyer
  • Price/SF: $761.20
  • Cap Rate: 4.21%
  • Net Operating Income: $160,251

Successfully completed client’s 1031 exchange. Moved client’s real estate assets into the state of Oklahoma. Strong corporate guarantee from chick-fil-a corporation. Incredible signalized corner location with traffic counts over 51,000 cars per day. Strategically located in one of the most prominent retail hubs of Oklahoma City, with a average household income of $102,850. Brand new build-to-suit for Chick-Fil-A with a 15-year lease.

1031 Exchange

Diversified Client’s Portfolio

RELINQUISHED PROPERTY

VACANT LAND • 2,320,006 SF (53.26 AC)

ALESSANDRO BOULEVARD & MERWIN STREET 

MORENO VALLEY, CA 92555

  • Transaction Value: $16,008,500
  • Transaction Type: Exclusively Represented the Seller & Buyer
  • Price/Land SF: $6.90
  • Cap Rate: N/A
  • Net Operating Income: $0

REPLACEMENT PROPERTY #1

VACANT LAND • 198,198 SF (4.55 AC)

28196 ALESSANDRO BOULEVARD

MORENO VALLEY, CA 92555

  • Transaction Value: $500,000
  • Transaction Type: Exclusively Represented the Buyer
  • Price/Land SF: $2.52
  • Cap Rate: N/A
  • Net Operating Income: $0

REPLACEMENT PROPERTY #2

TACO BELL • 1,812 SF

12851 SOUTH CLEVELAND AVENUE

FORT MYERS, FL 33907

  • Transaction Value: $3,300,000
  • Transaction Type: Exclusively Represented the Buyer
  • Price/SF: $1,819.18
  • Cap Rate: 4.00%
  • Net Operating Income: $132,000

REPLACEMENT PROPERTY #3

TACO BELL • 1,921 SF

7752 EAST BRAINERD ROAD

CHATTANOOGA, TN 37421

  • Transaction Value: $2,555,812
  • Transaction Type: Exclusively Represented the Buyer
  • Price/SF: $1,330.00
  • Cap Rate: 4.25%
  • Net Operating Income: $108,622

This case study highlights a successful investment strategy that was implemented by our firm on behalf of a client seeking to diversify their investment portfolio and substitute retirement income through a 1031 exchange.

Our client was the seller of a 53.26 acre site that was sold to Highland Fairview as part of the World Logistic Center, a massive project encompassing 40.6 million square feet of industrial warehouses. A portion of our client's partnership decided to participate in a 1031 exchange with the goal of diversifying their investment portfolio and substituting retirement income.

To achieve these objectives, we identified and facilitated the purchase of two NNN Taco Bell properties located in income tax-free states of Florida and Tennessee, as well as a land deal in Moreno Valley with tremendous upside potential. This allowed our client to generate a significant annual income of $240,000 tax-free while also capturing the future growth potential of the local economy in Moreno Valley.

In summary, our strategic investment approach allowed our client to achieve their desired goals of diversifying their portfolio, substituting retirement income, and capturing future growth potential in a tax-efficient manner. Our firm's expertise and diligent execution of this 1031 exchange transaction ultimately delivered significant value to our client.

1031 Exchange

Diversified Client’s Portfolio

RELINQUISHED PROPERTY

VACANT INDUSTRIAL BUILDING • 9,600 SF

2628 EAST 54TH STREET

HUNTINGTON PARK, CA 90058

  • Transaction Value: $2,200,000
  • Transaction Type: Exclusively Represented the Seller & Buyer
  • Price/SF: $229.17
  • Cap Rate: N/A
  • Net Operating Income: $0

Closed escrow at 100% of asking price. Secured ideal owner/user buyer familiar with the property. First time buyer expanding their la footprint.

REPLACEMENT PROPERTY

STARBUCKS | NET LEASED QSR • 2,000 SF

707 WEST MARSHALL AVENUE

LONGVIEW, TX 75601 

  • Transaction Value: $2,213,000
  • Transaction Type: Exclusively Represented the Buyer
  • Price/SF: $1,106.50
  • Cap Rate: 4.50%
  • Net Operating Income: $99,585

Successfully completed client’s 1031 exchange. Moved client’s real estate assets into the state of Texas with no state income tax. Strong corporate guarantee from Starbucks corporation. Incredible signalized corner location with traffic counts over 51,000 cars per day. Brand new build-to-suit for Starbucks with a 10-year lease.

1031 Exchange

Diversified Client’s Portfolio

RELINQUISHED PROPERTY

STERICYCLE | NET LEASED INDUSTRIAL 

• 28,355 SF - 2775 EAST 26TH STREET

VERNON, CA 90058

  • Transaction Value: $5,000,000
  • Transaction Type: Exclusively Represented the Seller & Buyer
  • Price/SF: $176.34
  • Cap Rate: 4.78%
  • Net Operating Income: $238,772

REPLACEMENT PROPERTY #1

CHUY’S RESTAURANT • 2,500 SF

7101 EAST 22ND STREET

TUCSON, AZ 85710

  • Transaction Value: $1,190,000
  • Transaction Type: Exclusively Represented the Buyer
  • Price/SF: $476.00
  • Cap Rate: 6.11%
  • Net Operating Income: $71,450

REPLACEMENT PROPERTY #2

DOLLAR GENERAL • 7,500 SF

50580 MAIN STREET

CABAZON, CA 92230

  • Transaction Value: $2,337,355
  • Transaction Type: Exclusively Represented the Buyer
  • Price/SF: $311.65
  • Cap Rate: 5.90%
  • Net Operating Income: $122,000

This investment case study involves the sale of a 28,355 square foot industrial building with Stericycle as the tenant. The property was a single-tenant NNN industrial property with a lease term of less than three years, and uncertainty existed as to whether the tenant would extend their lease upon expiration.

The proceeds from the sale were utilized to purchase two long-term NNN investment properties with lease terms exceeding 10 years. Additionally, the client was able to cash out over $1,000,000 to diversify their portfolio. Through the 1031 exchange, the client was able to balance their income needs while capitalizing on the recent appreciation of industrial real estate.

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