Section 1031 like-kind exchanges represent a powerful strategy to defer capital gains taxes, preserve equity, and facilitate portfolio growth for real estate investors and companies. Our team assists clients in navigating the intricate requirements of these complex transactions. We provide guidance through every phase of a 1031 exchange, including pre-exchange planning and structuring, identification and exchange period compliance, and qualified intermediary (QI) selection and coordination. We leverage our expertise related to New Jersey’s unique tax implications for real estate transactions, including the gross income tax (GIT) and bulk sales law to advise clients on navigating these state-level requirements within the context of a 1031 exchange.
Representative Matters
- In a cross-border transaction, represented a New Jersey-based purchaser in the acquisition of Virginia commercial property as replacement property in a complex Section 1031 exchange, negotiating purchase terms, reviewing a long-term Valvoline lease, addressing environmental compliance issues, and resolving closing conditions to complete the exchange.
- Advised the owner of a multi-tenant commercial building on a $1.6 million sale, securing bulk sale clearance and structuring the transaction as a tax-deferred Section 1031 exchange to preserve value at closing.
- The firm has represented Federal Business Centers, Inc. in multiple complex acquisitions, dispositions, and financing transactions involving large-scale industrial and commercial properties throughout New Jersey, with aggregate transaction values exceeding $140 million. That representation has included a $49.75 million acquisition of a 12-building commercial complex structured as replacement property in a Section 1031 exchange; sales of contaminated and vacant industrial land involving ongoing remediation, post-closing access, and strict exchange timing requirements; and fixed-rate and construction financing transactions for major industrial facilities negotiated during volatile credit-market conditions. Additional work involved lease terminations, tenant estoppels and SNDAs, environmental risk allocation, demolition planning for redevelopment, resolution of pad-site and cell-tower lease issues, and coordination of lender, environmental, and insurance stakeholders.
- Represented a client in a Florida real estate sale structured as a Section 1031 exchange, including pre-sale reorganization of multiple entities into a single holding company, negotiation of the sale of three parcels, coordination of tenant access and estoppels, and execution of exchange documentation.