What you need to know today: the like-kind exchange strategy

A 1031 exchange (like-kind exchange) is one of the most significant tax advantages available to a real estate investor selling a property with large realized gains.  By implementing this tax strategy, it is possible to defer tax payments on the sale of an investment property indefinitely. While like-kind exchanges are common, there are still many complexities to navigate.  Given some of the proposed legislative changes put forth by the Biden administration and members of Congress, it may make sense to accelerate transactions into the 2021 tax year.

A rebound for investment activity

When it came to commercial real estate, many investors had likely felt that property values had peaked in 2016, that the bull run was ending and the economy was due for a pullback. Those are among the reasons that Jeff Otteau feels overall investment sales in New Jersey fell last year to $6.5 billion, from $8.3 billion in 2016, while activity also slowed in New York City. Yet that trend could be in store for a reversal as a result of the newly amended tax code, which has preserved and added to the benefits given to real estate investors.

Kislak brokers $21M in apartment sales in Passaic, Morris

Five apartment properties in northern New Jersey have traded for a total value of more than $21 million, under a 1031 exchange brokered by The Kislak Co. Inc.

Bergen County office building trades for $7 million

A private investment firm has acquired a 30,000-square-foot office building in Ramsey, in a $7 million transaction brokered by Brown Commercial Real Estate Services.

Net leased Fla. eatery sells for $1.8M, Marcus & Millichap says

Brokers with Marcus & Millichap’s New Jersey office have arranged the sale of a 3,861-square foot Burger King in Central Florida, the firm announced Tuesday.

Threats to 1031, carried interest in focus at private equity panel

With Election Day looming, real estate investors can’t help but think about Uncle Sam. A panel of experts in that industry explained why last week, pointing to the prospect of changes to federal regulations that they have come to rely on to do business and improve their returns.