RealStake

This piece from blackenterprise.com points to a couple of important features of 1031 exchanges. First, the range of allowable properties considered «like kind» is larger than most people think. Second, a fractional interest is allowed. So, for example, someone selling several single family homes at the peak of the market could invest the proceeds in «certain water rights and oil and gas interests» either as sole owner or as a tenant-in-common, purchase land for later development or purchase a tenant-in-common fractional share in a large shopping center.

The IRS considers all real estate as «like kind» so the exchange may be completed by acquiring a single-family rental house or condominium, apartment complex, office building, retail center, vacant lot or acreage, farm and ranch land, or certain water rights and oil and gas interests.

A fractional interest in a large property will also qualify as replacement property. The exchanger need not acquire the entire property. As long as you receive a deed to your undivided percentage interest and hold title as a tenant-in-common, the exchange will qualify. This often allows the investor to acquire an interest in a much larger property than could be purchased individually and in most cases the larger property will support professional management.

As residential property markets seem to be peaking, commercial markets are just heating up. From Florida to Virginia to California, new commercial development and existing property sales are taking off.

The Richmond (Va.) Times-Dispatch COMMERCIAL REAL ESTATE sees A hot season ahead in forecast for real estate.

In Minneapolis, «The historic Ivy Tower will become part of a top-tier luxury hotel and condominium complex called the Ivy Hotel + Residences, to be built near the Minneapolis Convention Center.»

In the California wine country, a new REIT has another $300 million plus to spend on acquisitions. «Vintage Wine Trust, a real estate investment trust, or REIT, focusing exclusively on vineyards and wineries, launched in March and has been on the fast track since, acquiring five vineyards for a total of $89.5 million. Partners Joe Ciatti and Richard Shell said they want to acquire a portfolio worth about $400 million and will then go public by spring 2006.»

In Charlottesville, VA, occupancy rates are up as vacant space left over from the dot-com bust are being filled. “There’s not a lot being built, and what is being built is being absorbed,� [Lane Bonner, president of Hasbrouck Realty] said. “There’s a healthy balance.�

Pensacola area business leaders are expecting to house businesses left homeless by Hurricane Katrina. «There's going to be a tremendous amount of displacement off of this storm, some of it temporary, some of it permanent,» said Al Wenstrand, executive director of Florida's Great Northwest, a regional economic development agency.»

The Adler Group is banking on retail growth to follow the residential explosion on Florida's Treasure Coast with the Florida Land Bank. «Clearly, with all this residential growth, retail development is going to follow soon behind. But it's not all ready for today.»"

«1031 Exchange Boston» Conference on Sept. 21

WALTHAM, Mass.- BOSTON/SF, a premier weekly source of online information about commercial real estate in New England, today announced that it will present «1031 Exchange Boston» Conference on September 21, 2005 from 7:30 a.m. -9:30 a.m., at the Newton Marriott Hotel in Newton, Mass.

Register for the conference or
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