The 1031 Exchange

A 1031 exchange (under Internal Revenue Code Section 1031) allows apartment building owners to sell their investment property and reinvest the proceeds into another like-kind property without paying immediate capital gains taxes. The benefits of a 1031 exchange are: preserve more capital, upgrade to larger or higher-performing assets, increase rental income, diversify your portfolio, and accelerate wealth building — all while maintaining or improving your overall financial position.

A Pathway for Wealth-Building

real estate 1031 exchange process explained

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Eligible 1031 exchange properties

1031 exchange into new multifamily apartment building

Multifamily and residential investment properties have proven to be one of the most resilient asset classes, even during economic downturns and market volatility.
Some Los Angeles apartment building owners prefer to stay within the multifamily sector by completing a 1031 exchange and rolling their equity into new apartment deals. These replacement properties can be located in Los Angeles, Southern California, or in other states with more landlord-friendly legislation.
Whether you’re looking for larger properties with more units, stronger cash flow, newer construction, non-RSO assets, or better locations, our team has a proven track record of successfully executing multifamily-to-multifamily 1031 exchanges in Los Angeles and beyond.

Single Tenant NNN Taco Bell 1031 Exchange Investment

A triple net lease (NNN lease) is a popular commercial real estate lease structure where the tenant pays for all property expenses — including real estate taxes, building insurance, maintenance, and common area costs — in addition to base rent and utilities.
Many Los Angeles multifamily owners use a 1031 exchange to sell their apartment building and move into low-maintenance triple net properties. These hands-off investments provide stable, long-term cash flow with minimal day-to-day management responsibilities, making them an attractive option for investors seeking passive income and reduced operational headaches.

Vacant land and development site as 1031 exchange

Vacant land and development sites make excellent 1031 exchange replacement properties. Many LA multifamily owners exchange their apartment building into vacant land to defer capital gains taxes and unlock long-term appreciation through future development.
We help clients find strategic parcels with strong potential for rezoning, subdivision, or new construction — locally in Southern California or in other high-growth markets — to build greater equity and achieve their investment objectives.

1031 exchange into passive investment syndication

Real estate syndication is a powerful investment model where a group of investors pool their capital to purchase larger properties, such as apartment buildings, that would be difficult to buy individually. A professional sponsor (syndicator) identifies the deal, manages the property, and handles day-to-day operations while passive investors receive a share of the rental income, profits, and appreciation.

Case Studies

Real 1031 Exchange Examples

A 1031 exchange into a single-tenant NNN property can significantly reduce your management responsibilities while maintaining strong, stable income.

Go from handling multiple tenants and maintenance issues to one quality tenant on a triple-net lease — giving you a much more passive investment with predictable cash flow and deferred taxes.