Family Office 1031 Exchange

15801 Whittier Blvd, Whittier, CA

Property Type: Retail (Single Tenant Triple Net Grocer)

Problem

A local Los Angeles based family office was in a 1031 exchange after recapitalizing a development site that they entitled for multifamily in Los Angeles. The family office was running out of time with their 1031 exchange and had a very limited window to identify and close escrow in order to satisfy their exchange. They analyzed and wrote offers on many projects including multifamily and single tenant properties throughout Los Angeles but with a short supply of properties on the market they had challenges finding the right deal for their exchange.

Solution

Lineage Asset Advisors was able to identify multiple properties with the family office that were either on-market or off-market that fit their criteria. The assets ranged from multifamily properties in Venice to single-tenant NNN properties in Los Angeles. Ultimately, Lineage provided assistance on underwriting, market research and negotiations to the family office. With limited time remaining on the 1031 exchange Lineage was able to identify a single tenant triple net property leased to Sprouts grocers for approximately 11 more years in Los Angeles County. Lineage worked closely with the family office to underwrite and negotiate favorable terms on the deal. During the course of due diligence, numerous challenges came up with the lease and other deal points (including financing) that Lineage assisted the owner with solutions.

Outcome

Lineage Asset Advisors represented the family office in the transaction which sold for $12,550,000 and closed in August 2017. The family office was able to satisfy their 1031 exchange and secure a property with a Sprouts guaranteed long term triple net lease.