Defer your taxes.
Amplify your returns.
A properly executed 1031 exchange converts a capital gains liability into decades of compounding passive income. NNN properties are the most efficient replacement vehicle available — and we have been guiding exchanges since 1993.
Defer taxes.
Keep compounding.
Section 1031 of the Internal Revenue Code allows an investor to defer federal and state capital gains taxes — which can exceed 30% of proceeds in high-tax states — by reinvesting the proceeds from a sold property into a qualifying like-kind replacement property.
The tax is not eliminated; it is deferred indefinitely, for as long as you continue exchanging. Capital that would have funded a tax bill instead generates 10–25 years of contractual passive income from an investment-grade corporate tenant. The compounding advantage of this structural deferral, held across a lifetime or passed to heirs via a step-up in basis, is one of the most powerful wealth-building mechanisms available to U.S. real estate investors.
Sell Your Current Property
Engage a qualified intermediary (QI) before your closing. Proceeds flow directly to the QI — they must never touch your hands. Your exchange clock starts the day of sale.
Identify Within 45 Days
We prepare a curated shortlist of NNN candidates meeting your exchange requirements, investment objectives, and timeline — well before the deadline. You identify up to three properties.
Close Within 180 Days
Our process is engineered for exchange efficiency. We routinely close NNN acquisitions in under 60 days from contract execution, leaving significant buffer against the 180-day window.
Defer & Compound
Capital that would have funded a tax bill now generates contractual passive income. Held indefinitely or passed to heirs with a stepped-up basis, the compounding effect is profound.
1031 exchange rules to know
The replacement property must be "like-kind" to the relinquished property. This is broadly interpreted: apartments, retail, industrial, and NNN properties all qualify interchangeably.
To defer all taxes, the replacement property must be of equal or greater value than the relinquished property, and all equity proceeds must be reinvested.
You must use a qualified intermediary (QI) — a neutral third party who holds the proceeds between transactions. You cannot receive the funds directly.
Both the relinquished and replacement properties must be held for investment or productive business use. Personal residences do not qualify.
You may identify up to three potential replacement properties under the Three Property Rule, regardless of value. We recommend identifying more than one to ensure you close on at least one.
If you reinvest less than your full proceeds, the unreinvested portion ("boot") is taxable. A partial exchange can still significantly reduce your tax liability.
The wealth compounding
case for deferral
Consider an investor who sells a $5,000,000 apartment building with $2,000,000 in capital gains. At a combined federal and state rate of 30%, that is a $600,000 tax bill. A 1031 exchange into NNN property eliminates that payment in the year of sale. That $600,000 — fully invested into a passive NNN asset at a 6% cap rate — generates $36,000 per year in additional passive income that would otherwise have been surrendered to the IRS. Held for 20 years, compounded, the wealth differential becomes transformational. This is the structural advantage that makes the 1031 exchange into NNN one of the most consequential capital allocation decisions available to American investors.
Is your exchange
clock ticking?
If you have sold or are preparing to sell a property, contact us immediately. We will identify your optimal NNN replacement property well within your 45-day window.
Exclusive Buyer Brokers · Since 1993 · All 50 States