Sell both 4-unit buildings and exchange into one larger property with better cash flow.
Why Lyon Stahl:
The Sellers were concerned with the 1031 Exchange deadlines and originally wanted to identify their Upleg before listing both buildings on the MLS, LoopNet and CoStar. After receiving little traction working with agents at other firms, we advised them to list their properties first in order to maximize leverage when the right deal became available.
We included (3) 30-day extension options in the contract to allow seller sufficient time to identify and secure replacement property. Our entire team actively searched for suitable upleg opportunities, combining all available deals on and off the market.
A Senior Agent at Lyon|Stahl was able to find a buyer for both deals that was willing to accommodate the Seller’s extension requests. The Upleg was an off-market deal presented by another Lyon|Stahl Senior Agent. The Seller successfully exchanged into a 12-unit building in Torrance that generated three times the income of the relinquished properties.