1031 Exchanges for Los Angeles Apartment Building Owners

Sell your building, defer the tax and close on time.

From first-time investors to experienced exchangers, we guide every step of a 1031 exchange: selling your Los Angeles building, finding the replacement and closing on time. Our team proudly maintains a 100% exchange success rate.

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How a 1031 exchange works: 45 and 180 days

A 1031 exchange lets you sell investment real estate and defer capital gains tax by buying like-kind replacement property. In a deferred exchange, you must identify the replacement property in writing within 45 days after your sale closes, and you must receive it within 180 days, or by your tax return's due date including extensions, whichever comes first [1]. Sale proceeds are held by a qualified intermediary, not by you [1].

Running the sale and the replacement search together

Timing is everything in an exchange. Our process begins well before your sale closes, so you're ready to move into your next acquisition. We anticipate and structure transactions to reduce downtime, often identifying and negotiating your upleg property before your downleg closes. When needed, we secure seller extensions or overlapping escrows to keep your capital working. We coordinate directly with trusted qualified intermediaries and every party involved, from timeline management to documentation and escrow, so you can focus on the bigger picture.

Replacement options: multifamily, NNN, DST

Multifamily and residential

Multifamily remains one of the most reliable long-term strategies, with stability through market cycles and consistent rental demand. We help you move into a newer asset or a stronger submarket, managing the full process from valuing and selling your downleg to sourcing and securing the upleg.

Retail and triple net (NNN)

Triple net lease investments offer passive ownership and steady income, with the tenant covering taxes, insurance and maintenance. We help investors exchange into net leased properties occupied by national tenants with long-term commitments, using our nationwide network to source opportunities that fit each investor's goals and risk profile.

Delaware Statutory Trust (DST)

A DST is a fully passive ownership structure that can qualify as replacement property in a 1031 exchange [2] and gives investors access to institutional-quality, professionally managed real estate, from multifamily communities to medical office, industrial and net-leased retail. We guide investors through DST selection, helping evaluate sponsor quality, asset performance and fit with long-term objectives.

Land and covered land

Land and covered land combine current income with long-term development potential. Our experience with TOC, ED1 and CHIPS lets us evaluate development feasibility quickly.

Out-of-state replacement properties

Like-kind real estate doesn't have to be in California. Some of our Los Angeles clients have exchanged into net-leased retail in other states, trading management-heavy apartments for passive income. See the three exchanges below.

Measure ULA and the exchange

A 1031 exchange defers federal and state income tax on your gain. It doesn't avoid transfer taxes. If you sell inside the City of Los Angeles above $5,400,000, Measure ULA still applies: 4% over $5,400,000 and 5.5% at $10,900,000 or more, on top of the 0.45% base tax [3]. Plan for it in your exchange math; we'll model your net before you list.

Exchanges we've closed

8219 NE Vancouver Mall Dr Vancouver, WA 98662: Red Lobster Retail Sale | SOLD $4,750,000
6.31% cap · $510/SF The buyer, our exchange client, completed this purchase through a 1031 exchange into an absolute NNN Red Lobster with 14 years of lease term remaining, increasing his net monthly cash flow by almost 50%.
100 W Lake Street Minneapolis, MN 55408: Retail Property in Minneapolis | SOLD $2,528,000
6.4% cap · $1,042/SF A 100% leased single-tenant KFC in Minneapolis' Calhoun submarket, purchased as part of a 1031 exchange. David Saghian represented the buyer.
814 N Riverside Dr. Espanola, NM 87532: Single-Tenant KFC (NNN) in Espanola, NM | SOLD $1,900,000
6.35% cap · $681/SF

1031 exchange case studies

From LA rent control to AB 1482: Download →
From LA rent control to NNN retail: Download →

Frequently Asked Questions

What is the 1031 exchange timeline?
You have 45 days after your sale closes to identify replacement property in writing, and 180 days (or your tax return due date, if earlier) to close on it [1].

Can I exchange an LA apartment building into a NNN or DST?
Yes. Real property held for investment is generally like-kind to other investment real property, including net-leased retail, and a DST interest can qualify as replacement property [1] [2]. Our Vancouver, WA closing was an apartment-to-NNN style trade for an exchange client.

Does a 1031 exchange avoid Measure ULA?
No. A 1031 defers income tax on your gain. Measure ULA is a transfer tax on the sale itself and still applies to City of LA sales above $5,400,000 [3].

Do I need a qualified intermediary?
For a standard deferred exchange, yes. The intermediary holds your sale proceeds so you never receive them [1]. We coordinate with trusted qualified intermediaries on every exchange.

Can I exchange into property in another state?
Yes, U.S. real estate in another state can be like-kind. We've closed exchanges into net-leased retail in Vancouver, WA, Minneapolis, MN and Espanola, NM.

Sources [1] IRS, 2025 Instructions for Form 8824, Like-Kind Exchanges (45-day identification and 180-day receipt rules; qualified intermediaries). irs.gov
[2] IRS Revenue Ruling 2004-86 (Delaware statutory trusts as replacement property), Internal Revenue Bulletin 2004-33. irs.gov
[3] City of Los Angeles Office of Finance, Real Property Transfer Tax and Measure ULA FAQ (rates: 4% over $5,400,000 and under $10,900,000; 5.5% at $10,900,000 or more; on top of the 0.45% base tax). finance.lacity.gov

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