Build-to-Suit Exchange

In a Build-to-Suit 1031 Exchange, a holding entity called an Exchange Accommodation Titleholder (EAT) holds your title to the replacement property while improvements are being made. You may choose to complete a deferred Build-to-Suit Exchange, during which the relinquished property is sold and the proceeds go toward construction on the replacement. Alternatively, you can structure the Build-to-Suit Exchange as a reverse exchange, during which the new property is acquired before selling the old property.

Why Choose a Build-to-Suit Exchange?

Like an Improvement Exchange, a Build-to-Suit Exchange allows you time and finances to make renovations and improvements on the replacement property. Some benefits of this type of 1031 Exchange include:

• Allocation of money. You don’t have to rely on loan funds to pay for construction on your replacement property with a Build-to-Suit Exchange. Instead, you can use finances accrued after the sale of your relinquished property.
• Increase the value of the acquired property. If you commit to acquiring a piece of property that has a lower value than your relinquished property, you have the opportunity to build up your investment.
• Dynamic approach. The Build-to-Suite Exchange works well in combination with other types of exchanges and allows for a high level of customization.

Get Started on Your Build-to-Suit Exchange Today

If you’re looking for help getting started with your Built-to-Suit Exchange, consider the staff at 1031Xchange, LLC. We’re qualified in many 1031 Exchanges, including Build-to-Suit Exchange methods and merged customized transactions and can help you set out on the right foot. To get started now, contact our office by phone at (866) 724-1031.