Like-Kind Exchanges

One of the last sanctioned methods to defer gain for tax purposes in connection with the sale of real estate is the like-kind exchange. The exchange mechanism can be flexibly employed in a variety of circumstances to save taxpayers from often-tremendous tax liabilities. Freeborn’s sophisticated, experienced tax counsel helps clients take full advantage of this essential real estate portfolio planning tool.

Our Real Estate Group has extensive experience advising clients in like-kind exchange transactions. We represented many real estate owners, including private REITs, limited liability companies, corporations and individuals in adopting both routine and “cutting-edge” like-kind exchange structures. These projects have included:

  • Built-to-suit exchanges
  • Adoption of the “1031/721” for the use of like-kind exchange proceeds to obtain an ownership interest in a real estate fund
  • Implementing and restructuring tenant-in-common (TIC) ownership structures
  • Complex planning for the acquisition of multiple replacement properties and post-exchange refinancing structures.

We are well-versed in both the traditional and emerging like-kind exchange structures, regularly interacting with the front-line participants in the like-kind exchange marketplace.  Our industry leadership includes regularly lecturing on like-kind exchange issues throughout the country and being frequently consulted by qualified intermediaries, real estate brokers and licensed securities broker/dealers on exchange issues as well as the use of TIC structures to create replacement property solutions.

 

Representative Matters

Represented restaurant operator/developer in a 24 property sale/leaseback, and simultaneously closed $20,000,000 in loans secured by the assets of entities operating 63 fast food restaurants, including Taco Bell, Kentucky Fried Chicken, T.G.I. Friday’s, Blaze Pizza, Old Chicago and Long John Silver’s.  

An exchanging taxpayer in connection with a built-to-suit like-kind exchange involving the construction of a $5 million replacement property.

An exchanging taxpayer in an $8 million like-kind exchange involving the purchase of multiple replacement properties, including TIC interests.

The sponsor of a TIC/private equity fund in connection with the formation and structuring of a $15 million equity investment in a development property.

National and Chicago-based developers in connection with the acquisition, development, construction, leasing, financing and sale of shopping centers and retail properties throughout the United States.