1031 Exchange

Paul Bloomfield
Kohr Royer Griffith, Inc.

Paul and his partners, owners of an Industrial Park in Middletown, Ohio were looking to sell this building and decided that a 1031 exchange would be the best option.

Around this time, the partners were also looking at negotiating the purchase of the old Mercedes Dealership located at 976 Fifth Avenue in Columbus. It was felt that this property was ripe for redevelopment.

Once they had the Middletown building in contract, they finalized the contract for the Mercedes Dealership.

Also, at this time, another agent in the office had an exchange opportunity arise for a property located at 2074 Arlington Avenue.

This property had to close by a certain date that was fast approaching and, since the Middleton building wasn't ready to close yet, it was agreed that the Arlington property would become one of the replacement properties in the exchange for the Mercedes Dealership.

It was further agreed that everyone involved in this transaction would participate in the replacement property exchange as well, thus becoming Tenants in Common -- where all multi-entities involved in the replacement property exchange take title to the new property.

So, with the due diligence time frame fast approaching and the realization that they would not be able to close the Middleton property in time for the 976 Fifth Avenue closing, the partners performed a reverse exchange with the Middletown property, completed the exchange with the Arlington Avenue property and closed on the replacement property (Mercedes Dealership, 976 5th Avenue) on May 17, 2007.

Within a month of the closing for 976 Fifth Avenue, the partners closed the transaction in Middletown completing the entire exchange process.