As a commercial mortgage lender, we were approached by a borrower looking to purchase a retail property in South Richmond Hill, Queens via a 1031 exchange. A 1031 exchange, also known as a like-kind exchange, is a tax-deferred strategy that allows an investor to sell a property and use the proceeds to purchase a similar property without incurring capital gains taxes.
After reviewing the borrower's financial information and the details of the property, we determined that the borrower was qualified for a 1031 exchange loan. This type of loan is specifically designed to finance a 1031 exchange and is structured to meet the unique requirements of this process.
We worked with the borrower to structure a loan that met their needs and provided them with the funds necessary to complete the purchase of the property through the 1031 exchange. The loan terms included a fixed interest rate and a repayment schedule that was agreed upon by both parties.
Overall, the financing of the retail property in South Richmond Hill, Queens via a 1031 exchange loan was a successful transaction for both the borrower and the lender. The borrower was able to purchase the property through the 1031 exchange and defer capital gains taxes, while we were able to extend a loan that met the borrower's needs and provided a solid return on investment.