Washington Park Townhouse Apartments LLC purchased the 24-unit complex in north Miami for an investment from Cary and Julie Shaw for $59,375 per unit. Seller and buyer are both from Miami.
Bert Freehof, senior associate, Brenner Real Estate Group, Deerfield Beach, negotiated for the buyer. "Investor demand for residential income property remains very high and quite strong," Freehof tells GlobeSt.com.
Multifamily properties of over 200 units are most in demand. "This segment of the income property market has always been considered the safest type of income property investment," Freehof says. "With interest rates being at a very low ebb for some time, returns are higher than ever."
The broker says those investors taking advantage of a 1031 Exchange "find acquiring larger properties very attractive." The reason: By using the 1031 Exchange, investors can increase their basis and depreciation on their replacement property, combining with interest rates at much lower rates than their existing property, Freehof says.
He will be conducting seminars on 1031 tax-deferred exchanges throughout the year. "There have been recent guidelines established by the IRS that make exchanging on a tax-free, deferred basis very attractive," Freehof tells GlobeSt.com. "Procedures that I began advocating in the 1980s have now become recognized as acceptable by the IRS."
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