DENVER-It definitely wasn’t your garden-type of real estate deal. Local Service Corp., headed by a local, private investor, swapped four multifamily rental buildings, three industrial buildings with 18,000 sf in Denver and a 2,000-sf loft in Lower Downtown for 12 single-family home lots in the mountain.

No money changed hands, which allows both sides to defer taxes, broker John Ellis of Keller Williams Metro Properties LLC tells GlobeSt.com. But the value of the deal is $11.2 million, Ellis says.

“I do a big deal like this, of over $10 million, about once a year,” Ellis says. “But for me, these type of deals are pretty common. I do them for $3 million or $4 million all the time.”

Typically, one side is in debt and can’t sell the properties for enough money to cover it, so they swap the properties with hopes of better luck with the new set of assets.

But that wasn’t the case this time.

“The owner of Local Service Corp. was tired of fixing toilets and wanted to get out of the labor intensive business of owning small properties,” Ellis explains. “What he really wants to do is develop. The owner of the sites in the Aspen Equestrian Estates in Carbondale, wanted income-producing properties.”

The Aspen Equestrian Estates development is “18 minutes outside of Aspen. It’s real upscale. I think the average price of a home is $1.9 million. Lots go for $375,000 to $550,000.”

Ellis explains that the swap has to be even, or it will trigger tax consequences.

Ed Monge of Ed Monge Realty Inc. represented Aspen Equestrian in the deal.

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