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SEVERNA PARK, MD-Prudential Carruthers Realtors, a full-service real estate company with 28 offices in the Mid-Atlantic region, has affiliated itself with two firms to launch a 1031 tax-deferred exchange referral service. It’s teamed with San Jose, CA-based Nationwide Exchange Services, which will be the preferred custodian of the funds, and with the Laurel Group, which will trade from the Prudential Carruthers sales office.

“They have a lot of contacts in the Washington, DC area,” according to Adam Cockey Jr., SVP of Prudential Carruthers Realtors. That is one reason why the firm is limiting its initial launch to the Mid-Atlantic area. Eventually, though, he tells GlobeSt.com, the company hopes to expand nationwide.

“We are becoming increasingly aware of a customer base segment that we can reach with this service – investors that have bought properties to pay college bills or pay for retirement. Now that they have reached these ages and they want to liquidate their properties they are finding the tax consequences are enormous.”

Cockey says he expects the new service to bring in an additional 6% to 10% in real estate commissions to the company. The firm already has a potential deal in the making: a $4.5 million transaction that if it goes according to schedule could close in June, according to Cockey.

The Mid-Atlantic area is expected to provide ample opportunities for both buy and sell trades as individual incomes tend to be on the higher end. Some deals can reach close to the double digits. Last December, for instance, two properties in Rockville, a 62,000-sf shopping center and a 251,593-sf class A office building, traded hands through a 1031 transaction. The two transactions came to $92.1 million together as reported by GlobeSt.com.

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