We typically work with property owners who are interested in re-positioning their property through entitlements to develop a site or sell to builders or other developers. As they sell their property, they often seek 1031 exchange qualified property (business/investment property) as part of an effective tax strategy for tax deferral. Largely, this property has to be actively managed by the property seller. Harmonie Park Development is happy to now be able to offer an alternative 1031 exchange solutions through our work with 1031 Securities Inc., a FINRA-registered broker-dealer focused exclusively on Delaware Statutory Trusts (DSTs).
For accredited property owners seeking a tax-deferred exit strategy, DSTs may provide a way to:
- Reinvest into passive, institutional-sized real estate
- Defer capital gains under Section 1031 thus deferring State and Federal income taxation upon the sale of the appreciated real estate
- Eliminate landlord responsibilities while maintaining monthly income potential
- Ability to diversify by property type and location
- Provide certainty of closing on acquisition of replacement property through an efficient closing process to meet timing requirements
Our northern California roots and real estate development expertise give us a unique understanding of local investor needs. Through 1031 Securities Inc., we provide personalized DST guidance backed by rigorous due diligence and national sponsor access.
Please contact Don Capobres, a Registered Representative, at don@harmoniepark.com if you are interested in learning more about 1031 DSTs and whether it is an appropriate solution for you.
Securities offered through 1031 Securities Inc., Member FINRA/SIPC. Harmonie Park Development and 1031 Securities Inc. are separate entities, do not provide tax advice and are not tax advisors .
Disclosure: There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. Diversification does not guarantee profits or protect against losses. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing.