A new column in national publication WealthManagement.com touts 2023 as the “year of the 1031 exchange.” That is especially evident at Coral Gables luxury building Merrick Manor, where flexible bulk condominium packages are being utilized to complete 1031 exchanges.
As columnist Landan Dory describes, a 1031 exchange is an effective tax strategy in which real estate owners can defer paying capital gains taxes on the sale of a property by utilizing those proceeds to purchase a similar property within six months after closing the sale. Dory predicts a wave of 1031 exchanges this year, as real estate owners with a long-term mindset see it as a sound hedge against near-term challenges.
“We typically see an average of five to seven 1031 exchanges per year whereas right now we have nine active exchanges for an aggregate $37 million and more requests from owners to meet to discuss this service now than ever before,” Dory writes. “We attribute this to many investors having seen their property prices increase up to 70% in the past three years, and now rising interest rates and a slowing economy are causing the spigot on the gravy-train to slow.”
Why are Merrick Manor’s bulk packages especially well-suited for 1031 exchanges?
They offer an unbeatable combination of short-term certainty and long-term upside, as Coral Gables real estate holds its value over time. Developer The Astor Companies leases back each unit in the bulk package for 12 months and manages those units free of charge, while covering HOA fees and real estate taxes during that timeframe.
Located at 301 Altara Avenue, the 10-story, 227-residence Merrick Manor’s pet-friendly amenities and lifestyle truly cannot be beat. Merrick Manor is just steps away from the world-class Shops at Merrick Park and has a Zillow Walk Score of 77, making it “very walkable.” The building is surrounded by three championship golf courses and is just 20 minutes from Miami Beach.
Berkshire Hathaway HomeServices EWM Realty is the exclusive residential sales and marketing representative for Merrick Manor.
For more information about the residences at Merrick Manor, visit the new Sales Gallery in Suite 117 on the ground floor of the building at 301 Altara Ave., Coral Gables, FL 33146 – or contact the Berkshire Hathaway HomeServices EWM Realty team by calling (305) 779-6870. The Sales Gallery is open from 10 a.m. to 6 p.m. on Monday through Friday.