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Texas Investors Lining Up for 1031 Exchanges

DALLAS-Texas execs say 1031 exchanges are increasingly popular among the investment crowd, so much so that a Grubb & Ellis VP has had four of his last five deals fall under the like-kind swaps. Stories about racing the clock are bountiful.

By Connie Gore | Updated on September 04, 2001

DALLAS-This guy comes in Monday and needs to parlay his money into a real estate purchase by Friday. It’s not a Stephen King tale, it’s the reality of a 1031 exchange.

Sandy P. Aron of Hunington Properties Inc. in Houston recalls that it was a race against the clock, but the closing came down as planned. Aron, a niche player in 1031 exchanges, says the fast-paced turnaround–usually two weeks to 30 days–enables him to close 50 to 75 deals per year. This year, he’s pushing the envelope as more one-time investors come knocking on his door in search of a quick-and-easy deal for what he likes to call “mailbox money.” Creditworthy single-tenant structures, with triple net leases, ensure each month that the rent check will be waiting in the mailbox.

It’s like a trip into Filene’s where you can grab big names at just the right price. Blockbuster, Office Max, Jack in the Box, Walgreen’s, Eckerd’s and Starbucks are among the property lineup for sale-leasebacks or outright acquisitions from merchant developers and even some long-term owners who suddenly get selective about their portfolio. And most, Aron says, can be had for $1 million to $5 million.

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