"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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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
