Real Estate propositions many times move from a typical income scenario to the unrealized values of the underlying land, as is the case with the 12 plex, the explosive growth of Redmond and the Sound Transit expansion to Redmond altered the underlying value of the land, exceeding any near-term income values and future appreciation.

Taking advantage on an opportunity, a 100,000-sf parcel assemblage, we were able to sell for significantly greater values than the income would suggest; capitalizing on a price and timing set, where we could exchange into a new asset, bettering our returns, appreciation, and long-term investment objectives.

THE OUTCOME

After 30 years, all gains were reinvested, tax free into a new real estate investment (1031 exchange)

Appreciation can now be controlled through rental increases. Property cash flow improves 3x’s.The depreciation schedule starts over again.Ownership and decision making is reassessed and established.