By Les Shaver
In April 1031 exchange buyers were given an extension. The Internal Revenue Service issued guidance that said anyone who closed on a sale on or after April 1 would be granted an extension until July 15 to identify their replacement properties.
When that happened, Chris Pappas, associate director with Marcus & Millichap's Net Lease Division, thinks the typical timeline for investing in 1031 exchange was relaxed.
“They didn't have that urgency to move as quickly,” Pappas says. “Then, once they began to understand the market post-lockdown, then they started moving and closing transactions.”
As the July 15 deadline approached, 1031 investors started identifying deals. That showed up in June's transaction number, according to the NNN Market Intelligence Report for June 2020 from Pappas. In the month, single-tenant sales jumped 67 percent compared to May. In all, 271 transactions were completed in June compared to 162 in May.. Read more.