A typical 1031 Exchange allows a client to sell their existing/relinquished property and gives them 45 days from the close of escrow to identify a replacement property (180 calendar days to complete the transaction). If an exchange meets the 1031 requirements, the investor could have little/no tax due at the time of the exchange.
Rubicon recently funded a 1031 exchange on this industrial building located in Stockton, California.
Our Borrower came to Rubicon Mortgage Fund, LLC through a mortgage broker in March 2020, around the time Shelter in Place orders were imposed on 5 Bay Area Counties due to COVID-19. The buyer had only 18 days to complete the 1031 exchange transaction of an Industrial Investment building in Stockton, CA. Due to the escalating situation with the pandemic, their conventional lender had halted their lending process.
The 18,754 square foot Industrial building is situated on a 10.10-acre parcel and was occupied by a long-term national vehicle shipping and transport business tenant. The buyer was in contract at $5,000,000. Rubicon offered a loan in 1st Deed of Trust of $1,250,000 (25% LTV) for a 6-month term. With Rubicon’s expeditious, efficient in-house underwriting and quick adaptation to Shelter in Place, this loan closed in 17 days, as requested by the borrower. This loan closed 4 days prior to the 1031 exchange deadline.