Incessant Volatility Has Made The 1031 Exchange Market ‘Fundamentally Different’
The 1031 exchange has been the backbone of the commercial real estate sales market for decades, allowing property sellers to avoid paying taxes if they can secure another deal to invest their gains into within 45 days.
But in an era where the macroeconomic outlook seems to shift by the day — and interest rates refuse to come down — the six-week window has become a major problem for executing these deals.
Wall Street giants have stepped into the gap. With firms like Apollo Global Management, Nuveen and Fortress Investment Group launching funds targeting 1031 deals in recent years, the amount of securitized 1031…
