For many commercial property owners, the biggest obstacle to selling isn’t finding a buyer.
It’s writing a seven-figure check to the IRS.
After decades of ownership, appreciation has done exactly what you hoped it would. Unfortunately, so has your tax liability.
Too many investors hold properties they no longer want, not because they’re great investments, but because they’re afraid of the tax consequences of selling.
That’s letting the tax tail wag the investment dog.
There Is Another Option.
A Delaware Statutory Trust (DST) allows qualifying investors to complete a 1031 Exchange into professionally managed institutional real estate while continuing to defer capital gains taxes.
Instead of rolling your equity into another property that you have to locate, negotiate, finance, manage, maintain, lease, and eventually sell…
…you can exchange into a diversified portfolio of professionally managed assets that may include:
- Industrial Distribution Facilities
• Medical Office Buildings
• Class A Multifamily Communities
• Self-Storage Facilities
• Grocery-Anchored Retail Centers
What That Can Mean for Investors
✓ Potentially defer capital gains taxes through a 1031 Exchange
✓ Keep more of your equity invested instead of paying taxes immediately
✓ Eliminate day-to-day property management
✓ Diversify across multiple markets and asset classes
✓ Potential monthly income distributions
✓ Estate planning benefits for many investors
The Biggest Mistake We See
Owners spend years maximizing the value of their property…
…then lose sight of maximizing what they keep.
Selling isn’t the hard part.
Keeping your equity working for you is.
At Johnston Pacific, we’ve spent more than 35 years helping South Orange County commercial property owners maximize the value of their real estate. When it’s time to sell, we help our clients evaluate every available strategy not just finding a buyer, but helping preserve the wealth they’ve spent years creating.
If a sale may be in your future, whether that’s six months or five years from now, the planning should begin before your property goes on the market.
A one-hour conversation today could save months of unnecessary scrambling later.
Thinking about selling? Let’s discuss your options before the IRS decides how much of your equity they’ll receive.
Johnston Pacific Commercial Real Estate, Inc.
South Orange County’s Trusted Commercial Real Estate Advisors Since 1991
📞 949-366-2020
Illustrative equity preserved with a DST (1031 Exchange)
Hypothetical $5M sale assuming a 30% combined tax burden. Example for illustration only.
* Johnston Pacific Commercial Real Estate, Inc. does not provide legal, tax, or investment advice. Delaware Statutory Trust investments involve risks and are not suitable for every investor. Please consult with your CPA, attorney, financial advisor, and qualified 1031 Exchange intermediary before making any tax or investment decisions.
