Pristine 12-unit apartment building located between Laguna & Octavia Streets in the heart of Cow Hollow, one of San Francisco’s most desirable neighborhoods.
Kathy received an exceptional offer on her twelve (12) unit Cow Hollow apartment building and was motivated to do a 1031 exchange to increase cash flow and diversify her investment position. She ultimately accomplished both objectives by placing interest only financing on a Walgreens, which helped increase her return on equity, and the balance of her trade was allocated towards a DST opportunity that allowed her to diversify across multiple properties and different asset classes
| Client Needs | Net Lease Solutions | |
|---|---|---|
| Defer Capital Gains Tax | 1031 Exchange | |
| Eliminate Management | Triple net (NNN) lease | |
| Increase Cash Flow | Placed interest only financing to get a +8% return on equity | |
| Predictable & Reliable Income Stream | Investment grade credit guarantors on long-term lease | |
| Diversification | Traded a single asset for two (2) properties in different locations and across various industries. | |
| Tax Benefits | Moderate leverage (50% LTV) for added depreciation and interest write-offs | |
| Park Money (Land Bank) | ||
| Value-add Investment | ||
| Estate Planning |