1031 Exchange Planning

Exchange structure & upleg scenarios

Nine actively-managed, rent-control-exposed properties, grouped into four sized exchanges and traded for passive, single-tenant NNN retail — a corporate tenant, zero landlord responsibilities, no more 2am calls. Cash flow won't fully match today's legacy-debt returns, and that's expected, not a flaw: the bar for each candidate is a real corporate guarantee and a cash flow that holds, not the highest cap rate. Toggle cards below to build and compare scenarios.

Full Portfolio
$11,553,000
Combined Price
$6,750,000
Combined Debt
$4,803,000
Combined Equity
Governing rule: when proceeds from more than one relinquished property are pooled into the same replacement purchase, the 45-day identification window and 180-day close window both run from the first closing in that pool — not each property's own sale date. That's why grouping is driven by which closings can realistically happen in the same short window, not by convenience.
Bucket 1 — South LA Portfolio5 properties
615 W 92nd · 627 W 82nd · 1019 W 102nd · 1031 W 102nd · 1035 W 102nd — sold together, one escrow
Combined price
$5,175,000
Combined debt
$2,830,000
Combined equity
$2,345,000 (45.3%)
Net cash after ~6% cost of sale
~$2,034,500
One escrow, one closing date → runs as its own clean, independent exchange. No sequencing risk.
Target replacement
$4.9M – $6.3M single NNN asset, ~55–65% LTV
→ Find comps: $4.9M–$6.3M NNN, 5.5%+ cap
Bucket 2 — The Two Fourplexes2 properties
924 W 82nd · 6336 S Denver Ave — highest equity % in the portfolio, but too thin in dollars to go it alone
Combined price
$1,708,000
Combined debt
$765,000
Combined equity
$943,000 (55.2%)
Net cash after ~6% cost of sale
~$840,500
Action required: coordinate both closings to land within days of each other so they can run as one pooled exchange.
Target replacement
$1.6M+ 135 E 119th St at $2,579,000, ~67% LTV
→ Our pick: 135 E 119th St, master-leased fourplex, $2.58M
Bucket 3 — Inglewood1 property
633 S Walnut St, Inglewood — run as its own independent exchange
Price
$2,250,000
Debt
$1,415,000
Equity (gross)
$835,000 (37.1%)
Net cash after 6% cost of sale
$700,000
Matching new debt to the $1,415,000 being paid off clears the $2,115,000 value target exactly at 66.9% LTV — normal, financeable leverage for a strong corporate-guaranteed NNN tenant.
Target replacement
$2.1M–$2.4M single NNN, ~65–70% LTV
→ Find comps: $2.1M–$2.4M NNN, corporate guarantee preferred
Bucket 4 — Long Beach1 property
530 Chestnut Ave, Long Beach — the most leveraged of the four exchanges
Price
$2,420,000
Debt
$1,740,000
Equity (gross)
$680,000 (28.1%)
Net cash after 6% cost of sale
$534,800
The tight one: hitting the $2,274,800 value target needs about 76% financing, above the 65–70% most NNN lenders like. Two fixes: add about $150,000–$170,000 of outside cash to hold the loan near 70%, or, if the closings line up, pair it with Inglewood (same ownership) in one exchange.
Target replacement
$2.3M – $2.4M single NNN, ~70–77% LTV
→ Find comps: $2.3M–$2.4M NNN, corporate guarantee
Cash flow today, on their actual loans

Their cash flow is changing either way

Today the nine properties net about $382,983 a year on $4,803,000 of equity, using the owner's current loan payments (not a new-buyer loan). That number rides on 2.9%–6.1% loans that reset between 2027 and 2028.

ExchangeNOI todayCurrent loan payments / yrCash flow / yrEquity todayReturn on equity
South LA Portfolio
615 W 92nd, 627 W 82nd, 1019/1031/1035 W 102nd
$330,348$154,990$175,358$2,345,0007.5%
The Two Fourplexes
924 W 82nd, 6336 S Denver
$100,462$22,185$78,277$943,0008.3%
Inglewood
633 S Walnut
$144,395$42,450*$101,945$835,00012.2%
Long Beach
530 Chestnut
$149,203$121,800*$27,403$680,0004.0%
All nine properties$724,408$341,425$382,983$4,803,0008.0%

NOI uses current rents with vacant units at market rent, less vacancy and expenses, and the actual Prop 13 tax bill. Loan payments come from the owner's monthly schedule. *Walnut and Chestnut payments are estimates until their loan terms are confirmed. Equity is sale price less loan balance.

Keep vs. exchange, at the same 7% rate

When their loans reset, keeping the buildings at a 7% rate lowers cash flow too. Compare the exchange against that.

Exchange · loan resetKeep todayKeep at 7%Exchange at 7%Difference
South LA Portfolio
615, 627, 1019/1035 reset ~May 2028 (6.10%); 1031 resets Jun 2028 (2.95%)
$175,358$132,248$70,560
Caliber Collision
−$61,688
The Two Fourplexes
2.90% fixed resets Feb 2027; interest-only ends Feb 2030
$78,277$46,912$99,189
135 E 119th St
+$52,277
Inglewood
Terms to confirm (est. 3.00% interest-only)
$101,945$45,345$25,754
Jiffy Lube
−$19,591
Long Beach
Terms to confirm (est. 7.00% interest-only)
$27,403$27,403$49,436
Kalaveras
+$22,033
Total$382,983$251,908$244,939−$6,968

Both “at 7%” columns are interest-only on the same loan amounts, so the comparison is like for like. Exchange figures use the recommended replacement for each exchange. The calculators below also open interest-only; slide Amort to 30 years to see a 30-year loan.

At the same rate, the gap narrows from about $138,044 to about $6,968 a year. That difference buys no management, no rent control, no capital spending, and about $1.72M of tax deferred and still working for them.
Our pick for the fourplexes: 135 E 119th St. A brand-new, master-leased Los Angeles fourplex at an 8.56% cap. At 7% interest-only it cash-flows about $99,189 a year, more than the fourplexes make today ($78,277). That is what brings the four-exchange total to about $244,939, within about $6,968 of keeping everything at 7%. Find it under California upleg scenarios.
Mix & Match · California

California upleg scenarios

Our California picks: Kalaveras, the highest-yielding NNN in Southern California, and 135 E 119th St, a new master-leased fourplex sized for the fourplex exchange. Toggle cards to build a scenario, or load a bucket preset from the exchange structure above.

Net proceeds to reinvest
Must clear this to fully defer
New loan auto-sized
Years · far right = interest-only
California scenario — sources, uses & cash flowAmount

Toggle candidate cards to mix and match. Guarantee quality and remaining lease term matter more here than cap rate — the goal is passive income, not matching today's yield. Combined NOI and blended cap come from actual in-place rents on the selected properties. New financing is auto-sized to cover any replacement value above the exchange equity. “Full deferral” requires combined value ≥ target with all equity reinvested. Kalaveras carries a personal, not corporate, guarantee — flagged on its card. Planning estimate only — not tax or legal advice.

Mix & Match · Out-of-State

Out-of-state upleg scenarios

Our best out-of-state NNN picks, narrowed from 16 listings on location, guarantee, lease, term and return. Pick a bucket; ★ marks our recommended property for it.

Net proceeds to reinvest
Must clear this to fully defer
New loan auto-sized
Years · far right = interest-only
Out-of-state scenario — sources, uses & cash flowAmount

Toggle candidate cards to mix and match. All carry corporate guarantees on true NNN leases. Inglewood and Long Beach each need their own ~$2.1–$2.4M property; the star shows the best fit for whichever bucket is selected. Photos aren't embedded for the out-of-state set; open the property's Crexi link to view. Planning estimate only — not tax or legal advice.

Centennial Advisers · Illustrative planning tool — not tax, legal, or investment advice. Confirm basis, depreciation recapture, and boot treatment with your CPA / qualified intermediary before acting. Property data per Crexi / broker OMs as of Sept 2026; verify before LOI.