Property Identification
Nationwide sourcing of single tenant NNN retail and shopping center properties across all 50 states. We help 1031 exchange buyers quickly find high quality replacement properties with credit tenants, predictable income, and minimal management.
Why Property Identification Requires an Early Start
Under Section 1031 of the Internal Revenue Code, an exchange defers, and does not eliminate, the recognition of capital gain on the sale of investment real estate. The tax obligation is postponed and rolled into the replacement property, so a properly structured exchange can extend deferral for as long as the investor continues to trade into like-kind real estate. Because deferral, not elimination, is the outcome, precision during property identification matters enormously. The identification clock begins the day after the relinquished property closes and runs for forty-five calendar days, with no extensions for weekends, holidays, or slow due diligence, except in the rare case of a federally declared disaster affecting the transaction. For an investor selling a Washington DC property, this means replacement candidates should be pre-screened well before closing, not after. We begin sourcing single tenant NNN retail, multifamily, and industrial candidates in parallel with the listing process so that by the time funds reach the qualified intermediary, a shortlist is already assembled.
Matching Like-Kind Requirements to Real Property
Since the Tax Cuts and Jobs Act of 2017, Section 1031 treatment is limited to real property held for investment or for productive use in a trade or business; personal property and intangible assets no longer qualify. The definition of like-kind for real estate remains broad. Improved land can be exchanged for unimproved land, a retail center can be exchanged for an industrial warehouse, and a ground lease with a term of thirty years or more can be exchanged for fee simple ownership of another property. The controlling factor is not the physical type of asset but whether both the relinquished and replacement properties are held for investment or business purposes rather than personal use. Our identification process filters candidates against this standard first, then layers in credit quality, lease term, and yield criteria so that every property on your shortlist is defensible under IRS scrutiny as well as financially sound.
Applying the Three-Property, 200 Percent, and 95 Percent Rules
Every identification strategy must fit within one of three IRS-recognized rules. The three-property rule permits identification of up to three potential replacement properties regardless of value, and is the rule most investors use because of its simplicity. The two hundred percent rule allows identification of more than three properties provided their combined fair market value does not exceed two hundred percent of the value of the relinquished property. The ninety-five percent exception removes the numeric and value limits entirely, but requires the investor to actually close on properties representing at least ninety-five percent of the total identified value, a demanding standard that is best reserved for investors with high closing certainty. We help each investor select the rule that matches their portfolio strategy, then build an identification letter listing legal descriptions, street addresses, and, for single tenant assets, the tenant name and parcel number for each candidate.
Avoiding Boot and Preserving Full Deferral
To defer one hundred percent of the recognized gain, the replacement property or properties must be of equal or greater value than the relinquished property, and all of the net equity proceeds must be reinvested. Any cash retained by the investor, or any reduction in mortgage debt not offset by additional cash invested, is treated as boot and becomes immediately taxable to the extent of the realized gain. For Washington DC investors, this matters beyond the federal return, because the District of Columbia generally conforms to federal treatment of like-kind exchanges, meaning boot recognized on the federal return also becomes taxable income under the District's graduated individual income tax brackets, which top out at 10.75 percent for the highest earners. We model the reinvestment requirement carefully during identification so investors understand the equity and debt targets needed to avoid unplanned boot before they sign a contract.
Triple Net Lease Perspective
Passive income backed by tenant responsibility
Triple net (NNN) tenants agree to cover taxes, insurance, and most property maintenance, so ownership feels more like collecting rent than managing a daily operations diary. When paired with investment-grade tenants, such as national convenience, pharmacy, or quick-service restaurant brands, the income stream stays predictable even when the cycle swings.
Absolute NNN leases
These 10-to-25-year corporate-guaranteed commitments hand every cost burden to the tenant so you simply hold title and collect rent. Tenants like Dollar General and Walgreens treat the property as their own brand asset, lowering your time spent on oversight.
Regular NNN leases
Some NNN structures keep a handful of landlord responsibilities such as roof or parking maintenance, but they still deliver steady cash flow and inflation-hedged rent bumps. They pair well with tenants such as Starbucks or industrial operators who may share a limited list of expenses.
Whether you lean toward absolute or more collaborative triple net leases, these assets flex across states, partner with high-credit tenants, and magnify the benefits of a well-structured 1031 exchange.
Related Services
Single Tenant NNN Retail
Nationwide single tenant NNN retail properties for 1031 exchanges. Credit tenants handle taxes, insurance, and maintenance. Predictable income with minimal management. Properties available in all 50 states.
Multifamily Properties
Multifamily property sourcing for 1031 exchange buyers seeking apartment buildings, duplexes, and residential income properties in all 50 states with strong rental demand.
Industrial Properties
Industrial property identification for 1031 exchange buyers seeking warehouses, distribution centers, flex space, and manufacturing facilities in all 50 states.
45-Day Identification Period
Strategic guidance for the critical 45-day identification window in your 1031 exchange. We help investors identify qualifying replacement properties before the IRS deadline expires.
Frequently Asked Questions
How do I identify replacement properties for my 1031 exchange?
You have 45 days from the closing date of your relinquished property to identify replacement properties. We help 1031 exchange buyers identify high quality single tenant NNN retail properties nationwide, in all 50 states. You can identify up to three properties regardless of value, or unlimited properties under the 200 percent rule. We focus on single tenant net lease assets with credit tenants, predictable income, and minimal management.
Can you identify properties in all 50 states?
Yes. We identify single tenant NNN retail and shopping center properties in all 50 states for 1031 exchange buyers. Whether you need properties in Washington DC, California, Texas, Florida, or any other state, we can source replacement property that matches your timeline, credit strength, lease term, and yield targets. Our nationwide network includes convenience stores, quick service restaurants, pharmacies, and essential retail brands.
What types of single tenant NNN retail properties do you identify?
We identify single tenant NNN retail and shopping center properties nationwide, including convenience stores, quick service restaurants, pharmacies, dollar stores, auto service centers, and essential retail brands. These properties feature credit tenants who handle taxes, insurance, and maintenance, providing predictable income with minimal management. We help 1031 exchange buyers find replacement properties in all 50 states that match their investment objectives, timeline, credit strength, lease term, and yield targets.