‘Reno has gone viral’: multifamily unit sales thriving throughout Northern Nevada
January 28, 2021 at 05:58 pm
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Uncertainty about 1031 exchanges from the incoming presidential administration has led to a flurry of apartment sales in Northern Nevada. Real estate investors have long used 1031 exchanges to defer capital gains taxes on the sale of commercial properties. In an exchange, investors don't have to pay taxes on the proceeds of a sale if they reinvested those funds into a similar asset.
The Biden administration in 2020 proposed eliminating exchanges for investors making more than $400,000 a year.
The proposal may not hurt smaller investors swapping a six-unit duplex for another, but it could have a profound effect on well-heeled and institutional investors who purchase large multifamily complexes.
Ken Blomsterberg, senior managing director of investments with Marcus & Millichap, told the NNBW that multifamily sales started strong in the first quarter of 2020 before the effects of the pandemic were fully felt. Sales dried up over the ensuing months before exploding again beginning in September.
Marcus & Millichap put a number of large properties under contract, including Horizon at South Meadows, a 344-unit complex that was built in 2005, and Sundance West, a 350-unit complex off Moana Lane. The Horizon deal, he noted, is one of the region's largest sales by dollar volume.
'Moving into 2021, we definitely have a substantial pipeline of properties that will probably total close to $200 million in sales, Blomsterberg said.
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Marcus & Millichap Inc. published this content on 26 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2021 22:57:09 UTC.
Marcus & Millichap, Inc. is a brokerage company. The Company is specialized in commercial real estate investment sales, financing services, research, and advisory services. The Company also offers market research, consulting, and advisory services to its clients. The Company offers services to its clients by underwriting, marketing, selling, and financing commercial real estate properties in a manner that maximizes value for sellers, provides buyers with a diverse inventory of commercial properties, and secures competitive financing from lenders for borrowers. The Company divides its commercial real estate into four market segments: properties, private client market, middle market, and larger transaction market. The Company serves clients with one property, multiple properties, and large investment portfolios. The Companyâs investment brokerage and financing professionals serve private clients within the private client market segment.