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Exchange Quarterly (1031 News & Stats)
Posted: Tue Dec 09, 2014 11:37 am
In this inaugural edition of the Exchange Quarterly, we have tried to outline important aspects of how today’s industry is similar to, yet different from, the TIC industry of several years ago. We trust that the articles provided by these experts will provide you with important insights into DSTs, meaningful due diligence, and the current iteration of our securitized 1031 exchange marketplace. Our company has been gathering information on the securitized 1031 exchange market for over a decade. By doing this, we have been able to gather a plethora of market intelligence through statistics, data, and market feedback.
Re: Exchange Quarterly (1031 News & Stats)
Posted: Wed Feb 17, 2016 1:05 pm
Exchange Quarterly 4Q 2015
Equity Raised in 2015: $1,074,567,269
We have been gathering securitized 1031 statistics since 2002. The numbers reflect all syndicated 1031 offerings; we have not added one-off deals. Our stats reflect a small portion of the total 1031 market; approximately 8% of all 1031 transactions are being done as securities (syndicated) transactions.
“The 1031 market is hot for real estate agents and securities brokers alike. Investors can choose from a wide variety of investments and structures. Last year Mountain Dell Consulting, LLC forecasted a rebound in the securitized 1031 market from the 2014 equity raise of $731.5 million. Reported equity raised in securitized 1031 transactions during 2015 exceeded $1.0 billion for the first time since 2008 and represented an approximate 46% increase from 2014.
Although 2015 was better than last year for 1031s, 2016 and 2017 could be higher. The peak transaction volume years of the last cycle were 2005 through 2007, with a steep bell curve on each end. Many of those transactions put on 10-year financing. As that debt matures, it either triggers a refinance or sale event, and the percentage of deals as 1031s should increase accordingly.”