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Reverse 1031 Exchange for NNN Investors

A Reverse 1031 Exchange can be a powerful strategy when the right replacement property shows up before you’re ready to sell your existing asset. For NNN investors operating in competitive markets, this approach can make the difference between securing a high-quality property and missing it entirely.

Rather than waiting on a sale and hoping the right deal appears, a reverse exchange allows you to lock in the replacement property first—while still preserving the tax-deferral benefits of a 1031 exchange when structured correctly.

At Triple Net Companies, we help investors evaluate and execute reverse 1031 exchanges into long-term NNN and NNN-focused assets that emphasize income reliability, tenant quality, and durable portfolio growth.

What Is a Reverse 1031 Exchange?

Under IRS Section 1031, investors can defer capital gains taxes by exchanging one investment property for another qualifying property. In a traditional (delayed) exchange, the sale happens first. In a reverse 1031 exchange, that order is flipped. You acquire the replacement property first, then sell the relinquished property afterward.

Because IRS rules prohibit an investor from owning both properties at the same time for exchange purposes, a special structure is required.

A qualified intermediary—sometimes referred to as an accommodator—temporarily holds title to one of the properties during the exchange period.

Once the replacement property is acquired, the investor has up to 180 days to sell the relinquished property and complete the exchange in full compliance with IRS regulations.

For NNN investors, reverse exchanges are often used when:

A desirable property becomes available unexpectedly
Inventory is tight and timing certainty matters
Losing the replacement asset would be more costly than short-term complexity

Why Reverse Exchanges Work Well for NNN Properties

High-quality NNN assets often trade in competitive environments where speed and certainty matter. Reverse exchanges give investors the flexibility to act decisively without giving up tax efficiency.

Secure the replacement property first
You can acquire a strong NNN asset without waiting for your existing property to sell.

Reduce acquisition risk
Locking in the replacement property eliminates the risk of losing an attractive deal due to timing constraints.

Stronger negotiating position
Sellers favor buyers who can close with certainty—reverse exchanges help you compete effectively in tight markets.

Preserve tax deferral
When structured properly, capital gains taxes can still be deferred under Section 1031.

Added complexity
Reverse exchanges involve more coordination, documentation, and moving parts than delayed exchanges.

Higher short-term capital needs
You may need access to liquidity or financing before sale proceeds are available.

Strict timelines
The relinquished property must be sold within the exchange window to maintain tax deferral.

Why Work With Triple Net Companies

Reverse 1031 exchanges demand careful planning and disciplined execution. At Triple Net Companies, we help investors navigate both the transactional complexity and the investment decision behind the exchange.

We work with buyers pursuing single-tenant and multi-tenant NNN assets across retail, industrial, medical, and essential service sectors. Every opportunity is evaluated through the lens of:

Tenant credit quality
Lease structure and rent durability
Cap rate sustainability
Market fundamentals and exit risk

Because reverse exchanges often move quickly, we help investors assess opportunities realistically and efficiently—separating urgency from emotion and focusing on long-term ownership outcomes.

We also coordinate closely with qualified intermediaries, lenders, attorneys, and tax advisors to help ensure the exchange remains compliant from acquisition through disposition. Our role is to reduce friction, manage risk, and keep the transaction moving toward a clean, successful close.

Is a Reverse 1031 Exchange Right for You?

A reverse 1031 exchange can be an effective solution if you’ve identified a replacement property you don’t want to lose—especially in competitive NNN markets.

This strategy is commonly used by investors who are selling more management-intensive assets and transitioning into long-term, passive NNN ownership. It can be a strong fit for investors with access to capital or financing who are comfortable accepting short-term complexity in exchange for strategic positioning.

If simplicity is a priority, or if you prefer to sell before committing to a new acquisition, a delayed or simultaneous exchange may be a better fit. The right structure ultimately depends on timing, risk tolerance, and investment objectives.

Move Forward With Confidence

A reverse 1031 exchange can create meaningful opportunity—but only when it’s structured and executed correctly. Missed deadlines or poor coordination can result in unintended tax exposure.

Triple Net Companies helps NNN investors evaluate reverse exchange scenarios, navigate complexity, and secure high-quality assets with confidence.

Schedule a consultation to discuss your current property, acquisition goals, and whether a reverse 1031 exchange aligns with your long-term investment strategy.

Questions about NNN Properties for Sale?

Choosing Triple Net Companies, Inc. means choosing a partner with decades of exclusive buyer representation, a proven track record, and access to the best properties and financing options.