1031 exchange structures · Buy, then sell
Reverse 1031 exchange for NNN investors
The right replacement doesn’t always wait for your sale. A reverse exchange lets you secure it first, while an exchange accommodation titleholder (EAT) temporarily holds title so the transaction stays within IRS guidelines.
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How it works
What is a reverse 1031 exchange?
Section 1031 lets you defer capital gains taxes through a like-kind exchange of qualifying investment or business property. IRS rules generally prevent you from owning both properties for exchange purposes at the same time, so a reverse exchange uses a special structure: a qualified intermediary coordinates, and an exchange structure holds title to one property until you sell the other.
Delayed exchange
Reverse exchange
Common reasons NNN investors use it
A desirable like-kind property becomes available unexpectedly.
Inventory is tight, and timing certainty matters.
Losing the new property would cost more than the short-term complexity.
Why it fits NNN
Why reverse exchanges work well for NNN properties
Well-located NNN properties with strong tenants can sell quickly, so speed and certainty matter. A reverse exchange lets you act on the opportunity without giving up tax deferral.
Advantages
Secure the replacement first
Acquire a strong NNN asset without waiting for your current property to sell.
Reduce acquisition risk
Avoid losing a deal to timing constraints.
Stronger negotiating position
Sellers often favor buyers who can close with certainty.
Preserve tax deferral
Structured properly, Section 1031 deferral still applies.
Trade-offs
Added complexity
More coordination, documentation and moving parts than a delayed exchange.
Higher short-term capital needs
You may need liquidity or financing before your sale proceeds arrive.
Strict timelines
Your relinquished property must sell within the exchange window.
Your buyer’s broker
Why work with Triple Net Companies
Reverse exchanges take careful planning and disciplined execution. We help with both the transaction and the investment decision — including how a parked-property structure holds title while your relinquished asset sells at fair market value.
Plan up front: only qualifying commercial property held for investment is eligible. A primary residence is not.
We coordinate with your
What we evaluate
Single-tenant and multi-tenant NNN assets in retail, industrial, medical and essential services.
Is it right for you?
Is a reverse 1031 exchange right for you?
A strong fit if you…
- Found a replacement you don’t want to lose, especially in a competitive market
- Are moving from management-intensive property into passive NNN ownership
- Have access to capital or financing, and accept short-term complexity for long-term benefits
Consider another structure if…
Simplicity matters more, or you’d rather sell before you buy. A delayed or simultaneous exchange may be a better fit.
1031 exchange structures
Compare the ways to exchange into NNN
Each structure trades time, certainty and complexity differently. Start with the one that matches where your sale is today.
Move forward with confidence
A reverse exchange only works when it’s structured right.
Missed deadlines or loose coordination can create unintended tax exposure. Talk with an advisor about your current property, your acquisition goals and whether a reverse exchange fits — backed by decades of exclusive buyer representation.