In a recent deal, two limited liability companies (LLCs) swapped ownership of a retail center in Merrillville, Indiana.
The retail center, which is located on 1.67 acres of land, was originally developed in 1997 and includes several national tenants.
The LLCs involved in the transaction were 901 West Lincoln LLC and 8035 Broadway LLC.
901 West Lincoln LLC sold the retail center to 8035 Broadway LLC for $4.4 million, according to a press release from the brokerage firm that facilitated the deal.
The retail center, which is located at 901 West Lincoln Highway, is anchored by a Walgreens pharmacy and includes other tenants such as Subway, BMO Harris Bank, and Papa John’s Pizza.
The property is located in a busy retail corridor and has high visibility from the street.
The deal is an example of how LLCs can be used for real estate transactions.
LLCs offer several advantages over other forms of ownership, including limited liability protection for the owners, pass-through taxation, and flexibility in management.
In this case, the two LLCs were able to swap ownership of the retail center without incurring a large tax bill.
By using a tax-deferred exchange, also known as a 1031 exchange, the owners were able to defer paying capital gains taxes on the sale of the property.
Under a 1031 exchange, the owners of the property are able to exchange it for a similar property without incurring a tax liability.
This allows them to defer paying taxes until they eventually sell the property for cash.
The use of LLCs and 1031 exchanges are common strategies in real estate investing.
By using these tools, investors can minimize their tax liabilities and protect themselves from personal liability in case of legal issues.
Overall, the swap of ownership of the Merrillville retail center demonstrates the benefits of using LLCs and 1031 exchanges in real estate transactions.
These tools allow investors to maximize their returns while minimizing their risks, making them popular among experienced real estate investors.