Challenges:
I helped a longtime client sell an investment property and the group needed to complete a 1031 exchange on a tight timeline. They were seeking a secure, long-term, income-producing asset with minimal landlord responsibilities. The challenge was to identify a replacement property that met their investment criteria while also preserving the benefits of the tax-free exchange.
Actions:
Through collaboration with two advisors at Stirling, John DeArmond and Tommy Parsons, I was presented with an off-market opportunity: a newly renovated, net-leased restaurant property in Baton Rouge’s Industriplex corridor. Knowing my client’s 1031 needs, I recognized the strong fit. I guided buyer through the evaluation process, assisted in conducting due diligence, and we met with the tenant to discuss his long-term vision for the property. The property was fully leased to Salt Pepper Oak (“SPO”), an unbelievable BBQ restaurant with a massive social media following. The long-term triple-net lease meant the tenant was responsible for property taxes, property insurance, and maintenance, leaving only roof and structure as landlord obligations.
Results:
Within a few days of selling their down-leg (the property that allows them to then perform the 1031 exchange), my client successfully acquired the SPO property via 1031 exchange, securing a stable investment at a 9.2% cap rate and predictable cash flow from the net operating income. The purchase not only satisfied the 1031 exchange requirements but also enhanced the investment group’s portfolio with a turnkey, income-producing asset positioned in a strong Baton Rouge submarket.
Testimonial
"My man, Justin Langlois, came through for our investment group again! I love off-market opportunities, and I would not have found this deal on my own. Best of all, the NNN investment property met my 1031 exchange requirements."
- Jacob Loeske