6A — March 2025 — 1031 Exchange — Financial — M id A tlantic Real Estate Journal
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1031 E xchange
By Justin Amos, JTC Group Key tips for choosing a trusted 1031 Exchange Intermediary
Holland, Waisbrod & Wolf arrange sale Kislak closes $15.8M sale, assisting 1031 buyer
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o successfully complete your 1031 exchange, you’ll need a Qualified
with strong relationships with trusted CPAs and attorneys across the industry and the U.S. Since IRS regulations prohibit QIs from provid- ing tax advice, you’ll need a CPA or attorney to guide you through your exchange. Access to information at your fingertips – Your QI should offer 24/7 access to infor- mation on where your money is held. Transparency matters. A strong QI provides a robust re- porting system that records and archives all exchange events, offers a full audit trail, and lets you monitor account activity anytime, from anywhere. Some QIs are rock stars: To ensure compliance with federal and state tax laws, a QI should submit to an an- nual third-party audit of its business practices and tech- nologies. Exceptional QIs go beyond the minimum require- ments and undergo regular reviews of their technologies, procedures, and control objec- tives like we do at JTC Group. Justin Amos, a 1031 Ex- change executive at JTC Group, is a recognized expert in tax-advantaged investments, including DSTs and Opportunity Zones. MAREJ
due diligence process: Not all friends know best – Many people pick a QI based on a friend’s recommendation or a quick online search. That’s too risky. Due diligence is es- sential. Understand what type of QI you need and retain the most qualified one. Not all exchanges are the same – In a forward exchange, the relinquished property sells first. In a reverse exchange, the replacement property is ac- quired first. Each exchange is unique, so your QI must accom- modate your specific situation. Mind the bank – Your QI holds your sale proceeds between closings, so fund security is key. Choose a QI with strong controls, ensuring funds are in FDIC-insured, fully liquid accounts at top-tier banks – never commingled in operating accounts. Funds should only be released from escrow with approval from both the QI and the exchanger. Some QIs work with only one bank, so if their bank isn’t your preference, you could be stuck with a partner you don’t trust. Get that information and de- tails upfront before signing on the dotted line. As good as the company you keep: Look for a QI
Intermediary (QI). Here are a few key fac- tors to con- sider when choosing the right one. For over 100 years, investors
Justin Amos
have used IRC Section 1031 Like-Kind Exchanges to defer capital gains taxes and depre- ciation recapture on the sale of real estate held for investment or used in a trade or business. A powerful wealth-building tool, 1031 can be a smart investment strategy for real estate owners. Yet, one critical requirement – often overlooked but essential to a successful ex- change – is selecting the right Qualified Intermediary. The QI holds the proceeds from the sale of the relin- quished property until the replacement property is pur- chased, ensuring the inves- tor never takes possession of the funds. To successfully complete a 1031 exchange, selecting the right QI is just as important as having one. Here are key tips to simplify your
4800 Mantlewood Way
ABERDEEN, MD — The Kislak Company, Inc. an- nounced the recent sale of
Holland also said, “Since Kislak was engaged as the seller’s exclusive broker, we were able to produce multiple offers and obtain the highest and best price. The all-cash buyer, whose offer was not contingent upon financing even though they obtained a loan, closed in a relatively short period of time.” Newly constructed in late 2023, Holly Oaks consists of five garden style buildings with 12 residential units in each building with large two- and three-bedroom units of approximately 1,100-1,400 square feet each. All units feature a patio or balcony and thoughtfully designed interi- ors with spacious living areas, modern fixtures, washers and dryers, and walk-in closets. A short drive from Bel Air and Havre De Grace, as well as I-95, in a commuter-friend- ly location providing many choices for recreation and re- laxation, Holly Oaks is close to golf courses, Ripken Stadium, several local parks and the historic B&O Railroad Station. Part of the Baltimore-Towson Metropolitan Statistical Area, which is the 20th-largest Unit- ed States metropolitan area. Robert Holland joined Kislak in 1984, is one of the firm’s all- time leading sales producers and became president in 2012. Barry Waisbrod joined Kis- lak in 2001 and is consistent- ly among the firm’s leading salespeople. He specializes in the sale of multifamily and other investment properties throughout New Jersey and its neighboring states. Matt Wolf joined Kislak in 2017 following over a decade of success in the commercial real estate industry focused on multifamily and other invest- ment sales transactions in cen- tral and eastern PA. MAREJ
Holly Oaks, a new 60-unit multifamily property at 4800 Man- tlewood Way in Aberdeen, H a r f o r d County, MD, for $15.8 mil- lion. K i s l a k marke t ed the property on exclusive basis with ex- ecutive vice president Barry Wais- brod and senior vice president Matt Wolf handling the assignment. president Robert Hol- land pro- cured the New Jersey-
Barry Waisbrod
1031 exchange funds off-market transaction Feldman Ruel handles sale Hyattsville, Maryland’s historic Masonic Lodge
Matt Wolf
HYATTSVILLE, MD — Feldman Ruel announced the sale of 4207 Gallatin St. and 4210 Farragut St., Hyatts- ville. The property, a historic Romanesque Revival-style Masonic Lodge paired with a separate parking lot parcel, sold for $1.339 million in an off-market transaction. The sellers, Mount Hermon Lodge #179, built the Masonic Lodge in 1893, marking 131 years of ownership. A corner- stone of Hyattsville’s history, the Lodge served as a hub for community events ranging from banquets to political ral- lies. However, like many frater- nal organizations nationwide, Mount Hermon Lodge #179 has seen its membership decline in recent years, prompting the decision to sell the property and preserve its legacy. The purchaser, local devel- oper Kayleigh Kulp , repre- sented by Hannah McCann
preservation,” said Hannah McCann, investment associate at Feldman Ruel. “Kayleigh’s commitment to adaptive reuse and local investment ensures this historic property will con- tinue to serve as a meaningful part of Hyattsville’s story.” The transaction exempli- fies problem-solving and col - laboration over the course of 17 months, including five months to secure a letter of intent and 275 days from con- tract to close. Feldman Ruel worked closely with the sell- ers to address their concerns and craft a tailored offer, including the preservation designation. The extended closing period provided the Lodge members with time to prepare and relocate 131 years of artifacts, while also allowing the buyer to plan for grants and permits, and uti- lize a 1031 exchange to fund the purchase. MAREJ
Robert Holland
based purchaser, which com- pleted an I.R.C. Section 1031 Exchange with the purchase. The parties were not disclosed. The transaction was han- dled in brokerage partnership with W. Duncan Patterson, CCIM , of Patterson Woods & Associates, LLC . Waisbrod said, “The seller, an active developer in the area, wanted to market the property throughout the Mid- Atlantic and particularly to NJ-based investors. Given our established relationship, he engaged Kislak as the ex- clusive broker to market sane sell the property.” Wolf added, “The property traded at a record price per unit for the area given our marketing efforts.”
207 Gallatin St.
of Feldman Ruel, has long admired the architectural significance of the Lodge. A Hyattsville resident and pro- ponent of historic preservation, Kulp specializes in adaptive reuse projects and plans to restore the Lodge’s distinctive exterior while converting the interior into a mixed-use prop- erty. A historic preservation designation was secured as a condition of the sale, ensuring the building’s character and legacy remain intact. “This acquisition is a per- fect alignment of communi- ty-focused development and
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