Why is Triple-Net (NNN) Leased Real Estate Suitable for 1031 Exchanges?
Investors seeking suitable replacement property for their 1031 exchange look to NNN properties for the following reasons: the structure may provide relief of management obligations, such as multi-family apartment complex owners that are looking for relief but still need the income, want to defer their tax responsibilities, and no longer want intensive landlord responsibilities. Investors may also consider NNN properties for assured income, pride of individual ownership and preservation of capital. NNN leases may also interest investors that want to provide a relatively easy estate asset for their heirs.
