Solutions · Reverse
Reverse Exchanges
Secure the replacement property first, before the relinquished property sells.
In a competitive market, waiting to sell before you buy can mean losing a prime property. A Reverse Exchange allows you to secure your replacement property first. Under Rev. Proc. 2000-37, we utilize an Exchange Accommodation Titleholder (EAT) to "park" the title of either your new or old property, so a sale can proceed on its own timetable, inside the safe-harbor periods below.
In a safe-harbor reverse exchange, the Exchange Accommodation Titleholder takes title under a written qualified exchange accommodation arrangement entered into within five business days. When the replacement property is parked, the relinquished property must be identified within 45 days of the EAT's acquisition, the parked property must transfer within 180 days, and the combined time any property spends in the arrangement may not exceed 180 days (Rev. Proc. 2000-37 §4.02). Property the exchanger owned within the 180 days before it was parked is outside the safe harbor (Rev. Proc. 2004-51). The clock starts earlier in a reverse exchange; it does not stop.
This structure is ideal for institutional investors who must act quickly on rare market opportunities. We manage the complexities of the EAT, coordinate with your lenders for "parking" financing, and ensure the entire 180-day parking period is executed with precision — allowing you to prioritize the property acquisition while we handle the tax-deferral mechanics.
At a Glance
- Secure replacement property first
- EAT structure under Rev. Proc. 2000-37
- We coordinate parking financing
- Ideal for time-sensitive acquisitions
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