Corcapa 1031 Advisors Represents Southern California Investor in $17 Million 1031 Exchange into 14 Alternative Real Estate Investments
March 23, 2026
PR Newswire
COSTA MESA, Calif., March 23, 2026 /PRNewswire/ — Corcapa 1031 Advisors announced today it structured and advised on an approximately $17 million 1031 exchange with a partial reverse exchange component, transitioning a Southern California office building into a diversified portfolio of 14 alternative real estate investments located across the country.
The sale was driven in part by California’s Housing Element Law, which requires every city and county to plan for a state-mandated number of new residential units. A developer contracted to purchase the office property at above-market value with plans to build up to 100 residential units, a transaction that allowed the investor to exit at a favorable price while contributing to the city’s required unit count.
The investor’s replacement portfolio consists of two umbrella partnership real estate investment trust (UPREIT) – 721 exchange interests, eight Delaware Statutory Trusts (DSTs), three Tenant-in-Common (TIC) properties, and additional holdings. The diversified structure provides the client with potential tax deferral under IRS Section 1031, passive real estate ownership, multiple streams of potential income, and access to depreciation benefits.
To protect against running short on replacement property options before the exchange deadline, the client prioritized closing on initial DST positions rather than waiting to finalize all selections at once.
“This client had clear priorities that required a carefully assembled portfolio rather than a single strategy,” said Christina Nielson, president and founder of Corcapa 1031 Advisors and its affiliated firm, 1031 DST Solution. “We leveraged relationships with top DST sponsors to hold positions during a period of strong demand in the market, which gave the client adequate time to review materials and make informed decisions without sacrificing their exchange timeline. The portfolio was designed so that individual investments mature at different time horizons, seek to generate passive income, and in some cases carry leverage to provide a depreciation benefit against taxable income.”
The client elected modest non-recourse debt on several investments to generate a depreciation shelter on investment income, a feature that DST-to-REIT conversion structures often cannot provide. Options considered and ultimately set aside included several net lease properties, which were declined due to concentration risk from exposure to one or a small number of tenants, and allocating the full exchange proceeds into two separate DST-to-REIT strategies, which would have eliminated the ability to complete future 1031 exchanges.
The transaction reflects Corcapa’s approach to structuring 1031 exchanges using a combination of DSTs, TICs, UPREIT interests, and direct ownership alternatives, matched to each client’s tax position, income needs, and long-term investment objectives.
About Corcapa 1031 Advisors and 1031 DST Solution
Founded in 2011, Corcapa 1031 Advisors and 1031 DST Solution is a financial advisory firm specializing in 1031 and 1033 exchanges and tax mitigation strategies. The firm works with Delaware statutory trusts, tenant-in-common programs, sole-ownership transactions, and 721 UPREIT structures. Corcapa has advised hundreds of clients across thousands of investments, facilitating more than $1 billion in completed exchanges. The firm works with registered investment advisors and financial advisors nationwide on tax-deferred exchange strategies.
This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. This is not an offer to buy or sell or a solicitation of an offer to buy or sell any interest. DST investments are speculative, illiquid, and may carry a high degree of risk – including the potential loss of the entire investment. Performance is not guaranteed and could be lower than anticipated. Past events and trends do not predict or guarantee or indicate future events or results. Securities offered through DAI Securities, LLC, Member FINRA/SiPC.
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