6 Key 1031 Exchange Investment Opportunities

Completing a 1031 exchange means reinvesting your sale proceeds into a replacement property within 180 days. Here are the top investment types that work well as 1031 replacement properties.

1. Like-Kind Multifamily Properties

The most common 1031 exchange for LA investors. Exchange one apartment building for another — potentially in a different submarket or with better rent growth prospects. Samimi CRE Advisors specializes in helping sellers identify and close on replacement multifamily properties.

2. Net-Lease Commercial (NNN)

Single-tenant NNN properties (Walgreens, CVS, Dollar General, Starbucks) offer passive income with no management responsibilities. Cap rates for NNN are typically 4–7%, and long-term leases provide stability.

3. Delaware Statutory Trusts (DSTs)

Fractional ownership in institutional-quality real estate that qualifies as like-kind property. DSTs offer passive income, diversification, and access to properties that would otherwise require tens of millions in equity.

4. Industrial/Warehouse Properties

Industrial real estate has been one of the strongest performing commercial sectors. Cap rates run 4–6% in LA's industrial submarkets, with strong rent growth driven by e-commerce.

5. Office-to-Residential Conversions

A growing opportunity in LA as obsolete office buildings are repositioned as residential. This can work as a 1031 replacement if structured correctly.

6. Opportunity Zones

Qualified Opportunity Zone investments offer additional tax benefits on top of a 1031 exchange — though they require specific structuring. Consult with a tax attorney before pursuing.

Contact Samimi CRE Advisors to discuss which 1031 replacement strategy fits your goals.