Executing a 1031 Exchange in New Jersey requires through research and following the right set of guidelines. Similar to major Metropolitan locations, there can be a lot of competition in the New Jersey 1031 exchange market. Prices can be expensive and taxes are high. In fact, New Jersey has some of the highest real estate taxes in the United States.
While New Jersey Real Estate is not without challenges, it can present great opportunities for a myriad of investors. With the ample amount of high ways, strip centers and triple net lease single storefront locations can be very attractive properties for investors. Additionally, there are many communities that continue to appreciate in value that offer smart investment choices for the future.
Ideal Assets for a 1031 Exchange in New Jersey
New Jersey is filled with prospective 1031 exchange assets due to the many different sections and historical backgrounds. These include:
- Strip Centers – There are many Strip Centers located throughout the multitude of highways in the State of New Jersey. Some include national anchor tenants, while others are occupied by local, homespun retail locations. Strip Center transactions are typically triple net lease acquisitions
- Multi-Family properties – Selecting a multifamily property for a 1031 exchange in New Jersey may be attractive if you are looking to invest in a City
- Industrial Warehouses – There are plenty of industrial facilities in New Jersey. A buyer can opt to keep the space as industrial property or potentially re-zone to fit a different need in the community.
- Singe Unit Commercial Spaces – Finding a triple net or absolute net single tenant retail location for sale should not be a problem in New Jersey. There are many properties that fit this description that may be ideal for a safe and secure purchase.
Select Your City
New Jersey has a mix of established communities and Cities on the Horizon. Here are some examples of locations to consider:
- Jersey City – One of the most popular cities for development and investment in New Jersey, if you can find a property that delivers a 5% return in this neighborhood, we recommend snatching it up
- Hoboken – Even before Jersey City became popular, Hoboken emerged as a haven for real estate investment. Close to the Path train and holland tunnel, Hoboken is an excellent place to purchase. Again, finding property for sale that offers a reasonable return can be difficult
- Newark – Depending on the neighborhood, Newark may offer a return for the future. Certain areas have been developed, while others still struggle with crime and unfortunate circumstances. We recommend fully research this large City when planning a 1031 exchange in New Jersey
- Trenton – The Capital of Jersey is a City not to be overlooked. Don’t be fooled by the current and previous state, Trenton is an up-and-coming City for investment
- Camden – With views of Philadelphia, Camden is popping up as an area for investment. It may be attractive for a buyer looking to hold for the long-term
As 1031 exchange real estate experts in the Tri-State area, JSG Realty can assist and guide you with a 1031 exchange in New Jersey. Please reach out to us to setup a meeting to discuss your 1031 exchange needs.
Additional 1031 Exchange Resources
- IRS 1031 Code
- Forbes 1031 Advice
- Forbes 1031 Vacation Homes
- Cornell 1031 Review
- US News 1031 Wealth Accumulation
- Huffington Post 1031 Analysis