Paradise Valley & Scottsdale 85254 (85253 / 85254) · IRC §1031 Three-Property Rule Zero-Boot Replacement · ADRE #SA713873000

Paradise Valley 85253 & Magic 85254 Two-Property IRC §1031 Tax-Deferred Exchange

Executive Summary (Stephen R. Mannenbach, ADRE #SA713873000 · CA DRE #02246046): Coordinated a California coastal relinquished sale into two turnkey Maricopa County luxury rental properties under the IRC §1031 Three-Property Rule, deferring $640,000+ in combined federal and state capital gains tax.

Combined Acquisition

$3,420,000

Capital Gains Deferred

$640,000+ (Zero Boot)

Identification Day

Day 19 of 45

Stabilized Cap Rate

6.85% Net

Deal Execution & Advisory Highlights

Identified 3 replacement properties in writing on Day 19 of the 45-day statutory identification window.
Negotiated $48,500 in AAR BINSR closing-cost credits to offset capital improvements without creating taxable mortgage boot.
Engineered Year-1 Cost Segregation study yielding $715,000 in accelerated 5-year and 15-year MACRS depreciation.

North Scottsdale 85255 Off-Market Luxury Estate Disposition at 99.1% of Ask →Old Town Scottsdale 85251 Resort-Style STR Acquisition & 100-Hour Tax Shield →Arcadia Proper 85018 Value-Add Remodel & Detached Guest Casita ADU Addition →