1031 exchange QIs
Strategic 1031 Exchange Advisors
Strategic 1031 Exchange Advisors, LLC (SEA1031) consults on and serves as qualified intermediary for §1031 tax-deferred exchanges, and says it specializes in complicated transactions, including those arising from partnerships, lease buy-backs, and other complex exchange structures.
As intermediary the firm drafts the exchange agreement and assignment documents that let it act on the taxpayer's behalf for the sale of the relinquished property and the purchase of the replacement, works with the closing agents on both sides so the settlement statements correctly identify the exchange and its role, and opens a segregated bank account to receive and hold the exchange funds.
SEA1031 is one business line of The Strategic Group, an Atlanta boutique working with investors, family offices, advisors, corporations, and banks on investment strategies that carry tax benefits. The other lines are development and co-development of low-income housing tax credit and historic rehabilitation projects, federal and state transferable tax credits, fund management covering private real estate funds, DSTs, private equity funds and two Opportunity Zone funds, and cost segregation through USA Cost Segregation, which uses an engineering-based methodology with full audit documentation.
Much of the firm's pitch is stacking those strategies: cost segregation to front-load depreciation, then an exchange or an Opportunity Zone fund to defer the gain. Its office is at 575 Pharr Road NE in Atlanta. Exchange fees are not published, and the site still carries a COVID-19 operating notice, so confirm current contacts and terms before relying on the page.
Best for
Investors and advisors with complicated exchanges, such as partnership splits, lease buy-backs, or an exchange stacked with cost segregation or an Opportunity Zone fund, rather than a straightforward single-property swap.
What they do
- Qualified intermediary services for §1031 exchanges
- Exchange documentation and assignment drafting
- Segregated exchange fund accounts
- Exchanges involving partnerships and lease buy-backs
- Cost segregation studies
- Opportunity Zone fund investment
- Delaware Statutory Trust (DST) investments
- Federal and state transferable tax credits
Details
| Attribute | Value |
|---|---|
| Exchange types | Forward, Reverse, Improvement |
| Fund security | Segregated accounts |
What stands out
- Opens a segregated bank account to hold each client's exchange funds.
- Works with the closing agents on both closings so the settlement statements identify the exchange.
- Sponsors and manages two Opportunity Zone funds, each with a public-private partnership thesis.
- Cost segregation is delivered engineering-based, with full audit documentation and complete engineering reports.
Common questions
- What does a qualified intermediary do in a 1031 exchange?
- A qualified intermediary converts the sale and purchase of like-kind real property from a taxable event into a tax-deferred exchange by keeping the transaction within IRS regulations. In practice it drafts the exchange documents, opens a segregated bank account to hold the sale proceeds, and works with all parties through both closings.
- Is a qualified intermediary required for an exchange?
- Most exchanges require one. The role is also called an intermediary, facilitator, accommodator, or qualified escrow holder, and it exists so the proceeds of the relinquished sale never come under the taxpayer's control before the replacement property is acquired.