Video: What is a Leasehold Improvement Exchange?

Can you use proceeds from a Relinquished Property to make improvements on a Replacement Property? The answer is yes, a Leasehold Improvement Exchange offers a unique solution for transactions where an Exchanger wishes to complete improvements on land owned by a related party using a 1031 Exchange.

In this educational video, Matthew Douglas, Senior Director, explains how Exchangers can utilize a 1031 Exchange to complete improvements or build new construction on land held by a related party by way of a long-term ground lease and properly structured leasehold agreement.

We also cover how the leasehold interest and completed improvements are then transferred to the Exchanger and key differences between Leasehold Improvement Exchanges and conventional Improvement Exchanges.