Property Paths
Hospitality Transition Plan
Flagged select-service hotels and leisure portfolios vetted for exchange use.
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Based in Boston, MA. Nationwide identification support in 45-day and 180-day windows.
Our Hospitality Transition Plan helps investors in Boston, MA who are selling hotel or hospitality properties and need to identify replacement properties that meet 1031 exchange requirements. This service is designed for property owners exiting select-service hotels, extended-stay facilities, or leisure portfolios who want to maintain tax deferral while transitioning into new hospitality assets or other qualifying real property types. We provide comprehensive market analysis, property identification, and due diligence support to help you meet the critical 45-day identification deadline and complete your exchange within the 180-day closing window. Our team works with Qualified Intermediaries and qualified escrow agents to ensure all transactions comply with IRS regulations. We evaluate replacement properties based on location, tenant credit, operational metrics, and exchange compliance factors. The service includes detailed property reports, financial analysis, and coordination with your Qualified Intermediary to structure the exchange properly. Whether you're looking to upgrade to higher-quality hospitality assets, diversify into other property types, or consolidate holdings, we help identify properties that align with your investment goals while maintaining exchange eligibility.
Common replacement classes
What's included
Example Engagement
Identify replacement hospitality properties nationwide for a client selling a $12 million select-service hotel portfolio, ensuring compliance with 1031 exchange identification rules and coordinating with Qualified Intermediary and qualified escrow agents.
Client Situation
A Boston-based investor was selling three select-service hotel properties and needed to identify replacement properties within the 45-day identification period. The client wanted to diversify across multiple markets while maintaining tax deferral and meeting strict investment criteria.
Our Approach
We conducted a nationwide search for qualifying hospitality properties, evaluated over 40 potential replacements, and prepared detailed analysis reports. We coordinated with the client's Qualified Intermediary to ensure proper exchange structure and worked with qualified escrow agents in multiple states. We delivered identification options within 20 days, allowing time for due diligence.
The client identified three replacement properties across different markets that met their investment criteria and exchange requirements. All properties were properly documented and delivered to the Qualified Intermediary within the 45-day deadline, maintaining full tax deferral while diversifying the portfolio geographically.
FAQs
What types of hospitality properties qualify for 1031 exchange replacement in Boston, MA?
In Boston, MA, qualifying replacement properties include hotels, motels, extended-stay facilities, and other hospitality real estate that meet the like-kind requirement. The property must be held for investment or business use, not personal use. We help investors identify hospitality properties nationwide that qualify as replacement property, ensuring they meet IRS identification rules and can be properly documented within the 45-day identification period required for exchanges originating from Boston, MA.
How does boot affect my hospitality transition exchange in Boston, MA?
Boot occurs when you receive cash, debt relief, or non-qualifying property in your exchange. In Boston, MA, if you sell a hospitality property for $5 million and purchase a replacement property for $4.5 million, the $500,000 difference is boot and may be taxable. We help structure your hospitality transition to minimize boot by identifying replacement properties that match or exceed your relinquished property's value and coordinating with your Qualified Intermediary to ensure proper documentation. Our analysis helps you understand potential boot scenarios before you commit to replacement properties.
Can I identify multiple hospitality properties to replace my single property in Boston, MA?
Yes, in Boston, MA, you can identify up to three replacement properties without value restrictions, or any number of properties as long as their combined value doesn't exceed 200% of your relinquished property's value. For hospitality transitions, this flexibility allows you to diversify across multiple hotel properties or mix hospitality with other qualifying property types. We help structure your identification strategy to maximize options while staying within IRS identification rules, ensuring all properties are properly documented and delivered to your Qualified Intermediary within the 45-day deadline.
What due diligence is included in the Hospitality Transition Plan for Boston, MA investors?
For investors in Boston, MA, our Hospitality Transition Plan includes property identification reports, financial analysis of replacement properties, operational metrics review, market positioning analysis, and compliance verification. We coordinate with Qualified Intermediaries to ensure proper exchange documentation and work with qualified escrow agents to structure the transaction. The service covers properties nationwide, allowing Boston-based investors to access opportunities across all markets while maintaining proper exchange structure and meeting all IRS timing requirements.
How quickly can you identify replacement hospitality properties for my exchange from Boston, MA?
We understand the 45-day identification deadline is critical for Boston, MA investors. Our Hospitality Transition Plan is designed to deliver qualified replacement property options within the first two weeks of your exchange period, giving you time to conduct due diligence and finalize your identification letter. We maintain relationships with Qualified Intermediaries and qualified escrow agents nationwide to facilitate quick property identification and ensure all documentation meets IRS requirements for exchanges originating from Boston, MA.
Next Steps
Ready to lock in your 1031 strategy?
Tell us about your exchange goals in Boston and we’ll share a personalized property identification plan within one business day.