Double-closing a 1031 — Reserve at Lake Butler Sound
Keene's Pointe → Reserve · 1031 Exchange · 2024
The Result
$6.15M total volume · 1031 executed cleanly · 72-day timeline
Sell side closed
$2.95M
Buy side closed
$3.20M
1031 window used
42 of 45 days
Total timeline
72 days
The Challenge
What we walked into.
The client was rolling significant capital gains from a $2.8M Keene's Pointe home they'd held for 14 years. A straight sale would have triggered a large federal and state tax hit, so they wanted to execute a 1031 exchange into a larger waterfront property. The constraint: IRS rules give you 45 days from the sale of the relinquished property to identify replacement candidates, and 180 days to close on one. In the Reserve at Lake Butler Sound, inventory at their target price band turns over 2-3 times a year total. Finding a qualifying replacement in 45 days was not a casual assumption.
Most agents start a 1031 when the sell side closes. We started it six months earlier.
Our Strategy
What we did differently.
- 01
Pre-identified 3 Reserve and Butler Chain replacement options before even listing the Keene's Pointe home — cold-contacting owners, checking tax records for recent trust transfers, and watching for soft-market signals.
- 02
Negotiated a long closing on the sell side (90 days) with an aggressive earnest deposit from the buyer, giving us nearly three months of runway inside the 1031 window.
- 03
Identified a Reserve at Lake Butler Sound home that was going to MLS in 10 days — got the client a private preview and a 48-hour exclusive to lock it up before it hit the open market.
- 04
Coordinated both closings in the same calendar week with a qualified intermediary (QI) holding sale proceeds to maintain 1031 compliance. Wire instructions, deed recordings, and escrow releases all sequenced in a single morning.
- 05
Structured the purchase offer as contingency-free with a fast close to win against two other interested buyers who surfaced once the home was known to be available.
Execution
How it went down.
Keene's Pointe listed at $2.95M, sold in 21 days at full ask. 90-day close agreed with the buyer. Day 10 post-contract: Reserve replacement identified and under contract at $3.2M. Day 42 (of the 45-day window): QI received sale proceeds. Day 72: both closings sequenced in one morning — deed-out on Keene's Pointe at 9am, deed-in on Reserve at 11am.
Results
What the seller / buyer actually took home.
Zero capital gains hit at federal or state level. Client moved from a 4,200 sqft Keene's Pointe home to a 5,800 sqft Reserve waterfront with private dock on Lake Butler Sound. Total capital deployed into the larger asset: $250K of additional equity (the buy-up) plus $0 in tax leakage. The 1031 executed inside the window with 3 days to spare, and we never came close to a distressed identification.
We'd been told a 1031 on a home this large was basically impossible to pull off inside 45 days unless we got lucky. Ryan didn't rely on luck. He had three backup homes lined up before we even listed.
Seller + Buyer · Keene's Pointe to Reserve · 2024
Ryan's Reflection
Ryan Solberg
Broker · MaxLife Realty · BK3354351
Your transaction
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