Denny's

Challenge

Our team was engaged to represent a buyer completing a 1031 exchange who needed to identify and acquire a suitable replacement property. The assignment required locating a single-tenant net-leased asset that met the exchange requirements and could close within the constraints of the 1031 timeline.

Action

We focused the search on single-tenant retail properties with stable, long-term tenancy and low management demands — criteria well suited to a passive replacement asset. The search led to a new construction Denny's in Edgewood, New Mexico, a freestanding 4,385 SF building built in 2015. We guided the buyer through due diligence and negotiations, keeping the transaction on track to satisfy the exchange requirements.

Result

• Identified and secured a single-tenant Denny's as the replacement property for the buyer's 1031 exchange
• 4,385 SF new construction asset acquired at $1,920,000 ($438 per SF)
• Successfully closed the acquisition within the buyer's exchange requirements