Is it possible to purchase a condo hotel via a Starker exchange (1031)?
Yes, to the best of my knowledge, you can purchase a unit doing a 1031, however you will need to establish which property you will purchase within 180 days, and then close 45 days thereafter. (Please do double-check the timeframes with your accountant and/or attorney.) Therefore, if you are serious about buying a condo hotel to complete a 1031, you will need to consider a property that is already built, a resale or a unit in a building that will be completed within your time frame. You cannot consider a pre-construction opportunity that is more than a few months away from coming to fruition.
The above question was submitted via e-mail by a visitor to www.condohotelcenter.com. The answer was prepared by Joel Greene, a licensed real estate broker with Condo Hotel Center which specializes in the sale of condo hotel units and fractional ownerships in private residence clubs.