Calkain Swaps Tax Debt for Zero Cash Flow Assets in 1031

RESTON, VA-Losing a tenant in a single net lease property is tough. Losing said tenant during the worst recession in memory and not being able to replace it, is tougher. Hardest of all? That tenant loss eventually results in a foreclosure, which leads to a looming tax bill thanks to the loan associated with the property.

Calkain Cos. recently structured a $23 million zero cash flow transaction that mitigated this event for its client–the owner of the original property, which was located in a southwest market. The company could not provide identifying details due to client confidentiality but it did walk GlobeSt.com through the complex transaction.