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July 19, 2021

Eight Ways 1031 Exchange Changes Could Make Economic Waves by Mark Hamilton

Mark Hamilton recently authored an article for WealthManagement.com regarding the importance of preserving the 1031 Exchange. 

Visit WealthManagement.com to view the full article, and see below for a short excerpt. 

In recent months, the political spotlight has once again turned to a 100-year-old tax policy: the 1031 exchange. Often referred to as a “loophole” by detractors, a 1031 exchange, in simplest terms, allows for the exchange of one investment property for another and the deferral of capital gains taxes on the transaction. It’s one of many policies on the docket for potential change under the new administration.

It’s important to stress upfront that this policy creates a tax deferral, not a loophole, and has massive impacts on the economic activity of a wide range of people around the country. I believe any changes to the efficacy of this technique could have wider-ranging consequences than intended. 

Here are eight ways the 1031 exchange tax policy benefits the economy, local communities and the U.S. Treasury, as well as some potential implications that significant changes to the policy could have across the country.

1. Mom-and-pop investors are the biggest beneficiaries of the 1031 exchange.

While it’s easy to picture skyline-defining skyscrapers when thinking about real estate, such properties are vastly outnumbered by duplexes, dentist offices and dry cleaners in the United States. The typical property is much more modest than a high-rise, locally owned and valued between $250,000 and $5 million.

Nearly 90% of all properties sold in 2019 transacted in this range, their total value reaching more than $150 billion. So, smaller investors–not corporations–are the prime beneficiaries of 1031 exchanges.

2. Millions of apartment renters benefit from this policy directly.

Apartment transactions accounted for nearly one-third of all 1031 exchange activity in the past decade, roughly twice the share of any other property type. And the average apartment 1031 transaction was 20% smaller than the average for all apartment transactions.

1031 exchanges benefit renters by encouraging the creation or improvement of housing and higher-quality properties and support lower rental rates by increasing housing supply. Exchanges make it more likely that a long-time investor, who may have deferred maintenance and repairs, will sell to new ownership that is able and willing to make the needed investment to improve the property. This means higher-quality rental housing for our nation’s millions of renters

Visit WealthManagement.com to read more.



July 7, 2021

‎Podcast: When it Comes to Underwriting, You Have to be Your Own Worst Enemy

HZ’s Founder & CEO, Mark Hamilton, joined the Street Smart Success podcast to discuss the underwriting process. Mark discusses how frequently a number of items get left out in a broker or seller’s profits and losses statement.

Check out the full episode below or on Spotify.



June 15, 2021

Hamilton Zanze Sells Multifamily Community in Portland Metro

PORTLAND, Ore. – June 15, 2021 – San Francisco-based real estate investment firm Hamilton Zanze is pleased to announce the sale of Preserve at Sunnyside in the desirable Clackamas submarket of Portland, Oregon. The firm purchased the property in 2014 and the sale closed on June 10, 2021.

During their ownership, Hamilton Zanze completed numerous exterior improvements and landscaping improvements, and renovated units with new cabinets, appliances, hardware, and paint to improve leasing efforts and increase rental rates.

“The Preserve at Sunnyside truly shows our ability to provide our investors with high-quality multifamily investing opportunities,” said Anthony Ly, director of dispositions at Hamilton Zanze. “We are glad to have executed our business plan and achieve a positive outcome for our investors.”

Preserve at Sunnyside was built in 1991 and is located at 13300 SE 122nd Ave. in Clackamas. The property comprises 108 one-, two-, and three-bedroom units averaging 1,025 square feet. The community is pet-friendly and has a pool and spa, clubhouse with a full kitchen, covered parking, a dog park, and a playground.

Preserve at Sunnyside is in the Southeast Portland submarket of the Portland metro area. The community is near Interstate 205, Highway 224, and Clackamas Town Center Transit Station, which provides numerous public transportation options to connect residents to Downtown Portland and Portland International Airport. Occupancy in the submarket registered 96.1%, an 0.5% increase year-over-year. Annually, rent performance was strong in the Southeast Portland submarket, registering at a 2.6% increase year-over-year. After the effects of the pandemic subside, economic and job growth are projected to continue in the metro.

ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $5.3 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 99 properties (23,111 units) across 15 states and 29 markets. For additional information, visit www.hamiltonzanze.com.

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May 5, 2021

Hamilton Zanze Sells Multifamily Community in North Las Vegas

NORTH LAS VEGAS, NV – May 5, 2021 – San Francisco-based real estate investment firm Hamilton Zanze is pleased to announce the sale of Norterra Canyon in North Las Vegas, NV. The firm purchased the property in 2018, through a joint venture with a subsidiary of Cantor Fitzgerald Investors, LLC (together with its affiliates “Cantor Fitzgerald) and the sale closed on April 27, 2021. The transaction marks the firms ninth sale in Las Vegas and first DST disposition.

Norterra Canyon was built in 2007 and is located at 5005 Losee Road in North Las Vegas. The property comprises 426 one-, two-, and three-bedroom units averaging 1,076 square feet. Units feature granite countertops, energy star appliances, walk-in closets, patios and balconies, and washers and dryers. Community amenities include a resident lounge, business center, bocce ball, two resort-style pools with cabanas, putting green, and fitness center.

During their ownership, Hamilton Zanze improved resident amenities, including enhancements to the pool area and clubhouse, and completed unit renovations by installing faux wood flooring and upgraded lighting fixture to improve leasing efforts and increase rental rates. At the time of sale, Norterra Canyon was 95% occupied.

“The Las Vegas market is as strong as it’s ever been,” said Anthony Ly, director of dispositions at Hamilton Zanze. “Population growth coupled with strong supply and demand fundamentals allowed us to execute our business plan and for the property to thrive.”

“The timing was just right,” said Chris Milner, Head of Cantor Fitzgerald Investment Management. “The profitable sale of the property allowed us to deliver an attractive return for our investors.”

Norterra Canyon is located in the North Las Vegas submarket of the Las Vegas metro area. Despite stay-at-home orders brought on by the coronavirus pandemic, the economy has started to rebound as unemployment rates continue to decrease. Occupancy in the submarket registered 96.5% and demand in the Las Vegas metro outpaced supply 4,947 units to 2,875 units as of Q4. Annually, rent performance was strongest in the North Las Vegas submarket, registering at 6.9% year-over-year. After the effects of the pandemic subside, economic and job growth are projected to continue in the metro. Norterra Canyon is located 8.0 miles (18-minute drive) north of Downtown Las Vegas, providing direct access to major employers and entertainment.

ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $4.8 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 90 properties (21,536 units) across 15 states and 27 markets. For additional information, visit www.hamiltonzanze.com

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April 19, 2021

‎Podcast: Discovering Multifamily – The Case For 1031 Exchanges With Mark Hamilton

HZ’s Founder & CEO, Mark Hamilton, joined the Discovering Multifamily podcast to discuss the 1031 Exchange and the case for preservation. Mark discusses the implications and value of the 1031 exchange on the U.S. economy.

Check out the full episode below or on Apple Podcasts.



April 1, 2021

Hamilton Zanze Acquires Multifamily Community in Portland Metro

BEAVERTON, OR – April 1, 2021 – San Francisco-based real estate firm Hamilton Zanze (HZ) has acquired the 145-unit Courtyard at Cedar Hills community in Beaverton, Oregon (Portland market). The purchase marks the firm’s seventh acquisition in the Portland metro area.

Built in 1969 and 1975, Courtyard at Cedar Hills comprises 145 one-, two-, and three-bedroom units averaging 900 square feet. Community amenities include an indoor pool, fitness center, laundry facilities, playground, and Amazon HUB package lockers.

“We are excited about the opportunity to buy in Beaverton, OR and to further expand our presence in the Portland MSA,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “Courtyard at Cedar Hills is conveniently located near Oregon Route 217 and U.S. Route 26, which provide residents easy access to Downtown Portland and other major employment centers.”

HZ’s capital improvements plan includes unit renovations, pool and landscaping enhancements, asphalt and roofing repairs, and fresh exterior paint. Management of the property has also been transitioned to HZ affiliate Mission Rock Residential, a Denver-based company.

The community is located at 13643 SW Electric St, two miles from the Nike World Headquarters in the desirable East Beaverton submarket. As of 2020, Nike employed over 76,000 people worldwide and 12,000 at their headquarters in Beaverton. The property also lies 10 miles west of Downtown Portland, which has been dubbed the “Silicon Forest” for its fast-growing hub of high-tech and life science technology companies. The metro benefits from a young, educated workforce and has ranked among the top-five places for business by Forbes for the past five years.

To learn more about Courtyard at Cedar Hills, please visit https://www.courtyardatcedarhills.com/.

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ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $4.8 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 90 properties (21,536 units) across 15 states and 27 markets. For additional information, visit www.hamiltonzanze.com

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April 1, 2021

Hamilton Zanze Acquires Multifamily Community in Fort Collins

FORT COLLINS, CO – April 1, 2021 –

San Francisco-based real estate firm Hamilton Zanze (HZ) partnered with an affiliate of Cantor Fitzgerald, L.P. to purchase The Wyatt, a 368-unit apartment community in Fort Collins, Colorado.

The purchase marks the firm’s second acquisition in the Fort Collins market and 15th in Colorado. The community, newly built in 2019, is in immediate proximity to Interstate 25, providing access to Downtown Fort Collins, Downtown Denver, and major regional employers.

“The Wyatt offered an exciting opportunity to buy a brand-new asset in Fort Collins,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “The property features an extensive amenity package, a prime location near regional employers, and offers residents the quality of life provided by the city’s close proximity to outdoor recreation. We are excited about our continued growth in the Fort Collins market.”

The Wyatt was 89.1% occupied at purchase. The community is located at 4701 Strauss Cabin Road in the desirable Fort Collins South submarket, approximately 15 minutes from Downtown Fort Collins. The 368 units range from 761-1,413 square feet and community amenities include a clubhouse, resort-style swimming pool, fitness center, and a spa, steam room, and cabanas.

Management of the property has also been transitioned to HZ affiliate Mission Rock Residential, a Denver-based company.

To learn more about The Wyatt, please visit https://www.thewyattfoco.com/.

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ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $4.8 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 90 properties (21,536 units) across 15 states and 27 markets. For additional information, visit www.hamiltonzanze.com

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March 13, 2021

‎Podcast: Bulletproof Cashflow – Real Estate Explained | How to Scale to 20,000 Units with Ashlee Cabeal

HZ CFO Ashlee Cabeal was recently featured on the Bulletproof Cashflow podcast where she discussed why scaling your real estate portfolio is crucial for ensuring continuity of cash flow, reducing expenses through economies of scale, and ultimately achieving financial freedom.

Check out the full episode below or at BulletProofCashFlow.libsyn.com.



March 3, 2021

White Paper: 1031 Exchanges & the Public Interest – 10 Benefits for the Economy, Communities, and the U.S. Treasury

Hamilton Zanze is excited to share our latest white paper, produced with research from CBRE Strategic Investment Consulting (CSIC), where we examine 10 of the ways Section 1031 like-kind exchanges benefit everyone from renters to small business owners and the economy as a whole.

Section 1031 exchanges have been an important part of the tax code since 1921 but are frequently the target of attempts to repeal or restrict their use.

We partnered with CSIC to help dispel the attitudes about 1031 exchange tax incentives stemming from myths about “real estate moguls” and “big corporations” being the only beneficiaries. We delve into 10 of the ways 1031 exchanges open up opportunities for a multitude of investors, owners, and renters, and stimulate economic growth at times when it is most needed.

Download the full white paper to learn more.



March 2, 2021

The Millionacres Hour: Interview with Mark Hamilton, CEO and co-founder of Hamilton Zanze

HZ co-founder and CEO Mark Hamilton was recently interviewed on The Motley Fool’s “Millionacres Hour” to discuss real estate investing in our current environment and why it’s a good time to be an owner as we head into a “reset year.”

Check out the video below and visit Fool.com for the interview transcript.