1031 Exchange Into NNN Properties.
Defer 100% of Capital Gains.
Sell your investment property, reinvest into a corporate-guaranteed triple net lease, and pay zero capital gains tax — all managed by The ESS Group from identification to close.
Master the 1031 Exchange
Selling a highly appreciated property? A 1031 exchange allows you to defer up to 100% of your capital gains taxes by reinvesting the proceeds into a "like-kind" NNN property. It is the most powerful wealth-preservation tool in real estate.
Your 1031 Exchange Step by Step
The ESS Group manages the entire timeline — not just the property search.
Sell Your Property
Close on the sale of your relinquished property. Your qualified intermediary (QI) holds the proceeds — you never touch the money or the exchange is disqualified.
45-Day ID Window
Formally identify up to 3 replacement NNN properties in writing within 45 calendar days. The ESS Group pre-searches inventory before your close so you identify from a curated shortlist.
Due Diligence
The ESS Group reviews leases, titles, environmental reports, surveys, and closing documents — all handled in-house for a seamless process.
Close the Exchange
Close on your NNN replacement property before Day 180. Your QI wires funds directly at closing. Capital gains tax is 100% deferred.
Why NNN Is the #1 Destination for 1031 Exchanges
Calculate Your 1031 Tax Savings
See exactly how much wealth you preserve by executing a 1031 exchange instead of selling and paying capital gains taxes.
Property Details
Enter your current property info
Estimated Tax Exposure
10-Year Compounding Impact
If you invest that preserved $500,000 at a conservative 7% annual return for 10 years, it grows by:
+$483,5761031 Exchange FAQ
Questions every investor asks before their first NNN exchange.
What is a 1031 exchange into NNN?
A 1031 exchange into NNN means selling an investment property and reinvesting the proceeds into a single-tenant triple net lease property — deferring 100% of your capital gains tax. NNN is the most popular 1031 exchange replacement property class in the US. The tenant (Dollar General, McDonald's, Starbucks, etc.) pays taxes, insurance, and maintenance. You collect corporate-guaranteed rent with zero management for 10–25 years.
How do I find a NNN replacement property within 45 days?
The 45-day identification window is the biggest challenge in a 1031 exchange into NNN. Investors who contact The ESS Group before their relinquished property closes — not after — arrive at Day 1 with a curated shortlist of NNN replacement properties already reviewed and ready to identify. We maintain active off-market NNN inventory specifically for exchange buyers under timeline pressure. If you have less than 45 days remaining, call us immediately at (310) 678-4608 — we have dealt with compressed timelines before.
What is the 45-day identification rule for 1031 NNN exchanges?
After closing the sale of your relinquished property, you have exactly 45 calendar days — no extensions, no exceptions — to formally identify up to 3 potential NNN replacement properties in writing to your qualified intermediary. Most investors who miss this window do so because they wait until after closing to start their NNN property search. The ESS Group begins your NNN replacement property search at engagement, often weeks before your property closes.
What is the 180-day close deadline for 1031 NNN exchanges?
You must close on your NNN replacement property within 180 calendar days of your relinquished property's closing (or your tax return due date, whichever is earlier). NNN properties typically close in 30–45 days — well within the 180-day window if you identified correctly. The 45-day identification deadline is the bottleneck, not the 180-day close deadline.
Why are NNN properties the #1 1031 exchange replacement property?
NNN properties are the most common 1031 replacement asset class for three reasons: (1) Passive income from Day 1 — no management transition required; (2) Corporate-guaranteed rent from Fortune 500 tenants replaces the personal tenant risk of apartments or commercial buildings; (3) Long lease terms (10–25 years) provide income certainty well beyond the exchange period. Most investors exchanging out of apartments or active management find NNN the cleanest path to truly passive income.
Is new construction NNN good for 1031 exchange?
New construction NNN is often the strongest 1031 exchange replacement property available. A brand-new build-to-suit NNN property delivers the longest initial lease term (15–25 years), zero deferred maintenance, and maximum bonus depreciation benefit from a cost segregation study. For investors optimizing for both tax deferral and year-one tax shelter on the replacement, new construction NNN combined with cost segregation is the most powerful strategy available.
Does The ESS Group manage the entire 1031 exchange process?
The ESS Group handles NNN replacement property sourcing, lease review, due diligence, and transaction coordination from identification through close. We also coordinate with your qualified intermediary (QI) to ensure the exchange mechanics are properly executed. You work with one team from identification to rent collection — no need to manage multiple professionals during a time-sensitive exchange.
Do I need to reinvest all my proceeds to avoid taxes?
To defer 100% of capital gains tax, you must reinvest all equity (no 'boot') and replace at least 100% of the debt from your sold property. Any cash taken out or debt reduction is taxable as 'boot.' The ESS Group structures your NNN acquisition to maximize deferral and will advise when a partial exchange — intentionally taking some boot — makes strategic sense.
Can I split my 1031 exchange into multiple NNN properties?
Yes — you can identify up to 3 NNN properties and close on all of them within the 180-day window. This is an effective strategy for investors selling a single large property and wanting to diversify across multiple tenants, geographies, and lease terms. For example, selling a $6M apartment building and exchanging into two $3M NNN properties — one Dollar General and one McDonald's — diversifies tenant and geography risk while maintaining full tax deferral.
What NNN tenants are best for 1031 exchange replacement properties?
The most actively exchanged NNN tenants are: (1) Dollar General — most deal flow, entry price from $1.5M; (2) McDonald's — corporate guaranteed, long lease, strong resale; (3) Starbucks drive-through — high sales volume, corporate guarantee; (4) Chick-fil-A — tightest pricing, strongest credit; (5) CVS/Walgreens — longest pharmacy leases (20–25 years); (6) 7-Eleven corporate — convenience with institutional-grade credit. The ESS Group maintains off-market NNN inventory across all of these tenant categories.
Most-Requested 1031 NNN Replacement Properties
Investment-grade tenants with 10–20 year absolute NNN leases — the most commonly exchanged assets in the country.
Top States for Tax-Advantaged 1031 Exchanges
California investors frequently exchange into these no-state-income-tax markets to eliminate both federal capital gains deferral and ongoing state income tax on rental income.
Your 45-Day Clock Starts at Close
Don't wait until you have 20 days left. Contact The ESS Group now and we'll have your replacement property shortlist ready before your sale closes.
Start Your 1031 Exchange Now