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SINGLE FAMILY RESIDENCE 2012 Median Price 2013 Median Price Median Price % CHANGE 2012 Median Price 2013 Median Price Median Price % CHANGE Aina Haina - Kuliouou $1,011,000 $ 971,500 -4% $510,000 $640,000 25% Ala Moana - Kakaako $792,450 $ 690,000 -13% $346,250 $386,000 11% Downtown - Nuuanu $750,000 $ 780,000 4% $383,000 $438,000 14% %5 000,523$ 000,013$ %31 009,815 $ 000,064$ nialP awE %5 000,055$ 000,325$ %21 000,589 $ 000,088$ iaK iiawaH Kailua - Waimanalo $800,000 $ 882,501 10% $415,000 $441,000 6% Kalihi - Palama $560,000 $ 561,000 0% $324,000 $348,950 8% %4 005,324$ 000,604$ %5 000,096 $ 005,556$ ehoenaK Kapahulu - Diamond Head $794,000 $ 826,956 4% $462,500 $495,000 7% Makaha - Nanakuli $310,000 $ 320,000 3% $ 89,500 $107,500 20% %2 005,162$ 000,652$ %1- 000,565 $ 000,075$ olikakaM Makiki - Moiliili $898,350 $ 975,000 9% $312,000 $320,000 3% %21 000,113$ 093,872$ %5 572,526 $ 000,495$ inaliliM Moanalua - Salt Lake $700,000 $ 737,000 5% $276,500 $299,000 8% %91 000,053$ 000,392$ %1- 000,586 $ 000,986$ erohS htroN Pearl City - Aiea $590,000 $ 600,000 2% $267,000 $285,000 7% %82 005,041$ 000,011$ %21 000,534 $ 000,093$ awaihaW Waialae - Kahala $1,450,000 $1,586,500 9% $446,000 $444,000 0% %01- 000,523$ 000,063$ %48- 000,131 $ 000,538$ ikikiaW %4 000,072$ 000,062$ %8 000,035 $ 000,094$ uhapiaW Windward Coast $500,000 $ 563,000 13% $185,000 $195,500 6% OAHU SUMMARY $623,250 $ 641,000 6% $315,000 $330,000 5% CONDOMINIUM SINGLE FAMILY RESIDENCE 2012 Median Price 2013 Median Price Median Price % CHANGE 2012 Median Price 2013 Median Price Median Price % CHANGE %1- 000,052$ 008,252$ %01 000,943$ 000,813$ aemiaW %72 000,524$ 005,333$ %61 000,595$ 000,515$ aoloK %71 525,661$ 008,141$ %41 000,004$ 000,253$ euhiL %73 000,281$ 052,331$ %71 000,734$ 000,573$ uahiawaK %33 000,905$ 005,283$ %01- 000,048$ 005,829$ ielanaH KAUAI SUMMARY $449,750 $529,000 18% $290,000 $300,000 3% CONDOMINIUM Year to Date Median Sales Prices By Island As of October 2013 Partnership Distributions & 1031 Exchanges Minimize Risk with Advance Planning THE PARTNERSH I P D I LEMMA : A partnership owns real property that it intends to sell. Some partners want to use the proceeds to buy other property in a tax deferred exchange. Other partners wish to keep their cash and not buy anything. The “Drop and Swap” is the often employed, high risk strategy utilized to resolve this partnership dilemma. In this strategy, the partnership deeds a fractional tenant in common interest in the property to each of the partners in an interest equivalent to their partnership interest (“the drop”), allowing each of the partners to take their proceeds and either re-invest (“swap”) or cash out. THE RISKS: • The partners may not meet the “qualified use” requirement – i.e. the requirement that property be held for investment, because the partners held the property briefly and only for the sole purpose of selling it. • The transfer to the partners may be treated as a sale followed by a liquidation of the partnership. • The IRS could argue that the undivided interests represent partnership interests, which are excluded from tax deferral under § 1031. ADVANCE PLANNING TIPS TO MINIMIZE THE RISK OF TIC BEING RE- CHARACTERIZED AS A PARTNERSHIP: 1. Deed to the partners as far as possible in advance of the exchange; 2. Create a formal tenancy in common arrangement/agreement long before negotiating and consummating a sale of the property; (continue on page 56) Ashley Seeger | Business Development | 808.222.3021 | aseeger@ortc.com Julia Jones | Business Development | 808.286.0057 | juliaj@ortc.com Catherine Pennell | Account Executive | 808.285.4593 | cpennell@ortc.com KAUAI Kelly Veniegas | Account Executive | 808.224.5355 | kveniegas@ortc.com Sonja Gonzaga | Account Executive | 808.499.4355 | sgonzaga@ortc.com OAHU Julie Tumbaga, VP Hawaii Regional Manager 900 Fort Street Mall, Suite 1900 Honolulu, Hawaii 96813 (808) 524-6737 (877) 591-1031 Toll Free Jtumbaga@orexco1031.com www.orexco1031.com www.ortc.com Our Promise "We increase the value of real estate transactions for all participants by identifying, underwriting and managing each transaction with the highest standards of technical skill, client service and professional integrity" All information taken from Kauai Board of Realtors, MLS Sales Data information shown herein, while not guaranteed, is derived from sources deemed reliable. All information taken from the Honolulu Board of Realtors. MLS Sales Data information shown herein, while not guaranteed, is derived from sources deemed reliable.