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SINGLE FAMILY RESIDENCE CONDOMINIUM 2013 Median Price 2014 Median Price Median Price % CHANGE 2013 Median Price 2014 Median Price Median Price % CHANGE Aina Haina - Kuliouou $942,500 $1,045,210 11% $650,000 - - Ala Moana - Kakaako $690,000 - - $355,000 $460,000 30% Downtown - Nuuanu $685,000 $1,005,000 47% $439,000 $432,500 -1% Ewa Plain $480,000 $495,000 3% $330,000 $379,000 15% Hawaii Kai $882,500 $1,095,000 24% $509,000 $614,500 21% Kailua - Waimanalo $842,500 $925,000 10% $410,000 $430,000 5% Kalihi - Palama $525,000 $685,000 30% $343,950 $255,000 -26% Kaneohe $685,000 $730,000 7% $430,000 $440,000 2% Kapahulu - Diamond Head $795,000 $865,000 9% $515,000 $464,500 -10% Makaha - Nanakuli $355,000 $340,000 -4% $112,500 $109,975 -2% Makakilo $510,000 $567,000 11% $272,000 $280,750 3% Makiki - Moiliili $905,000 $1,100,000 22% $320,000 $323,000 1% Mililani $609,000 $655,000 8% $282,000 $268,000 -5% Moanalua - Salt Lake $760,000 $791,500 4% $274,250 $285,000 4% North Shore $565,000 $800,000 42% $219,500 $330,000 50% Pearl City - Aiea $533,250 $675,000 27% $204,000 $300,000 47% Wahiawa $368,100 $480,000 30% $153,000 $154,500 1% Waialae - Kahala $1,550,000 $1,800,000 16% $402,500 $445,000 11% Waikiki - - - $340,000 $295,000 -13% Waipahu $525,000 $560,000 7% $248,000 $299,000 21% Windward Coast $550,500 $665,000 21% $190,000 $215,000 13% OAHU SUMMARY $599,000 $657,500 10% $330,000 $339,500 3% SINGLE FAMILY RESIDENCE CONDOMINIUM 2013 Median Price 2014 Median Price Median Price % CHANGE 2013 Median Price 2014 Median Price Median Price % CHANGE Waimea $250,000 $330,000 32% - - - Koloa $837,725 $503,500 -40% $391,500 $535,000 37% Lihue $415,000 $392,500 -5% $141,000 $152,250 8% Kawaihau $407,500 $549,000 35% $130,000 $242,500 87% Hanalei $1,270,000 $855,000 -33% $375,250 $482,500 29% KAUAI SUMMARY $489,000 $499,000 2% $240,000 $320,000 33% Year to Date Median Sales Prices By Island As of February 2014 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. Reverse Exchanges in a Nutshell Under Section 1031, a taxpayer may defer capital gains taxes by exchanging property (“relinquished property or RQ”) for like-kind property of equal or greater value (“replacement property or RP”). In phase one of a forward exchange, a Qualified Intermediary (“QI”), on behalf of the taxpayer, sells the RQ. In phase two, the QI uses the proceeds to acquire one or more RPs identified by the taxpayer. The RP purchase must occur within 180 days after the sale of the RQ. What happens if the taxpayer can’t complete his RQ sale, but must acquire his intended RP because he doesn’t want to lose the property or is under contract to complete the purchase? Can he complete a 1031 exchange? Yes. The taxpayer can still obtain the benefits of section 1031 by utilizing a reverse exchange. A reverse exchange is subject to the same rules and regulations as a forward exchange, except that it requires the use of an exchange accommodation titleholder (“EAT”) and is subject to some additional rules specified in Revenue Procedure 2000-37. In a reverse exchange, the QI must utilize an EAT —a third party— typically an affiliate of the QI. The EAT purchases the RQ, which allows the taxpayer to immediately complete an exchange (“exchange first” or “hold relinquished”). Alternatively, the transaction may be structured so that the EAT purchases the RP and holds it until the taxpayer locates a buyer and can then complete an exchange (“exchange last” or “hold replacement”). Exchange First: The Mechanics The taxpayer loans funds to the EAT to purchase the RQ. The purchase price is estimated by the taxpayer or is based on a pending purchase agreement—if there is one at the time. The EAT purchases the RQ from the taxpayer (any liens and encumbrances remain in place). (continue on page 60)