ORLANDO, Fla., June 17, 2020 /PRNewswire/ -- Orlando is becoming a popular destination for 1031 exchange real estate investors rushing to make like-kind real estate exchanges ahead of the July 15 deadline. An example of this trend are the luxury vacation homes at The Grove Resort & Water Park, which have seen a growing number of inquiries from 1031 exchange investors since Florida's shelter-in-place order was lifted in May. The Grove, located five miles from Walt Disney World, has seen an uptick in interest from 1031 exchange investors looking for assets positioned for a quick close, according to its Director of Sales Dominic Pickering.
"Some investors are staying away from properties that could require a lengthy due diligence period and push closings past July 15," Pickering said. "They are coming to The Grove because they know they can close in a matter of days and avoid the risk of losing a significant amount in tax savings on gains from the sale of their commercial properties. The Pandemic has slowed down transactions and investors want to play it safe by going with a developer who has properties ready to close immediately."
At the height of the quarantine, the IRS extended the deadline to identify and acquire a replacement property to complete a 1031 exchange deal to July 15. The extension provided relief to stakeholders active in the 1031-exchange market.
The Grove is an attractive option for investors because the furnished two- and three-bedroom condos can be placed in a short-term rental program managed by a seasoned hotel operator. The Grove is currently offering new owners for a limited time a 10 percent guaranteed leaseback for the condos participating in the hotel / short-term rental program.
"Since opening in 2017, The Grove has seen a continued increase in occupancy and the hotel is regularly sold-out. As Orlando's theme parks have begun to reopen following the quarantine, occupancy at The Grove has steadily increased over recent weeks," Pickering said.
The Grove, which consists of 878 luxury vacation condominiums in a resort-style setting, offers state-of-the-art amenities, including the Surfari Water Park, with multiple slides, a lazy river, and a FlowRider Double surf simulator. It also has a 6,300-square-foot game room, three swimming pools, onsite spa, fitness center, high-end restaurants, and more. The luxury vacation condos are selling in the high $300s.
In recent years, Orlando has become one of the top cities for real estate investment, according to Forbes.
SOURCE Grove Resort & Water Park