Two government-leased office buildings in Perryville, MO, have a new owner, according to Chris Cole of Lorimont Commercial Real Estate, who recently handled the sale. The two similarly-styled buildings were sold to two different, but related parties on July 31. One of the buildings has housed the Perry County USDA Farm Services Agency since 2001, and the other has been occupied by the Missouri Department of Corrections, Probation and Parole Division since 1997. The current tenants remain in place.
Cole said that the sales were part of 1031 like-kind exchange transactions for the new owners. Under Section 1031 of the Internal Revenue Code, a purchaser of certain types of property may qualify to defer the recognition of capital gains from the sale of a previous property of like-kind. This allows what would otherwise be taxable sales proceeds to be reinvested in new like-kind properties without immediately paying federal tax.