Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Financing Strategy
1031 Exchange Financing
Select Commercial arranges the debt on 1031 exchange purchases so investors can complete a tax-deferred exchange on time. We coordinate with your qualified intermediary and closing team to meet the strict 45-day identification and 180-day closing deadlines, with financing from $1,500,000.
Get a Free Quote1031 Exchange Loan Rates by Property Type
Rates updated as of August 23, 2026
| Loan Product | Rate* | Max LTV |
|---|---|---|
| Multifamily | 5.68% | Up to 80% |
| Commercial Real Estate Loan | 6.76% | Up to 75% |
| Single Tenant Lease | 6.36% | Up to 75% |
| Business Real Estate Loan | 6.56% | Up to 90% |
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
How 1031 Exchange Financing Works
A 1031 exchange lets an investor defer capital gains taxes by reinvesting the proceeds from a sold investment property into a like-kind replacement property. To satisfy the rules, the replacement property must generally be of equal or greater value, and any debt paid off on the sold property should be replaced with equal or greater debt on the new one. That makes the loan a central part of the exchange, not an afterthought.
We help investors line up financing early so the exchange stays on schedule. Because exchange timelines are firm, we prioritize speed and certainty: a clear pre-approval, coordinated third-party reports, and a lender matched to the property type, whether apartment, retail, office, industrial or net-lease.
1031 Rules and Deadlines You Cannot Miss
- 45 days from the sale closing to identify replacement property in writing with your qualified intermediary.
- 180 days from the sale closing to complete the purchase of the replacement property.
- Equal or greater value and debt: to fully defer gains, the replacement generally must equal or exceed the sale price, and debt paid off must be replaced with equal or greater debt or fresh cash.
- Like-kind is broad for real estate: investment and business real property can generally be exchanged for other investment or business real property, such as an apartment building for a net-lease retail asset.
- Individuals, C corporations, S corporations, partnerships, LLCs and trusts holding investment or business property can all qualify under IRS Section 1031 guidelines.
Like-kind exchanges remain fully available under current law in 2026. Because the loan must close inside the 180-day window, financing certainty matters as much as rate: we issue written pre-approvals within 48 hours and line up lender, appraisal and third-party reports around your exchange calendar.
Where Exchange Buyers Are Finding Value in 2026
Current pricing data helps exchange buyers target replacement property. As of Q2 2026: single-tenant net-lease cap rates averaged 6.82% overall, with retail at 6.60% (July 2026 data), a popular landing spot for management-free exchange proceeds. Multifamily vacancy held near 4.3% with demand outpacing new supply, and agency lending caps rose 20.5% for 2026, keeping debt available for apartment replacements. Industrial vacancy fell to about 6.8% in Q2 2026 with the strongest leasing in three years.
We arrange exchange financing in all 50 states, including Texas, Florida, California, Arizona and North Carolina, and in major exchange markets such as Dallas, Miami, Phoenix, Atlanta and Denver.
Financing Options in Commercial
Commercial apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Property Types We Finance for Exchanges
We arrange exchange financing on apartment and multifamily property, retail, office, industrial and single-tenant net-lease assets, from $1,500,000.
What Our Clients Say
“As a real estate attorney, I trust that Select Commercial will deliver commercial mortgages in a timely manner. My clients are always handled professionally, and the rates and terms are excellent. I heartily recommend them.”
David S. · New York City“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“Select Commercial was very helpful with my commercial mortgage. I needed to increase cash flow due to maintenance on my property. Stephen went over several options and got me the funds while lowering my payments.”
Gary M. · Portland, OR“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet a Free Quote
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- For 5+ unit and commercial properties, $1.5M and up