ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, April 23, 1996 TAG: 9604230111
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
Three office buildings in Colonial Green office park have changed hands under the "like property" exchange rules of the Internal Revenue Service.
They were acquired by Barton Properties L.L.C., a limited liability corporation owned by an investor who has moved back to his hometown, Roanoke. Frank Porter sold two of the buildings, and Joe Durrer sold the other.
Colonial Green is a development of six office buildings at Virginia 419 and Colonial Avenue.
Jim Hodges and Bob Richardson of Hall Associates Inc., who will provide leasing and management services for the property, structured the transaction.
Hodges said the deal was a swap of commercial properties rather than a sale.
He said a large commercial property owned by Barton Properties in West Virginia was sold and the money given to an escrow agent, Lawyers Title Insurance Co. in West Virginia. The agent then sought commercial properties on the market in Roanoke, and the swap was made.
Hodges said the rules governing such an exchange are complex, but the swap must be arranged within 45 days and the entire deal must close within six months.
The law lets new owners assume a new basis for valuation of the property and begin again to write off the property's depreciation. Hodges said the system is useful for owners of commercial property who have a low tax basis and a large capital gain, making a conventional sale unattractive.
The three Colonial Green buildings have a total of 18,000 square feet. All are fully leased to tenants.
Hodges said Barton Properties L.L.C. may invest in other commercial properties in the Roanoke Valley.
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