Elevated Real Estate Strategy
Navigating the New York City real estate market requires precision, absolute discretion, and a profound understanding of capital preservation. At 555 Properties LLC, I deliver a highly specialized, dual pillar brokerage approach blending premium residential acquisitions with high yield commercial assets. The luxury residential division is exclusively dedicated to the acquisition and disposition of Brooklyn's most prestigious townhomes, primarily within Park Slope, Crown Heights, and surrounding historic enclaves where property values consistently exceed the $4 Million threshold. These architectural masterpieces offer unparalleled lifestyle value while serving as fortified generational assets.
Simultaneously, the commercial division focuses on cash flowing mixed use properties, retail corridors, and multi family assets. By uniting these two sectors under one advisory framework, I provide seamless 1031 Exchange facilitation. Whether you are an investor looking to transition equity from a management heavy commercial building into a passive luxury residential asset, or a property owner scaling up into premium commercial real estate, I engineer the exact market pathways necessary to achieve your financial objectives quietly and flawlessly.
Valerie Sebbag
Principal Broker | 555 Properties LLCDirect Line
+1 (917) 623 6331Priority Response
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Request ValuationIntegrated Real Estate Expertise
Luxury Residential Portfolio
- Historic Park Slope Townhomes $4M+ Sector
- Crown Heights Limestone Estates Premium
- Brooklyn Heights Historic District Trophy Assets
- Cobble Hill & Boerum Hill Off Market
- Luxury Condominium Portfolios Investment
Focusing strictly on New York City's highest tier residential architecture. We connect discerning buyers with sellers of pristine, fully renovated, and historically preserved multi million dollar homes.
Commercial & Mixed Use Capital
- Multi Family Cash Flow Properties High Yield
- Mixed Use Retail Corridors Stabilized
- Boutique Office Buildings Value Add
- Development Sites & Air Rights Zoning
- Triple Net (NNN) Lease Assets Passive
Executing quiet dispositions and targeted acquisitions for commercial investors. We analyze rent rolls, capitalization rates, and zoning potential to maximize seller returns and buyer equity.
1031 Exchange Execution
Asset Disposition
The first phase of your exchange requires securing top market value for your relinquished property. We handle the confidential marketing, buyer vetting, and contract negotiations to ensure your sale closes cleanly, triggering the start of your strict IRS timeline.
Replacement Sourcing
Operating against the 45 day identification clock requires an aggressive broker. We tap into our unlisted network of luxury Brooklyn townhomes and high yield commercial properties to present you with viable, "like kind" replacement options immediately.
Closing Coordination
We work in seamless lockstep with your chosen Qualified Intermediary, real estate attorney, and tax advisors. By managing the physical real estate logistics, we help ensure your new acquisition closes safely within the mandated 180 day exchange window.
Comprehensive 1031 Exchange Intelligence
Review our compiled repository of twenty five essential questions regarding the Section 1031 tax deferral strategy. Important Notice: Valerie Sebbag and 555 Properties LLC operate strictly as licensed real estate brokers. We do not provide tax, legal, or accounting advice. Always consult your CPA or tax attorney prior to executing an exchange.
1. What is a 1031 Exchange?
It is a wealth building strategy defined under IRS Code Section 1031 that allows real estate investors to defer paying capital gains taxes on the sale of a property by reinvesting the proceeds into a new, qualifying property.
2. Does this apply to my personal residence?
No. The tax code mandates that both the property being sold and the property being purchased must be held for productive use in a trade, business, or for investment purposes.
3. What does the term "Like Kind" mean?
"Like kind" refers to the nature of the investment, not the physical structure. Nearly all real estate held for investment is considered like kind to other investment real estate under the tax code.
4. Can I exchange a commercial building for a residential townhome?
Absolutely. If you sell a commercial retail strip, you can reinvest those funds into a luxury $4 Million Park Slope townhome, provided the townhome is utilized as a rental or investment property.
5. What is the 45 Day Identification Rule?
From the exact day you close on the sale of your original property, you have 45 calendar days to formally identify your potential replacement properties in writing to your intermediary.
6. What is the 180 Day Purchase Rule?
You must officially close on the purchase of the replacement property within 180 calendar days of selling your original property, or the due date of your tax return, whichever is earlier.
7. Are there extensions for the 45 or 180 day rules?
Generally, no. The IRS enforces these deadlines strictly. They are calendar days, including weekends and holidays. Extensions are typically only granted in specific presidentially declared disaster scenarios.
8. What is a Qualified Intermediary (QI)?
A QI is an independent, specialized entity required by the IRS to hold your sale proceeds. If you take constructive receipt of the cash at any point, the exchange is disqualified.
9. Can Valerie Sebbag be my Qualified Intermediary?
No. As your real estate broker handling the transaction, I am considered a disqualified party under IRS rules. You must hire an independent QI firm, which I can happily recommend.
10. Does Valerie Sebbag provide tax advice?
No. I provide elite real estate brokerage services, market valuations, and asset sourcing. You must rely entirely on your CPA or tax attorney for tax liability calculations and legal advice.
11. What is "Boot" in an exchange?
Boot is any value received in an exchange that is not considered "like kind" property. This commonly includes leftover cash or a reduction in your mortgage liabilities, and it is taxable.
12. What is the 3 Property Identification Rule?
During your 45 day window, you may identify up to three potential replacement properties of any value. You are not required to buy all three, but you must close on at least one of them.
13. What is the 200 Percent Identification Rule?
If you want to identify more than three properties, you can do so, provided the total combined fair market value of all identified properties does not exceed 200 percent of the property you sold.
14. What is the 95 Percent Identification Exception?
If you identify properties that exceed both the 3 Property and 200 Percent rules, the exchange is only valid if you successfully acquire 95 percent of the total value of all identified properties.
15. Can I use a 1031 to buy an NYC Co Op?
Usually, no. Cooperative apartments are technically shares of stock in a corporation paired with a proprietary lease. Therefore, the IRS does not generally view them as real property eligible for exchange.
16. How long must I hold a property for it to qualify?
While the tax code does not specify an exact holding period in days, most tax professionals recommend holding a property for at least 12 to 24 months to clearly demonstrate your investment intent.
17. Can I eventually move into my exchange property?
Yes, but only after renting it out for a sufficient period to establish its status as an investment property. Converting it to a primary residence too quickly will trigger an audit and tax penalties.
18. What is a Reverse 1031 Exchange?
This occurs when you acquire your new replacement property before you sell your current relinquished property. This is highly complex and requires an Exchange Accommodation Titleholder to temporarily hold title.
19. Can I exchange property held in an LLC?
Yes, provided the "same taxpayer" rule is followed. The exact same legal entity that sells the relinquished property must be the entity that purchases the replacement property.
20. What if business partners want to go separate ways?
If an LLC owns a property and the partners disagree on exchanging, you must execute complex legal maneuvers like a "Drop and Swap" well in advance of the sale. This requires expert legal planning.
21. Can I use exchange funds to renovate the new building?
In a standard exchange, no. Any cash not used for the physical purchase is taxable boot. To use tax deferred funds for renovations, you must structure a complex "Improvement Exchange" with your QI.
22. Do foreign nationals qualify for 1031 exchanges?
Yes, non US citizens can exchange US based real estate. However, the transaction remains subject to strict FIRPTA withholding rules that must be carefully managed by legal counsel at the closing table.
23. Does a 1031 exchange erase state taxes?
It defers state capital gains in most jurisdictions. However, states like New York have "clawback" provisions if you exchange a New York property for one out of state, requiring ongoing reporting.
24. What happens if my 45 day window expires without identifying?
The exchange completely fails. Your Qualified Intermediary will return your cash proceeds to you the next day, and you will be liable for all applicable federal and state capital gains taxes.
25. Why hire Valerie Sebbag for the real estate execution?
Because sourcing a luxury Brooklyn townhome or a stable commercial asset within a 45 day window requires immense local knowledge and off market access. I provide the market leverage necessary to protect your capital.
Elite Brooklyn Advisory
Transitioning equity between high value real estate classes requires discretion, speed, and market dominance.
Whether you are divesting a commercial portfolio to acquire a historic Park Slope limestone, or executing a complex 1031 exchange, I act as your dedicated real estate fiduciary. I provide accurate underwriting, unmatched marketing for your listings, and private access to replacement properties that never hit the public market. Call directly to schedule a confidential review of your current assets.
- Luxury Townhome Disposition
- Off Market Commercial Sales
- 1031 Replacement Sourcing
- Asset Portfolio Valuation
- Brooklyn Heights & Park Slope
- Crown Heights Limestone Estates
Equal Housing Opportunity Broker. We are fully committed to the principles of the Fair Housing Act and providing equal, non discriminatory real estate services to every client. This webpage is designed for educational purposes and real estate marketing only. It does not constitute an offer of legal, tax, or financial advice.
Valerie Sebbag: 1031 Exchange Buyer Specialist
- Crown Heights Luxury (Primary 1031 Focus)
- Cobble Hill (High Yield Townhomes)
- Brooklyn Heights (Wealth Preservation)
- Boerum Hill (Multi Family Income)
- Park Slope (Blue Chip Brownstones)
- Replacement Identification (45 Day Strategy)
- Like Kind Portfolio Transitions
- Tax Deferred Wealth Strategies
- Capital Gains Mitigation
- Off Market Asset Sourcing
- DUMBO (Elite Waterfront Lofts)
- Williamsburg (Mixed Use Assets)
- Bedford Stuyvesant (Growth Corridors)
- Manhattan Beach (Private Enclaves)
- Clinton Hill (Legacy Mansions)