Selling Asset in Cook County Chicago for Collar County Property

[Glenn Hoffman]

All,

I'm looking for a couple of opinions here on moving some equity out of Chicago and utilizing the 1031 exchange to secure a property in a surrounding county that is more tax favorable. Then building that we own is currently cash flowing, but we struggle with the fact that rents are skyrocketing so that we can cover the tax increases and other city expenses. Our taxes have gone up 85% since 2010. In my opinion, it's going to become unsustainable given the current economic situation in Chicago. We have the opportunity to unload some equity in this building and move it into a property in the south suburbs that is around an 8 Cap rate and producing much more cash than our current situation (newer construction). It would be a cash-flow proposition vs. the "appreciation" proposition we are currently in. The Chicago building is a beautiful one that we have invested heavily in, but it may be time. I'm just interested to hear from other Cook County investors on their opinion.

Many thanks,

Glenn