You mention 1031 so I will say: in a 1031 you never hold the proceeds from the sale in your own account, that would violate the rules of the 1031 

These deals account for nearly half of the 156 office leases over 100,000 square feet signed this year, totaling over 14.1 million square feet, according to CoStar data.Notable renewals include Vertex Pharmaceuticals in Boston, extending its lease until 2044, and Aimbridge Hospitality in Texas, renewing for five years.

I'd certainly recommend doing some kind of environmental study given the chemicals and such that could have been used there but more-so I'd be curious if the city wouldn't have a testing requirement to redevelop. 

You also would need to properly account for all of this.You would want to discuss your specific situation with a qualified CPA to determine if this can be done and if it really benefits you any.

if anyone on the forum has executed this strategy and/or if accountants/tax professionals have come across this situation, I would appreciate your thoughts and advice. 

@Aaron OrensteinYes, timing matters.I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning.

I would say the posts concerning the 1600 block of N 27th Street is a good case study of where NOT to buy if that's your objective.

I just came from the bank to open a bank account for the newly formed LLC that will hold the property I am purchasing.

And yes, I absolutely should account for housing supply, school ratings and crime ratings.

Take into account it was 12 years ago and he presumably has a clean record since.