When the Exchangor wishes to build out, or improve a property with exchange proceeds and debt, a build to suit or improvement exchange is used. Similar to a reverse exchange, the Exchange Accommodator Titleholder (EAT) is created to park or take title to the property while it is being improved. Traditional exchange timelines apply with a total of 180 calendar days to complete the build out. Near the end of the exchange or sooner, the improved property is deeded to the Exchangor or ownership of the limited liability company holding title can be transferred to the Exchangor. Planning is important given the deed must be titled to the Exchangor within 180 calendar days post closing on the new property. The relinquished property must also be sold by the 180th calendar day.
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