Promontory

Promontory is a large private-club community southeast of Kimball Junction, its acreage lots laid out around multiple golf courses and equestrian facilities. Files from this address rarely involve small-dollar comparables; the scale of the asset changes the exchange math from the first step. Distance from Old Town also means the buyer pool skews toward people already committed to a private-club lifestyle rather than casual resort shoppers.

A Promontory relinquished property is typically a large custom home or estate lot held for investment on a long-term lease or seasonal-rental basis. Equity is often high relative to remaining debt, which means the boot calculation and the replacement value target deserve attention before any candidate search begins, since undershooting value or debt replacement by even a modest margin can trigger recognized gain on a large transaction.

Club membership is a separate contractual relationship from the real property itself and does not transfer automatically with a sale; the file should treat membership status as a closing logistics item, not a valuation input. Buyers frequently need to apply for their own membership independent of the property closing, and that approval timeline can run longer than the real estate transaction itself, which is worth flagging early rather than discovering during the final week before closing.

Improvements at this scale, guest houses, equestrian outbuildings, extensive landscaping, can carry cost bases well beyond what a comparable-sales approach alone would suggest, and the appraisal should itemize major improvements separately rather than fold them into a single blended value.

Given the deal size typical of this neighborhood, the file should include:

• current appraisal or broker opinion of value supporting the relinquished property's basis for boot calculation
• lease or rental history if the home has produced investment income
• club membership transfer terms, kept separate from the real estate closing
• comparable sales limited to private-club or large-acreage product, not general Summit County averages
• lender term sheet for any jumbo or portfolio financing on the replacement
• title report addressing easements tied to shared golf-course or equestrian access

Does club membership need to be addressed in the 1031 exchange itself?

No, membership is typically a separate contractual arrangement from the real property. The exchange covers the real estate; membership transfer, resignation, or reapplication should be handled as a closing logistics item alongside, but distinct from, the exchange documentation.

Why does a high-equity property need more careful boot calculation?

Because the dollar impact of a shortfall is larger. If replacement value or debt does not fully match what was relinquished, even a small percentage gap can mean a meaningful recognized gain, so the tax advisor should model this before the identification notice is filed, not after.

Can proceeds from a Promontory sale be split between a smaller replacement property and a DST?

Yes, a DST placement can absorb a portion of exchange proceeds while a directly owned property absorbs the rest, provided both pieces are properly identified within the 45-day window and closed within 180 days. This is a common structure when a single replacement does not fully match the value being exchanged.

How long should marketing take for a large-lot private-club replacement?

Longer than standard resort-condo product, given the narrower buyer pool. The identification and search process should start well before the relinquished property closes, rather than after, to avoid compressing the 45-day window around a thin field of comparable candidates.

Does the file need a separate appraisal from the listing broker's opinion of value?

An independent appraisal or a well-supported broker opinion is advisable given the deal size, since the tax advisor needs a defensible basis for the boot calculation that will hold up if the exchange is later reviewed.