Reinvest Smarter: The 1031 Strategy Explained
From Capital Gains to Slopeside Gains: How to Use a 1031 Exchange to Invest in South Peak Resort
At the intersection of strategic wealth planning and elevated mountain living lies a powerful—but often underutilized—investment tool: the 1031 exchange. For investors looking to defer capital gains and reinvest in appreciating real estate, South Peak Resort at Loon Mountain presents a rare opportunity to combine lifestyle, legacy, and long-term financial growth.
Whether you’re managing your own portfolio or advising high-net-worth clients, here’s how a 1031 exchange can work for you—and why South Peak should be at the top of your list.
What Is a 1031 Exchange?
A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows real estate investors to defer capital gains taxes when they sell one investment property and reinvest the proceeds into another of “like-kind” and equal or greater value. This strategy enables compounding returns by keeping more capital working for you.
The Process:
1. Sell your investment property and direct the proceeds to a Qualified Intermediary (QI)- you cannot take possession of the funds
2. Identify up to three potential replacement properties within 45 days of the sale.
3. Close on one or more of those properties within 180 days to complete the exchange.
Timing and structure are critical, so working with an experienced QI and a broker familiar with 1031 exchanges is essential.
Why South Peak Resort Is a Smart 1031 Exchange Destination
1. Exceptional Appreciation in a Luxury Market
South Peak isn’t just another second-home community. Nestled on Loon Mountain—New Hampshire’s top four-season resort—this private enclave has seen homesite values rise by over 245% since its acquisition by South Peak LLC less than four years ago. Several lots have exceeded $1.2M, and custom homes are closing at over $1,000 per square foot. This level of sustained appreciation makes it a standout for value-focused investors.
2. Rental Income with Year-Round Demand
Slopeside properties at South Peak offer the kind of turnkey rental potential that most investors dream of. Think ski-in/ski-out access, firepits, après lounges, and concierge services. Year-round tourism—driven by skiing, mountain biking, hiking, and leaf-peeping—keeps occupancy rates high and nightly rates premium. It’s a formula that works well for 1031 investors targeting income-generating assets.
3. Powerful Estate Planning Benefits
A 1031 exchange isn’t just a tax strategy—it’s also an estate planning tool. Investors can continue exchanging properties throughout their lifetime, and when the asset passes to heirs, it receives a stepped-up basis, eliminating deferred gains. That means South Peak can function as both a personal haven and a multigenerational wealth vehicle.
Boston to Lincoln: A Strategic Location
One of South Peak’s biggest strengths is its location—just under two hours north of Boston via I-93. It’s close enough for weekend getaways, yet far enough to offer a true alpine escape. For wealth advisors and family offices based in Greater Boston, MetroWest, Southern NH, or the Seacoast, South Peak offers a highly accessible solution for second-home investments.
Investment in Infrastructure, Lifestyle, and Value
Significant recent and upcoming developments at South Peak and Loon Mountain are fueling rising demand and accelerating property values:
– 25 new homes currently under construction
– 4 new dining venues, including Snowfish Sushi, Basecamp Brewing, Bluebird Martini Bar, and Alpine Pizza
– The Nest Club (private fitness, locker, and social club) opening Winter 2025/26
– Plans for South Peak Village, including spa, dining, retail, and skating rink
– Major lift upgrades, including the East’s first 8-seat bubble chairlift (Kancamagus 8)
This thoughtful blend of real estate, amenities, and resort infrastructure acts as a multiplier on both asset value and rental returns.
More Than an Investment—It’s a Legacy
As Managing Broker Steve Loynd notes,
Smart growth, quality over quantity, and family-first design make South Peak a rare breed in New England real estate. For many of our buyers, it’s not just about ROI—it’s about creating a legacy property their families can enjoy for generations.
How to Get Started with a 1031 Exchange at South Peak
If you’re ready to explore this strategy, here’s how to begin:
– Talk to your CPA or estate planner to evaluate your eligibility and goals.
– Engage a Qualified Intermediary (QI) to manage the transaction.
– Connect with a South Peak Realty advisor to review available and upcoming inventory
– Start early—you don’t have to wait until your current property sells. A reverse exchange structure allows you to secure rare inventory like ski-in/ski-out homesites before selling your current asset.
Final Chairlift Thought
A 1031 exchange is the vehicle. South Peak Resort is the destination.
For owners of appreciated real estate in Metro Boston, Cape Cod, Portsmouth, or beyond, reinvesting via a 1031 exchange into a South Peak homesite or townhome could be your most strategic next move—financially and personally.
Connect with South Peak Real Estate today to start the conversation and explore current availability.
