45 Day Identification Strategy

The 45 days after a Connecticut relinquished property transfers set the entire pace of an exchange, and investors who start researching replacement candidates only after closing often spend half that window just getting oriented.

A well-priced Fairfield County multifamily building can go under agreement within days of listing, driven by New York-adjacent demand that rarely slows down. Hartford office and New Haven medical space typically move on a longer clock, driven by tenant lease terms and institutional ownership decisions that respond less to a 45-day window. Shoreline retail can sit longer outside peak season, then move quickly once a seasonal buyer appears. An investor identifying across more than one of these submarkets needs to expect different levels of urgency from each seller. A seller in a fast-moving Fairfield County negotiation may expect an answer within days, while a Hartford institutional owner may take weeks just to route a letter of intent through internal committees, and an investor working both tracks at once needs a realistic sense of which deadline belongs to which property.

The choice between the three-property rule and the 200 percent rule should be made early, not on day 44.

• Decide whether three strong candidates are enough or whether a broader value-based list is needed
• Rank each candidate by realistic closing probability rather than asking price alone
• Confirm early with any lender whether financing is realistic for the top candidate
• Note which candidates require a DST allocation or other passive structure as a backup
• Build in at least one true backup in case the lead candidate falls through

Investors who tour properties, request rent rolls, and open conversations with lenders before the START EXCHANGE REVIEW even closes arrive at day one of the exchange with real candidates instead of a blank list. This matters most in Connecticut markets where good multifamily and industrial assets attract multiple offers, since a property that looks available in week one can be under contract to someone else by week three. None of this replaces the requirement that the qualified intermediary receive a written identification notice within 45 days, it simply gives the investor better candidates to put on that notice. Early conversations with a commercial broker familiar with a specific Connecticut submarket can also surface off-market or soon-to-list properties that never make it onto a public listing service in time to help a rushed 45-day search.

A short review around day 20 to 25, looking at which candidates are still realistic and which have slipped in price or availability, keeps the final list from being decided in a rush during the last week. This is also the point where an investor should confirm with their advisor whether the three-property rule still fits or whether a broader identification under the 200 percent rule makes more sense given how the search has developed. This is also a natural point to revisit financing assumptions, since a lender's early feedback on one property can change how attractive a second or third candidate looks by comparison.

What counts as a valid identification under the 45-day rule?

The notice must describe the replacement property with enough specificity, typically a legal description or street address, and must be signed and delivered to the qualified intermediary or another authorized party before the deadline; verbal mentions or informal conversations do not satisfy the requirement. Investors who are unsure whether their description meets this standard should have the qualified intermediary review the notice language before it is sent, not after.

Can an investor change the identified properties after day 45?

No, once the 45-day window closes the identification is generally fixed, so any property not named on that notice cannot become part of the exchange even if a better option appears afterward.

How many properties can be identified?

Investors can use the three-property rule to name up to three properties regardless of value, or the 200 percent rule to name more properties as long as their combined fair market value does not exceed twice the relinquished property's sale price. Choosing between the two generally depends on how many realistic candidates the investor has and how confident they are in the aggregate value calculation required under the 200 percent rule.

Does weekend or holiday timing extend the 45-day period?

The 45-day count runs on calendar days from the transfer of the relinquished property, and a qualified intermediary should confirm the exact deadline date since it does not typically move for weekends or holidays.

Why start researching replacement properties before the START EXCHANGE REVIEW closes?

Connecticut submarkets like Fairfield County multifamily can move quickly, so investors who begin touring and gathering documents in advance are more likely to have a realistic, ranked list ready on day one rather than starting from nothing. Waiting until the sale closes to start this work is one of the most common reasons a Connecticut identification ends up rushed and thin on real alternatives.