Partnership structure on a 1031 post close?
I am working on a 1031.  Would have approximately 1.3 to invest and I have my eye on an off market multi tenant office building for 3m purchase price.  Issue is reserves.  I really would like to have access to 400K cash going into this thing.  One for a new boiler the building needs, two for the obvious TI's and Broker fees etc to lease it up (80% occupied currently).  

Any advice on how to handle this considering I don't have this type of cash currently?  Is it possible to bring a partner into this post close for a piece?  Seems confusing though since its a 1031?  Or would banks be willing to provide a line of credit on this since I'm putting a decent chunk down?  

Any thoughts?
[{"id": "fffgc28", "text": "You should be able to get your renovation budget funded through your loan, especially as you\u2019ll be at 65% LTC which is bank-able leverage.", "replies": [{"id": "fffqyjc", "text": "Yeah, at a total project cost of $3.5MM youre only at 63% LTC.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fffkc41", "text": "The 1031 partner doesn\u2019t need to be 100% of the new deal so yeah you can bring in more equity to do it but debt seems like the better route for this.", "replies": [{"id": "fffmop4", "text": "But if the partner buys in post closing, and the funds aren't used by OP for another 1031, that would be a taxable event.", "replies": [{"id": "fffmwwt", "text": "Can you elaborate on the mechanics of that being taxable?  I meant to bring in the equity at closing but what you said is interesting.", "replies": [{"id": "fffvhbd", "text": "Assuming OP sold, say, 10% of the building post-closing, that's a taxable event. The tax basis would be calculated based on the 1031 exchange, not the present value. I have no idea what the deffered taxes are here, but since a 1031 exchange is being done, we can assume it's substantial. So OP could be incurring an additional tax liability in exchange to some capital now.", "replies": [{"id": "fffyu7x", "text": "I see what you mean now - thanks.  So his move would be to 1031 into 90% of the new JV with the 10% partner and the 90% covers the building and 10% covers the capital injection needed.", "replies": [{"id": "ffg0h7c", "text": "Sure. They would need a partnership agreement as to how that capital injection is treated, if the partnership pays interest to the new partner, etc, but those are just business terms to negotiate.", "replies": [{"id": "ffg10v9", "text": "iamnyc I guess a real estate attorney would be best person to reach out to as far as specifics of a this type of partnership agreement?", "replies": [{"id": "ffg5gbd", "text": "Yes, but a commercial one, not just someone who does residential transactions. Both parties need their interests represented, and it can get complicated with internal interest rates, first money out, how refi/cash out proceeds get distributed. Those are all business terms, and, as such, can be negotiated by the principals, but for exactly the best way to structure it, a commercial RE attorney with some experience in partnerships is probably best.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "ffft17n", "text": "interesting.   good info everyone thanks.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fffvk7h", "text": "I'd shop around for a bank willing to allow a 2nd mortgage, say 2 or 3 year money, then you'll be able to refinance after that time period since your upgrades will be done, commission paid, and presumably leased up, or at least greater than 80%.", "replies": [{"id": "ffg141s", "text": "yes leaning towards this.", "replies": [], "depth": 2}], "depth": 1}]