Kearny Bank’s newest specialty team is starting out in New York. New Jersey is next.
The bank has launched a Specialty Deposits team focused on 1031 exchange transactions, widely used by commercial real estate investors to defer capital gains taxes by reinvesting sale proceeds into new property. The team also handles escrow account services more broadly for attorneys, title companies and other professional services firms.
A 1031 exchange, named for its section of the tax code, lets an investor sell a commercial property and roll the proceeds into a new one without paying capital gains taxes at the time of the sale. The transactions typically run through a Qualified Intermediary, a third party that holds the sale proceeds in escrow until they’re reinvested — which is where Kearny Bank’s new team comes in, serving as the depository institution safeguarding those funds throughout the process.
Thomas Kokinias, the group’s leader and senior vice president/director of specialty deposits banking, said the initial push is aimed at Long Island, Brooklyn and Staten Island, part of a broader enhancement of the bank’s New York presence.
But Kokinias said the team, and the bank, have New Jersey in their sights as well.
“While our team brings decades of experience supporting 1031 exchange transactions on Long Island and the surrounding area, we’re excited to expand our presence into New Jersey and other markets,” he said. “The demand is there, and we see tremendous opportunities to help investors navigate increasingly complex transactions.”
Kokinias, who has more than 20 years of experience in the fiduciary and 1031 exchange space, called the work a “very rare specialty” requiring deep knowledge of both regulatory requirements and the operational demands of time-sensitive transactions.
The 1031 exchange market drives hundreds of billions of dollars in commercial real estate activity nationally each year.
Anthony Bilotta, Kearny Bank’s Chief Banking Officer, said the bank expects to support more than 1,000 transactions annually.
“In commercial real estate, 1031 exchanges are a driving force — they demand absolute precision in how funds are handled,” he said. “Expanding our commercial product offering to include 1031 exchange transactions brings that specialized expertise directly to select New York markets, helping intermediary firms and their clients move quickly, stay compliant, and complete transactions with confidence.”
The team also includes Maria D’Ornellas, vice president/specialty deposits banking client manager, and Franklin Mendez, assistant vice president/specialty deposits banking ops specialist.
It taps the bank’s treasury management platform for digital account management and its Insured Liquidity Sweep account, which offers multi-million-dollar FDIC coverage and connects clients to Kearny’s commercial lending group when financing is needed.
