Real Estate Exchange

A private, tax-deferred real estate exchange solution that allows qualified investors to reinvest 1031 proceeds by transitioning from active ownership of appreciated property into a passive, professionally managed, institutional-quality real estate strategy.

About Tax-Deferred Exchanges

PROPERTY SALE

Prior to closing, investor sets up account with Qualified Intermediary

QUALIFIED INTERMEDIARY

Sales proceeds from the relinquished property are escrowed directly with the Qualified Intermediary

REPLACEMENT PROPERTY IDENTIFIED

Exchanger has 45 days from sale date to identify potential replacement properties

EXCHANGE COMPLETE

Last day to purchase replacement property. Exchanger must close on replacement property and complete exchange on or prior to this date

Key Terms of a Real Estate Exchange

  • 1031 Exchange allows investors to sell qualifying real estate and reinvest proceeds in “like-kind” real estate, while deferring taxes from the original sale
  • Delaware Statutory Trust (“DST”) is an investment vehicle commonly used in 1031 exchanges that allows investors to own a fractional interest in professionally managed, income-producing commercial real estate
  • 721 Exchange allows investors to contribute real property to a REIT in exchange for partnership ownership interests on a tax-deferred basis
  • Umbrella Partnership Real Estate Investment Trust (“UPREIT”) is a structure that enables a REIT to acquire properties through tax-deferred 721 Exchanges

Potential Benefits

  • Keep More of What You’ve Earned – Defer capital gains taxes
  • Collect Steady Income & Growth Potential – Ongoing income and potential capital appreciation
  • Hands-Off Ownership – No active management required
  • Plan for the Future – Step-up basis can eliminate deferred taxes for heirs

There is no guarantee these potential benefits will be realized in whole or in part. Investing in real estate involves significant risks, including the possibility of fluctuations in value and losing all invested capital.

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