721 UpREIT DSTs

THE 721 UpREIT OPTION

Understanding the diverse strategies and structures available with real estate investments can significantly influence your decision-making process. Among these, the 721 UpREIT offerings are a flexible option for investors considering upgrading their investments through a Real Estate Investment Trust (REIT).

721 EXCHANGE

721 UpREIT TERMS

721 Exchange – In a Section 721 exchange, the owner exchanges real estate for OP units of a REIT. Instead of receiving cash in a taxable transaction, the owner receives OP units. Unlike a taxable sale, the gain is deferred under Section 721 or the Internal Revenue Code (like a 1031 exchange).

OP – Operating partnership. The entity through which a REIT typically acquires and owns its real estate.

OP Units – Operating partnership units, representing ownership of the OP that owns the REIT’s real estate. These units may be converted into REIT shares.

REIT – Real estate investment trust. A company that owns income-producing real estate. The REIT may be private or public.

UpREIT – Umbrella partnership real estate investment trust. A REIT structure with an OP that allows owners of real estate to exchange their property for OP units.

The go-to source for your 1031 replacement real estate needs

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Contact

Zack Brough

7960 B Soquel Dr, Ste 253
Aptos, CA 95003
(415) 336-9225
zack@1031investmentstrategies.com

Mike Ghirardo

7200 Redwood Blvd, Ste 402
Novato, CA 94945
(415) 328-3919
mike@1031investmentstrategies.com

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Disclosures

General Disclosures
For more information on Emerson Equity, please visit FINRA’s BrokerCheck website. You can also download a copy of Emerson Equity’s Customer Relationship Summary to learn more about their role and services.

Important Disclosure
The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by the issuer, or any affiliate, or partner thereof (“Issuer”). All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM. With respect to any “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/ PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. All offerings are intended only for accredited investors unless otherwise specified. Past performance is no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.

Securities through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

1031 Risk Disclosure:

There is no guarantee that any strategy will be successful or achieve investment objectives;
Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
Potential for foreclosure – All financed real estate investments have potential for foreclosure;
Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions; -Impact of fees/expenses
Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

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