LOS ANGELES, June 18, 2020 (GLOBE NEWSWIRE) -- Kay Properties and Investments today announced the completion of a 1031 exchange for a family who has owned and operated commercial investment properties for many years.
The family has built considerable wealth over decades of owning and operating a portfolio of their own commercial properties and reached a point where they no longer wished to actively manage their real estate. The properties have experienced considerable capital appreciation, creating a very large tax event if they weren’t to utilize a 1031 exchange to defer their taxes due upon sale. After meeting in person and conducting vigorous due diligence of Kay Properties and the DST structure, the family chose the Kay Properties 1031 marketplace at www.kpi1031.com to complete their 1031 tax deferred exchange into multiple DST 1031 investment offerings.
The Delaware Statutory Trust exchange investments were completed by Kay Properties and Investments team members Betty Friant, Senior Vice President, and Matt McFarland, Associate.
Friant stated, “Our clients discovered DSTs through researching various passive investment opportunities for an upcoming sale. Through their research they were pointed to Kay Properties and began to learn more about Delaware Statutory Trust properties as an option for them to consider. Although they had the capital to purchase a single high-quality NNN property on their own, they ultimately weren’t comfortable allocating $6 million into a single property and chose instead to diversify. The DST structure afforded the clients to the ability to participate in the same caliber of asset, only on a more diversified basis.”
Friant continued, “At Kay Properties, we are proud of the diversification capabilities we can offer our clients through our relationships with many DST sponsor companies who do an amazing job acquiring the real estate, structuring it as a DST and managing the property on behalf of our clients.”
McFarland added, “At Kay Properties, we have access to nearly the entire marketplace of DST properties. This allows us, when working with a particular client, the true ability to make recommendations based on the client’s objectives and long-term goals. Through the access to over 25 sponsor firms and 20-40 different DST investments at any given time, we are able to help create a well-diversified portfolio for our clients. This particular client was able to purchase eight different DSTs with seven different sponsor firms. The real estate held in the DSTs they invested in amounted to over 890,000 square feet of commercial office, medical office, pharmaceutical, necessity retail, automotive, and healthcare related properties, geographically diversified across 14 states.”
McFarland continued, “The family most enjoyed the flexible nature of the DST as it pertains to equity allocation. With the typical minimum investment amounts being $100,000, this family and so many others are able to allocate specific amounts of their equity into individual DST offerings that make sense regarding their overall financial situation, goals, objectives and risk tolerances.”
About Kay Properties and www.kpi1031.com
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over $15 billion of DST 1031 investments.
*Diversification does not guarantee profits or protect against losses.
*This case study may not be representative of the experience of other clients. Past performance does not guarantee or indicate the likelihood of future results. Please speak with your attorney and CPA before considering an investment.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the "Memorandum"). Please read the entire Memorandum paying special attention to the risk section prior to investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities.
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