Understanding DST-to-UPREIT Transactions
How can an investor keep a high-performing Capital Square multifamily DST investment at the end of its lifecycle, while gaining additional benefits? Our newest expertise piece has this answer and more:
Video highlights include:
- Introduction to 721 Exchanges (jump to 0:39)
- Can an investor keep a DST for the long term? (jump to 1:27)
- What is Capital Square Housing Trust? (jump to 2:11)
- Can an investor invest in a REIT for the long term? (jump to 2:50)
- What are the benefits of an UPREIT? (jump to 3:11)
- Why should interest rates be considered when deciding whether to UPREIT? (jump to 6:47)
- How does Capital Square handle UPREITs differently? (jump to 7:39)
- A recap of DST-to-UPREIT considerations (jump to 8:17)
Essential takeaways:
The investors-first promise of UPREITs into Capital Square Housing Trust means:
- Our investors are never forced into an UPREIT when their DST property reaches maturity, and
- Only strategic, high-performing properties from our DST portfolio are destined for the REIT.
The 1031 to 721 Investor Journey can seem complicated, but at Capital Square, we know education allows for tremendous opportunities.
Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.
