Kay Properties Announces a Completed 1031 Exchange Delaware Statutory Trust (DST) Property in Chesapeake, VA

LOS ANGELES and CHESAPEAKE, Va., Oct. 09, 2017 (GLOBE NEWSWIRE) — Kay Properties today announced the successful closing of the Seacoast DST in Chesapeake, VA. The property was made available to accredited investors under Regulation D Rule 506c. The Seacoast DST was a 125,096 square foot industrial property located in Chesapeake, VA. The property was an all-cash/debt-free DST offering available for 1031 exchange and direct cash investors. Dwight Kay, Founder and CEO of Kay Properties … Read More

Kay Properties Closes Delaware Statutory Trust (DST) Property in Tampa/Riverview, FL

LOS ANGELES and TAMPA/RIVERVIEW, Fla., Oct. 12, 2017 (GLOBE NEWSWIRE) — Kay Properties has successfully completed the Interchange DST in Tampa/Riverview, FL. This DST property was made available to accredited investors under Regulation D Rule 506c. The interchange DST was a 60,000 square foot property in Tampa/Riverview, FL. The property was an all-cash/debt-free investment available for 1031 exchange and direct cash investors. Dwight Kay, Founder and CEO of Kay Properties commented, “the successful completion of … Read More

Delaware Statutory Trust Pros & Cons

Kay Properties, a company that helps you understand the Delaware Statutory Trust pros and cons

Delaware Statutory Trust Pros & ConsBy Dwight Kay, Founder and CEO, Kay Properties and Investments Real estate investors love Delaware Statutory Trusts for their 1031 exchanges because they can provide individuals a unique opportunity to defer capital gains taxes, eliminate active management responsibilities, and achieve the potential for regular monthly cash distributions. However, the first step to using the DST 1031 exchange real estate investment strategy is to first understand the pros and cons of … Read More

DST 1031 Exchange Case Studies

Challenge: The client was looking for specialized and focused help in evaluating DST 1031 properties for her 1031 exchange. She had been introduced to a financial advisor that not only did not fully understand how 1031 exchanges and investment real estate work, but also only had two DST properties available. The client was then introduced by a family friend to Kay Properties and Investments, LLC. She was relieved to find a group that truly specialized … Read More

The Case for Class B Apartments. Class A Buyers Beware.

Overall, the Class B segment of the multifamily apartment market has outperformed the Class A segment in the past several years; and that trend is forecast to continue. While new supply is greatly affecting the Class A apartment market with rent concessions, it is not having a material effect on the class B sector where we are focused. Although we do like Class A apartments at the right price point and in certain unique circumstances … Read More

NNN 1031 Choice Implodes: DST Available for Identification in 1031 Exchange

A person helping another person during the process of identifying a 1031 exchange

Challenge: Clients of Kay Properties and Investments identified two whole properties and a number of DST (Delaware Statuary Trust) properties for their 1031 Tax Deferred Exchange using the 200% rule. The 200% rule allows an investor to identify up to 200% of the fair market value of the relinquished property instead of just choosing three properties. After the Identification Period expired, one of the whole properties the clients had under Letter of Intent was withdrawn … Read More

14 Reasons Why We Like Phoenix, AZ

1. Dominant Economy Greater Phoenix represents roughly 75% of the state’s economy Many Fortune 500 companies reside within the Phoenix area such as Boeing, Bank of America, Time Warner Telecom, IBM, and Intel Gross Metropolitan Product: $203.7 B 2. Expeditious Population Growth Arizona, Maricopa County and metro Phoenix were all top 10 in population numbers added in 2015 (bizjournals.com) 2% population growth rate within the last year (0.8% national average) (Phoenix Business Journal) 3. Impressive … Read More

Location, Location, Location: 8 Reasons Why We Like Las Vegas, NV

1. Business Friendly Environment  Nevada is the 3rd friendliest state for business taxes in the nation, according to the Tax Foundation, and it has held that position since 2012 2. LOWEST TAXES IN THE COUNRTY Yes, you read that right… Las Vegas proudly boasts the lowest taxes in the nation thanks entirely to the huge taxable profits made by the casinos every year   3. “The Entertainment Capital of the World” Over 45 million tourist … Read More

15 Reasons to Invest in Walgreens!

In 2013 Walgreen bought Alliance Boots, a chain of pharmacies in the UK that also sold health and beauty products in 11 countries. This drastically increased Walgreens product offering, supply chain, and market capitalization in the pharmaceutical industry. Walgreens Boots Alliance ranked 35 on the Fortune 1000 list. Walgreens has 13,100 stores in over 11 countries, which makes it the largest retail pharmacy in the U.S. and Europe. Revenue during Walgreen’s fiscal year in 2015 … Read More

Location, Location, Location: 10 Reasons Why We Like Tucson

The city of Tucson has the 2nd largest population in Arizona The Tucson metro area reached the 1 million residents mark in 2014, making it the 53rd largest metro area in the United States. Tucson is the 32nd largest city in America based on residential population. The University of Arizona and Pima Community College are located in Tucson and have a combined student body of over 90,000 students. Entrepreneur Magazine ranked Tucson as a top … Read More

9 Reasons Why We Like Regus as a Tenant

  Regus made about $2,945,600,000 in sales in its 2015 fiscal year- OneSource database. According to NAIOP, Regus is the largest shared office provider in the world Regus has 3,000 office centers located in 900 cities and 120 countries. Costar reports that since January 2014, Regus has signed 2.08 million square feet of new leases. The company’s stock has steadily increased during the past five years. In June 2011 the price was $104.9 and in … Read More

Four Reasons Why 1031 DST Exchanges are Growing in Popularity Plus Potential Delaware Statutory Investment Returns:

Deferral of Capital Gains Tax: This is the primary reason why real estate investors use 1031 exchanges. After selling a real estate property, investing in a like-kind property allows the owner to defer their capital gains tax. One DST benefits that has caught the industry’s attention is their prepackaged structure. This allows investors to close DST business deals in potentially as little as 3-5 business days. This timeframe easily fits within the mandatory 45-day identification … Read More

Location, Location, Location: 11 Reasons Why We Like Florida

The 2013 Census reports that the total population in Florida is 19,552,860. This makes Florida the 4th most populated state in America. In Florida there are no state income, estate, inheritance, or intangibles tax. On Business Insider’s “The 50 Best places to live in America” in 2016, 6 Florida cities are named. These rankings were based on each city’s job market index, value index, quality of life, desirability, and net migration. Florida has broken its … Read More

Here are 11 reasons why we like to buy property in Dallas, Texas

Dallas is the 6th largest metropolitan economy in America and the 12th largest in the world- Brookings Institute. The population of Dallas in 2014 was 1,281,047 according to 2013 census information provided by Policy Map. In the Dallas-Fort Worth-Arlington metropolitan area, the population was 6,954,330. In the years 2000-2014, the population growth rate in Dallas increased 7.8%- City of Dallas Economic Profile. Forbes ranked the Dallas-Fort Worth- Arlington area the 3rd fastest growing city in … Read More

Here are 10 reasons why we believe Dollar General is a strong tenant

Dollar General reported $20.4 billion in sales in 2015. Dollar General has over 12,400 stores in 43 states. Dollar General Corporation has a Fortune 1000 rank of 159. As of February 2016, OneSource database declares Dollar General the largest discount retailer in the United States. Same-store sales have increased for 26 consecutive years. In fiscal year 2015 same-store sales grew 2.8% compared to 2014. Credit.net awarded the company with an A+ business credit rating according … Read More

Location, Location, Location: 12 Reasons Why We Like Austin

According to the government census website, Austin’s population grew 14.8% from April 2010 to July 2015. Forbes ranked Austin the #1 fastest growing city, and Business Insider states that the Texas state capital gains roughly 50 new residents each day. The United States Census Bureau reports that from 2010-2014 87% of adults aged 25+ are high school graduates and 46% hold a bachelors degree or higher. Forbes ranked Austin the 5th Best city for young … Read More

Location, Location, Location: 9 Reasons Why We Like Charleston, SC

1. Strong Job Growth Average of 10,000 net new jobs annually over past 6 years (charlestonregionaldata.com) 29.7% total growth in employment across all industries over the last 15 years (U.S national growth 7.4%) (charlestonregionaldata.com) Civilian labor force grew 4.5x faster than the US average from 2010-2015 (US Bureau of Labor Statistics) 2. Staggeringly Low Unemployment Rate of Only 4.4% 4.4% unemployment rate (Bureau of Labor Statistics) 3. Advanced Transportation Infrastructure with Unrivaled Access to International … Read More

Investments for High Net Worth Accredited Real Estate Investors

High-net-worth, accredited investors may be looking for an investment that is an alternative to traditional investments such as stocks, bonds, mutual funds, etc. High net worth real estate investors may be looking for an investment that is an alternative to traditional investments such as stocks, bonds, mutual funds, etc. Such investors may want to consider investing in one of Kay Properties and Investments, LLC real estate offerings. These investment offerings are designed to potentially provide … Read More

Kay Properties 2016 Economic Update With Dr. Peter Linneman

Kay Properties and Investments, LLC hosts 2016 Economic Update conference call with Dr. Peter Linneman from the Wharton School of Business at the University of Pennsylvania. Clients were able to learn from one of the most renowned real estate economists of our time as Dr. Linneman covered topics such as: What to potentially expect in 2016 as an investment real estate owner. The differences of Main Street verses Wall Street. What real estate asset classes … Read More

2016 Medical Office Outlook

The Economy/Capital Markets: Now that market watchers can exhale with the uptick in the federal funds rate, we can evaluate the state of the market. According to one of the largest medical office investment advisory firms: An important distinction for commercial real estate investors is that the Federal Funds rate is a short-term lending benchmark with limited application in commercial real estate. Commercial real estate lending and valuations, however, are principally based on longer-term rates, … Read More

Who Is Who – The Roles of DST Industry Players

Many investors find it hard to keep the players in the DST 1031 industry straight in their minds. Who is the sponsor, the broker dealer, and the registered representative? This article seeks to answer these questions and provide a background for potential DST 1031 investors on “who is who.” DST Real Estate Sponsor Companies A real estate sponsor company creates the DST 1031 property for investors to be able to invest in. The creation of … Read More

What Are the Risks of DST 1031 Properties?

DST 1031 properties are comprised of real estate and contain the same risks that all other forms of real estate entail. The following discussion on risks is meant to be an overview of potential risks and not an exhaustive list. We encourage investors to review the risk section of each potential DST 1031 property’s offering materials before investing. All forms of real estate investing, whether buying homes, duplexes, apartment buildings, commercial properties, including DST 1031 … Read More

The Section 721 Exchange

Most real estate investors are familiar with the IRC Section 1031 exchange and have most likely been closely involved with a 1031 exchange in one form or another. The Section 1031 exchange has become a popular way for sellers to dispose of appreciated real estate and to defer capital gains taxes and depreciation recapture taxes. Many of these same real estate investors that have utilized the Section 1031 Exchange time and time again have not … Read More

2015 Multifamily Outlook

Jason Salmon Senior Vice President Commercial Markets: The nation is in the 24th quarter of the current economic recovery with a compound annual rate of growth of approximately 2.3%, according to Integra Realty Resources. It is the fourth longest economic recovery since WWII. The firm suggests that “this economic recovery has had a tangible effect on fundamental property metrics, with declining vacancies, positive net absorption, and rent growth.” Indices that track commercial real estate prices … Read More

DST as a Cash Investment Vehicle

Many of our clients have purchased DST properties as purely discretionary cash investments, even though they are not in a 1031 exchange. The reasons why investors will do this are many. Two of the main reasons that we will see are: Clients that have exchanged with us into DST 1031 properties over the years will purchase DST properties as a cash investment due to wanting to continue to diversify* out of the stock/bond markets as … Read More

Why Do 1031 Investors Choose DST Properties Over Traditional NNN Properties?

Many clients that have been interested in doing a 1031 exchange into a NNN property find the DST 1031 property particularly attractive. These same clients often think that the only way for them to become passive owners of real estate is to purchase a NNN leased property; however, they often are very skeptical about placing such a large amount of their net worth into one single NNN property. The DST 1031 option has become an … Read More

Why You Should Consider Deferring Your Capital Gains Taxes

By Jason Salmon Senior Vice President and Managing Director of Research Kay Properties and Investments, LLC The basics: If you own investment real estate—that means a rental condo or home, apartment building, a commercial building, raw or vacant land or otherwise—you do not have to pay taxes when you sell the property. Uncle Sam has had section 1031 of the Internal Revenue Code in place since 1921. Also known as a 1031 exchange, this provision … Read More

How To Dodge A Tax Hit When Selling Rental Property

By Making The Right Move, Sellers Can Sidestep The Capital Gains Tax The life of a landlord certainly isn’t easy. There are plumbing issues that eat into time and money. There are tenants who fail to pay the rent. There are broken leases and leaky roofs. And the hassles don’t even end when the beleaguered landlord finally decides to sell the property. After the deal closes, the Internal Revenue Service is waiting in the wings … Read More

Delaware Statutory Trust Properties – Illiquidity and Exit Strategies

Two of the questions that often come up from our clients considering a DST 1031 exchange property are 1) How liquid are DST 1031 properties? and 2) What are the exit strategies? First off, it is important to note first and foremost that DST 1031 properties are real estate, and like all other types of real estate they are inherently illiquid. You are not buying shares of stock listed on a public exchange that you … Read More

Listen to an audio version of the DST 1031 Book by Dwight Kay

Discover what every 1031 exchange investor should consider when thinking about investing into Delaware Statutory Trust (DST) 1031 exchange properties. Learn about how DST 1031 properties are structured, financed and packaged for 1031 exchange investors as well as their potential benefits and risks. Learn about various types of DST 1031 properties available to qualified accredited investors as well as why 1031 exchange investors are increasingly choosing DST 1031 properties over traditional Triple Net Leased (NNN) … Read More

What Are the Potential Benefits of Exchanging into a Delaware Statutory Trust Property?

By Dwight Kay There are a number of potential benefits of exchanging into a Delaware Statutory Trust (DST) 1031 property. It is important to note that these should be carefully weighed with the potential risks that we have outlined at the end of this article. You should also read the risk section of each DST 1031 property’s offering materials in detail prior to investing. Eliminating the day-to-day headaches of property management Many of our clients … Read More

DST 1031 Properties – The Basics

By Dwight Kay A Delaware Statutory Trust (DST) is an entity that is used to hold title to investment real estate. In some ways, this is similar to how a Limited Liability Company (LLC) can hold title to real estate; however, unlike an LLC, a DST 1031 property will qualify as “like kind” exchange replacement property for a 1031 exchange. This qualification as “like kind” property is pursuant to the Internal Revenue Code Section 2004-86. … Read More

Dwight Kay Interviewed on WOCA 1370AM

Dwight Kay interviewed on WOCA 1370AM in Ocala – Gainesville, Florida with Larry Whitler and Robin MacBlane on the topic “Can a Popular Tax Strategy Be Saved”

Dwight Kay Quoted in Recent Articles

Dwight Kay, CEO of Kay Properties and Investments, LLC quoted in the following articles: – The Spectrum – Federation of Exchange Accommodators

A Tax Strategy For Investment Real Estate Grows In Popularity

Proponents Say 1031 Exchanges Are Good For The Economy, But Congress Eyes Repeal A popular tax-deferral strategy for people who deal in investment property could be in trouble as Congress ponders doing away with it. But already rescue efforts, such as letter-writing and lobbying campaigns, are afoot to counter any talk of repealing Section 1031 of the Internal Revenue Code, which lets taxpayers defer their capital-gains tax on the sale of the property if they … Read More

1031 Exchange Fundamentals

By: Dwight Kay, Founder – Kay Properties and Investments, LLC What is a 1031 Exchange? The 1031 exchange is thought by many to be one of the more powerful tax deferral tools currently available to taxpayers. Under the Internal Revenue Code Section 1031 taxpayers can defer their capital gains tax on the sale of property if they reinvest the proceeds in like-kind property. IRC Section 1031 provides that “No gain or loss shall be recognized … Read More