A high net worth real estate owner and operator has utilized the Kay Properties 1031 DST marketplace at www.kpi1031.com to complete his 1031 exchange into numerous Delaware Statutory Trust – DST – offerings.
The DST 1031 exchange transactions were completed by Kay Properties and Investments team members, Chay Lapin, Senior Vice President and Steve Haskell, Vice President.
Dwight Kay, the founder and CEO of Kay Properties stated, “Here we have another high net worth investor choosing to work with the Kay Properties team and the www.kpi1031.com marketplace to access the DST 1031 industry and over 25 different DST sponsors.”
Kay continued, “I personally would like to thank the investor and the 11 different DST sponsors that we placed the clients 1031 exchange equity with. Again, this was a situation whereby working with Kay Properties, the client was able to learn about many DST sponsors in the industry and compare side by side between 20-40 DST offerings so as to decide which investments made the most sense for his situation.”
Chay Lapin, Senior Vice President of Kay Properties stated, “Our client had a significant background in real estate and development where he was strongly considering a single tenant net lease property for his current 1031 exchange that would require his entire exchange funds to be concentrated into one asset. We frequently come across clients who have the expertise to purchase and manage a property on their own for their 1031 exchange and in some cases that might make the most sense for the client. As our client strongly considered various options, he decided that in today’s environment and the ever-changing world he would opt to diversify into a portfolio of DSTs and not be overconcentrated in a single asset class or area of the country. Although diversification does not guarantee a return on investment, in scenarios like the recent COVID-19 situation it could potentially reduce the unknown risks of today’s world by the 1031 exchange investor now having instead of a single property, having a portfolio of properties with multiple tenants, multiple asset classes and multiple geographic locations.”*
Steve Haskell, Vice President at Kay Properties stated, “By working with Kay Properties and the www.kpi1031.com marketplace the client now has a diversified 1031 exchange DST real estate portfolio that consists of 2 long term net lease investment-grade distribution centers, 9 net lease medical-related properties, 17 single family houses, 2 mission critical locations leased to fortune 500 companies, one self-storage facility, and 12 multifamily assets consisting of over 3,625 units.”*
Haskell continued, “This was a particularly nuanced exchange that consisted of several contingency strategies and incorporated over 64 identified properties. It was critical that this investor had an experienced team behind him to help understand his potential risk, monitor his 1031 exchange requirements, and swiftly execute his contracts. Any delay in exchanges of this size could cost the investor hundreds of thousands of dollars. Between Chay, myself, and the Kay Properties contract support team, we oversee hundreds of DST investments a year. This experience allows us to provide our clients with deep insight into the DST sponsors, which DST offerings make the most potential sense for the clients, the ability to anticipate potential challenges and slowdowns in the exchange process and provide clients with the professional care and support needed to execute a multifaceted transaction in a smooth and deliberate fashion.”**
*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.