Kay Properties and Investments Successfully Completes $3.32 Million DST 1031 Exchange for Client Who Formerly Owned and Operated a Winery

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LOS ANGELES, May 07, 2020 (GLOBE NEWSWIRE) -- Kay Properties and Investments announces the completion of another 1031 DST exchange for a couple who sold a winery they owned and operated for almost 20 years. Though they enjoyed the many years and experiences that came with operating a winery, the couple was ready for the opportunity to exchange into a more passive, diversified* investment vehicle. They utilized the Kay Properties 1031 DST marketplace at www.kpi1031.com to successfully complete a tax-deferred 1031 exchange into multiple DST 1031 investment offerings. 

The Delaware Statutory Trust exchange investments were completed by Kay Properties and Investments team members Chay Lapin, Senior Vice President, and Matt McFarland, Associate.

Chay Lapin, Senior Vice President, stated, “We are very pleased to be able to help another family with their exchange into multiple DST investments across many asset classes, geographical regions, and with multiple DST sponsor companies. Due to our expertise and access to the entire marketplace of DSTs, we are able to offer a diverse array of DSTs for our clients to choose from. We are grateful for the relationships we have with many of the DST sponsor companies who constantly seek to bring new and interesting investment opportunities to market. These clients were committed to staying largely debt-free with the majority of their investments, combined with a couple of carefully selected DSTs with debt.”

Lapin continued, “When the client first approached us, they were considering investing all of their proceeds into a triple-net property leased to a franchisee-owned restaurant chain. Through ongoing dialogue, the clients ultimately discovered that it did not make sense for them to invest a large portion of their net worth into a single-tenant asset with an inferior franchisee tenant. The concentration risk was too high for them to be comfortable. Also, having never purchased a single-tenant net lease asset, the reality of conducting their own due diligence and managing the property seemed difficult and risky.”

Matt McFarland, Associate at Kay Properties, stated, "The potential diversification capabilities that one has within the DST 1031 environment is significant. In this case, our clients were able to exchange out of a winery that they self-managed into six different DST offerings that combined consisted of an investment-grade medical property, a 62,000 square foot self-storage DST, five multifamily properties totaling 678 units, and two student-housing properties totaling 848 beds. The investors’ DST portfolio spans multiple asset classes and is spread across multiple states. Diversification allows our clients to potentially mitigate concentration risk and is consistently one of our main objectives at Kay Properties. Although there is no guarantee and always risk associated with real estate, it is through the principles of staying largely debt-free and diversifying that the client can position defensively as we move into the future.” 

McFarland continued, “The clients informed me that they look forward to having the freedom to have more time to travel and enjoy time with family and friends as they no longer will be burdened with owning and operating the winery. For them, and for many, the DSTs provide a lifestyle change as investors move away from active management to passive, professionally managed real estate holdings.”

*Diversification does not guarantee profits or protect against losses.

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 150 years of real estate experience, are licensed in all 50 states, and have participated in over $30 Billion of DST 1031 investments.

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 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.

Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRASIPC.

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