Kay Properties and Investments today announced that one of their custom 1031 exchange Delaware Statutory Trust – DST offerings has gone full cycle and was sold on behalf of investors. The offering was a multi-tenant office property located in the Tampa, FL MSA and was made available exclusively to Kay Properties clients in 2017.
The offering generated a total return of 131.42% for the 1031 exchange and direct cash investors*. This DST offering was a custom 1031 DST offering made available only to Kay Properties clients who were accredited investors under Regulation D Rule 506(c).
Dwight Kay, CEO and Founder of Kay Properties commented, “We are extremely pleased with the opportunity to provide these returns for our investors in light of the COVID-19 pandemic and the headwinds facing multi-tenant office properties. The investment was opportunistic in nature as we were able to generate a risk adjusted return for our investors without utilizing leverage. The offering was a debt free DST and we are proud to say that the returns have proven on this offering to be superior to many leveraged DSTs that were available during the same time period*. Many of the 1031 investors involved in this DST offering decided to complete another 1031 exchange investment with Kay Properties via the www.kpi1031.com marketplace for 1031 exchange offerings and we are thankful for the opportunity to be of service to them and their families.”
Chay Lapin, Senior Vice President of Kay Properties commented, “Our property located in the Tampa, Florida MSA allowed our investors to be in a debt free position to mitigate risk and have potential for upside at the same time. We are very pleased to provide our investors a positive total return on their investment, especially during a global pandemic. During the beginning of the global crisis and economic issues the investors were able to sleep at night knowing at the end of the day they were debt free should the various world events affect their property there was no risk of lender foreclosure.”
Jason Salmon, Senior Vice President and Managing Director of Real Estate Analytics added, “I’m pleased that our investors were able to participate in a real estate deal that resulted in a profitable sale with monthly income along the way. Most of our clients in this DST investment offering had invested in multiple DSTs with multiple DST sponsor companies as part of a diversified* strategy, and similarly in this case, the clients opted to 1031 exchange their sale proceeds into additional DST real estate.”
Betty Friant, Senior Vice President of Kay Properties concluded, “This lends even more credence to our recommendation that if investors are debt free when they sell a property in a 1031 Exchange, they should try to remain debt free. It takes a big layer of risk out of the equation when investing in real estate as it’s extremely hard to lose a property to foreclosure if there is no bank involved! In addition to DST 1031 properties that have leverage associated with them, Kay Properties also has a number of debt free DST properties available in asset classes such as multifamily, industrial distribution centers, medical office, and retail/pharmacy. Investors can see our current offerings by creating a free account at www.kpi1031.com our online marketplace for 1031 exchange offerings or by calling (855) 899-4597.”
* Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.
*The total return represents the total sales proceeds and distributions through the life of the asset, net of fees. No representation is made that any investment will or is likely to achieve profits or losses similar to those achieved in the past or that losses will not be incurred on future offerings.
*Diversification does not guarantee profits or protect against losses.