Kay Properties today announced the completion of a 1031 exchange for a family who has owned and operated commercial investment properties for many years. The family has built considerable wealth over decades of owning and operating a portfolio of their own commercial properties and got to a point where they no longer wished to actively manage their real estate. The properties have experienced considerable capital appreciation, creating a very large tax event if they weren’t to utilize a 1031 exchange to defer their taxes due upon sale. After meeting in person and conducting vigorous due diligence of Kay Properties and the DST structure, the family chose the Kay Properties 1031 marketplace at www.kpi1031.com to complete their 1031 tax deferred exchange into multiple DST 1031 investment offerings.
The Delaware Statutory Trust exchange investments were completed by Kay Properties and Investments team members Betty Friant, Senior Vice President, and Matt McFarland, Associate.
Betty Friant, Senior Vice President, stated, “Our clients’ discovered DSTs through researching various passive investment opportunities for an upcoming sale. Through their research they were pointed to Kay Properties and began to learn more about the Delaware Statutory Trust properties as an option for them to consider. Although they had the capital to purchase a single high-quality NNN property on their own, they ultimately weren’t comfortable allocating $6M into a single property and chose to diversify*. The DST structure afforded the clients to the ability to participate in the same caliber of asset, only on a more diversified basis.”
Friant continued, “At Kay Properties, we are proud of the diversification capabilities we can offer our clients through our relationships with many DST Sponsor companies who do an amazing job acquiring the real estate, structuring it as a DST and managing the property on behalf of our clients.”
Matt McFarland, Associate at Kay Properties, stated, “At Kay Properties, we have access to nearly the entire marketplace of DST properties. This allows us, when working with a particular client, the true ability to make recommendations based on the client’s objectives and long-term goals. Through the access to over 25 Sponsor firms and 20-40 different DST investments at any given time, we are able to help create a well-diversified portfolio for our clients. This particular client was able to purchase 8 different DSTs with 7 different Sponsor firms. The real estate held in the DSTs they invested in amounted to over 890,000 square feet of commercial office, medical office, pharmaceutical, necessity retail, automotive, and healthcare related properties, geographically diversified across 14 states.”
McFarland continued, “The family most enjoyed the flexible nature of DST as it pertains to equity allocation. With the typical minimum investment amounts being $100,000, this family and so many others are able to allocate specific amounts of their equity into individual DST offerings that make sense regarding their overall financial situation, goals, objectives and risk tolerances.”*Diversification does not guarantee profits or protect against losses.