An Alternative For Real Estate Investors
Invest with Your Property in Exchange for Equity Shares
Not a taxable event
1031 Exchange Alternative
Diversify your holdings
With Tokenization → Liquidity
Great for Estate Planning
Equity Growth in a Stagnant Market
What is a 721 Exchange?
“721 Exchange” refers to a transaction structure that is widely used in the REIT industry and has been since 1992. This transaction is commonly called a “721 Exchange” or an “UPREIT.” The 721 Exchange allows property owners to convert their real estate holdings into an interest in a publicly traded REIT or it’s 100% controlled Operating Partnership (OP) without triggering a taxable event.
1031 Exchange Alternative
This structure offers an attractive tax-deferred exit to owners facing a significant taxable gain on sale due to a low tax basis. This offers similar tax-deferral benefits to a 1031 exchange, but with the added bonus of liquidity. Owners receive units convertible into shares and then can sell the shares individually over time. This is why the 721 exchange is the ultimate 1031 exchange alternative!
REICG’s corporate structure mimics that of the most sophisticated REITs and designed with a 721 Exchange Real Estate Program in mind.
Benefits of a 721 Exchange
The 721 Exchange is technically a “purchase and sale agreement.” However, rather than receiving dollars as payment you receive the equivalent amount of Equity in the acquiring firm. Thereby exchanging the equity shares of the relinquishing ownership company, for the equity shares of the acquiring company.
Typically the seller would pay taxes on the capital gains and on the depreciation utilized during the term of ownership. A 721 exchange allows investors to avoid these taxes and keep their wealth working for them.
1031 Exchange Alternative:
While most property owners are familiar with the 1031 exchange and its benefits, few are familiar with the 721 exchange. The 721 exchange is actually a much easier, simplified transaction. The hard part was finding a publicly traded REIT that was interested and able to acquire your property in this manner.
The 721 Exchange enables the investor to achieve diversification across the multiple properties, tenants, demographics, and asset classes of the acquiring REICG Fund.
Active vs Passive:
The 721 Exchange allows the investor to trade an actively managed real estate asset for a fractional ownership of a real estate portfolio of assets that are actively managed by the acquiring REICG Fund.
REICG intends to build a diversified portfolio of high-quality, Class “A”, multi-tenant commercial properties.
Our Preferences are:
1st choice – Multi-Tenant Retail ( see our Acquisition Criteria )
2nd choice – We will consider other opportunities, as long as it fits into our business Model
The only Firm Requirement:
Assumable, Non-Recourse Debt, or
Free and clear of Debt
Brokers will be protected.
Bring all 721 Exchange Offers
No U.S. commercial real estate firm has ever offered an International Real Estate Fund like this before.