Buying Institutional 1031 Properties

Exchangers are actively looking to move away from active management of their properties and into a more passive role where they no longer work for their property, but instead, position themselves where their property is working for them.

Many of these Exchangers are seeking out investment-grade properties where they have no management responsibility, but where their share of the rents is sent to them monthly and they still keep all their tax benefits and equity growth. We at 1031 Concierge don't represent these properties, but, we can refer you to those professionals who can provide you with all the appropriate information on their availability should you have an interest.

Thankfully, in 2004, the IRS approved an entirely new class of institutional real estate investments to be categorized in such a way as to qualify as 'like-kind' property for the benefit of tax deferred exchange. Some of this IRS guidance originally came through the Tax Cut and Jobs Act and appropriate Revenue Rulings.

The result was the establishment of a genre of real estate investment interests, known as Delaware Statutory Trusts, that qualifies for deferred gain treatment under Section 1031 of the Code. DSTs represent up to $15 Billion of annual investment by 1031 Exchangers.

If you are looking for ownership in an institutional property interest to act as the replacement property for your exchange, you've come to the right place. This is because, since institutional property interests are typically sold as securities, in order to find exactly what is available at any given time, you'll need access to the secure search engine which displays these types of investment grade properties.

When you are ready to view available properties, just fill out the form here and we'll send your request to a licensed professional who will have login credentials sent to you so you can see eveything that is currently available.