• MAREJ

Good to have a 1031 Exchange backup when you need one


Kay Properties and Investments is pleased to announce a completed exchange for an investor who did not originally intend to invest into Delaware Statutory Trust (DST) properties. vice president Alex Madden explained: “After discussing the client’s background in real estate investing, he expressed his first choice was to continue with active management for a few more years before he began moving his substantial real estate portfolio into more passive investments like DSTs. Our client realized that it may be prudent to use the Three Property Rule to identify two properties he could actively manage, and one DST in the event he was not able to complete his purchase within the time requirements of the 1031 exchange.” Senior vice president Jason Salmon went on to say “We were able to leverage out deep relationships within the industry to hold the client’s reservation while he conducted due diligence on his first two properties. In the end, neither passed his due diligence. Had he not formally identified a DST during his identification period he would have been facing a difficult decision between purchasing properties which did not meet his due diligence requirements, or facing a potentially significant tax consequence. Our Client was happy to have an alternative and was excited to have the option to use the tax deferral found in the 1031 exchange and DSTs.”


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