UPREIT

REITs vs. DPPs: Similarities and Differences

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Many real estate investment strategies are available to meet various needs, risk profiles, and investment goals. Two common approaches are real estate investment trusts (REITs) and direct participation programs (DPPs). Both strategies ...

Apr 30, 2025

An Explanation of UPREITS and Dividend Payments

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If you’re an investor interested in moving from direct to passive real estate ownership, contributing your property to a real estate investment trust (REIT) using the Section 721 exchange could be a viable tax-advantage strategy to ...

Apr 1, 2025

Decoding Financial Statements When Exchanging DSTs into REIT Shares via ...

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There are many ways to be involved with real estate ownership. There is direct ownership, which involves hands-on management and decision-making. Then there is passive ownership, including Delaware Statutory Trusts (DSTs) or real ...

Mar 28, 2025

UPREITs and Legal Aspects

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When executed properly, Umbrella Partnership Real Estate Investment Trusts (UPREITs) can provide a tax-advantaged diversification approach or exit strategy if you’re done with active property ownership. However, the process can be ...

Mar 26, 2025

Using Section 721 to Dispose of Commercial Real Estate

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Owning and managing commercial real estate (CRE) properties requires a great deal of time, money, and know-how. If you’re a CRE owner or investor who wants to move on, you could sell your properties. However, property value appreciation can mean capital gains taxes.

Mar 21, 2025

The Limitations of REIT Investments

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A real estate investment trust (REIT) is a company that buys, sells, operates, and finances income-producing properties. REITs raise capital to acquire and manage these properties by selling units or shares to investors. Income generated by the owned properties through rent and property appreciation is distributed to investors as dividends or cash flow.

Mar 19, 2025

What to Know Before Working With a UPREIT Sponsor

Sky view of commercial buildings.

If you own appreciated-value investment real estate, an Umbrella Partnership Real Estate Investment Trust (UPREIT) can be a good tax-advantaged option. Available through the Internal Revenue Code (IRC) Section 721, a UPREIT transaction allows you to trade your real estate assets in exchange for Operating Partnership (OP) units in a real estate investment trust (REIT). Those units can be exchanged for REIT shares or cash at a later date.

Mar 13, 2025

The Impact Of UPREITs On Real Estate Developers

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In the past, real estate developers earned money by collecting rent on completed properties or selling them. In recent years, 26 U.S. Code § 721—“Nonrecognition of Gain or Loss Contribution”—has offered property owners and developers different real estate financing methods.

Mar 1, 2025

The Tax Benefits of Combining UPREITs and Estate Planning

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If you’re contemplating retirement or want to transfer your wealth to future generations, estate planning is integral to your long-term strategy. And if investment real estate is part of that wealth generation, contributing your property to an Umbrella Partnership Real Estate Investment Trust or UPREIT can help you achieve current investment objectives while passing along potential tax advantages to your heirs.

Feb 25, 2025

UPREITS, Real Estate, and Natural Disasters

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Natural disasters are in the news. Hurricane-generated massive floods destroyed inland towns, while snow and ice storms wreaked havoc on Sun Belt states. At the same time, wildfires in Los Angeles have meant billions in losses.

Feb 20, 2025

A Guide to UPREIT Transactions

A Guide to UPREIT Transactions
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