M id A tlantic Real Estate Journal — October 16 - 29, 2020 — 3A
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M id A tlantic R eal E state J ournal
Kay Properties helps DST Investors avoid a potentially significant tax consequence Good to have a 1031 Exchange backup when you need one K
financial instrument. If you are not the intended recipi- ent of this message, any use, dissemination, distribution or copying of this communica- tion is strictly prohibited. If you have received this com- munication in error, please immediately notify the send- er and permanently delete all copies that you may have. Securities offered through Growth Capital Services, member FINRA, SIPC, Office of Supervisory Jurisdiction located at 582 Market Street, Suite 300, San Francisco, CA 94104. MAREJ
ay Properties and In- vestments is pleased to announce a com- pleted exchange for an in- vestor who did not originally intend to invest into Dela- ware Statutory Trust (DST) properties. vice president Alex Madden explained: “Af- ter 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 substan- tial real estate portfolio into more passive investments like DSTs. Our client real- ized 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 cli- ent’s reservation while he conducted due diligence on his first two properties. In the end, neither passed his due diligence. Had he not for- mally identified a DST dur - ing 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.” About Kay Properties and www.kpi1031.com Kay Properties is a nation- al Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the mar- ketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor com- panies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 115 years of real estate experi- ence, are licensed in all 50 states, and have participated in over 15 Billion of DST 1031
entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes there- fore you should consult your tax or legal professional for details regarding your situa- tion. There are material risks associated with investing in real estate securities includ- ing illiquidity, vacancies, gen- eral market conditions and competition, lack of operating history, interest rate risks, general risks of owning/oper- ating commercial and multi-
family properties, financing risks, potential adverse tax consequences, general eco- nomic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appre- ciation are not guaranteed. Nothing contained in this article constitutes tax, legal, insurance or investment ad- vice, nor does it constitute a solicitation or an offer to buy or sell any security or other
investments. This material does not con- stitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confi - dential Private Placement Memorandum (the “Memo- randum”). Please read the
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