What is a DST 1031? Delaware Statutory Trust Ownership Explained

What is a DST 1031? I’m hearing my real estate investor friends and CPA mention it may be a good exit strategy for my appreciated real estate but I need to know more about it… First, let us explain a DST. DST stands for Delaware Statutory Trust. Here’s the full technical definition: a separate legal entity established under a trust created for the purpose of holding, managing, administering, investing, or operating a property, or for … Read More

The Case for Class B Apartments. Class A Buyers Beware.

Overall, the Class B segment of the multifamily apartment market has outperformed the Class A segment in the past several years; and that trend is forecast to continue. While new supply is greatly affecting the Class A apartment market with rent concessions, it is not having a material effect on the class B sector where we are focused. Although we do like Class A apartments at the right price point and in certain unique circumstances … Read More

2016 Medical Office Outlook

The Economy/Capital Markets: Now that market watchers can exhale with the uptick in the federal funds rate, we can evaluate the state of the market. According to one of the largest medical office investment advisory firms: An important distinction for commercial real estate investors is that the Federal Funds rate is a short-term lending benchmark with limited application in commercial real estate. Commercial real estate lending and valuations, however, are principally based on longer-term rates, … Read More

The Section 721 Exchange

Most real estate investors are familiar with the IRC Section 1031 exchange and have most likely been closely involved with a 1031 exchange in one form or another. The Section 1031 exchange has become a popular way for sellers to dispose of appreciated real estate and to defer capital gains taxes and depreciation recapture taxes. Many of these same real estate investors that have utilized the Section 1031 Exchange time and time again have not … Read More

2015 Multifamily Outlook

Jason Salmon Senior Vice President Commercial Markets: The nation is in the 24th quarter of the current economic recovery with a compound annual rate of growth of approximately 2.3%, according to Integra Realty Resources. It is the fourth longest economic recovery since WWII. The firm suggests that “this economic recovery has had a tangible effect on fundamental property metrics, with declining vacancies, positive net absorption, and rent growth.” Indices that track commercial real estate prices … Read More

Why You Should Consider Deferring Your Capital Gains Taxes

By Jason Salmon Senior Vice President and Managing Director of Research Kay Properties and Investments, LLC The basics: If you own investment real estate—that means a rental condo or home, apartment building, a commercial building, raw or vacant land or otherwise—you do not have to pay taxes when you sell the property. Uncle Sam has had section 1031 of the Internal Revenue Code in place since 1921. Also known as a 1031 exchange, this provision … Read More