Latest news with #DelawareStatutoryTrusts
Yahoo
16-05-2025
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Case Study: The Pitfalls of Concentrated Investment in Single-Tenant NNN Properties vs. the Diversified DST Strategy
NEW YORK, May 16, 2025 /PRNewswire/ -- Overview At Fortitude Investment Group, we often advise investors on how to wisely transition their appreciated real estate into passive, diversified portfolios through Delaware Statutory Trusts (DSTs). This case study demonstrates the real-world consequences of ignoring diversification when the majority of one's net worth is allocated to just one or two single-tenant net lease properties, and how a DST strategy could have preserved income, reduced risk, and created estate planning flexibility. Background Two years ago, a prospect was introduced to our team. Her equity totaled approximately $2,250,000 — representing over 80% of her total net worth. We discussed the advantages of DSTs as 1031 replacement properties, particularly their diversification across sectors, tax efficiency, and estate planning strategies such as optional 721 UPREIT conversions. She was especially interested in single-tenant NNN properties, which DSTs can incorporate either all-cash or with institutional leverage. The Decision Despite our conversations, the client was referred to a fee-simple real estate broker who encouraged her to acquire two single-tenant NNN properties. One of the properties was marketed as an absolute NNN lease with a strong guarantee. The tenant was a franchisee operator with over 100 locations, and the property was positioned at a traffic light intersection near hotels and schools. However, the property was in a remote town with a population of fewer than 5,000 people. The attractive feature was a 7% cap rate. The Problem What the client failed to realize — and what the broker failed to fully disclose — was that the guarantor was not the investment-grade parent company. Instead, it was a franchisee with an early termination clause within the first five years. Predictably, the operator exercised that clause, halted rent payments, and vacated the location. This resulted in an immediate and complete loss of income from that $750,000 investment — a devastating blow to the client, who relied on those distributions to support her lifestyle. The second property continues to generate income, but has its own risks: if the corporate parent company closes the location, even though rent is guaranteed, re-tenanting or the resale market may prove difficult. What If She Had Chosen DSTs? Had the client pursued the DST strategy we initially presented, she could have diversified her $2.25M into multiple institutional-grade DSTs across different sectors: Industrial, multifamily, retail, self-storage, healthcare, and more. Investment-grade tenants with strong financials. Geographic diversification across major U.S. markets. Optional leverage for those seeking enhanced depreciation. Optional 721 UPREIT strategies to roll real estate into operating partnership units for estate planning. Moreover, DSTs can include portfolios of absolute net lease single-tenant assets — the very product type she liked — but with stronger credit tenants, larger population centers, and a team of asset managers actively monitoring performance and tenant strength. The Lesson For accredited investors nearing or in retirement, income consistency and risk mitigation are critical. Allocating 80% of one's net worth into just two properties — especially without understanding lease structure, market strength, and creditworthiness — is an avoidable risk. DSTs offer not only tax deferral via 1031 exchange, but also access to institutional real estate, sector and geographic diversification, and estate planning tools that single-tenant investments cannot match alone. Conclusion Today, the client continues to struggle with the consequences of that decision — a vacant property, lost income, and few options to recover. This case highlights why diversification through DSTs should always be considered when handling large 1031 exchanges, particularly when dealing with life savings and estate legacy. Let this be a cautionary tale — and a call to explore smarter, more stable solutions through a professionally managed DST portfolio. For more information, visit or contact our team for a consultation. Media Contact:Jeffrey A Kiesnoski I Partner I Co-FounderFortitude Investment Group1-212-634-7906 ext. Important Disclosures: *This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the "Memorandum"). *There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. *DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited. *Past performance is no guarantee of future results. *Diversification does not guarantee returns and does not protect against loss. *Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA. View original content to download multimedia: SOURCE Fortitude Investment Group LLC Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
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JLL Income Property Trust Fully Subscribes $105 Million DST Program
CHICAGO, April 29, 2025 /PRNewswire/ -- JLL Income Property Trust, an institutionally managed, daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with approximately $6.5 billion in portfolio equity and debt investments, announced today that it has fully subscribed JLLX Diversified VII. The $105 million DST program was structured as two Delaware Statutory Trusts designed to provide 1031 exchange investors the opportunity to reinvest proceeds from the sale of appreciated real estate while also deferring taxes. JLLX Diversified VII consisted of an institutional-quality, 199-unit multifamily residential community in Trumbull, CT and a Class A, 211,000 square foot industrial warehouse facility in Chandler, AZ. "We are pleased to have fully subscribed JLLX Diversified VII," said Drew Dornbusch, Head of JLL Exchange. "We continue to see strong demand from 1031 exchange investors and their advisors who are seeking estate planning solutions which can facilitate the transfer of generational wealth, while mitigating the significant tax consequences associated with the sale of appreciated investment real estate." "The residential and industrial sectors continue to show strong fundamentals, as rental growth trends remain resilient," said Allan Swaringen, President and CEO of JLL Income Property Trust. "JLLX Diversified VII provided investors access to these high-conviction property sectors in an investment solution designed to allow investors to maintain their real estate exposure while enjoying a range of tax and estate planning benefits." Since its inception in 2019, JLL Exchange has attracted more than $1.7 billion across 26 DST offerings from property owners seeking to maintain a meaningful allocation to real estate in a tax efficient manner. JLL Income Property Trust has completed 14 full cycle UPREIT transactions totaling $960 million to date. JLL Income Property Trust is an institutionally managed, daily NAV REIT that brings to investors a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world's leading real estate services firms. For more information on JLL Income Property Trust, please visit our website at JLL Income Property Trust, Inc. (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) is a daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing residential, industrial, grocery-anchored retail, healthcare, office and debt investments throughout the United States. JLL Income Property Trust expects to further diversify its real estate portfolio over time, including on a global basis. For more information, visit About LaSalle Investment Management | Investing Today. For Investment Management is one of the world's leading real estate investment managers. On a global basis, LaSalle manages $88.8 billion of assets in private and public real estate equity and debt investments as of Q3 2024. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments. Forward Looking Statements and Future ResultsThis press release may contain forward-looking statements with respect to JLL Income Property Trust. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management's intentions, beliefs, expectations, research, market analysis, plans or predictions of the future. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. Past performance is not indicative of future results and there can be no assurance that future dividends will be paid. Contacts: Alissa SchachterLaSalle Investment ManagementTelephone: +1 312 339 0625Email: Doug AllenDukas Linden Public RelationsTelephone: +1 646 722 6530Email: JLLIPT@ View original content to download multimedia: SOURCE JLL Income Property Trust Sign in to access your portfolio
Yahoo
08-04-2025
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Fortitude Investment Group Highlights Estate Planning Advantages of DSTs with Optional or Forced 721 Up-REIT Structures
NEW YORK, April 8, 2025 /PRNewswire/ -- As baby boomers and Gen-X investors face the complex intersection of retirement planning, tax mitigation, and estate preservation, Fortitude Investment Group is at the forefront of educating accredited real estate investors on the benefits of Delaware Statutory Trusts (DSTs)—particularly those structured with an optional or forced 721 Up-REIT feature. In a new educational video, Jeffrey Kiesnoski, Co-Founder and Partner of Fortitude Investment Group, dives into how DSTs can offer replacement property solutions for estate planning and tax deferral while incorporating an optional or mandatory 721 exchange into an UPREIT structure. Watch the video here: "Many investors don't realize the estate planning power DSTs hold when paired with a well-structured UPREIT," Kiesnoski explains. "Our goal is to help them avoid costly tax errors, protect generational wealth, and maintain access to liquidity when needed most." Visit: DSTs with 721 Exchange Components: Powerful Tools for Modern Estate Planning DSTs with 721 exchange options allow investors to defer capital gains taxes while converting their DST interests into operating partnership (OP) units of a parent REIT. This strategic move can position heirs to sell at a stepped-up basis without triggering additional taxes, thereby preserving more wealth across generations. Questions Investors Should Ask Before 1031 Exchanging into a 721 Up-REIT DST: To make informed decisions, investors must evaluate the financial health and structure of the REIT they may ultimately become a part of: Is the REIT financially stable? Review audited financials. Is it covering its distribution with AFFO (Adjusted Funds From Operations) and MFFO (Modified Funds From Operations)? These metrics indicate the sustainability of income streams. What's the REIT's historical NAV (Net Asset Value) performance? Look for NAV growth or stability. What is the REIT's exit strategy? Understand your liquidity options. How has the REIT performed through different market cycles? This can reveal management's adaptability and risk controls. Are you being forced into an UPREIT or is it optional? Ensure full clarity before entering the DST. Will there be voting rights or liquidity restrictions once OP units are issued? Benefits of 721 Up-REIT DSTs for Estate Planning: Preserve tax deferral: Continue deferring capital gains even beyond the DST lifecycle. Simplify estate administration: OP units can be converted into REIT shares upon death, potentially sold at the stepped-up basis. Prepare for liquidity events: Access capital more flexibly for unforeseen financial needs. Diversify exposure: By entering a larger REIT portfolio, heirs may benefit from professional asset management and risk mitigation. "This solution isn't for everyone," says Kiesnoski. "But for accredited investors with highly appreciated real estate, and those seeking to create a lasting financial legacy, this strategy—when implemented correctly—can be a game changer." Contact: Jeffrey KiesnoskiCo-Founder & PartnerFortitude Investment GroupPhone: 1-212-634-7906 ext 110Website: For additional resources and to learn more about the powerful role DSTs can play in a modern estate plan, watch the full educational video: and visit About Fortitude Investment Group:Based in New York, NY, Fortitude Investment Group is a leading advisory group helping accredited investors navigate the complexities of 1031 exchanges, DSTs, and tax-advantaged real estate investment strategies. Through innovative structuring and personalized client service, Fortitude helps clients preserve wealth and create financial legacies. Important Disclosures:*This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the "Memorandum"). *There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. *DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited. *Past performance is no guarantee of future results. *Diversification does not guarantee returns and does not protect against loss. *Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA. View original content to download multimedia: SOURCE FORTITUDE INVESTMENT GROUP LLC
Yahoo
01-04-2025
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Kingsbarn Completes Sale of Newly Constructed TA Travel Center in Ash Fork, Arizona, for $61.7 Million
ASH FORK, ARIZONA / / April 1, 2025 / Kingsbarn Development Opportunities ("KDO" or "Company"), an affiliate of Kingsbarn Realty Capital, a Las Vegas-based developer, announced it has completed construction of a full-service TA Travel Center located at the intersection of Interstate 40 and Old Highway 66 in Ash Fork, Arizona. On March 19, 2025, the Property was sold to an affiliate of LV Petroleum, a Las Vegas-based franchisee of TA TravelCenters of America ("TA"). The new travel center, which is now open to the public, is situated on approximately 54 acres. The state-of-the-art, fuel and food facility provides many amenities and services for truckers and other highway travelers. Quick-serve, national-brand restaurants include Del Taco and KFC, which have drive-thru lanes, and a Sbarro Pizza kiosk inside. Clean and luxurious restrooms, including private showers, lockers, and laundry facilities, provide professional and overnight drivers with much-needed amenities. Travelers may also enjoy the TV lounge, including massage recliners, high-speed internet, and a retail sales area offering merchandise, check cashing services, and an ATM. "The facility was constructed for Kingsbarn's long-time operating partner LV Petroleum ("LVP"), under a build-to-suit agreement," stated Anthony Hama, managing director for Kingsbarn Development Opportunities. "LVP has been the number one franchisee for TA for the past four years running. They have been a great partner to Kingsbarn, and it has been amazing to watch the growth and expansion of their program." The Ash Fork TA is the second ground-up travel center completed by KDO for LVP. The first center constructed by KDO is in Littlefield, Arizona, and opened early last year. ABOUT KINGSBARN REALTY CAPITAL Kingsbarn Realty Capital is a real estate-centric investment house that provides institutional and accredited investors access to an array of alternative investments. Kingsbarn offers investments in private equity, exchange-traded funds, traditional investment funds, private capital, managed accounts, and Delaware Statutory Trusts (DSTs). Additionally, Kingsbarn's management team has wide-ranging experience developing, managing, operating, and sponsoring a diversified portfolio of stabilized, income-driven properties, as well as ground-up construction, value-added offerings, opportunity zone investments, and entitlement projects. Kingsbarn has over $2.3 billion of assets under management and has acquired over 310 properties throughout the United States. The company currently has a development pipeline of over $2 billion consisting of multifamily, student housing, medical, industrial, retail, and hospitality. For further information, visit ABOUT LV PETROLEUM LV Petroleum ("LVP" or the "Company") specializes in the development and operation of low-price/high-service fuel centers, convenience stores, and TA Travel Centers. LVP has acquired and rehabbed or developed and then sold over 40 stores in the last 12 years. Actively growing, the Company currently operates 23 Conoco-branded C&G assets in the Las Vegas- and Phoenix-metro areas. The Company also purchases unbranded fuel and sells it under a licensing agreement with Phillips 66, Gulf, Sunoco, 76, Exxon, and Conoco. LVP currently supplies over 18 million gallons per month to 93 locations. Additionally, the Company has a development pipeline of 12 additional sites that will open in 2025 and 2026. Contact Information Emma Williams Director of Public Relationsemma@ Holly Silvestri Partnerholly@ SOURCE: Kingsbarn Realty Capital View the original press release on ACCESS Newswire Sign in to access your portfolio
Yahoo
21-02-2025
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Fortitude Investment Group Offers Guidance to California Wildfire Victims: Critical 1033 Exchange Options to Protect Insurance Proceeds from Taxes in 2025
NEW YORK, Feb. 21, 2025 /PRNewswire/ -- As California residents recover from another devastating wildfire season, property owners are facing tough decisions regarding their insurance payouts and rebuilding options. Many may not realize that failing to properly reinvest their insurance proceeds could lead to substantial tax consequences. For older property owners, exploring a 1033 exchange and transitioning into Delaware Statutory Trusts (DSTs) could be a sensible path to protect their wealth and simplify their investments. Insurance Proceeds and Tax Implications When property is involuntarily converted due to destruction from wildfires, insurance proceeds, FEMA assistance, and land value compensation are all treated as taxable unless properly reinvested under Internal Revenue Code Section 1033. This lesser-known provision allows property owners to defer capital gains taxes by reinvesting proceeds into replacement property. In 2025, the IRS continues to treat compensation as follows: Insurance Payouts (Building & Improvements): Subject to capital gains tax if the structure's value exceeds the adjusted tax basis. Insurance Proceeds for Land Value: Treated as taxable gain if the proceeds exceed the original land purchase cost. FEMA Assistance: Although disaster relief funds for temporary needs may not be taxable, amounts reimbursing property loss can be subject to tax if not reinvested. If a property owner does not complete a 1033 exchange, proceeds from insurance settlements can trigger significant capital gains taxes, particularly for long-held properties with a low tax basis. In high-tax states like California, this can mean combined state and federal rates exceeding 30%. 1033 Exchange — A Timely Solution Section 1033 provides wildfire victims the ability to defer these taxes by reinvesting insurance proceeds into a replacement property. Importantly, 1033 exchanges offer more flexibility compared to traditional 1031 exchanges: Extended Timeline: Property owners have up to two years from the end of the tax year in which the proceeds were received to reinvest. No Need to Identify Properties within 45 Days: Unlike 1031 exchanges, there is no strict identification requirement. Flexibility in Debt Replacement: Destroyed properties often carried recourse debt. DSTs can serve as suitable replacements, offering non-recourse debt to satisfy financing requirements. DSTs: A Passive, Diversified Alternative for Older Property Owners Many older investors are hesitant to rebuild or acquire another actively managed property. This is where Delaware Statutory Trusts (DSTs) offer a compelling solution: Hands-Off Management: DSTs allow investors to own fractional interests in large institutional-grade properties without management responsibilities. Diversification: Access to a diversified portfolio of properties across various sectors such as multifamily, medical, industrial, and net-leased retail. Debt Replacement: DSTs can incorporate non-recourse financing, allowing investors to replace the debt associated with the destroyed property, meeting exchange requirements. Estate Planning Benefits: DSTs offer a seamless transition for heirs, avoiding the complications of managing active properties. Learn More: Expert Guidance Available Navigating the complexities of a 1033 exchange can be daunting, especially during the emotional aftermath of losing a property. Our team specializes in helping California property owners maximize tax deferral opportunities while transitioning to stress-free, passive real estate investments. Watch our detailed video explaining 1033 exchanges here: 1033 Exchange Video For more information, visit or contact our team for a consultation. Media Contact:Jeffrey A Kiesnoski I Partner I Co-FounderFortitude Investment Group1-212-634-7906 ext. Disclaimer: This press release is for informational purposes only and should not be interpreted as tax or legal advice. Rules and regulations are subject to change. Please consult your tax professional or attorney regarding your specific situation. Important Disclosures: *This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum. This material is not to be interpreted as tax or legal advice. IRC Section 1033 is a complex tax concept. Please speak with your own tax and legal advisors for advice/guidance regarding your individual situation. Because investor situations and objectives vary this information is not intended to indicate that an investment is appropriate for or is being recommended to any individual investor. There are material risks associated with investing in private placements, Delaware Statutory Trusts ("DSTs") and real estate securities including the potential loss of the entire investment principal, illiquidity, tenant vacancies impacting income and revenue, general and real estate market conditions, lack of operating history, interest rate risks, competition, including the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and investors should read the PPM carefully before investing paying special attention to the risk section. *Diversification does not guarantee returns and does not protect against loss. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA. View original content to download multimedia: SOURCE Fortitude Investment Group LLC
