§1031 Exchange Trends
 
 

 Legend: 

  • TIC Equity Placed—the total number of equity dollars placed by investors into tenant-in-common programs.
  • TIC Total Investment—the total value of the all the tenant-in-common programs completed (includes debt and equity).

As the chart above illustrates, total equity dollars raised by TICs during 2001 to 2006 grew exponentially from $162MM to $3.7 billion in equity, $267MM to $12 billion in total dollars invested during this five year period.  Additionally, since 2001,:

  1. Six hundred plus TIC properties valued at over $20 billion have been closed by 85 sponsor companies.
  2. Approximately, 10,000 individual investors have been placed in TIC investments.
  3. Securitized TIC dollar investments represent about 80-90% of all TIC dollar investments.
 
 
Who are the likely TIC candidates?

 

 

 

 

Any investor with appreciated real estate seeking to eliminate active management, increase cash flow potential, defer capital gains taxes due, diversify their holdings and own interests in institutional-quality real estate assets may benefit from investing in TICs. The baby boom generation is expected to drive strong growth in the TIC industry given these advantages.

Seventy percent of individuals owning commercial real estate as investment properties are over 50 years old and are expected to retire over the next 17 years, according to Del Webb, a company focused on active adult living. This population will be exploring various passive §1031 Exchange opportunities in order to preserve their wealth, reduce risk through diversification and reduce active management headaches.

 

 

 

 
 
 
Copyright © 2007 1031 Advanced Realty eXchange, LLC . All Rights Reserved. Designed By 123Triad.com   

Securities offered through Welton Street Investments LLC, 4600 S. Syracuse Street, Suite 530, Denver, CO 80237, 888.569.1031. This is neither an offer to sell nor a solicitation of an offer to buy a security. Such an offer may only be made by means of a private placement memorandum. As with any real estate investment, there are various risks including, but not limited to: loss of principal, variations in occupancy which may negatively impact cash flow, limited liquidity, and limits on management control of the property. Grisenia Matos is a Registered Representative of Welton Street Investments.