A 1031 exchange allows an owner of a piece of investment real estate to sell that real estate, while deferring all of the capital gains and depreciation recapture liabilities from that sale, provided they identify another investment real estate asset to acquire within 45 days of the close of the relinquished property and close on that replacement property within 180 days of the close of the relinquished property. Several rules and requirements must be met in order to comply with the provisions of this section of the Internal Revenue Code:

• Property exchanged must have been held for trade, business, or investment
• Cannot take constructive receipt of money on the sale of property, must use a Qualified Intermediary
• Must replace property with the same or greater value of the relinquished property
• Replacement property must be of "like-kind"
• Whomever is on the title of the relinquished property has to take title to the replacement property

For investors who are currently looking for 1031 exchange solutions, we offer the following services:

• Tenant in Common ("TIC")
• Sole Ownership

Tenant In Common ("TIC")

Tenant In Common investment programs are a popular choice among real estate investors seeking a replacement property for their IRS Section 1031 tax deferred exchange. TIC's are an investment structure that facilitates ownership of real property by two or more parties. Under a TIC structure, each owner has an undivided fractional ownership in the entire property and is on the property deed. Because TIC's are often "bundled" with management and financing in place, they provide investors an efficient "turnkey" replacement property solution.

The use of TIC investments to facilitate 1031 exchanges has grown rapidly in popularity since the IRS issued Revenue Procedure 2002-22 (Rev. Proc. 2002-22) in March 2002. Under Rev. Proc. 2002-22, the IRS provided guidance for the use of TICs in 1031 exchanges. TIC ownership has become very popular because it has many benefits including:

• Eliminating the burdens of property management such as securing new tenants, making costly repairs, providing routine maintenance, handling tenant complaints and collecting rent.
• The potential for increased income from stabilized property -- typically with monthly cash flow payments to investors.
• Diversification of real estate holdings with programs in all types of institutional commercial property including -- Class A office, multi-tenant apartment, industrial park, shopping center and corporate office parks.
• Geographic diversification with programs all across the country in some of the nation's fastest growing markets.
• Eliminating the challenges of the 45-day ID rule and the 180-day close of escrow with a turnkey solution designed to meet IRS regulations.

Learn more about the TIC industry by viewing this CNBC video.

Sole Ownership

Through our strategic partnerships with some of the leading commercial real estate firms in the country we can provide clients access to unique real estate investment opportunities nationwide. We only align ourselves with firms that share our commitment to integrity and client service.

Please consult each property Memorandum for specific investment scenarios. No guarantees are made that projections will be met on cash flow or return. This does not constitute an offer to sell or a solicitation of an offer to buy any security. Such offers can be made only through the Private Placement Memorandum. Please be aware that this material cannot and does not replace the Memorandum and is qualified in its entirety by the Memorandum. This type of investment involves various degrees of risk including the speculative market and financing risks associated with fluctuations in the real estate market. Please refer to the "Risk Factors" sections of each property's memorandum.

TIC investments are investments in real estate and as such have real estate related risks, including: the potential to lose value; risk of foreclosure, however, extensive due diligence helps minimize this risk; real estate is a relatively illiquid asset; the unexpected loss of tenants or other adverse conditions can disrupt cash flow distributions; costs associated with the transaction may impact returns, and may outweigh the tax benefits.