NAI Legacy — with offices in Minneapolis, Chicago and Scottsdale, Arizona — on Feb. 3 announced the official launch of Legacy Property Trust also known as The Retirement REIT, a purpose-built real estate investment vehicle designed to support legacy property owners as they reposition their concentrated real estate holdings for the next generation.
Many of these owners hold illiquid, diversified, low-basis assets within partnership and entity structures that don’t provide flexible estate and succession planning. The Retirement REIT provides a tax-efficient platform for individuals and families to transition their holdings into an estate-driven ownership structure.
At its core, The Retirement REIT is structured around a §721 UPREIT consolidation strategy, similar to how the technique was deployed by REITs in the early 1990s, which is when the UPREIT structure was first introduced to the industry.
“In the early 90’s we used the UPREIT structure to consolidate like-minded real estate owners and operators and built several successful public and private REITs,” said Duane Lund, the Chairman of the Board and visionary behind The Retirement REIT. “Today most REIT structures are equity- raising vehicles,” added Lund, “which creates an opportunity to re-introduce to the market a platform much like the 90s, when owners contributed their legacy holdings directly to the UPREIT.”
“Why sell when you can contribute?” added Lund. “We built The Retirement REIT to give owners a way to simplify their holdings without forcing a sale of the assets. In its simplest form, our message is bricks to shares, shares to heirs.”
Another unique feature of The Retirement REIT is its people-centric versus property-centric focus. Given that most REITs focus on one unique product type, owners with diversified real estate holdings don’t have a one-stop REIT solution in the marketplace today.
The “People’s REIT” allows owners to contribute their holdings directly into one of The Retirement REIT’s unique operating partnerships in exchange for partnership units, enabling a tax-deferred transition into a diversified, professionally managed portfolio. The structure simplifies ownership today, with flexibility for tomorrow, helping families move from complexity to clarity.
To register for a live Webinar introducing The Retirement Reit, click here.
