721 UPREITs
Overview
A 721 UPREIT enables you to contribute real estate into an Umbrella Partnership Real Estate Investment Trust (UPREIT) in exchange for operating partnership (OP) units. This structure preserves your 1031 tax deferral while granting access to a diversified REIT portfolio.
By contributing property to an OP, you become an indirect shareholder in a public or private REIT, receiving quarterly or monthly income distributions. The Coastal Financial Group team has access to numerous UPREIT options that may be suitable for your investment portfolio.
Exchange Mechanisms
Coastal Financial Groupcoordinates with top REIT sponsors to transfer your property into the UPREIT's OP. You receive OP units valued at closing; there's no strict 45/180-day replacement timeline, and you benefit from ongoing REIT distributions.
In many cases, you can defer capital gains indefinitely until you exchange or sell your OP units under Section 721.
Coastal Financial Group can assis in coordinating tax tracking and basis allocation, ensuring your 1031 benefits are maximized.