Property Exchange Program (PXP)
Pursuant to our Property Exchange Program (PXP), Four Springs Capital Trust is seeking to acquire net leased properties from owners in tax deferred UPREIT transactions for certain non-cash consideration, cash or a combination of the two (see illustration to the left). We can also structure transactions to include the assumption of in-place debt on properties.
Note: All potential sellers should consult their own tax and other advisors before entering into an UPREIT transaction with us. We will pay commissions to licensed real estate brokers who present transactions that we close in our PXP, subject to entering into an agreement.
Benefits of PXP
- Diversification - Potential to diversify into portfolio of properties rather than one or two properties
- Cash Flow - Stream of rental income that is subject to potentially less disruption when generated by a diversified portfolio of properties rather than one single property.
- Tax Deferral (similar to §1031 transaction) - The exchange is not a taxable event if seller receives only OP Units. Seller taxed when, and to the extent, seller converts OP Units into REIT shares.
- Additional Tax/Estate Planning Flexibility
- Seller can sell a portion of REIT shares (in publicly traded REITS) and recognize gain on only the portion sold rather than entire gain, deferring gain on unsold portion (FSCT is not a publicly traded REIT at this time).
- Seller can transfer OP Units to multiple beneficiaries as part of estate planning, and each beneficiary can choose to hold for income or sell to satisfy needs.
Note: All potential sellers should consult their own tax and other advisors before entering into an UPREIT transaction with us
Please contact us at 877-449-8828 x 7348 or email@example.com for additional information.