Property Exchange Program (PXP)
Four Springs Capital Trust’s Property Exchange Program (PXP) allows owners of a single net leased property or a portfolio of net leased properties to sell their properties, in a tax deferred UPREIT transaction, to Four Springs Capital Trust in exchange for Operating Partnership Units (OP Units) in Four Springs Capital Trust Operating Partnership, LP (see illustration to the left). The OP Units are exchangeable for our REIT shares. We can also structure transactions to include cash and assumption of debt as consideration in addition to OP Units.
All 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 - Spread risk over a diversified portfolio of properties rather than one or a few properties.
- Durability of Income - Stream of income subject to less disruption when generated by a diversified portfolio of properties rather than a single property.
- Additional Upside Potential - If price of REIT shares increase, seller will experience additional capital appreciation.
- 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 and recognize gain on only the portion sold rather than entire gain, deferring gain on unsold portion.
- 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 cash needs (e.g., college tuition, buy house).
- Professional Management - Our management team has substantial experience in acquisition and management of real estate and in capital markets transactions.
- No Property Management Responsibilities - Hand over management responsibilities and simply receive your monthly distributions.
Please contact us at 877-449-8828 x 7348 or firstname.lastname@example.org for additional information.