Solutions

Four Springs TEN31 Xchange

Four Springs TEN31 Xchange (FSXchange) is a real estate firm that provides customized tax deferred exchange solutions for real estate investors. FSXchange is a subsidiary  of Four Springs Capital Trust (FSCT), a REIT that focuses on acquiring and managing
a diversified portfolio of single‑tenant commercial properties, including industrial/warehouse, medical/office, and retail that have long‑term double or triple net leases with credit worthy tenants.

Four Springs Capital Trust’s management team has a long established track record in net leased real estate. Members of our team have served in senior acquisition, finance and accounting roles of publicly traded net leased REITs, built acquisition platforms at publicly traded net leased REITs.

DST STRUCTURE

  • Ownership of Fractional Beneficial Interests
  • Rental Income Distributions
  • Immediate Identification
  • Non-Recourse Financing
  • No Investor Responsibility –Professional Management

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CUSTOM TEN31 SOLUTIONS

  • Turnkey Solution for Property Sourcing, Due Diligence, Financing and Management
  • Customized to Client Preference of Tenant, Property Type, and Geography
  • Tailored Loan-to-Value with Structured Financing
  • Access to FSXchange’s Proprietary Deal Flow

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UPREIT

  • Tax Deferral Benefits to Property Owners who Contribute Property
  • Diversification
  • Monthly Distributions
  • Ability to Convert to REIT Common Shares
  • Tax and Estate Planning Flexibility

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FSXchange assists investors with
tax deferred real estate exchanges involving:

DST Offerings: Fractional ownership in institutional quality real estate

  • Fractional ownership
  • Immediate identification

Whole Properties: Individual ownership of specific real estate property

  • Turn key solutions
  • Customized to client preferences, including loan to value
  • Client maintains control of property
  • Access to FSXchange’s proprietary deal flow

UPREITs: Exchange a property for an interest in a REIT that owns a diversified portfolio of properties

  • Exchange property for units in REIT operating partnership
  • Tax deferred transaction
  • Diversification
  • Tax/Estate planning flexibility

Solutions provided herein are for illustrative purposes only and are not meant to represent the only alternatives available. Clients are encouraged to seek advice from their tax professional who can assess their individual situation.

What is FSXchange’s customized solution?

FSXchange’s whole property platform is specifically designed to meet the specific needs of real estate investors. FSXchange can help identify specific types of properties with specific characteristics, such as tenant, geography, and loan to value customized to the investor’s preferences.

WHY CONSIDER A CUSTOMIZED SOLUTION?

Sourcing and selection of properties

Due diligence review and analysis of title, appraisal, property condition, survey and environmental

Arrangement of debt financing of properties during ownership

Management and maintenance

Advice on management and disposition of properties

Potential joint venture ownership with FSCT

Our management team has substantial experience in real estate and finance, and we are focused exclusively on the single tenant net leased real estate market. As a principal buyer of single tenant net leased properties we have established an extensive network of relationships with leading real estate institutions. We leverage our relationships with brokers, developers, financial institutions and service providers for the benefit of our clients so that they may achieve their real estate investment objectives in a tax efficient and cost effective manner.

Learn more about our TEN31 Solutions

A Delaware Statutory Trust (DST) is a form of entity that permits fractional ownership of real estate assets. Multiple investors can share ownership in a single property or a portfolio of properties owned by the DST.

The beneficial interests of a DST are treated as a direct interest in real estate for tax purposes, so the DST interests qualify as “like‑kind” property in a 1031 exchange. An investor can defer taxes by investing in a DST rather than in a whole property.

Why consider
a DST?

  • Potential to own institutional quality real estate
  • Diversification by tenant, property type, location
  • Turnkey solution: FSCT is responsible for sourcing, due diligence, structuring & financing of debt, and property & program management
  • Immediate property identification with an expedited closing process due to imminent timing deadlines
  • Certainty of closing on acquisition of replacement property
  • Eliminate all property management headaches
  • Long-term non-recourse financing in place, if applicable

HOW IT WORKS

1

FSCT funds the acquistions of the DST properties in their entirety

Subscription risk is
mitigated by complete
ownership by FSCT.

2

FSCT is a co-investor while offering beneficial interests for accredited investor ownership.

Co-investment creates
an alignment of
interest between FSCT
and investor.

3

Liquidity Options

Client sells a property and purchases a DST.

Liquidity Event

Exchange Option 1
UPREIT

Potential Exit Strategies

Exchange Option 2
UPREIT or
Cash Out Option

The exchange is made at the option of FSCT and each DST investor

What’s unique about
the FSXchange
approach?

  • FSCT funds the acquisition of the DST properties in their entirety and allows investors to co-invest with it in institutional quality real estate
  • FSCT is a co-investor while offering beneficial interests for accredited investor ownership
  • Flexible liquidity options

Property Exchange Program (PXP)™

Through our Property Exchange Program (PXP)™, Four Springs Capital Trust allows owners of a single tenant net leased property or a portfolio of net leased properties to sell their properties to us in a tax deferred UPREIT exchange for our OP Units. Our OP Units are exchangeable for our common shares. We can also structure transactions to include cash and the assumption of in‑place debt on properties, as well as our OP Units.

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.

HOW IT WORKS

Note: Note that Section 721 of the Internal Revenue Code of 1986, as amended, contains specific requirements that must be met in order to qualify for the tax deferral provided by such provision. Nothing contained in this website constitutes tax advice, and individuals should consult their own tax and other advisors when considering such transactions. Please contact us at 877‑449‑ 8828 x 7003 or pxp@fsctrust.com for additional information.

Benefits of
Our PXP

  • Investors receive monthly distributions
  • Portfolio diversification
  • Potential for capital appreciation
  • Relief from recourse indebtedness
  • Professional management
  • No property management responsibilities
  • Tax and estate planning flexibility
  • OP Units can be converted to FSCT common shares
  • Ownership of OP Units is tax deferred until converted to FSCT common shares
  • Potential for stepped up cost basis

Learn more about our Property Exchange Program (PXP)

In our Sale‑Leaseback Transactions (SLB) Program, we partner with business owners to provide capital and help optimize hidden real estate value.

Our program allows operators and equity sponsors to unlock capital through their real estate for higher ROI investment opportunities, balance sheet deleveraging, or cash distributions.  We leverage years of experience and understanding of the SLB market to provide a complete solution to clients across industries and property types.  With Four Springs as a partner, you can have confidence ensuring that your transaction is closed efficiently, quickly and with increased certainty. Our SLB experts will help you get one step closer to realizing your financial objectives.

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