Kay Properties & Investments Helps Family Business Complete a $10.2 Million 1031 Exchange into 11 High-Quality Debt-Free Delaware Statutory Trust Investments

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May 09, 2023, 08:27 ET

Kay Properties and Investments leverage its exclusive DST online marketplace, large team of DST 1031 exchange experts, and deep relationships with many DST sponsor firms to create a diversified* portfolio totaling 1,021,848 square feet.

TORRANCE, Calif., May 9, 2023 /PRNewswire/ -- Kay Properties & Investments, a national leader in Delaware Statutory Trust investments announced it has successfully helped an established family business complete a complicated 1031 exchange into multiple DST investments totaling $10.2 million in order to achieve passive management and greater potential diversification.*

According to Kay Properties and Investments Founder and CEO, Dwight Kay, the Kay Properties team consisting of Jason Salmon, Executive Vice President and Managing Director and Matt McFarland, Senior Vice President, worked very closely with the family's CPA and Executive Controller for more than one year in order to educate them on potential benefits and risks of the DST structure, and create a custom, tax efficient portfolio of debt-free DST real estate assets.

"The family had owned a large manufacturing firm they had started in 1963, and when the mother and three sons received an offer from a large industrial developer to purchase their facility, they determined it was time to start to wind down the business and enter the next phase of their life. They ultimately decided to sell the building and lease it back from the buyer as part of a sale leaseback transaction. They contacted us early on to help them navigate the 1031 exchange and DST investment opportunities," said Kay.

According to Jason Salmon, Senior Vice President with Kay Properties, it was important for the client to remain debt-free.

"This client had successfully paid off the mortgage on the building over the many years they owned and operated it, and therefore it really didn't make a lot of sense for them to take on debt as part of their 1031 exchange. Kay Properties has access to a large number of unleveraged DST assets that fit nicely into the overall business plan of the client," said Salmon.

As a result, the client was able to invest in 11 debt-free DST properties that included single tenant net lease, self storage, multifamily and single family rentals totaling 1,021,848 square feet. The portfolio was diversified* geographically with assets located in Colorado, New York, Texas, Florida, and North Carolina from seven different Delaware Statutory Trust sponsor firms.

According to Matt McFarland, Senior Vice President of Kay Properties, it was rewarding to work very closely with the family and their financial representatives to dig into the DST investments that would provide them with potential monthly income, passive management, and a portfolio that was diversified* across geographic regions, different asset classes, and with different DST sponsor companies.

"We spent more than a year introducing and educating the entire family on DST 1031 exchange investments. We provided them educational materials, spent many hours on phone calls with them, and conducted multiple in-person meetings to help them understand how DST 1031 exchanges could potentially help the family achieve their investment objectives. As is our practice with all investors, it was important for us to also emphasize the potential risks associated with DST 1031 exchange investments. In the end, our team of DST experts worked with them to create a diversified portfolio of all-cash/debt-free DST properties that would potentially meet their needs and investment objectives," explained McFarland.

*Diversification does not guarantee profits or protect against losses.

About Kay Properties and www.kpi1031.com

Kay Properties & Investments is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over $30 Billion of DST 1031 investments.

*NOTE: Past performance does not guarantee future results and DST investments may result in a complete loss of investor principal. This is an example of the experience of one of our clients and may not be representative of the experience of other clients. These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment

All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.

There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distributions, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals, and risk tolerances. Securities offered through FNEX Capital, member FINRA, SIPC.

Contact: Vincent Aviani, [email protected]

SOURCE Kay Properties and Investments