Kay Properties Successfully Performs Test Investments for Institutional Investment Firm Before Being Selected to Complete Multiple DST 1031 Investments Totaling More Than $100 Million

Large institutional real estate investment firm uses Kay Properties to help complete four - $30 million DST 1031 investments to help create greater portfolio diversification.

News provided by

Kay Properties and Investments

Feb 15, 2022, 10:50 ET

TORRANCE, Calif., Feb. 15, 2022 /PRNewswire/ -- Kay Properties & Investments, a national leader in Delaware Statutory Trust equity placements, recently announced it worked closely with a large institutional real estate investment firm to perform a series of test investments prior to helping the client complete multiple DST 1031 exchanges totaling $100 million.

According to Dwight Kay, Founder and CEO of Kay Properties, the institutional investment firm decided to strategically relinquish a portfolio of four large retail assets and invest in custom DST 1031 exchange portfolios in order to help them become potentially more diversified. A significant caveat to their investment strategy, however, was to enter into smaller investment transactions as part of a "test investment" strategy.

"Kay Properties is widely recognized as the number one leader in placing 1031 exchange equity for every sized accredited real estate investor. In this case, we were contacted by a large institutional real estate investment firm who ultimately wanted to liquidate its $100 million portfolio of retail investment properties to potentially achieve greater diversification for its investors. The Kay Properties investment team spent more than a year educating them and introducing them to different sponsors that we work with, and carefully going over the risks, benefits and structure of DSTs, and even facilitated several test investments with them before they decided to invest a larger component of their portfolio with us," said Kay.

Steve Haskell, Vice President with Kay Properties spearheaded the interaction with the client, and explained that while they were more sophisticated than many real estate investors, they still required a lot of education and insisted on testing out the Kay Properties DST 1031 exchange platform before placing larger investments with the firm.

"It is not uncommon for investors of all sizes to want to test our processes and platform before placing a large investment amount with us. In this case, the investment firm wanted to watch our paperwork and look at how we operated as an advisory firm, while also evaluating the DST structure as an investment vehicle. They also wanted to make sure we always 'dotted our i's and crossed our t's'. We obviously performed as we do with all our clients - professionally, honestly, and always being forthright regarding potential risks of DSTs," said Steve Haskell, Kay Properties Vice President and recognized DST 1031 exchange expert.

According to Haskell, during these test investments, Kay Properties was also introducing them to numerous sponsors, and helping them create a portfolio that fit their specific investment criteria.

"Because we had been working with them for more than a year, we were able to have properties they wanted already set up and reserved so that they could close on their DST 1031 exchange literally the same day they closed on their relinquished assets," explained Haskell.

As a result, Kay Properties helped the investment firm successfully close on multiple DST portfolios in various types of real estate asset classes, in different geographic locations, and across a variety of tenants to help achieve greater diversification, passive management, and the potential for monthly distributions.

"The client was impressed with every facet of the Kay Properties business model, and felt like they accomplished what they wanted to do from an investment perspective," said Haskell.

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

Diversification does not guarantee profits or protect against losses. 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.

SOURCE Kay Properties and Investments