Pacific Oak Residential Trust, Inc. (“PORT”) is able to offer acquisitions to sellers through a tax-deferred, "umbrella partnership REIT" ("UPREIT") transaction.
In this approach, acquisitions can be structured as a contribution of property in exchange for operating partnership interests (“OP Units”), in lieu of cash, generally allowing sellers to defer the recognition of taxable gain.
UPREIT sellers receive an equal share in all dividends paid by the REIT. In addition, through the ability to convert OP Units to common stock, UPREIT sellers participate in the full appreciation of PORT equity over time.
Please contact us to discuss this option further.