TIC Investments in 2020

Looking for TIC Properties? This is the place.

Chances are if you’ve heard of, or are considering, Tenant-In-Common (TIC) investments then you are/were involved in a 1031 exchange at some point. Tenant-In-Common investments are where you take partial undivided partial ownership. A tenant in common investment is an alternative to sole ownership of real estate where investment in a single commercial property is held by multiple owners, not as limited partners or as an entity, but as individual owners. Under this co-ownership structure, you will own an undivided fractional interest in an entire property and share in your portion of the net income, tax shelters, and growth.

TIC’s are a great solutions for investors and 1031 exchangers in particular, because of their flexibility, ease of purchase (remember those 1031 deadlines?), and low investment minimums which was favorable for those seeking diversification. 1031 Exchange Place has been involved in the TIC industry since 1997 and helps exchangors select from the largest selection of tenant in common properties.

On this page we’ll be talking about a few things:

  1. How TIC investments came into popularity
  2. Why TIC’s came into popularity
  3. The current status of the TIC market, and how to learn more about current TIC properties.
  4. See a list of most recent TIC Properties >>>
  5. Get access to current TIC Properties >>>

TIC’s Rapid Growth in Popularity

For a long time, some real estate investors were reluctant to invest their 1031 exchange proceeds in TIC properties, as the status of these TIC arrangements with the IRS was unclear. Was the TIC arrangement really an investment in real estate (as required to be eligible for a 1031 exchange) or was it actually an investment in a security or partnership? The answer depends on the nature of the TIC investment, which the IRS has clarified in Revenue Procedure (Rev Proc) 2002-22. It specified the conditions under which the IRS may consider the purchase of a TIC interest an investment in real estate. According to Rev Proc 2002-22,“The central characteristic of a tenancy in common is that each owner is deemed to own individually a physically undivided part of the entire parcel of property. Each tenant in common is entitled to share with the other tenants.the associated rights to a proportionate share of rents or profits from the property, to transfer the interest, and to demand a partition of the property.” Ever since the clarification that Rev Proc 2002-22 provided in March of 2002 TIC’s grew in popularity. Next we’ll briefly review what it was that made TIC investments so popular.

What was/is so appealing about TIC’s?

Institutional Grade Real Estate for Less

Since many exchangers are looking for properties that provide cash flow, it’s no wonder that TIC’s grew in popularity as quickly as they did. Here’s a brief breakdown of the most significant benefits:

  1. Available to non-accredited investors
  2. Ability to acquire “institutional quality grade” properties; with National Tenants/long term leases
  3. No management hassles and headaches.
  4. Generally improved cash flow
  5. Tax sheltering is approximately 50 to 70% relative to the property selected
  6. Appreciation, depending on the market and type of property
  7. Low minimum investment (as low as $25k)
  8. Diversification as a result of low minimum investments
  9. Low cost prearranged, assumable, financing is obtained that is fixed rate and often non-recourse to investors.
  10. Replacement properties can be identified and closed in a timely manner due to their “off-the-shelf” nature
  11. In-depth due diligence by real estate company/sponsor, lender on each TIC investment property
diversified

Looking for TIC Investments?

We've worked with TICs since they were first introduced to 1031 exchanges and our advisors would love to help.
Current TIC Inventory

What about in 2020? What are my TIC options?

The TIC industry boomed from 2003-2007 with billions of 1031 money being invested in TIC properties. But if you’re looking for them after the real estate recession in 2008 you may have noticed that they’re much harder to find. This has less to do with the validity of the Tenants-In-Common format, but rather, the industry came to a screeching halt with there being virtually no 1031 business post-crash. Subsequently, as the real estate market began to regain steam and the number 1031 exchanges increased, most of the previous companies that had put together the TIC deals turned their focus to other investment formats – namely Delaware Statutory Trusts (DSTs). One of the primary reasons is because most deals require long-term financing and DSTs make that much easier. However, there are still a number of companies using the Tenant-In-Common format so you would like access to TIC properties currently being sold (which are available to non-accredited investors) please don’t hesitate to reach out and we can provide them to you.

Recent TIC Properties – Contact Us for Current Deals

tic-property-fd-kansas

Family Dollar - Kansas

Location
1015 S 10th St, Great Bend, KS
Lease Type
NN
Property Type
Retail
Building Sq. Ft
8320
Lot Size
1.87 Acres
Minimum Investment
$50,000
Amount Raised:
$1,066,000
Price Per Sq Ft
$128.13
Rent Per Sq Ft
$9.61
Current Cash Flow
7.00%
COMPLETED
tic-property-dollar-general-illinois

Dollar General - Illinois

Location
301 Ea State Rt 115, Herscher, IL
Lease Type
Absolute NNN
Property Type
Retail
Building Sq. Ft
9026
Lot Size
1.14 Acres
Minimum Investment
$35,000
Amount Raised:
NA
Price Per Sq Ft
NA
Rent Per Sq Ft
$10.31
Current Cash Flow
5.75%
COMPLETED
tic-property-dollar-general-mississippi.jpg

Dollar General - Mississippi

Location
1523 CR 101, New Albany, MS
Lease Type
Absolute NNN
Property Type
Retail
Building Sq. Ft
9100
Lot Size
1.50 Acres
Minimum Investment
$50,000
Amount Raised:
$1,578,500
Price Per Sq Ft
$173.46
Rent Per Sq Ft
$10.41
Current Cash Flow
5.75%
COMPLETED
tic-property-walgreens-az1

Walgreens - Phoenix

Location
3431 W Union Hills Dr, Phoenix, AZ
Lease Type
NN
Property Type
Necessity Retail/Pharm
Building Sq. Ft
13,968
Lot Size
2.31 acres
Minimum Investment
$100,000
Amount Raised:
$2,927,272.00
Price Per Sq Ft
$209.56
Rent Per Sq Ft
$11.53
Current Cash Flow
5.50%
COMPLETED
tic-property-tractor-supply-oklahoma

Tractor Supply Co - OK

Location
3105 West Third Street, Elk City, OK
Lease Type
NN
Property Type
Retail
Building Sq. Ft
23,878
Lot Size
2.59 acres
Minimum Investment
$50,000
Amount Raised:
$1,381,700
Price Per Sq Ft
$57.86
Rent Per Sq Ft
$3.66
Current Cash Flow
6.33%
COMPLETED
tic-property-kays-pennsylvania

Kay Jewelers - PA

Location
115 N Hermitage Rd., Hermitage, PA
Lease Type
NN
Property Type
Retail
Building Sq. Ft
2600
Lot Size
.87 acres
Minimum Investment
$55,000
Amount Raised:
NA
Price Per Sq Ft
NA
Rent Per Sq Ft
$52.40
Current Cash Flow
6.00%
COMPLETED
tic-property-fresenius-okc

Fresenius - OKC

Location
7201 Cherokee Plaza Oklahoma City, OK
Lease Type
NN
Property Type
Medical
Building Sq. Ft
13,628
Lot Size
NA
Minimum Investment
$50,000
Amount Raised:
$6,235,000
Price Per Sq Ft
$457.51
Rent Per Sq Ft
$22.87
Current Cash Flow
5.00%
COMPLETED
tic-property-fresenius-utah

Fresenius - Utah

Location
1735 W 2700 N, Farr West, UT
Lease Type
NN
Property Type
Medical
Building Sq. Ft
7256
Lot Size
1.2 acres
Minimum Investment
$50,000
Amount Raised:
$6,250,000
Price Per Sq Ft
$861.36
Rent Per Sq Ft
$43.09
Current Cash Flow
5.00%
COMPLETED
tic-property-fresenius-enola

Fresenius - Enola

Location
390 East Penn Drive, Enola, PA
Lease Type
NN
Property Type
Medical
Building Sq. Ft
5139
Lot Size
NA
Minimum Investment
$50,000
Amount Raised:
$2,279,187
Price Per Sq Ft
$443.51
Rent Per Sq Ft
$23.91
Current Cash Flow
5.39%
COMPLETED