TIC Properties for your 1031 Exchange

Real Estate TIC Properties

Historically there have been two types of fractional ownership products referred to as Tenant In Common or TIC properties:  the Securitized TIC and the Real Estate TIC. With a healthy real estate market and the resurgence of 1031 exchanges, there are an increasing number of people in search of a TIC property for their 1031 exchange. However, securities professionals have almost completely abandoned the TIC structure in favor of other structures. That being said, there are still a number of TIC sponsors who’s deal structure has withstood the test of time. 1031 Exchange Place can been in the 1031 business for over 20 years and can provide you with the largest selection of TIC’s available today.

Simple, Time-Tested Approach | Recession-Resilient Properties

A Refresher on TIC’s

A tenancy in common property is an investment in piece of real estate which is co-owned with other investors. Some think of it as “crowdsourcing” a piece of real estate. Because the taxpayer holds a deed to the property as a tenant-in-common, this type of real estate investment has qualified under the like-kind rules of IRS Section 1031 since Rev Proc 2002-22. This type of an investment appeals largely to exchangers who are tired of managing their rental properties. The appeal is in large, national tenants, long-term, long-term leases, net leases, and secure investment that provides predictable monthly income.

Benefits of TIC’s

Access to Investment Grade Real Estate
TIC properties and the low investment minimums give 1031 and cash buyers access to high quality, institutional grade, NNN properties that otherwise are only available to larger of real estate investors.

Freedom
The NNN lease structure combined with professional, third-party property management frees the investor from the headaches and hassles of day-to-day management.

Excellent locations
TIC sponsors are typically long time real estate professionals that perform extensive demographic research and market analysis on each area where properties are located. It’s in their best interest to make sure that the business leasing the property is likely to succeed in that location and that the real estate has the potential to appreciate over time. Each investor has access to this pre-packaged due diligence information.

Greater liquidity or ability to resell
New buyers do not have to qualify for an existing loan as there is no debt against the property which makes the process of reselling a TIC interest much easier.

Diversification
With investment minimums as low as $50,000, an investor can purchase more than one TIC property in order to diversify in their exchange.

Steady Monthly Income
The tenant corporation guarantees the lease payments to the property owners for the term of the lease. It’s simply direct-deposited to your bank account each month.

Deprecation
As with other real estate, another huge benefit to TIC owners is their proportionate share of depreciation to claim against property income on their tax return.

Capital Appreciation
TIC owners receive their pro rata share of any capital appreciation of the property when it is sold.  The appreciation of the underlying real estate asset is a component of the overall return on investment.

Convenience Off-The-Shelf Nature
Because there is typically no financing involved, purchasing a TIC property is very painless process. You simply select a property from current inventory and the dollar amount you want to purchase. This makes TIC’s a great backup replacement property option in case other options fall through after an exchanger’s 45 day deadline has past.

Save on Fees/Expenses
There are typically no closing costs, records a warranty deed to transfer ownership to you and sends you a prorated rent check based on the very day you sign. Additionally, investors save on appraisals and other costs associated with other types of real estate investments.

Available to All
Unlike with securitized TIC or DST investments, these opportunities are available to non-accredited investors.

Talk to an Advisor: 1-800-USA-1031

Recent TIC Properties – Contact Us for Current Deals

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%

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%

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%

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%

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%

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%

Tractor Supply Co - OK

Location: 3105 W 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%

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%

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
Price Per Sq Ft: $209.56
Rent Per Sq Ft: $11.53
Current Cash Flow: 5.50%