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Home > Banking News > 1031 Tenant in Common Industry Continues Towards Record Growth in 2005
1031 Tenant in Common Industry Continues Towards Record Growth in 2005
OMNI Brokerage estimates that the securitized Tenant in Common marketplace will grow to over $4.27 billion in equity in 2005.
(PRWEB) August 30, 2005 -- On July 29, 2005 Triple Net Properties, LLC, announced the sale of City Center West "A" in Las Vegas, Nevada on behalf of tenant-in-common investors.
Built in 1998 City Center West "A" is a 106,000 square-foot office building located in Northwest Las Vegas, Nevada. It was sold for approximately $30.8 million to Pacifica Real Estate Group, represented by Bob Gibbs. Tenant in Common investors originally purchased City Center West "A" in March of 2002 for approximately $21.6 million. Major tenants such as A.G. Edwards & Sons, Inc., Government Employees Insurance Company, Sprint Communications and United Title of Nevada have contributed in keeping occupancy at 99%.
This transaction highlights the evolution of the 1031 Tenant-in-Common (TIC) Industry and its appeal for investors seeking the benefits of 1031 exchange, and the Q2 2005 Edition of OMNI NEWS offers a glimpse of where this market is heading.
Specifically, the securitized TIC marketplace has grown from placing close to $167 million TIC equity in 2001 to placing $1.73 billion in 2004, and it is estimated that over $4.27 billion TIC dollars will be placed this year. This is why seasoned investors, "baby boomers" seeking to build extra retirement income, and others are turning to TICs to meet their 1031 exchange requirements. Further details on the industry are available at 1031street.com.
TIC properties may be any of the major property types (including office, retail, apartment or industrial) and may be located all across the nation. As a TIC owner, each investor owns an undivided, fractional interest in an entire property and shares proportionately in the net income, depreciation, interest deductions, and gains or losses.
Each 1031 TIC owner receives a separate property deed and title insurance for their portion in the property investment. This provides the same rights of ownership that a single owner would enjoy. Additionally, because TIC offerings are often "packaged" with management and financing in place, TICs may simplify the 1031 process for the passive real estate investor.
Investors should also take note that TIC investments do have their drawbacks such as additional fees (mostly legal and marketing fees) and less liquidity compared with wholly owned investments in real estate, tax risks, and real estate market risks.
This information is intended merely to be a general discussion, not deemed to be investment or legal advice. Real estate and TIC investments are not suitable for all investors and involve risks. Individual investors should consult their tax advisor, CPA, and financial advisors prior to making any investment decisions.
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