1031 Exchange Planning in New York City

A 721 UPREIT transaction is considered when an owner wants to contribute qualifying real estate to an operating partnership in exchange for partnership units rather than purchase another direct property. Begin with the asset, ownership, valuation, debt, liquidity goals, management concerns, and tax and legal advice needed to determine whether the structure is available and appropriate. An UPREIT contribution may reduce day-to-day property-management responsibility and provide exposure to a broader professionally managed portfolio, but it is not a simple cash-out or universal 1031 substitute. Valuation, liabilities, lockups, fees, conflicts, tax protection, securities considerations, liquidity, eligibility, and sponsor terms require transaction-specific review.