DENVER, April 11, 2016 (GLOBE NEWSWIRE) -- Dividend Capital, a real estate investment management firm, announced today its re-entry into the 1031 real estate exchange market. Dividend Capital Exchange (DCX) will be offering a series of private placements through the sale of beneficial interests in Delaware statutory trusts (DSTs) holding real properties, including properties sourced by Dividend Capital Diversified Property Fund Inc. (DPF), a diversified, daily net asset value real estate investment trust (REIT).
DCX offers accredited investors who own highly appreciated real estate the opportunity to exchange their real estate on a tax-deferred basis under IRC Section 1031 for a beneficial interest in a Delaware Statutory Trust (DST) that owns a property sourced by DPF. Each exchange property is subject to an unconditionally guaranteed 20 - 29 year triple-net master lease with a subsidiary of DPF as master tenant, thereby offering exchange investors the credit of a large diversified REIT during the term of the master lease.
Further, an affiliate of DPF holds a purchase option to acquire the property back from beneficial interest owners, and if this purchase option is exercised, investors would receive partnership units in DPF Operating Partnership (OP Units) in exchange for their interest in the DST. This transaction is intended to be a tax-deferred partnership contribution under IRC Section 721 (also referred to as an UPREIT transaction). OP Units are economically equivalent to a certain class of DPF stock. In the event that the purchase option be exercised, the end result is that through the 1031 and 721 exchange processes, investors would have on a tax deferred basis converted their ownership of highly appreciated real estate into ownership of the OP Units of DPF, which as of December 31, 2015 owned 60 properties in 21 geographic markets totaling approximately 10.1 million square feet leased to 550 tenants.
This material may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect(s),” “could,” “should,” and “continue” and similar statements are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results that are materially different than those described in the forward-looking statements. Dividend Capital and Dividend Capital Exchange cannot give assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Dividend Capital and Dividend Capital Exchange’s expectations include, but are not limited to, the uncertainty of funding Dividend Capital and Dividend Capital Exchange’s future capital needs, delays in the acquisition, development, and construction of real properties, changes in economic conditions generally and the real estate and securities markets specifically, and other risks. Such forward-looking statements pertain only as of the date of this press release. Dividend Capital and Dividend Capital Exchange expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.
Contact Eric Paul Dividend Capital (303) 228-2200
Source: Dividend Capital Exchange