721 Exchange (UPREIT) Strategies
Convert real estate interests into REIT ownership—tax-deferred.
What is a 721 Exchange?
A 721 Exchange is a tax-deferred contribution of real estate (often via structured programs) into a REIT operating partnership in exchange for operating partnership units, offering long-term diversification and potential liquidity pathways.
This strategy allows investors who own DST interests or other qualifying real estate to transition into REIT ownership units without triggering an immediate taxable event, providing greater flexibility and diversification.
The 721 Exchange Process
Property / DST Interest
Your current real estate investment
OP Units
Operating Partnership units in REIT
REIT Shares (Optional)
Convert to publicly traded shares
Benefits of a 721 Exchange
Diversification Beyond a Single Property
Transition from concentrated real estate holdings to diversified REIT portfolio exposure
Potential Liquidity Over Time
OP units may eventually be converted to publicly traded REIT shares for liquidity
Continued Tax Deferral
Maintain tax-deferred status throughout the exchange process
Estate Simplicity and Flexibility
Easier for heirs to manage and potentially more flexible for estate planning
Who Is This For?
Long-Term Exit Strategy
Investors seeking an endgame strategy after multiple 1031 Exchanges
Diversification Seekers
Those wanting to move from concentrated property holdings to broader REIT exposure
How We Help
Strategy Planning
Evaluate whether a 721 Exchange aligns with your long-term investment goals
Identifying 721-Compatible Pathways
Present DST programs and REITs that offer 721 Exchange options
Coordination, Education & Documentation
Guide you through the process and ensure proper execution with all parties
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