Tax Advantage Sales
A fundamental strength of The Locke Group is its vast and up to date market knowledge in the self-storage industry and its creative management team. Management has capitalized on its industry knowledge to create a successful marketing approach, provide strong execution and developed a tax advantaged transaction structure.
The tax-advantaged structure was developed by The Locke Group’s President Angelo Tomasello in an effort to utilize tax depreciation which is undervalued by many REIT investors. While the program provides sellers a tax-advantaged sale, it also provides REITs a vehicle for raising capital to grow their holdings. The Locke Group’s professionals have built a respected name in the self-storage industry through their professionalism, market knowledge and execution of transactions. Also key to Locke’s success is its property underwriting capabilities. These attributes have laid the groundwork for Locke to expand its lines of business by serving other segments of the self-storage industry.
Value Protection, Income Protection & Tax Differed
At this point in the real estate cycle The Locke Group continues to encounter property owners who want to capitalize on today’s favorable valuations, defer income taxes, and continue to receive a substantial income from their investment in real estate without all the headaches of direct ownership.
Locke has developed a property exchange program that addresses this deficiency and provides an effective “hedge” for over 90% of today’s favorable valuation. Our program also has all the deferral, cash flow and diversification features of, for example, UPREIT units. Additionally your cash flow is secured via a preferred return and should valuations increase you will enjoy an opportunity to participate in it.
Our program enables owners to:
- Lock-up today’s favorable real estate values: As much as 94% of today’s value will be hedged by a put that is secured by a portfolio of two times the current equity value of your current portfolio.
- Defer income and capital gain taxes: The form of the transaction is a contribution to a partnership for a preferred limited partner interest which is not a taxable event.
- Achieve portfolio diversification: Immediately after the transaction you’ll have interests in a partnership with a portfolio that is substantially larger in terms of net revenue and more diversified in terms of real estate submarkets than your current portfolio.
- Continue to enjoy substantial secure cash flow from the portfolio: Your return will be fixed at a yield that is consistent with yields on New York Stock Exchange listed REIT common shares.
- Obtain relief from active management responsibilities: A nationally branded company will professionally manage the properties as part of its national network.
Retain some upside potential: It is a well known fact that the shares of REITS are generally linked to the real estate and financial cycles. Our program enables owners to take advantage of this cycle. At a favorable point in the cycle you will be able to convert your partnership interest to UPREIT units or shares of a New York Stock Exchange listed REIT at a specified conversion price; any value beyond the conversion price is all
Contact Locke Group today for more information on the Locke Group Tax Advantaged Sales programs.