TOPAZ TEN31 Xchange

CUSTOMIZED 1031 EXCHANGES SPONSORED BY TOPAZ

TOPAZ TEN31 Xchange is built for our clients as a one-stop shop offering replacement properties, capital advisory, trusted tax and legal counsel, and creative multiple-owner structures we’ve created for 1031 exchange transactions nationwide!

TOPAZ’s expertise in both debt and equity deals gives us the ability to properly identify the perfect property for your 1031 needs. Acting as the sponsor, TOPAZ will tie up the deal and work with our in-house lawyers to collect the information needed to prepare the exchange documents. Post-closing, TOPAZ will work with our regional property managers to manage the property while Asset Management is done in-house. Using our proven platform, you can be sure that your investment is in good hands.  TOPAZ is able to structure and customize the exchange to fit your specific investment objective and will be with you all the way to make sure that objective is accomplished. 

PRESERVING YOUR MONEY; THAT’S YOUR MISSION.

SIMPLIFYING YOUR 1031 PROCESS; THAT’S OUR MISSION.

Topaz TEN31 Structure:

MINIMUM INVESTMENT

$2,500,000 of exchange proceeds, although the Manager may accept an investment of a lesser amount at their discretion.

PREFERRED RETURN

Typically 6-8% – Please see deal-specific OM for target return.

BONUS DISTRIBUTION

Potential for year-end bonus distributions based upon overall financial performance of the property.

LIQUIDITY

To the extent financial targets are achieved, financing may give the ability to return some or all of principal invested in a tax-deferred way.

INVESTOR REPORTING

Detailed quarterly performance reports

Audited year-end financial statements

DUE DILIGENCE INFORMATION

Please contact TOPAZ for additional details.

TOPAZ CO-OWNERSHIP

In order to help ensure TOPAZs interests are aligned with its investors, TOPAZ typically co-invests more than the industry average in its acquisitions alongside 1031 investors.

To learn more about TOPAZ TEN31 Xchange please contact TEN31@TopazCG.com.

The 1031 Process

Owner decides to sell their investment property & notifies a Qualified Intermediary (QI*) of exchange. * QI is a 1031 exchange professional

Proceeds from the sale are transferred to the qualified intermediary.

Owner identifies replacement property(ies)within 45 days of sale and notifies Qualified Intermediary.

Funds are transferred to seller of replacement property(ies) Owner has 180 days to close.

What is a 1031 Exchange?  The most common type of 1031 Exchange is used for real estate, likely due to the broad definition of what is considered “like-kind” for Real Estate (or Real Property) Exchanges. In general, any type of U.S. real property held by the client for productive use in a trade or business, or for investment purposes can be exchanged for more real property as long as the properties are of “like-kind”, regardless of grade or quality. For most 1031 Real Estate Exchanges, the taxable gain is due to a combination of the appreciation in value and the amount of depreciation taken over the period of time that it was owned by the client. Many investors like to see what kind of tax savings they can benefit from when they sell their investment property. 

PRIMARY RISK FACTORS MAY INCLUDE (ALTHOUGH NOT LIMITED TO):

  • This investment involves a substantial degree of risk, should be considered speculative, and an investor may lose their entire investment;
  • No public market exists for the investment units (shares) and it is highly unlikely that any such market will ever develop;
  • Substantial restrictions exist upon the transfer of shares;
  • Lack of liquidity;
  • Use of leverage, uncertainty as to the amount and type of leverage to be used, and a lack of any binding financing commitments;
  • Limited portfolio diversification;
  • Risks associated with investing in commercial real estate, including potential environmental risks;
  • Potentially complex tax consequences;
  • It is a newly formed business with no history of operations and only limited assets;
  • Substantial fees and distributions are payable to the manager and its affiliates;
  • Potentially significant conflicts of interest exist involving the manager and its affiliates.

For additional risk factors, please see deal-specific OM.