Structuring Tenants in Common Real Estate for Section 1031 Exchanges
Balancing Tax Law, Securities Law, and Mortgage Lender Requirements
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will discuss the legal and structuring issues associated with tenants in common (TICs) real estate investments, focusing on financing requirements and Section 1031 exchanges. The panel will discuss the entity, due diligence, and loan document provisions needed for the TIC borrower, the potential securities law issues associated with sponsored TICs, and how TICs should be structured to comply with federal tax law for a Section 1031 exchange.
Outline
- Section 1031, Rev. Proc. 2002-22
- Use of disregarded special purpose entities in TIC transactions
- Key terms of the TIC agreement
- Securities law compliance with sponsored TICs
- Addressing mortgage lender requirements in a TIC transaction
Benefits
The panel will review these and other critical issues:
- When should a real estate investor consider a TIC investment for their Section 1031 exchange?
- Structuring a TIC investment that complies with both tax and securities laws
- Preparing the TIC agreement
- Addressing securities law concerns in a sponsored TIC offering
- Negotiating mortgage loan documents for a TIC
- Exiting a TIC structure upon property disposition or for a troubled asset
Faculty
Steven P. Katkov
Shareholder
Cozen O’Connor
Mr. Katkov represents and counsels clients in a broad range of commercial real estate transactions, including... | Read More
Mr. Katkov represents and counsels clients in a broad range of commercial real estate transactions, including financings/commercial lending, acquisitions, dispositions, sale-leaseback transactions, commercial leases, rights-of-way and easement agreements, and portfolio acquisitions and dispositions around the nation ranging from $50 – $900 million. He also advises builders, developers, and landlords seeking government approvals to pursue project entitlements and in defending alleged regulatory violations. Mr. Katkov represents a variety of borrowers in varying financing transactions, including mezzanine loans. He regularly represents national industries in leasing across all product types and leads the firm’s real estate initiatives for clients engaged in the cannabis industry in 13 states.
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Elizabeth A. Whitman
Managing Member
Whitman Legal Solutions
Ms. Whitman has over 30 years of experience as a business and real estate attorney. Her varied experience includes... | Read More
Ms. Whitman has over 30 years of experience as a business and real estate attorney. Her varied experience includes serving as general counsel for a national real estate company and deputy general counsel for a publicly-traded company. She also has been in private practice with large, international law firms and served as an administrative law judge. Ms. Whitman has spoken at business and real estate programs sponsored by the Association of Corporation Counsel, American Bar Association, Alternative & Direct Investment Securities Association (formerly TICA). Also a frequent author on business and real estate law, Ms. Whitman has been published in the Fordham Journal of Corporate and Financial Law, Western Real Estate Business, and Realty Biz News. She also writes the award-winning Bach to Business blog, which appears on LexBlog and JDSupra.
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