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America's #1 TIC Website |
877-TIC-1031
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FREQUENTLY ASKED SELLER QUESTIONS
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- What
is a Specialty Partner?
Upland
TIC Specialty Partner
Program is designed
for real estate
owners who owners who are looking
to sell, but not
sell out.
The
typical Specialty Partner
is a real estate developer/owner
with $50- $100M of existing
assets, operating in
a single market or geographic
region, with expertise
in one specific real
estate asset class.
Under
a standard transaction,
a Specialty Partner
will contribute existing
assets to a newly-formed
Upland Fund or TIC sufficient
to satisfy the initial
minimum requirements
of the investment fund.
Consideration for the
contribution is paid
in the form of cash
and tax-deferred TIC
units. These units are
delivered via mechanics
that are analogous to
the UPREIT technique.
Specialty Partners typically
take 10% to 50% of the
consideration in the
form of TIC units, with
5% being the minimum
unit percentage required
to become a Specialty
Partner.
Upon
contribution and closing
of an Upland Fund, the
Specialty Partners usually
assist with various
functions related to
the asset including:
- Identification
of related acquisition
and development opportunities
for a fund or TIC,
or for the origination
of another Upland
TIC.
- Property
management and leasing
related services.
Typically, the Specialty
Partner is retained
under a long-term
contract to provide
the day-to-day operating
services of the properties.
- Assisting
Upland with related
advisory and consulting
services.
Why
should I consider selling
my property or portfolio
into an Upland Tenancy-In-Common?
Upland's
Specialty Partner Program
is designed for those
real estate owners who
are looking “to
sell, but not sell out.”
Our Program allows the
real estate owner or
developer to contribute
existing property into
a to-be-formed private,
close-end real estate
TIC fund, receive proceeds
from the sale, and continue
to receive an above
average return on the
remaining investment
in the property. Specialty
Partners, who contribute
property, are just that,
Partners. They continue
to own a portion of
the property para-passu
to our TIC Investment
Partners, and should
benefit from that retained
ownership.
- What happens to my existing
debt?
Upland
will
attempt to obtain financing
on properties, in order
to take advantage of
the current favorable
market debt. Most properties
will not be leveraged
more than a 50-65%
ratio, in order to help
mitigate risk. However,
depending upon the size
of the transaction,
the investor yield expectations,
and other market factors,
it may make sense to
consider leveraging
up. We may assume existing
debt while other investments
may require new debt
on the property. A select
few investments may
be better if we try
to eliminate the debt
entirely. Our debt scenarios
are tied to the expectations
of our Investment Partners,
or TIC investors. We
are usually able to
match 1031 debt ratios
within our TICs over
multiple investments.
- Can
I still handle the property management of my property?
Yes,
in fact, we recommend it! We are not currently in the business to manage day-to-day
operations of the property.
An
outside, unrelated asset
management group will
handle investor relations
and asset management,
but we will look to you
for property management.
- What
kind of properties does
Upland seek for the "Group
Ownership" program?
- NNN
Leased (passive)
- $2 -10
M price range
- All
property types
- Long-term
leases (10 years
+)
- Upper
Midwest locations
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We
seek "bread and butter",
"blue chip"
properties with stable,
predictable cash flows.
Properties should be newer
and not be burdened with
deferred maintenance issues.
No turn around or value-added
properties will be considered.
We are interested in "singles
and doubles" not
"swinging for the
fences."
- Can I maintain an ownership
position of my property?
Yes.
Our typical Specialty Partners will maintain an equity position between 10%-50%.
Our minimum requirement is 5%. We seek Partners who are looking "to sell,
but not sell out." |
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Upland
TIC Sales, LLC
3800 Wells Fargo Center
90 South Seventh Street
Minneapolis,
MN 55402
(612) 332-6600; (612) 376-4489
Toll Free: 1-877-TIC-1031
www.ticsales.com
Copyright
© 2006 Upland TIC Sales
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