Dwight Kay, Founder and CEO of Kay Properties & Investments Explains the 721 Exchange UPREIT Strategy to Rental Property Owners and Real Estate Investors

Kay, a leading figure in the DST 1031 Exchange field, was recently selected to present to a group of rental property owners and real estate investors on how investors can utilize the lesser known 721 Exchange UPREIT strategy and the Delaware Statutory Trust for their long-term real estate investment goals.

BISWIRE/Feb. 12, 2025 — Dwight Kay, Founder and CEO of Kay Properties & Investments, considered by many to be the largest real estate investment firms specializing in Delaware Statutory Trust investments for 1031 exchange investors, recently presented to a group of rental property owners and real estate investors on “The 721 Exchange UPREIT Exit Strategy for Delaware Statutory Trust (DST) 1031 Exchange Investors.” 

According to Kay, the opportunity to present the 721 Exchange UPREIT strategy to rental property owners and real estate investors was important to him because of the numerous challenges owners are facing in today’s environment as well as that his firm is hyper specialized in DST, 1031 exchange and 721 exchange investments as they have completed nearly 10,000 of these investments since Kay Properties was formed. 

Kay, who has authored numerous articles for national financial publications and real estate journals on the 721 Exchange UPREIT theme over the past nearly two decades, explained how his firm has truly specialized in the Delaware Statutory Trust, 1031 exchange and 721 exchange strategies for investors that are ready to transition from an active hands on management role of their properties to a more passive managed solution for their holdings. Investors nationwide continue to look to Kay Properties for help to compare and contrast DST and 721 exchange investments as they evaluate their exit strategy options.

According to Kay, the potential benefits to investors using the 721 Exchange UPREIT strategy are significant and include such items as: 

• Deferred Capital Gains Tax Advantages 
• Greater Diversification through the ability to own many different asset classes in different markets. Diversification does not guarantee profits or protect against losses.*
• Income Potential - Investors potentially will receive income generated through distributions to the holders of the OP Units.
• Liquidity - The ability to convert OP Units of the REIT to shares can provide potential liquidity benefits that are not standard with DST or property ownership. Partial or full liquidity may be achieved, potentially depending on availability determined by the company, by converting the OP Units to shares of the REIT.  *Liquidity is not guaranteed and each investor should review the liquidity feature and its limitations in the offerings documents prior to considering an investment.
• Estate Planning - Upon death, shares can be equally split and either held or liquidated by the beneficiaries of the trust. Because these shares are passed through a trust, the beneficiaries receive a step-up basis and can avoid capital gains taxes and depreciation recapture. *Again, liquidity is never guaranteed and investors are encouraged to review offering documents prior to investing.

Investors interested in learning more about the 721 Exchange UPREIT exit strategy for their 1031 Exchange Delaware Statutory Trust investments can listen to the Kay Properties podcast episodes found here, or contact Kay Properties directly at www.kpi1031.com or calling 1.855.899.4597. 

About Kay Properties and www.kpi1031.com: Kay Properties helps investors choose 1031 exchange investments that help them focus on what they truly love in life, whether that be their children, grandkids, travel, hobbies, or other endeavors (NO MORE 3 T’s - Tenants, Toilets and Trash!). We have helped 1031 exchange investors for nearly two decades exchange into over 9,100 - 1031 exchange investments. Please visit www.kpi1031.com for access to our team’s experience, educational library and our full 1031 exchange investment menu.

This material is not tax or legal advice. Please consult your CPA/attorney for guidance. Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee returns and does not protect against loss. Potential cash flow, potential returns and potential appreciation are not guaranteed. There is a risk of loss of the entire investment principal. Please read the Private Placement Memorandum (PPM) for the offerings business plan and risk factors before investing. Securities offered through FNEX Capital LLC member FINRA, SIPC.