Kay Properties & Investments Founder, Dwight Kay, Demystifies the Complex 721 Exchange UPREIT Strategy in New Book, "721 Exchange UPREITs: What Investors Need to Know Before Investing"
BISWIRE/Dec. 11, 2025 — Real estate investment leader Dwight Kay, founder of Kay Properties & Investments, has authored the first comprehensive guide to the complex 721 Exchange UPREIT strategy. His new book, "721 Exchange UPREITs: What Investors Need to Know Before Investing," is available on Amazon and serves as a critical resource for 1031 exchange investors, real estate professionals, attorneys, and CPAs.
The book demystifies the process of using a 721 Exchange UPREIT (Umbrella Partnership Real Estate Investment Trust) as an exit strategy from a Delaware Statutory Trust (DST). This allows investors to defer capital gains taxes by converting DST interests into REIT Operating Partnership Units. Kay’s guidance is especially timely as the DST market has grown from $2 billion in 2015 to over $10 billion in 2023, creating an unprecedented wave of maturing DSTs where investors must consider their exit options.
Investors can read more about this valuable resource at https://721exchangeupreit.com.
Drawing from decades of experience facilitating nearly 10,000 031 Exchange, DST and 721 UPREIT transactions, Kay provides a clear, authoritative breakdown of the strategy’s advantages, complexities, and potential dangers. He emphasizes that investors often undertake this complex move without fully understanding implications that could risk their life's savings.
The book offers a practical guide and essential due diligence framework, covering often-overlooked critical topics:
- 721 Exchange UPREIT Due Diligence: How to evaluate the sponsor, assets, and structure.
- Potential Pitfalls of Non-Listed REITs: Risks when dividends are paid from borrowings instead of operational income.
- The Importance of AAFO: Why dividends should be covered by Adjusted Funds from Operations for sustainability.
- The Value of Optionality: How to assess the options a 721 UPREIT strategy provides.
- Understanding Tax Protection Agreements: The crucial role of these and other potential safeguards.
“Over the years, the use of the 721 Exchange as a Delaware Statutory Trust exit strategy has become increasingly popular among investors. A strong motivation for writing this book was to fill a void in investor education by shedding light on the potential benefits and dangers embedded within the 721 Exchange, a complex strategy often undertaken by 1031 exchange DST investors without a full understanding of its implications. These dangers can potentially expose one’s life's savings to hidden pitfalls. Drawing from my direct experience with completing many personal 721 Exchange UPREIT investments and from advising thousands of clients nationwide, my aim is to provide a clear, practical guide to help investors navigate 721 Exchange UPREIT waters with a clear overview of the potential benefits, potential risks, case studies on 721 UPREITs and things to consider prior to participating in a DST with a 721 UPREIT exit strategy. The book walks investors through an overview of the 721 Exchange process, highlighting the essential due diligence investors must consider that is often buried in fine print, and provide the clarity investors need to make a informed decision with the help of their CPA and attorney," said Dwight Kay.
Blending real-world case studies with practical strategy, the book provides a start-to-finish overview to help investors, with their CPA and attorney, make informed decisions. Kay is also the author of the seminal first book on DSTs, which has been read by over 100,000 investors nationwide. Under his leadership, Kay Properties has become a national leader in the 1031 exchange and DST space, renowned for its rigorous due diligence and investor education.
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 nearly 10,000 - 1031 exchange, DST and 721 UPREIT 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.
