Real Estate Crowd funding Site Offers 1031 Tax Deferrable Structure For Real Estate Crowd Funding Investors
April 15, 2015 (Chicago, Illinois) – Crowd Realty Advisors has entered the rapidly growing world of online democratized capital raising by offering investors an opportunity to own property in Chicago’s south loop on famed South Michigan Avenue. Crowd Realty Advisor’s initial investment opportunities are two, multi-tenant retail condominiums available for investment on CrowdRealtyAdvisors.com.
Along with the palatable investment size (investments begin at $10,000), C R A structured its South Michigan Avenue offering to allow investors the ability to defer capital gain taxes upon sale. “This is a big difference from other types of real estate partnerships where capital gains are due anytime there is a sale where profits were made,” says David Rottman, Senior Director for C R A. By structuring the investment as a Delaware Statutory Trust, investors own shares in the trust, which owns their beneficial interest in the property. IRS guidelines view this type of partnership to be compliant with IRC 1031, where it is not allowable in a typical LLC or LP structure for real estate. “The wealth building power of the 1031 exchange is extraordinary, and by entering an investment with the ability to exit that investment tax-deferred into another real property investment, significant gains in personal wealth can be achieved.” Says Steve Waldman, C R A co-founder.
“This is a big difference from other types of real estate partnerships where capital gains are due anytime there is a sale where profits were made,” says David Rottman, Senior Director for C R A.
The South Michigan Avenue offering is comprised of ten ground floor retail spaces covering over 17,000 square feet that have built-in demand from the 2,500 residential units immediately surrounding the property. “Finally there is way for the individual to invest in A+ located real estate opportunities that prior to crowd funding only institutions or larger private investors could own.” Said Rottman
Crowd Realty Advisors’ investment opportunities can be divided into two groups – retail component of condominium and apartment towers in high-density urban neighborhoods, and retail that services colleges and universities students and faculty.
CRA focuses on this sub-sector of retail for its lower risk profile due to locations in high-density areas, and low expenses. “Retail at the base of residential developments have built-in demand from the rest of the building’s tenants and are nearly immune from any maintenance issues or disruption from internet sales,” says Waldman. Leases are typically structured so the tenant, not the owner, is responsible for the expenses, such as condo association dues and property taxes.
Crowd Realty Advisors was formed in a partnership between Austin Capital Partners and Ground Lease Capital Partners. The principles have over 70 years of experience and several billion dollars of transactional experience behind them. For more information contact David Rottman at (805) 680-2004 on the west Coast, and in New York, Steven Waldman (917) 892-0168 or visit the CRA website at, Sothwww.crowdrealtyadvisors.com.