Developing REIT and UPREIT Investment Structures
We are innovators in developing Real Estate Investment Trust (REIT) and Umbrella Partnership Real Estate Investment Trusts (UPREIT) investment structures.
Our extensive experience in the real estate industry, combined with a broad client group, positions us to advise owners, investors, developers, property managers and financial advisors who are considering their REIT structuring alternatives.
UPREIT & REIT Tax Considerations
REITs and UPREITs structures are complex and raise a variety of structuring considerations including:
- Choice of entity considerations including the use of taxable REIT subsidiaries.
- Due diligence in mergers and acquisitions with an emphasis on REIT qualification.
- Understanding of the taxation of partnerships and REITs.
- Analysis of revenue streams, vendor expenditures, and related party transactions for REIT qualification and unrelated business taxable income considerations.
- Prohibited transaction analysis for development activities.
- Property management applications to REITs and qualified plan investors.
Prosperity Partners’ can address planning and compliance considerations specific to REIT and UPREIT structures, including:
- Federal, state, and local income tax reporting for all REIT affiliates.
- Coordinating all federal, state, and local income tax audits or inquiries.
- Comprehensive ongoing REIT qualification testing.
- Coordinating taxable distribution reporting with investors.
- Coordinating efficient interface with internal accounting, property development, new venture, income opportunity, and financial reporting departments.
Prosperity Partners real estate industry clients include:
- Developers
- Property management companies
- Public and private equity REITs
- Public and private partnerships
- Financial advisors
- Other domestic and international institutional investors
Our clients own, develop, and manage properties in all asset classes in the U.S. and abroad in categories like:
- Office
- Industrial
- Retail
- Multi-Family Residential Properties
- Hospitality
- Health Care Facilities