What happens when you’re a family-owned real estate company or an investment group owning real estate in a limited liability company, and one of your partners wants out—and fast? But no one is buying a minority interest in an illiquid company of family members. So, what do you do before a serious partnership dispute occurs?
Negotiating a buyout is very hard because the remaining partners may not have the cash, and selling outright presents a significant challenge for all, especially when considering taxes.
Here’s what I mean:
If you sell the real estate for $50 million, the capital gains tax can exceed 20% in some states. That’s $10 million, plus the 5% in transaction expenses, which costs another $2.5 million. That’s too much money lost!
This is the problem that NOYACK is solving with our UPREIT program. Our UPREIT program is designed to solve internal ownership disputes by buying out minority interests. The remaining ownership partners of the real estate exchange illiquid LLC interests for much more liquid operating units in our REIT, NOYACK Logistics Income.
Our REIT pays 6% dividends, and best of all, all taxes are deferred, and there are no transaction costs. Big savings!
The NOYACK UPREIT program will help you solve partner disputes, create liquidity, defer taxes, and allow you to diversify from one property to a portfolio of supply chain assets—plus 6% dividends and a target of 20% final annual returns.
Get in touch today to find out more!
