UPREITUmbrella Partnership Real Estate Investment Trust
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Property owners who swap into the UPREIT can receive OP units, common stock of the UPREIT, or cash.
The UPREIT, or the umbrella partnership REIT, was developed to avoid the tax liability companies were facing in selling their real estate assets to a REIT.
An UPREIT is an umbrella partnership formed by a REIT to own, directly or indirectly, all the assets of the REIT.
Since the early 1990s, the market capitalization of REITs has increased from about $10 billion to over $330 billion, and M&A transactions involving REITs and UPREITs have changed the corporate and real estate landscape.
An UPREIT transaction is achieved when the asset is exchanged for dividend paying units in a real estate investment trust.
In addition to Broadstone's focus on sale & leaseback transactions, the firm's principals have executed more than $1 billion of UPREIT transactions, historically.
Tax deferred exit strategies such as UPREIT & DownREIT transactions, 1031 exchanges, and mergers need to be considered.
In addition, we continued to utilize the UPREIT structure to acquire property from sellers seeking to defer taxes and receive units in BNL in exchange for property.
In the UPREIT context, there is an additional layer of conflicts because of the potentially divergent interests of the OP Unitholders.
These were for the most part contributed to the so-called Umbrella Partnership that was created when Vornado converted to an UPREIT status, essentially layering a holding company over the REIT.
The team of Cooper and Baker have handled some of the largest and most complex transactions in real estate investment banking, including most recently the leveraged buy-out of Bell Atlantic's real estate investment subsidiary and the formation of a private UPREIT as the successor company.
Acadia Realty Trust, headquartered on Long Island, NY, is a self- administered equity real estate investment trust structured as an UPREIT, which specializes in the operation, management, leasing, renovation and acquisition of shopping centers.