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Why does Legendary Acquisitions offer an UPREIT program for owners of hotels?

September 1, 2020

Why does Legendary Acquisitions offer an UPREIT program for owners of hotels?

Answer: In a 721 UPREIT (Umbrella Partnership REIT) transaction, property is contributed to a REIT’s operating partnership (OP) in exchange for a combination of liquidity and equity-equivalent OP units.

By contributing their asset into the OP, the hotel owner can reduce risk, achieve stabilization and preserve capital for their other projects. The transaction mechanism also provides tax benefits to contributors and allows them to preserve equity during a recession.

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Blue Vault's Services
April 14, 2016

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