Net Lease Capital Launches 1031 Exchange DST Solution on iCapital

NASHUA, N.H., June 8, 2023 (Newswire.com) - Today, Net Lease Capital (NLC) and iCapital announced the launch of a 1031 solution on iCapital's platform. The Delaware Statutory Trust (DST) solution will allow Registered Investment Advisors to bring a 1031 tax deferred exchange product to their high-net-worth clients.

Net Lease Capital was founded in 1996 as a commercial real estate investment firm. Since its inception, it has closed over $15 billion in single-tenant transactions. It currently has over $9.2 billion in assets under management. NLC is a leader in the 1031 DST space, specializing in deals with investment grade or better tenants. 

The Delaware Statutory Trust is an ownership structure that allows investors to acquire fractional interests in larger properties with full 1031 Exchange tax benefits, including deferral of capital gains tax on sale, and flow through of depreciation and expense write-offs to increase after-tax income. With a wide range of loan-to-value (LTV) options available, offerings can be mixed and matched to meet individual equity and debt requirements. As individuals continue to invest, their investments displace the capital used by the DST sponsor until the property is wholly owned by the investors. 

In the world of commercial real estate, sellers seek to defer (often massive) capital gains tax by buying replacement property in a 1031 exchange. But the process often falls through because of tight deadlines to identify and acquire the replacement property. For 25 years, Net Lease Capital has made available efficient, off-the-shelf forms of replacement property which could also be tailored around investor preferences for financing, geography and industry sector. Using shares of real estate in the form of DSTs added a new level of choice and flexibility for the exchange buyer because share ownership enables the acquisition of precise amounts of replacement property necessary to match precise exchange requirements for a particular sale.  Share ownership also enables smaller investors to participate in ownership of larger, trophy assets.  

By working through iCapital, Net Lease Capital makes its offerings available in an easily accessible way for end buyers under deadline. Investment Advisors now have access to desirable offerings and can more effectively serve their client investors who typically struggle to find quality replacement assets in uncertain markets.

iCapital is the leading global fintech company powering the world's alternative investment marketplace. iCapital has transformed how the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. 

iCapital-managed platforms offer wealth advisors and their high-net-worth clients access to an extensive menu of private investments, including equity, credit, real estate, infrastructure, hedge funds, structured investments, annuities, and risk-managed solutions. As of April 2023, iCapital services more than $157 million in global assets.

Source: Net Lease Capital