Minneapolis, MN - NAI Legacy is pleased to announce that they have closed on the 1031 syndication of a Net Leased Kid Zone Early Learning Center (Kid Zone) located in Hopkins, Minnesota. NAI Legacy organized the property ownership under a Delaware Statutory Trust, which is a popular legal structure that can be used to hold investment real estate assets. The DST structure allows multiple investors to directly invest in beneficial shares of the Trust. This legal structure provides investors with added flexibility over traditional ownership, and the DST qualifies for 1031 treatment. As a DST Sponsor of the Kid Zone property, NAI Legacy helped provide four investors, from Minnesota and Wyoming with 1031 Exchange Solutions.
The property was also designated as an Opportunity Zone with the purpose of spurring economic development via property improvements. NAI Legacy and Kid Zone have begun property renovations to convert the vacant medical clinic into a more suitable space for early learners. A Minnesota investor, who wished to remain unnamed, commented "This offering was an interesting tax solution for me. It dually deferred my taxes but also is located in an Opportunity Zone, so property improvements will greatly appreciate the value of the property and hopefully provide a significant return after my holding period. This offering was exciting to me because of the unique tax incentives."
This is another one of NAI Legacy's successful DST Syndications within the last month. Along with Kid Zone, NAI Legacy fully syndicated RH | Minneapolis, and Silverstar Car Wash. Each unique property allows for passive ownership with professional management. Michael Houge, NAI Legacy's Managing Director, said, "We were able to syndicate this deal very rapidly, in part because the market is so hot right now, and there is an increasing need for property investments to solve tax related problems. Kid Zone is a prime example of our ability to provide our clients with tax-advantaged property solutions."
About NAI Legacy
Coupling the latest technology with a traditional emphasis on customer service, the NAI Legacy team provides strategic guidance, administrative support and brokerage services for properties totaling nearly 2,500,000 square feet. With business lines including property management, traditional sales and leasing services, and 1031 tax-deferred exchange solutions, NAI Legacy is adept at navigating all aspects of quality commercial real estate assignments.
For more information on tax-strategies, contact one of our team members found on www.nailegacy.com.