Property type

Other Passive Ownership Structures

Educational overview for 1031 exchange planning. Not investment advice.

Category: Ownership StructurepassiveAsset class: Variousticfund

Overview

Includes Tenant-in-Common (TIC) interests and certain qualified real estate funds.

General characteristics

Structure varies; 1031 eligibility depends on the specific vehicle.

Potential benefits

  • Passive participation\n- Potential diversification

Potential risks

  • Limited liquidity\n- Sponsor-specific risk

Management requirements

Sponsor or operator handles management.

Liquidity considerations

Very low.

Tax considerations

TIC interests can qualify as like-kind in many cases. Fund structures vary.

Common investor profiles

Investors evaluating passive replacement options beyond DSTs.

Educational information only. The content on this page is general education and is not tax, legal, accounting, or investment advice. Consult your own CPA, attorney, and licensed investment professionals before making any decision related to a 1031 exchange or Delaware Statutory Trust.