WATCH THE INTERVIEW HERE<\/strong><\/a><\/h4>\nAms delved into the tax considerations surrounding REITs and their use of operating partnership or umbrella partnership (UPREIT) structures. He emphasized the tax benefits inherent in the UPREIT structure, highlighting its ability to facilitate property acquisition in a tax-deferred manner.<\/p>\n
“UPREITs are a very attractive mechanism for REITs to acquire properties and make deals with sellers,\u201d he said.<\/p>\n
Ams also addressed the issue of related-party rent, cautioning that while it can be detrimental if excessive, REITs can manage it within small but acceptable limits. He highlighted the complexities surrounding related-party rent, pointing out potential pitfalls such as charter limits and attribution rules.<\/p>\n
Ams stressed the importance of diligence in managing such complexities, noting: “When you’re thinking about taking on new investors, those are things that you should think about…sometimes the answers are not intuitive.”<\/p>\n
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“UPREITs are a very attractive mechanism for REITs to acquire properties and make deals with sellers,\u201d he said.<\/p>\n","protected":false},"author":3681,"featured_media":377026,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3007,2739],"tags":[],"class_list":["post-377025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","category-nontraded-reit"],"acf":[],"yoast_head":"\n
UPREIT Structure Remains Attractive Option, KPMG Says - Blue Vault<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n