Selling real estate into a partnership offers yet another way to generate cash flow while deferring taxes associated with the sale.
Pittsburgh’s Real Professionals in July heard from Josh Foladare and Matt Zappia of Royal Oak Realty Trust, based in Rochester, N.Y. The private, non-traded real estate investment trust seeks to maximize clients’ returns through an UPREIT, or umbrella real estate investment trust.
The firm focuses on acquiring “mission critical” industrial, office, and medical properties leased to tenants under long-term contracts, offering returns to those who sell commercial property to the UPREIT.
Founded in 2013, the firm has tenants in 13 states, though none in Pennsylvania. They said they want to enter the market here, citing the uptick in interest in real estate, prompted in part by a planned ethane cracker plant in nearby Beaver County and the region’s short-list status as a potential location for Amazon’s second headquarters.
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