Welcome to 1031 TIC Investors-We buy TIC and LP interests
While the well publicized debt bubble pushed commercial real estate valuations to record highs peaking in 2007, currently its collapse is driving values to lows not seen since the early 1990's.
Today, struggling tenants are requiring landlords to lower rents to help them stay afloat. Bankruptcies and downsizing are resulting in ever increasing vacancies. At the same time, the lending market has almost disappeared for new commercial real estate mortgages. For the few transactions that do get done, lenders are requiring equity investments of typically 40%, double the requirement of the recent past.
The effect of all this has been a precipitous decline in commercial real estate valuations. If an investor were forced to sell today, it is likely most or all of his equity would be lost. As if that weren’t bad enough, owners are often forced to invest new equity to keep deals afloat. Tenant improvements, leasing commissions, capital expenditure, operating shortfall and the like…investors are being asked to write checks at seemingly the worst possible time.
TIC investments and Limited Partnerships are extremely hard hit in this regard. Some sponsors have not demonstrated the greatest ability to manage a distressed asset. Other weaker sponsors have failed entirely, wiping out their investors. Furthermore, TIC’s and Limited Partnerships may be owned by up to 35 investors who likely have no connection to each other. Combined with the fact the IRS requires unanimous consent for investor decisions to be implemented, the TIC owned property particularly faces significant headwinds. For those investors simply wanting out, there has existed little or no secondary market for their interests.
1031 TIC Investors was created to provide such a secondary market. Headed by two 25 year veterans of commercial real estate, the team has the ability to quickly evaluate complicated TIC and LP ownership interests; ascertaining future potential equity requirements and cash flows to value the individual investment. Upon receipt of basic property information, 1031 TIC Investors will complete their preliminary underwriting and valuation in as little as 7 days. If agreed, the investor will be cashed out, with no further obligations on his behalf.