Abstract: The investment funds created in “like-kind” exchange transactions under §1031 have increasingly provided a valuable capital source to real estate operators deriving their primary capital from non-§1031 sources. The resulting ownership structure presents numerous financing, economic, legal, liability and operating issues and challenges that would not otherwise be a factor if §1031 funds were not a contributing source of capital to the underlying transactions. This article identifies these issues and discusses available mechanisms for addressing them.

The article, entitled "Navigating the Brier Patch," appeared in the March 27th edition of the New York Law Journal.

View Full Text