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Our Expertise

Navigating721 Exchanges To Optimize Your Outcomes

At Stax Capital, we help accredited investors unlock the full potential of their real estate through 721 Exchange investment opportunities. Whether you’re seeking professional management, tax deferral, or diversification into REITs, our advisory-driven approach ensures your needs are met with precision and care.
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Why Choose 721 Exchange Investments

A 721 Exchange allows investors to defer capital gains by contributing appreciated real estate into a professionally managed REIT. This strategy offers access to institutional oversight, diversified holdings, passive income, and potential liquidity through REIT share ownership—helping investors transition out of active property management while maintaining investment continuity.

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Tax Deferral

Utilizing both 1031 and 721 exchanges may allow investors to defer capital gains taxes, potentially enabling reinvestment of additional capital into their real estate portfolio. This approach could support diversification and long-term investment strategies.

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Diversification

Transitioning from a single property into a DST and eventually into an UPREIT spreads risk across multiple properties and markets. This diversification reduces exposure to local economic downturns or property-specific risks, creating a more balanced real estate investment.

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Liquidity Potential

UPREIT units offer more liquidity compared to direct real estate ownership. In some cases, these units can be converted into publicly traded REIT shares, providing investors with potential access to cash without the need to sell real estate assets.

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Estate Planning

UPREIT units or REIT shares can be easier to manage in estate planning. These assets may be more straightforward to divide among heirs and could receive a step-up in basis upon inheritance, potentially eliminating deferred tax liabilities for beneficiaries.

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  • Minimum: $100000
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Hear from Our Clients & Industry Experts

Explore real-life success stories and get expert opinions on the value of 1031 DST exchanges and private market investments.

"Stacey and his team understand our needs and risk tolerance. When we have questions on current investments they're easily reached. I highly recommend them."

Julie Swail

Client

"The first time I met with Stax to discuss my options, I felt a level of comfort and security with their professionalism, their knowledge of the options that I could use, and their extreme sense of care in ensuring that my investments were as safe as possible but would also continue to grow as a legacy for my family."

Carol Deters

Client

"Stax Capital keeps impeccable due diligence compliance files that will protect issues in case of an examination. In addition, Stacey is a pleasure to work with in securities offerings."

Richard Weintraub

Securities Attorney

"I have been so impressed with Stax that as a 34-year Corporate Banker, I have proudly introduced Stax to past clients, colleagues, family and friends."

Paul Champlin

Client

"My exchanges were accomplished in a very timely and efficient manner. Thank you to Stacey, your colleagues and Stax Capital!"

Eric Lindquist

Client

"Stax deals with people with respect and patience and will never advise a client to pursue an investment which is not proper for them. Because of their experience, they are able to analyze properties, markets and companies that are best suited for their clients. They are a great resource to investors in real estate."

Paul Spring

President, Exchange Resources 1031

"I wanted to thank the Stax team for the incredible service that you provide to our customers. We all know that real estate transactions can be extremely stressful, especially when a 1031 exchange is involved – but your team comes through 'cool as a cucumber' every time. Your customer service, knowledge and strategic approach to investing in DST’s is off the charts!"

Stephen Decker

Qualified Intermediary

Disclosure

The experiences featured here were shared by clients of Stax Capital. These clients were not compensated in any way for their testimonials. The information provided in testimonials or endorsements does not constitute investment advice or a recommendation. Any statements made by clients or investors about their experience with our firm are personal opinions and should not be construed as guarantees of future success. Clients and investors should carefully consider their own investment objectives, risk tolerance, and financial situation before making any investment decisions.

Frequently Asked Questions

Explore expert answers to help you understand how a 721 Exchange can strengthen your investment strategy.

A 721 UPREIT allows DST investors to exchange their fractional real estate interests for operating partnership units (OP units) in a REIT, deferring capital gains taxes.
Investors complete a 1031 exchange into a DST, hold it for a period (often ~2 years), then exchange DST interests for OP units in a REIT via a tax-deferred 721 exchange.
Benefits include tax deferral, diversification through REIT portfolios, potential liquidity via convertible OP units, and estate planning advantages with step-up in basis.
Risks include illiquidity during the DST holding period, REIT’s option (not obligation) to buy, potential overvaluation, and loss of 1031 exchange eligibility after conversion.
Accredited investors who have completed a 1031 exchange into a DST and seek tax deferral and REIT exposure. Minimum investments vary, often starting at $250,000.
OP units or REIT shares receive a step-up in basis upon death, allowing heirs to inherit without deferred capital gains or depreciation recapture taxes.
OP units may be converted to REIT shares for potential liquidity, but selling triggers a taxable event, including deferred capital gains and depreciation recapture.
A traditional DST offers fractional ownership with 1031 eligibility; a 721 UPREIT adds a step to convert DST interests into REIT OP units for

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