Versant Commercial Brokerage Completes Equity Raise for Lockheed Martin Building in Dallas-Fort Worth

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Investors Use 1031 Process to Defer Taxes

You do not want to be surprised by the size of your tax bill. There are other alternatives.

Versant Commercial Brokerage, Inc. has successfully recapitalized an 111,000 SF flex office building located in the Dallas-Fort Worth metropolitan area. The building is 100% leased to the Lockheed Martin Corporation on triple net terms. Versant raised $3,600,000 of new equity to recapitalize the building, and the new investors are earning a 10% current dividend on their investment.

“We are very excited about this investment,” said Quinn Palomino, Principal of Versant Commercial Brokerage, Inc. “We were able to source the new equity directly from individual investors and cut out the middle man. This enabled us to structure a transaction with low debt and a high distribution of 10%, paid monthly. In addition, we were able to reduce the investment risk by having a strong credit tenant, Lockheed Martin, as our tenant.”

As a part of the recapitalization, Versant was able to arrange an IRC Section 1031 exchange for a group of tenant-in-common (TIC) investors who were selling another property. “These TIC owners faced a difficult tax situation,” said Matt Mueller, President of Versant. “They needed to sell their other property, but if they didn’t go into a 1031, they would get socked with deferred taxes and depreciation recapture. This was not appealing for many of them.”

“This is a common problem,” said Palomino. “Most TIC owners cannot afford to sell their property without going into a new 1031 tax deferred exchange. Because of the deferred taxes on a previous 1031, and the depreciation recapture on the current property, the tax hit is much greater than investors realize.”

“We strongly recommend that investors contact their tax professionals before they consider selling their tenant-in-common investment,” said Mueller. “You do not want to be surprised by the size of your tax bill. There are other alternatives if you plan ahead.”

In addition to 1031 transactions for real estate investors (TIC and non-TIC), Versant provides a wide variety of commercial real estate investment services, including senior debt origination, mezzanine debt syndication, TIC purchases, and equity syndication. The firm specializes in providing mezzanine and equity investment opportunities directly to individual accredited investors without using high priced intermediaries.

About Versant Commercial Brokerage

Versant is a commercial real estate investment and finance firm. We provide high quality investment opportunities for individual investors by creating access to exclusive deals. Our professionals have advised on over $3,000,000,000 of commercial real estate engagements.

Through a private network of investors, we provide debt and equity capital for commercial real estate projects. Our network of relationships, sophisticated analyses, and experience in deal structuring give us a unique capabilities to place debt and equity for real estate projects nationwide.

Our investors obtain superior returns by directly investing in exclusive opportunities. We reduce costs by eliminating redundant financial intermediaries.

Please visit http://www.versantcre.com to learn more about our investor services.

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Derek Uldricks

Derek Uldricks
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