"Tax-deferred exchanges provide diversification and liquidity."

Tax Deferred Exit Strategies

Due to our structure as an umbrella partnership REIT, or UPREIT, a portion of our business is conducted through our operating partnership subsidiary. An owner may be able to contribute a single-tenant property to our operating partnership subsidiary in exchange for limited partner interests, or OP units, without causing a taxable event.

Property for OP unit exchanges are preferable to direct ownership for many reasons, including diversification and liquidity. The OP units are typically entitled to a distribution equal to our common share dividend and are generally redeemable for our common shares (tax would be recognized at the time of redemption).

The information contained on this page does not constitute legal or tax advice. Lexington and its affiliates do not provide legal or tax advice.