If you're looking to transfer your commercial real estate assets, you may benefit from the tax advantages offered by the UPREIT transaction. By exchanging your assets for partnership units in an umbrella partnership real estate investment trust (UPREIT) such as Mack-Cali Realty Corporation, you'll be able to defer your tax liability on the sale of your property, and more efficiently plan for your estate. In addition, you'll be diversifying your holdings with a reputable partner, Mack-Cali, with strong expertise in real estate management and capital markets.

What is an UPREIT?

An UPREIT is a partnership controlled by a real estate investment trust (REIT), in which partnership units are shares of common stock in the REIT. An UPREIT transaction, therefore, enables commercial real estate owners to transfer ownership of their real estate assets to a more liquid and diversified form, without incurring capital gain tax liability.

What are the UPREIT benefits for real estate owners?

• Deferral of tax gain on sale of commercial properties

• Potential conversion of illiquid long term assets into liquid securities

• Potential to recognize unrealized gains as earnings

• Improvement of balance sheet

• Improved cash position through margining of units

• Income through distributions equal to common stock dividends

• Diversification of real estate holdings

Which real estate holdings are good candidates for an UPREIT transaction?

• Family-owned properties with unresolved succession issues

• Surplus property generated by consolidations

• Properties with third-party tenants

• Related-party properties

• Long-term assets with very low basis

Your Next Step: Selling Your Commercial Property