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TIC: How It Works

In Tenant In Common transactions, developers who create TIC offerings are known as "sponsors". Here's how the process works:

1. A real estate developer, or "sponsor", finds an institutional-grade asset that would function well as a TIC property. The sponsor will usually either purchase the asset, or put the asset under contract.

2. The sponsor then lays the groundwork to offer the asset to TIC investors, which includes:

   • - Creating a Private Placement Memorandum (PPM), which is similar to a prospectus. The PPM is a document which provides the investor with a very detailed look at the project's specifics, including how it is expected to perform, what fees are involved, what the financing structure will be, and much more. The PPM is the main document an investor will use to decide if he wants to participate in the TIC offering.

   • - Creating the correct TIC legal structure for investors so the offering complies with the IRS' regulations on TIC transactions.

   • - Re-negotiating lease contracts, performing upgrades, or doing any other work to the asset which is required to offer the asset to investors as a TIC.

3. Once the sponsor has the offering ready, it is taken to a series of "broker dealers" which then broker the asset out to investors. Each investor buys a percentage interest in the property (a "fractional" interest). The minimum equity investment tends to be between $100k - $250k. The average equity investment is usually between $350k - $500k. If an investor has more equity he wishes to place, he may either increase his investment in one asset, or diversify by investing in multiple assets.

   While investing in a TIC may sound a lot like a REIT transaction, there are several important structural differences between TICs and REITs. You can learn about those differences here. For example, with a TIC, the investor actually owns real estate, not a share in a company, which means the investor can perform a a 1031 exchange into and out of a TIC interest (something you can't do in a REIT).

   Our firm is affiliated with Welton Street Investments, LLC, a well-respected broker-dealer based in Colorado. Welton Street has a team of people who review every offering presented to them. Currently, Welton Street has only been approving between 30% to 40% of the offerings it's asked to review, and our firm will only present offerings approved by Welton Street to our clients. Welton Street's strong due-diligence team was a major factor in us choosing to partner with them.

4. Once the offering has been approved by Welton Street, it becomes available for us to show to our existing investor clients. We conduct our own round of due diligence on each offering before presenting it to our clients. If you would like to have access to future TIC inventory, please fill out our Investor Questionnaire so we can share the list with you and help guide you through the process of picking the right asset based on your investment requirements.

You may also wish to review the risks of TIC investments.

TIC Sponsors We Work With:

	Argus Realty Investors, LP Argus Realty Investors provides investors the opportunity to participate in the benefits of owning institutional grade real estate without the burden of property management. We seek to: preserve principal, create cash flow and provide capital appreciation. We offer investors an unrivaled selection of institutional quality properties through our Tenant-In-Common (TIC) and Direct participation Programs. Our attention to detail, experience and discipline are designed to provide the highest level of performance to meet your investor's current & future real estate investment needs.
	Ashforth Paradigm Capital Advisors In 1896 the Ashforth family entered into its first real estate investment and they have been actively investing in real estate ever since. Now the Ashforth Company is in its fourth generation. Over this time period the company has developed or acquired over 30 projects worth over $500 million dollars. The company owns and or operates over 8.5 million square feet of commercial property primarily in the Northeast Corridor and the Pacific Northwest. In 2004 the company founded Ashforth Paradigm Capital Advisors and began sponsoring Tenant-In-Common (TIC) Offerings.
	Bluerock Real Estate Bluerock Real Estate, LLC is a principal investment company with discretionary funds specializing in the acquisition and management of stabilized and value-added real estate, primarily in the office and residential markets. In addition, Bluerock also develops property, including ground-up development, in select markets throughout the United States. Since 2004, Bluerock has sponsored more than $500 million of office and apartment transactions.
	Capital Real Estate Capital Real Estate LLC ("CRE") of Denver, Colorado. The Manager's principal business is the sponsorship of tenant in common investments in multi-family properties. Together, the principals of CRE have been involved in real estate development, investment and brokerage business for over 80 years. While the principals have extensive experience in the multi-family market, they have also been actively involved in all commercial property types.
	Cole Capital Partners, LLC Over the past decade Cole Capital Partners, LLC and its affiliates have formed or managed 24 real estate limited partnerships, four debt offerings, 22 tenant-in-common (TIC) investments, 13 Delaware Statutory Trust offerings, and two real estate investment trusts. Through these investment vehicles they have owned and managed assets includes 149 properties comprising 4.6 million square feet valued at $954.6 million.
	CORE Realty Holdings, LLC CORE Realty Holdings, LLC and its owner affiliates, Saunders Property Company and Optima Asset Management Services, Inc. own and professionally manage on our own behalf and that of private investors more than six million square feet of urban and commercial properties. We are not only major property owners of our own portfolio, but also realty advisors for investors seeking to maximize their cash on cash returns using experienced managers with a proven track record of performance. With more than 40 employees supporting CORE, the owners have well over 100+ years of hands-on real estate expertise.
	Cottonwood Capital Cottonwood Capital is a real estate investment and asset management company located in Salt Lake City, Utah. Our primary focus is structuring real estate investments for sale in the Tenant-In-Common (TIC) marketplace. Cottonwood focuses its investment efforts predominantly on the acquisition of multi-family real estate properties.
	Dividend Capital Exchange Dividend Capital Group is a real estate investment management company that focuses on creating institutional-quality real estate financial products for individual and institutional investors. With a team of seasoned executives that possesses operating company experience, stock-picking expertise, a solid relationship network, and core real estate knowledge, DCG strives to deliver a unique combination of experience and expertise in real estate investing. DCG believes that most investors should consider real estate for a portion of their investment portfolios. The company’s mission is to provide investors with multiple investment options in the real estate market based on asset and ownership type, capital structure, and risk.
	DeSanto Realty Group DeSanto Realty Group (DRG) was formed in 2005 to enter the TIC investment industry. Louis DeSanto was a self-made real estate investor who began buying single family rental units over 55 years ago. He built his portfolio up over time and began purchasing larger multi-family units and other larger commercial developments in the Philadelphia area.
	Eliason 1031 Eliason 1031 Properties traces its roots back more than four decades. Brothers Donald and Richard Eliason started in the 1960s with a residential brokerage operation that eventually expanded into investments with partners, pursuing condo conversion deals and rental apartment properties. In the mid-’90s, Donald’s sons Brian E. Eliason and David J. Eliason got involved in the day-today operations of the family business, continuing with the partnerships side of the business into the early 2000s. Today, Eliason Inc., the entity co-founded by chairman Donald, CEO Brian and president David, is focusing on tenant-in-common (TIC) investments through Eliason 1031 Properties. The company’s first securitized TIC deals were done in 2004 with smaller properties and without raising equity through the national BD community. Today, it tends to buy apartment properties with deals typically ranging from $15 million to $35 million and sources equity through the BD network.
	Evergreen Development, LLC Evergreen Development was founded in Feb. 1995. Luke McCarthy is the CEO and co-sponsor of Evergreen’s offerings and has been in the real estate business most of his adult life. He is an attorney and a CPA and worked as both during his development years before devoting all of his time to operating various real estate companies. Mike Palmer, owner of Real Property Systems (RPS) (the company that manages all of Evergreen’s properties), is the other sponsor of Evergreen’s offerings. Mike operates RPS with his wife Victoria and is based in Victorville, CA.
	ExchangePoint ExchangePoint Properties, LLC is a leading real estate investment firm that offers fractional real estate ownership interests to individual 1031 exchange investors, through a team of seasoned and experienced real estate professionals. ExchangePoint and its affiliated entities have a real estate track record which extends for over 12 years, and has attracted Fortune 500 companies as investors and partners. ExchangePoint and its affiliated entities have completed transactions in excess of one billion dollars and manage a portfolio of over 5 Million square feet of office, multi-family and retail properties on behalf of institutional and private investors.
	Stratford Capital Group Franklin Capital Group (“Franklin Capital”) is a multifamily apartment acquisition, development and asset management firm with offices in Boston, Massachusetts and Washington D.C. Founded in 1995, Franklin Capital has been involved in the acquisition and/or development of 110 apartment projects totaling approximately 13,000 units in 22 states with a capitalized value in excess of $850 million. To date Franklin Capital has raised over $340 million in equity capital from 65 corporate investors. Franklin Capital’s mission is to create value for its investor clients through creative thinking, strong attention to detail, and hard work.
	Gemini Real Estate Advisors, LLC Gemini Real Estate Advisors, LLC is a private real estate company specializing in the acquisition, development and re-development of retail shopping centers and hotels. Many of Gemini's acquisitions are structured as tenant in common investments for individual investors. This structure allows 1031 investors to own a fractionalized interest in a property that will yield a current return. Gemini is a founding member of The Tenant-In-Common (TIC) Association.
	Geneva Exchange, LLC Geneva Exchange, LLC, is a limited liability company that sponsors real estate investment opportunities in various properties located in select US markets, including the Midwest. The Sponsor is an affiliate of The Geneva Organization, Inc., an entrepreneurial-oriented national real estate wealth management firm that originates and manages closed-end specialty real estate holdings, including properties suitable for 1031 exchange investors. Over the past three decades, Geneva and its affiliates have participated in over $2 billion of tax deferred real estate transactions. The Sponsor’s platform provides a unique path to real estate ownership for the high-net worth individuals and families, including 1031 investors.
	Griffin Capital Griffin is a privately-owned real estate investment company specializing in the acquisition, financing and ownership of institutional-quality property. Led by senior executives, each with more than two decades of real estate experience collectively encompassing over $9.0 billion of transaction value and more than 300 separate transactions, Griffin currently owns and manages a portfolio of nearly 5 million square feet of space located in 14 states.
	Inland Real Estate Exchange Corp. Inland Real Estate Exchange Corporation ("IREX") is a wholly owned subsidiary of Inland Real Estate Investment Corporation ("IREIC"), one of the Inland Group of Companies ("Inland"). Since 1987, Inland has structured approximately 250 tax-deferred exchanges with an aggregate value of approximately $750 million. Inland has acquired, leased and financed over 200 properties to top name retailers on a triple net lease basis, totaling approximately $800 million. Inland currently manages over 12 million square feet of retail space with a purchase price of over $1.2 billion. The expertise that Inland has in acquiring and financing quality properties, as well as managing them, are key components to the value added service that Inland offers. Because Inland is first and foremost a real estate company, it is in a position to capitalize on its expertise to cut operating costs through economies of scale to effectively manage properties.
	Kodiak Capital Partners Kodiak Capital Partners, LLC, is a Dallas-based TIC sponsor. Founded in 2004 by D.W. Landers and Robert Schults, the Kodiak partners' track record includes $560 million in acquisitions on behalf of investors including over 31 investments comprising more than 5.3 million square feet of commercial real estate managed and leased by the partners.
	Meridian Realty Investments, LLC Meridian Realty Investments, LLC (MRI) is the real estate investment arm of the Meridian Companies (Meridian), a Boston-based company that has provided tax-advantaged real estate investment opportunities for corporate clients since 1981. Meridian has traditionally served the tax planning needs of large institutional clients, providing investment opportunities for Fortune 500 companies in the utility, financial services and insurance sectors. These corporate investors have invested over $6 billion in Meridian’s real estate transactions alone, and continue to invest at the rate of approximately $1 billion per year. MRI entered the TIC business in 2004 and has brought several Class A multi-tenant office and multi-family properties to market.
	Moody National Realty Established in 1996, Moody National Companies is a full-service commercial real estate firm focused on identifying and developing investment opportunities that have the potential to offer long-term asset preservation as well as stable and predictable cash flows. Headquartered in Houston, Texas, Moody National Companies offer attempt to provide clients comprehensive "cradle to grave" solutions for their real estate needs. Moody National's services include: real estate acquisition and disposition, sponsoring 1031 Exchange and Tenant in Common transactions, property management services, hospitality asset management services, securing and closing debt, equity and structured financing, site selection and project development and real estate equity investment opportunities.
	NPV Direct Invest John Graham, Richard Previdi and Bill Rand started NPV Direct Invest in 2003 as a joint venture with Lehman Brothers to acquire office and industrial properties in Acela Corridor (Boston to Virginia). The company has two lines of business, they have Opportunity Invest in which they work as an operating partner on value-added and adaptive re-use commercial real estate for high net worth investors and COPT (NYSE traded REIT)and Direct Invest is their tenant-in-common (TIC) 1031 tax deferred exchange business raising capital through the independent broker-dealer network.
	ORIX Real Estate Capital, Inc. Founded in 1964, ORIX Corporation today is a $50+ billion, publicly traded, investment-grade-rated, international financial services company. The corporation's United States subsidiary, ORIX USA, is a diversified commercial financial services company whose core businesses are real estate, corporate finance, equipment leasing and public finance. With headquarters in Dallas and offices in New York, Chicago, Atlanta and Kansas City, the company has representatives in many other markets across the United States.
	PASSCO Real Estate Enterprises, Inc. The management of PASSCO Real Estate Enterprises, Inc. has been providing outstanding real estate investment opportunities throughout California and is expanding into additional western states. The company currently has over 3 million square feet of property under management and 42 full time employees with divisions in property management, development, asset management, securities and investor service, as well as, an acquisitions and financing group focusing on the syndication of retail, industrial and multi-family properties. The company has provided specific investment opportunities for the benefit of deferring long-term capital gains through a tenant in common 1031 tax deferred exchanges. Since 1994, the company has acquired 27 properties, 9 of which have gone "full cycle" averaging in excess of a 20% profit to our tenant in common owners. Passco Real Estate Enterprises, Inc. has completed in excess of 250 transactions for clients seeking to defer long-term capital gains through tenant in common 1031-tax deferred exchanges. PASSCO offers a wide range of participation options including the following: • §1031 Tax Deferred Exchanges • Tenant in Common ownership • Limited Liability Corporation interests • Debt Participation Programs • Joint Venture Opportunities
	Pennbridge Capital, LLC As a boutique real estate investment company in the Tenant-in-Common (TIC) industry, Pennbridge Capital provides institutional-grade commercial real estate to accredited investors looking to defer capital gains according to Internal Revenue Code Section 1031. Pennbridge Capital focuses its acquisition efforts on sourcing traditional multi-tenant and single-tenant real estate properties, harvesting sale-leaseback transactions, and procuring buyout opportunities with commercial developers. The principals and associates of Pennbridge Capital rely upon their longstanding relationships with brokers, developers, and real estate investment firms throughout the country to source acquisitions.
	Principle Equity Management Principle Equity Management is a privately-owned real estate investment company specializing in the acquisition, financing and ownership of institutional-quality property for its own account and on behalf of individual investors seeking Co-Ownership in Real Estate opportunities. Their service is to provide a single, convenient source for investments in Tenants-In-Common programs available through selling agreements with Broker Dealers.
	Rainier Capital Management Rainier Capital Management, L.P. is a Dallas, TX based real estate investment banking firm providing mezzanine debt and equity to commercial real estate transactions. In addition, Rainer seeks acquisition opportunities for debt, equity and tenant-in-common (TIC) syndications. Rainier’s syndication objective is to provide superior and predictable risk adjusted returns to investors while preserving capital and providing an opportunity for capital appreciation during a defined investment period.
	Scheer Partners Investments, LLC cheer Partners Investments, LLC was formed in February 2002 as the investment arm of Scheer Partners, Inc. Scheer Partners, Inc. was formed in 1991 as the successor to the Suburban Maryland commercial real estate offices of Shannon and Luchs. The firm is based out of Rockville, MD. SPI attempts to utilize expertise, market knowledge and established relationships to acquire, own and operate office, flex and industrial properties in the Washington D.C. Metropolitan Area and Eastern Seaboard. The firm entered the TIC business in 2005 as a supplement to their more traditional business of repositioning assets. During the first 3 years of Scheer Partners Investments’ operations, in excess of $150 million of investment grade real estate has been acquired.
	Sequoia Real Estate Holdings, L.P. Sequoia 1031 Companies, LLC was formed as the parent company for Sequoia Real Estate Holdings, LP and Sequoia Real Estate Management, LP. Sequoia was established in 2005 and was created to act as a TIC (Tenant-In-Common) Sponsor specializing in high quality 1031 Real Estate Investment transaction solutions. Prior to starting Sequoia 1031 Companies, LLC the principals have owned over 2,000 rental units, 320,000 sq. ft. of office/warehouse space, retail centers, and single-family residential developments.
	TIC Properties TIC Properties, LLC was formed in 2001 to provide investors access to institutional quality real estate opportunities primarily but not limited to, those seeking suitable replacement property options when executing an IRC 1031 tax deferred exchange. The company specializes in locating and underwriting institutional-grade commercial real estate assets nationwide with a focus on an investor's requirements for stabilized current income, capital appreciation, and preservation of capital.
	Western America Equities, LLC Western America LLC is a Seattle-based, privately owned real estate investment and operating company. We operate a diverse and growing portfolio of medical office buildings, shopping centers, office buildings, industrial business parks and other property types in multiple states.