Our Practice
1031/TIC ExchangesThe 1031/TIC Exchanges group at Cairncross & Hempelmann focuses on the syndication of Fractional Interests in real estate projects. We have substantial 1031/TIC experience and can assist with the creation, financing and syndication of all such projects. We understand the practical issues faced by all key participants and have a demonstrated history of producing successful results. In the past several years, we have successfully created, financed and syndicated projects in excess of $150,000,000 in value.
Our Team
Cairncross & Hempelmann's 1031/TIC Exchanges group has extensive experience in working with developers of affordable housing projects. We are well versed in IRC Section 42 requirements and tax exempt bond financing issued by the Washington State Housing Finance Commission and other State housing agencies and have used our expertise to help developers throughout the West. We are particularly skilled in (i) assisting developers in negotiating joint venture agreements with institutional tax credit buyers, i.e., Paramount, General Electric Credit Corporation, Hudson Housing, Lehman Brothers, SunAmerica, Related Capital, and many others, (ii) negotiating finance agreements with letter of credit providers, i.e., Fannie Mae, Freddie Mac, Bank of America, Bank One, Charter Mac, GMAC, etc., and (iii) working with state housing agencies, underwriters, trustees and other necessary parties to provide all required opinions and to maximize developer benefits. We have worked with many developers who have faced stabilization and conversion problems, tax credit buyer takeover attempts, improper delays in funding of equity contributions and other significant, practical issues facing developers of affordable housing. Our experience allows us to add true value to a developer in the early stages of formulating tax credit and bond financing. We welcome the opportunity to discuss our qualifications with you.
Areas of Emphasis
- Expertise in I.R.C. Section 1031 and Rev. Proc. 2002-22 and ability to issue credible tax opinions necessary to market 1031 Fractional Interest programs;
- Management of federal and state blue sky registration requirements and required disclosure;
- Mastery of the acquisition, development, and operational phases of 1031 Fractional Interest projects, including master leases, option agreements, permissible co-tenancy agreements, private placement memoranda, purchase agreements, etc.;
- Familiarity with licensing issues affecting real estate brokers and broker-dealers;
- Structure of ownership entities, including community property issues, to satisfy IRS and institutional lender requirements;
- Creation and implementation of opportunities to market 1031 Fractional Interest programs; and
- Negotiation and facilitation of the financing of 1031 Fractional Interest projects, including working with conduit lenders to streamline program and investor approval and processing.
In addition to monitoring the law and observing current business trends, the C&H 1031/TIC Exchanges group takes a leading role in this growing industry. Team members have been instrumental in the analysis of successful tax structuring and the creation and implementation of new opportunities to market 1031 Fractional Interests. We know how to produce results for developers, investors, lenders and broker-dealers who understand the value of 1031 Fractional Interest programs but need help with the complexities of the programs.
For more information: Contact Dan Vaughn directly at (206) 254-4484 or dvaughn@cairncross.com.
Cairncross & Hempelmann is proud to be a Charter Member of the Tenant-In-Common Association. This logo is registered trademark of the Tenant-In-Common Association.
