An UPREIT, or Umbrella Partnership Real Estate Investment Trust, is a specialized real estate investment structure that allows property owners to contribute their real estate assets (DST) to a REIT’s operating partnership in exchange for operating partnership (OP) units, rather than selling the property directly for cash or REIT shares. This exchange is typically structured under Section 721 of the Internal Revenue Code, which allows for the deferral of capital gains taxes that would otherwise be triggered by a direct sale of the property.
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