Private equity firm Kingsbarn Realty Capital, through its affiliated sponsor KB Exchange Trust, and Triloma Financial Group, an investment firm focused on alternative investments, have partnered to distribute private placement offerings structured as Delaware statutory trusts.
As part of the relationship, Triloma will serve as exclusive dealer-manager for the KB Exchange Trust-sponsored programs.
Section 1031 of the Internal Revenue Code allows investors to defer paying capital gains taxes on investment property sales by reinvesting the proceeds into a similar investment property within a specified time frame. Securitized 1031 exchange programs are structured as securities and sold through the broker-dealer community.
Delaware statutory trusts use the 1031 exchange guidelines, but instead of an investor attempting to identify a replacement property on their own, a sponsor acquires the replacement property and sells DST shares to a number of investors – up to 499 different investors are eligible to purchase interests in a single DST.
“Kingsbarn is a boutique real estate investment manager with distinctive real estate asset sourcing and structuring capabilities,” said Triloma managing director and co-founder Larry Goff. “The combination of an experienced investment manager and demand for passive 1031 exchange programs is the perfect complement to our existing distribution platform.”
Kingsbarn has launched KB Diversified Healthcare DST 20, which will be the first fund offered to financial advisors through Triloma’s independent broker-dealer distribution network.
The fund plans to raise $12.9 million in equity from accredited investors to acquire a diversified portfolio of credit tenant healthcare properties, fully occupied and backed by nationally recognized healthcare and pharmacy companies.
Kingsbarn Realty Capital is a real estate private equity firm that structures its investment programs as both DST co-ownership as well as customized portfolio solutions for large scale investors seeking single allocations.
Triloma, which offers a platform of private placement equity and debt investment programs, has relationships with more than 81 independent broker-dealer firms and RIAs and more than 30,000 financial advisors.