A seller's roadmap to REITLAND : private to public real estate transactions and currency selection

Abstract

The purpose of this thesis is to articulate a practical decision-making framework for owners of private real estate portfolios interested in contributing their assets to a REIT. The framework introduces the private real estate owner, or contributing seller, to the entire transaction process. A transaction flowchart highlights important issues and their relationship and sequence to other aspects of the transaction. Text discussion follows the same organization as the flowchart, allowing the contributing seller to refer to detailed explanations of specific issues. Issues discussed include: motivations of the contributing seller to divest, relevant income tax issues, the valuation of private real estate portfolios, currency selections and operating partnership (OP) units, financing ramifications, performing due diligence on REITs, transaction control provisions, post-transaction strategies, UPREITs, DownREITs, documentation, and seller representation. Case studies illustrate the issues presented.