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FRACTIONAL OWNERSHIP

A TIC investment is any syndicated investment created through a Tenant-In-Common (TIC) structure. Under a Tenant-In-Common structure, each investor (known as a co-tenant or co-owner) holds an undivided, fractional interest in the property. Since Tenant-In-Common investments are a form of direct ownership, they are 1031 Exchange eligible, provided the vehicle is not treated as a partnership for tax purposes.

DST TIC
Ownership Percentage of benecial ownership in a DST that owns real property Undivided tenant-in-common
interest in real property
Maximum Number of Investors No IRS imposed limitation Up to 35
Investors Receive Property Deed No Yes
Investors Form Single Member LLC No Yes (generally)
Major No voting rights Equal voting rights and unanimous approval
Number of Borrowers One (the DST) Up to 35 (the maximum number of investors)

The above illustration is a quick chart that illustrates the differences of an Tenants in Common (TIC) and Delaware Statutory Trust (DST). This comparison is not all-encompassing and an investor should review all potential benefits and risks before making an investment.