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.
|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)|