Las Vegas Real Estate News Blog

TICs are institutional-grade commercial real estate properties that are designed to be cash-flow investments.  The transactions are pre-packaged for investors, with all of the due diligence completed and ready for buyers’ review.  Professional property managers are in place, tenants are in place and the properties have the beneficial non-recourse loans already negotiated and in place.  Each investor will have a deed and all rights of ownership, but he/she will be one of several owners of the specific property.  Each investor will own a percentage interest and the investors will gain their percentage interest of the monthly cash flow, the tax benefits and, when the property is resold, they will also gain their percentage interest share of the proceeds of sale, in addition to return of their initial capital investment.  The benefits of TIC ownership are no management or day-to-day involvement with the property and tenants.  TIC properties also qualify for the IRS 1031 tax-deferred exchange as “like-kind” property, which is beneficial to investors who have sold another income property in order to acquire a position in a TIC property.  The criteria under which the IRS approved TIC’s for “like-kind” investment properties are that each owner must hold title; no more than 35 investors can own each property; there must be proportional sharing of profits and losses: there be voting rights by the investors.  For TIC properties currently available, or to find out more about how these types of investment properties are structured, call Las Vegas Income Properties at 1-888-876-8383.

TIC Institutional-grade Investments

If you are considering buying a Tenant In Common (TIC) property, you might be wondering what an “Institutional-grade” property is.  An Institutional-grade property is considered a “trophy” or “brochure-quality” property.  It is located in a major market or submarket that is recognized in the institutional investment community.  The property has curb appeal, as well as above-average architectural design.  It would be in excellent condition with a stable track record of occupancy.  Its tenants are generally investment-grade tenants, with long leases and excellent financial stability. 

The tenants are judged by their ability to meet obligations so that the leases are very low risk.  Ratings of investment grade levels by Standard & Poor’s ranging from AAA as the highest to BBB as the lowest.