In this article I will talk about the Best Tenants in Common (TIC) Real Estate Deals. We will talk about the investment structure, property quality, tenant strength, income potential, fees, leverage, 1031 exchange compatibility, geographic diversification, sponsor experience, and exit strategies.
This guide will help investors evaluate top TIC opportunities and understand the key considerations before selecting a suitable real estate investment.
Reasons to Consider a TIC Agreement Best Tenants in Common (TIC) Real Estate Deals
- Debt & Leverage: Moderate leverage can lower the risk of financing and improve the stability of the entire investment.
- Experience of Sponsor: Sponsors with more experience may have stronger acquisition, management, reporting and asset disposition capabilities.
- Purchase Price & Valuation: Consider purchase price relative to comparable properties, income metrics and current market valuation.
- Fees and Expenses: Consider the acquisition, management, financing, administrative and disposition fees before deploying capital.
- Anticipated Holding Period: Understand the duration for which your capital is expected to be locked in prior to the planned property sale.
- Exit Plan: A well-defined exit plan helps investors understand potential liquidity and realization opportunities.
- Property Quality & Location: Good locations and quality of properties can support long term value and rental demand.
- Longer Leases and Strong Tenants: Longer-term leases and tenants with good credit can help to provide a more predictable stream of income.
- Occupancy Rate: A greater occupancy rate usually reflects better demand and contributes to more consistent property-level cash flow.
- Cash-Flow Potential: Analyze projected rental income, distributions, operating expenses and realistic future income growth.
Key Points & Best Tenants in Common (TIC) Real Estate Deals
| Best Tenants in Common (TIC) Real Estate Deals | Explanation |
|---|---|
| Inland Private Capital Corporation | Offers diversified TIC properties across multiple sectors with experienced real estate management. |
| Capital Square (Capital Square 1031) | Provides institutional-quality TIC and 1031 exchange opportunities across commercial real estate. |
| ExchangeRight Real Estate | Focuses on necessity-based properties offering potentially stable income and diversified portfolios. |
| Bluerock Value Exchange (BVEX) | Provides professionally managed real estate exchange solutions emphasizing diversification and long-term value. |
| Realized 1031 | Helps investors identify 1031 exchange strategies and replacement property investment opportunities. |
| Bonaventure | Specializes in multifamily real estate investments with professionally managed income-producing properties nationwide. |
| AEI (AEI Real Estate) | Offers 1031 exchange investments focused primarily on commercial properties and stable income. |
| NexPoint | Provides alternative real estate investment opportunities across multiple property sectors and strategies. |
| Inspired Healthcare Capital | Focuses on healthcare real estate investments, including senior living and medical properties. |
| Cantor Fitzgerald | Offers institutional real estate investment solutions spanning diverse property types and markets. |
10 Best Tenants in Common (TIC) Real Estate Deals
1. Inland Private Capital Corporation
Inland Private Capital Corporation (IPC) primarily structures 1031 replacement-property investments through DSTs rather than the more traditional TIC ownership. Its portfolio contains multifamily, self-storage, senior living, student housing, healthcare, industrial, retail and other commercial sectors. Minimum investments for current IPC offerings range from $25,000 to $250,000, depending on the offering.
These are available for section 1031 exchanges to qualified investors. Income reflects the lease and operating performance of each property; holding periods and projected distributions are specific to each offering. Investors are advised to review the acquisition costs, selling commissions and other offering expenses in the PPM. The main risks are leverage, vacancies, market values and illiquidity. The usual way out is by sale of the property or by some other disclosed transaction.
Inland Private Capital Corporation Feature
| Feature | Details |
|---|---|
| Investment Structure | Primarily DST-based private-placement real estate investments |
| Property Focus | Multifamily, self-storage, senior living, industrial, healthcare, retail, office and student housing |
| 1031 Use | Designed to provide qualifying 1031 replacement-property opportunities |
| Investor Access | Private offerings generally intended for accredited investors |
| Key Advantage | Broad asset-class selection and active property-management approach |
| Diversification | Offerings may contain single or multiple properties within an asset class |
| Management | Sponsor handles acquisition, underwriting and ongoing asset management |
2. Capital Square (Capital Square 1031)
Capital Square 1031 is a leading provider of Delaware Statutory 1031 Replacement Property Investor Trusts Structure It has developed multifamily apartments, active-living communities, medical offices, industrial facilities, retail and build-to-rent properties. Investment minimums are said to be low relative to direct ownership, with recent market records indicating $50,000-level minimums as the norm.
However, investors should check specific offering documents. Qualified DST Interests are eligible for 1031 exchanges. Income is derived from property lease, occupancy and operating performance, and the holding periods are typically long term.
Investors need to consider acquisition, financing and offering costs. Risks include illiquidity, leverage and changes in the property market. The exit is contingent on a future sale of property or announced transaction strategy.
Capital Square (Capital Square 1031) Feature
| Feature | Details |
|---|---|
| Structure | Delaware Statutory Trust (DST) ownership |
| Tax Strategy | Designed for Section 1031 exchange transactions |
| Property Types | Multifamily, healthcare, active living, build-to-rent and other commercial assets |
| Ownership | Investors purchase beneficial interests in the DST |
| Management | Capital Square manages the underlying property |
| Investor Benefit | Passive ownership without direct landlord responsibilities |
| Exchange Feature | Pipeline of qualifying replacement properties can simplify exchange execution |
3. ExchangeRight Real Estate
ExchangeRight Real Estate extensively uses DST structures for 1031 and 721 exchange strategies instead of relying primarily on traditional TIC ownership. It focuses on net-leased industrial, retail and healthcare properties, usually leased to necessity-based or investment-grade tenants.
exchangeright.com A recent one had a minimum of $100,000, 5.20% current cash flow, five properties and a 13.4-year weighted-average lease term Qualified DST investments may be used in 1031 exchanges. The income is primarily contractual lease payments.
Risks include tenant concentration, financing, valuation and illiquity. The PPM describes the fees and expenses that differ depending on the offering. Exit strategies could include property realization, another 1031 exchange or a planned 721 exchange into the REIT platform. exchangeright.com
ExchangeRight Real Estate Feature
| Feature | Details |
|---|---|
| Core Structure | Net-leased DSTs and 1031/721 exchange strategies |
| Property Focus | Industrial, necessity-based retail and healthcare |
| Income Model | Primarily contractual income from long-term net leases |
| Portfolio Approach | Diversification across properties, tenants, industries and markets |
| Exit Innovation | Certain DSTs can provide tax-deferred access to the Essential Income REIT |
| REIT Platform | Essential Income REIT provides broader portfolio diversification |
| Liquidity Feature | REIT platform includes a quarterly redemption program |
4. Bluerock Value Exchange (BVEX)
Bluerock Value Exchange (BVEX) creates fractional real estate investments primarily through DSTs for 1031 exchanges. Its portfolio has included multifamily and industrial properties, focusing on high-growth Sun Belt markets and institutional-quality asset An industrial DST example needed a $100,000 minimum investment, and a prior multifamily deal was structured for a seven-to-ten-year hold.
Eligible DST interests may be used for 1031 exchanges, if and when the applicable requirements are satisfied. Income is generated from rents and property operations, and many offerings target monthly cash flow. Investors must consider acquisition costs, financing and other fees. Risks are vacancy, market values, leverage and illiquidity. Exit via property sale or 721/UPREIT options as offered.
Bluerock Value Exchange (BVEX) Feature
| Feature | Details |
|---|---|
| Primary Structure | Syndicated DST programs for 1031 exchanges |
| Real Estate Focus | Multifamily and industrial properties among its offerings |
| Investment Style | Institutional-quality fractional real-estate ownership |
| Income Objective | Targeted current distributions from underlying properties |
| Management | Professional asset and property management |
| Investor Reporting | Investor communication and tax reporting support |
| Track Record | BVEX reports more than $3.2 billion in structured 1031 property value |
5. Realized 1031
Realized 1031 is not a single-property sponsor for every transaction, but rather a marketplace and platform that connects investors with replacement-property interests in DST and TIC. Its Replacement Property Interests can offer fractional ownership in larger commercial properties, including multifamily, industrial, medical office and self-storage assets
Typical minimums are around $100,000 for 1031 investors, but individual offerings have their own requirements; non-1031 investments can sometimes have lower minimums. Sponsors and offerings differ in income, holding period, property location, leverage and fees. Investors should read each PPM to understand expenses and risks.
Realized Secondary Marketplace . These interests typically do not have a public market; therefore, liquidity is limited. Realized offers a secondary marketplace in which eligible interests may be listed.
Realized 1031 Feature
| Feature | Details |
|---|---|
| Platform Type | Marketplace for DST and TIC replacement-property investments |
| Investment Choice | Investors can review multiple sponsor offerings |
| Typical Minimum | Minimums vary; Realized states many 1031 offerings typically start around $100,000 |
| Cash Investment | Some non-1031 opportunities may have lower minimums |
| Property Exposure | Commercial properties including multifamily, industrial and other sectors |
| Management | Underlying properties are professionally managed |
| Secondary Option | Realized operates a secondary marketplace for eligible interests |
6. Bonaventure
Bonaventure has 1031 replacement-property investments, mainly in DST structures, with a heavy concentration in multifamily real estate. One listing available at the moment, for example, has 94 units, 96.8% occupancy, a $30.5 million asset value, a $100,000 minimum investment and zero leverage.
Its offerings are for eligible investors completing 1031 exchanges, and accredited investors are among the eligible investor groups. Income comes from rents on the property and how well it is operated. The particular length of time you hold it and the distribution objectives vary with each offering. Investors should consider the expenses of the acquisition, management, financing and offering in the transaction documents.
The major risks include changes in occupancy, rent performance, property values and illiquidity. Exit is generally contingent upon a future sale of the property or other transaction described in the offering documents.
Bonaventure Feature
| Feature | Details |
|---|---|
| Specialization | Multifamily real estate |
| Structure | 1031 exchanges, DSTs and other tax-equity structures |
| Property Profile | Stabilized, institutional-quality apartment communities |
| Operator Alignment | Sponsor invests substantial capital alongside investors |
| Underwriting | Stress-tests occupancy, rent growth and exit assumptions |
| Exchange Execution | Designed around 45-day identification and 180-day closing deadlines |
| Customization | Can structure solutions around debt, ownership and transaction complexity |
7. AEI (AEI Real Estate)
AEI Real Estate has a track record of commercial real estate investments structured for 1031 exchange investors, including fractional ownership and DST-style replacement property opportunities. The investment analysis should focus on the property, not on broad claims made by the company: property sector, tenant strength, lease structure, location, occupancy and financing.
Minimum investment amounts can differ widely from offering to offering, so investors should consult the current PPM and not rely on past figures. Qualifying Structures for Section 1031 Exchanges if IRS requirements are met. Income is a function of the contractually agreed rent and the operation of the property, while holding periods are normally set by the individual offering.
Investors should consider acquisition and offering fees, terms of debt, vacancy risk, tenant credit, valuation risk and illiquidity. Typically, an exit means a sale of the property or some other exit strategy specified by the sponsor.
AEI (AEI Real Estate) Feature
| Feature | Details |
|---|---|
| Investment Focus | Commercial real-estate investment opportunities |
| Exchange Orientation | Historically associated with 1031 replacement-property investments |
| Property Evaluation | Tenant quality, lease structure and property fundamentals are key considerations |
| Investor Type | Specific offering eligibility depends on individual investment documents |
| Income Source | Generally derived from property-level rents and operations |
| Due Diligence | Investors should examine property, debt and offering documentation |
| Exit | Determined by the individual property’s investment strategy |
8. NexPoint
NexPoint offers DST investments in multifamily, industrial, lodging and life-sciences real estate and other commercial property sectors. Recent offerings show a $100,000 minimum purchase for cash or 1031 investors and accreditation requirements. For example, NexPoint Small Bay III DST had about $91.4 million of total capitalization, 44.9% loan-to-capitalization and 5.708% fixed interest rate.
Qualifying DST interests are available to be used in 1031 exchanges. Income is generated through rents of properties and performance of leases. Holding periods vary by offer. Investors must factor in the costs of facilitation, acquisition, financing and other transactions. Risks include leverage, tenant performance, vacancies, changes in valuation and illiquidity. Generally, the exit is tied to a future sale or the strategy laid out in the PPM
NexPoint Feature
| Feature | Details |
|---|---|
| Platform | DST and 1031 exchange investment platform |
| Sector Range | Multifamily, industrial, storage, lodging, life sciences, manufacturing and mineral rights |
| Geographic Reach | Assets across numerous U.S. states |
| Investment Scale | NexPoint reports $3.2B in gross real estate delivered through DSTs |
| Track Record | Reports 35 DSTs and 85 full-cycle investments |
| Current Variety | Offerings can range from traditional real estate to energy-related assets |
| Investor Purpose | Tax-efficient fractional ownership through qualifying DST structures |
9. Inspired Healthcare Capital
Inspired Healthcare Capital says that due to its focus on healthcare real estate, property type and operator performance are particularly important in evaluating its 1031-related opportunities. Healthcare sponsors can utilize different fractional ownership or DST structures and the investment structure should be selected on an offering-by-offering basis.
Investors should consult the current offering documents to determine the minimum investment, 1031 eligibility, projected distributions and holding period instead of applying a generic figure across all deals.
Key property data should include facility type, occupancy, operator or tenant strength, lease term, location and financing. Investors should also consider acquisition, management and offering expenses.
Key risks include healthcare operators’ performance, regulation changes, occupancy, financing and real estate valuation. The exit is typically based on the sponsor’s planned sale of the property or other disclosed realization strategy.
Inspired Healthcare Capital Feature
| Feature | Details |
|---|---|
| Investment Structure | Historically sponsored DST programs |
| Real Estate Focus | Healthcare-oriented investment strategy alongside multifamily exposure in filed offerings |
| 1031 Relevance | DST structures have been used for 1031 exchange investors |
| Investor Consideration | Property-level tenant/operator quality is particularly important |
| Key Metrics | Investors should examine occupancy, lease terms and operator strength |
| Risk Area | Healthcare properties can carry operating and regulatory considerations |
| Current Availability | Current offering availability should be verified before publication |
10. Cantor Fitzgerald
Cantor Fitzgerald has been providing DST-based solutions for investors looking to identify passive replacement property for 1031 exchanges. On its website, the educational piece explains that properly structured DST interests can qualify as replacement property under Section 1031 and provide fractional exposure to institutional quality real estate and professional management.
Property type, location, minimum investment, income target and holding period will vary according to the particular offering and you should take these figures from the current PPM and not generalize across the platform. Investors should look at lease income, tenant credit, financing, occupancy and property valuation before buying. Fees and expenses are also specific to each offering.
Risks include loss of principal, no public market, tenant problems, leverage and difficulty in selling interests. The exit is typically through liquidation of the underlying property at the sponsor’s discretion.
Cantor Fitzgerald Feature
| Feature | Details |
|---|---|
| Structure | Delaware Statutory Trust (DST) offerings |
| Primary Property Exposure | Multifamily has represented the majority of identified offerings |
| 1031 Application | DST interests can be structured as replacement property for qualifying exchanges |
| Investment Scale | Current SEC filings show multiple active offering programs |
| Minimum Range | Reported active offerings have shown approximately $100,000–$250,000 minimums |
| Institutional Platform | Backed by a large global financial-services organization |
| Investment Evaluation | Investors should compare leverage, property metrics, fees and projected distributions |
How We Selected the Best TIC Deals
Investment Structure: We looked at ownership structures, investor rights, distribution methods, and investment accessibility.
Property Quality: We looked at the property condition, asset type, location, occupancy and underlying real-estate fundamentals.
Sponsor Experience: We reviewed sponsor history, transaction experience, asset management capabilities, and investment track record.
Income Characteristics: We reviewed rental income, distribution objectives, lease structures and potential cash-flow stability.
Geographic Diversification: We considered exposure across strong markets, regions, property locations and economic environments.
Costs: We looked at acquisition, management, financing, administrative and possible disposition costs.
1031 Compatibility: We talked about whether the investment structure could be considered as replacement property for 1031 exchanges.
Conclusion
To summarize, The best Tenants in Common (TIC) real estate investments combine good properties, good tenants, good income potential, good sponsors and good leverage. Investors should do their homework and look at fees,
locations, 1031 exchange compatibility, holding periods and exit strategies before they invest. Investors can review offering documents and property-level financials to find investments that match their investment objectives and risk tolerance.
FAQ
What are Tenants in Common (TIC) real estate deals?
TIC deals allow multiple investors to own fractional interests in one property.
Are TIC investments eligible for 1031 exchanges?
Certain TIC structures may qualify for 1031 exchanges when IRS requirements are satisfied.
What property types are commonly available through TIC investments?
Common property types include multifamily, industrial, retail, healthcare, and commercial real estate.
What is the typical minimum investment for TIC deals?
Minimum investments vary by offering, sponsor, property type, and investor eligibility requirements.
