Brookfield Real Estate Income Trust (Brookfield REIT), a publicly registered nontraded REIT formerly known as Oaktree Real Estate Income Trust, is initiating a 1031 exchange program, The DI Wire reports.
Section 1031 of the Internal Revenue Code allows investors to defer paying capital gains taxes on investment property sales by reinvesting the proceeds into a similar investment property within a specified time frame. Securitized 1031 exchange programs are structured as securities and sold to retail investors.
Through its operating partnership, Brookfield REIT will issue and sell up to $1 billion of beneficial interests in specific Delaware statutory trusts (DSTs) holding at least one real property sourced from Brookfield REIT’s real properties or from a third party. Each property will be held in a DST and leased back by a wholly owned subsidiary of the operating part