Partner Outlines the Structure of Private REITs

Due to today’s restrictive capital markets, some companies are looking for alternative capital sources. Companies with core real estate assets might consider the use of a private real estate investment trust (REIT) offering to raise capital for traditional corporate funding needs.

Chicago Partner Daniel Cullen authored an article in the Journal of Passthrough Entities on key REIT tax considerations that can be at issue in structuring such private REITs. Cullen outlines the types of private REIT structures often considered by companies looking to raise capital, as well as certain critical private REIT tax issues.

“A properly structured private REIT transaction can be a powerful tool to companies in need of capital – but also can be ripe with troubles if not carefully planned,” Cullen cautions.

Leader of Bryan Cave’s Tax Advice & Controversy Practice, Cullen focuses his practice in tax advice and corporate finance, including real estate capital markets transactions, structured finance, joint ventures and partnerships. He is an adjunct professor of tax law at the DePaul University College of Law.

Click here to read his full article, reprinted with permission from the September-October issue of the Journal of Passthrough Entities.