Succession Planning

The Benefits of Rollups and UPREITS

Cendrowski Corporate Advisors played an instrumental part in developing the UPREIT structure during the resurgence of REITs in the early 1990s and has served as the outsourced tax department for a publicly traded REIT with a capital value in excess of $1 billion.

Rollups, in general, and UPREITS in particular, provide an opportunity to aggregate assets on a tax-free basis allowing businesses to diversify their asset portfolios while helping to minimize their tax obligations.

A rollup is a process whereby investors, typically private equity firms, acquire and merge multiple small companies in the same market to reduce costs through economies of scale.

Why Choose an UPREIT?

Like rollups, an UPREIT allows for diversification. For example, if a member of the UPREIT is a member of a publicly traded REIT, the rollup entity gains access to publicly traded capital markets. An additional benefit is the ability to convert shares into publicly traded stock.

An Umbrella Partnership Real Estate Investment Trust or UPREIT is an entity that allows owners of real estate that has appreciated to contribute it to a trust, known as a Real Estate Investment Trust or REIT, so they can continue to benefit from a property after the ownership has transferred. It’s a strong strategy for deferring capital gains taxes.

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Succession Planning Difficulties Faced by Family Offices Today

Is your business ready for the next generation? Succession planning for a family who starts a successful business has its own set of complicated issues. One family had embedded their family office in their business of real estate construction and ownership of commercial property. The patriarch’s selection of a younger female sibling started a family […]

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Why You Need to Build Transferable Value in Your Business

What is your business worth without you? One family operating business owner wanted to sell the business. The next generation of the family was too young to contribute to operating the business. When the owner consulted with an investment banker he was convinced by the banker he could sell the business to a strategic buyer […]

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Walt McGrail Interview

Cendrowski Corporate Advisors Managing Director, Walt McGrail, was interviewed during halftime of the University of Michigan Men’s Basketball game on Jan 22nd against Penn State. The interview discussed an overview of our firm’s services, the innovative impact Cendrowski Corporate Advisors made with the creation of the UPREIT structure, and how we serve our clients with […]

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