#USA #Real Estate #1031 Exchange #Park City #PREP Property

PREP Property Group Launches the PREP Exchange

PREP Property Group, renowned as a key player in the retail real estate sector, has launched an innovative platform known as PREP Exchange. This newly unveiled entity is designed specifically for accredited investors seeking seamless solutions for 1031 exchanges. It offers a unique opportunity to invest in institutional-quality real estate through fractional ownership via Delaware Statutory Trusts (DSTs).

The creation of PREP Exchange comes at a time when the demand for 1031-eligible DST investment products is significantly rising. Investors are increasingly looking for efficient ways to defer capital gains taxes, especially amid growing concerns around these taxes and a shrinking supply of replacement properties.

Key Features of PREP Exchange

The offerings from PREP Exchange are designed to cater to qualified investors aiming to transition their appreciated real estate into high-quality, necessity-driven retail properties.

• - Institutional Sponsorship: The platform is supported by the strong infrastructure of PREP Property Group, boasting a management team with over 30 years of experience in the real estate industry.
• - Focus on Necessity Retail: The investment approach centers on net lease properties, which have shown resilience and strong performance post-pandemic.
• - Pre-Arranged Financing Options: Investors can expect packages that include non-recourse, fixed-rate debt at competitive levels, as well as all-cash transactions, depending on the specific investment.
• - Monthly Cash Flow and Growth Potential: Each DST will aim at providing investors with monthly cash flow at competitive rates, along with the potential for long-term asset appreciation.

Industry Insight

Michael C. Phillips, the Chief Executive Officer of PREP, highlighted the changing landscape of retail real estate, stating, "E-commerce has overshadowed many retail sectors for the past 15 years. However, the apocalypse for brick-and-mortar retail hasn't appeared as many predicted. Consumers still favor shopping online with in-store pickups, which has led retail real estate to its strongest fundamentals in decades."

The introduction of PREP Exchange aligns with the current trend where investors are keen on reallocating their capital into necessity retail, especially with new property supply hitting record lows. The inaugural offering from PREP Exchange is expected to hit the market at the beginning of 2026, capturing the attention of numerous industry participants eager to explore what this unique investment opportunity has to offer.

About PREP Property Group

Founded by Michael C. Phillips, PREP Property Group operates with a vertically integrated approach in real estate. Born from the strategic frameworks established during his tenure at Phillips Edison Company, PREP focuses on revitalizing retail spaces, transforming underperforming lifestyle centers, power centers, and malls into profitable entities. The firm's Net Lease division actively acquires well-located retail properties across the United States, providing diverse investment options including but not limited to auto parts stores, pharmacies, and casual dining establishments.

For those seeking additional information regarding PREP Exchange, interested parties can connect with PREP representatives or reach out to their sales desk at 833-OWN-PREP (7737). With the evolving landscape of real estate investment, PREP Exchange stands ready to meet the needs of today's investors looking for robust outcomes in a complex financial environment.