We are actively looking for UPREIT contributors. This transaction gives net lease property owners the opportunity to become common shareholders in GIP REIT through the disposition of their property.

What is an upreit?

The term UPREIT, is an abbreviation for ‘Umbrella Partnership Real Estate Investment Trust’ and refers to an entity structure that allows property owners to convert their ownership of one or more of their real estate assets into an interest which is, immediately, or can ultimately be converted into, a public security.

In the basic UPREIT structure the REIT properties are acquired and owned directly or indirectly by its umbrella partnership, often referred to as the “operating partner”. 

In an UPREIT transaction, property owners contribute their properties in exchange for ownership units in the operating partnership (“OP Units”).

Therefore, Generation Income Properties, LP, the main subsidiary of GIP, Inc., is the managing partner of the UPREIT property.


UPREIT Advantages:

  • Provides a viable tax deferral strategy to property owners facing significant capital gain tax liabilities on the sale of appreciated property with a low tax basis

  • Diversification of real estate holdings (OP Unit Holders have an interest in the REITs portfolio rather than just one property)

  • Potential to convert non-liquid, long-term assets into more salable securities after a 2-year holding period

(OP Units → REIT Shares → Cash)

  • No property management responsibilities or concerns

  • Regular income distributions

  • Improved cash position through potential leveraging of OP Units

How to UPREIT?

The phases of an UPREIT are as follows:

  1. Contributor and GIPR enter into a contribution agreement to contribute the property to the REITs portfolio
  2. GIPR exchanges OP units equal to the net fair market value of the contributor’s equity in the real estate investment
  3. Contributor receives quarterly income distributions
  4. After a 2-year holding period contributor has the ability to convert OP Units into common shares in the publicly traded REIT
  5. Contributor has the ability to sell common shares any time after 2 years
(Please read disclaimer found here.)
Please fill out the form below to start a conversation with me about our UPREIT opportunities!
Robert Rohrlack III
Robert Rohrlack III
Acquisitions Manager

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Review our investment criteria, submit OM(s), and get to know our acquisitions team!


Forward-Looking Statements

This information, whether or not expressly stated, may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. It reflects the Company’s expectations regarding future events and economic performance and are forward-looking in nature and, accordingly, are subject to risks and uncertainties. Such forward-looking statements include risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements which are, in some cases, beyond the Company’s control which could have a material adverse effect on the Company’s business, financial condition, and results of operations. Some of these risks and uncertainties are identified in the Company’s most recent Annual Report on Form 1-K and its other filings with the SEC, which are available at www.sec.govThe occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition, and results of operations. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward- looking statements to reflect events or circumstances that arise after the date hereof.