About the Course
Introduction
This CLE course will discuss the legal and structuring issues associated with tenants in common (TICs) real estate investments, focusing on financing requirements and Section 1031 exchanges. The panel will discuss the entity, due diligence, and loan document provisions needed for the TIC borrower, the potential securities law issues associated with sponsored TICs, and how TICs should be structured to comply with federal tax law for a Section 1031 exchange.
Description
TIC transactions can offer real estate investors deferred taxation on their capital gains via Section 1031. Sponsored TICs additionally provide investors with the opportunity to diversify their investment portfolio and to own an interest in larger real estate assets. However, sponsored TICs not only must comply with Section 1031 but also usually are securities and must comply with federal and state securities laws. Complying with these legal requirements can create challenges in meeting mortgage lender requirements.
Listen as our authoritative panel discusses the financing, securities, and tax issues associated with TIC transactions.
Presented By
Mr. Kakstys’ practice focuses on the acquisition, disposition and financing of commercial properties. He represents owners of properties throughout the U.S. in connection with purchases and sales, with particular emphasis on shopping center transactions. Mr. Kakstys also represents institutional lenders in the origination of commercial mortgage loans for their securitization and balance sheet lending platforms. His practice encompasses financing a variety of property types throughout the country, including retail, multifamily, office, hotel and industrial assets, and he has experience with a wide array of financing structures and deal features, including subordinate and mezzanine debt, 1031 and reverse 1031 exchanges, leasehold mortgages, industrial development agency interests and tenancy-in-common ownership. Mr. Kakstys also has experience representing clients in connection with loan purchases, sales and modifications and commercial leases and subleases.
Ms. Whitman has over 30 years of experience as a business and real estate attorney. Her varied experience includes serving as general counsel for a national real estate company and deputy general counsel for a publicly-traded company. She also has been in private practice with large, international law firms and served as an administrative law judge. Ms. Whitman has spoken at business and real estate programs sponsored by the Association of Corporation Counsel, American Bar Association, Alternative & Direct Investment Securities Association (formerly TICA). Also a frequent author on business and real estate law, Ms. Whitman has been published in the Fordham Journal of Corporate and Financial Law, Western Real Estate Business, and Realty Biz News. She also writes the award-winning Bach to Business blog, which appears on LexBlog and JDSupra.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Wednesday, July 29, 2026
- schedule
1:00 pm ET/10:00 am PT
I. Section 1031, Rev. Proc. 2002-22
II. Use of disregarded special purpose entities in TIC transactions
III. Key terms of the TIC agreement
IV. Securities law compliance with sponsored TICs
V. Addressing mortgage lender requirements in a TIC transaction
The panel will review these and other critical issues:
- When should a real estate investor consider a TIC investment for their Section 1031 exchange?
- Structuring a TIC investment that complies with both tax and securities laws
- Preparing the TIC agreement
- Addressing securities law concerns in a sponsored TIC offering
- Negotiating mortgage loan documents for a TIC
- Exiting a TIC structure upon property disposition or for a troubled asset
