Origin Exchange FAQ

What are the fees for Origin Exchange? 

Origin only charges an acquisitions fee of 1.5% to 2.5%. There are no ongoing management fees. However, Origin is entitled to be reimbursed for the DST organizational and offering expenses.

What’s the minimum investment in Origin Exchange?

The minimum investment is $250,000. There is no cap on how much you can invest. 

Do I have to be an accredited investor or qualified purchaser to invest in the Origin Exchange? 

Investors in Origin Exchange must be accredited investors.

Can I invest in the DST through a business entity (i.e., a trust, limited liability corporation, partnership or corporation)?

The entity that is selling the asset to be exchanged in a 1031 exchange transaction must be the entity that acquires the DST interest. For instance, if a business partnership owns the investment, the partnership must make the DST investment. 

What markets does Origin target for DST assets? 

Origin Exchange’s Delaware Statutory Trust (DST) real estate assets are consistent with Origin’s stringent investment criteria: multifamily properties in the path of growth, geographically diversified in Origin markets across the U.S.

How much yield can I expect during the DST hold period?

Cash flow during the DST period is a function of many variables, including cap rate, financing costs and property-level expenses. While cash flow can vary depending on market and property attributes, we anticipate the DST will generate an average of 4.25% to 5% cash flow during the holding period.

What tax forms will I receive, and when can I expect them?

DST investors will receive a “substitute 1099” from the DST trustee, which will provide the investor with taxable income details. If the DST interests are exchanged for units in the operating partnership, the investor will receive a K-1, which reports the investor’s income share and provides comprehensive information about the investor’s deductions and other tax-related items about the partnership.

Can I redeem my DST interests? 

No. The investor is required to remain in the DST until the asset is either acquired or sold by the IncomePlus Fund.

Can I 1031 exchange out of the DST instead of waiting to see if the IncomePlus Fund will acquire my interests? 

No. However, if the IncomePlus Fund elects not to acquire the DST interest, you can opt to do a subsequent 1031 exchange. 

Will I have to pay a fee if the DST interests are acquired by the IncomePlus Fund? 

There is no fee payable in connection with the IncomePlus Fund’s exercise of the fair market value option.

If the IPF elects to acquire the DST through the 721 exchange, are my operating partnership units equivalent to shares in the IncomePlus Fund?

The operating partnership units will be substantially equivalent to IncomePlus Fund units. 

What happens to my DST interests if the IncomePlus Fund does not execute its fair market value option?

If the IncomePlus Fund does not execute its fair market value option to acquire the DST, the expectation is that the asset will continue to be held by DST investors until it is sold. At that time, the investor could elect to complete another 1031 exchange or take cash and pay taxes on the investment.

Will I be penalized if I choose to redeem my operating partnership units?

If the IncomePlus Fund chooses to acquire the DST, the redemption program is the same as the IncomePlus Fund’s.