Origin Investments Launches Origin Exchange

Program Facilitates 1031 Exchange Transfer from Active Property Ownership to Position in Origin’s Income Plus Fund and Provides Tax, Passive Income and Estate Planning Benefits

CHICAGO (May 31, 2024)—Origin Investments, a leading multifamily investment solutions provider, is launching Origin Exchange, an investment program that allows qualified 1031 exchange investors to realize significant tax advantages, access institutional-quality multifamily properties, and estate-planning efficiencies at a fraction of typical fee structures.

The Origin program establishes a Delaware Statutory Trust (DST) to acquire and manage real estate consistent with the firm’s stringent investment criteria: multifamily properties in the path of growth, geographically diversified in Origin’s target markets across the U.S. Interests in the DST qualify for a 1031 exchange, which allows investors who sell real estate assets to complete a tax-deferred like-kind exchange and co-invest in, but not manage, an institutional-quality multifamily property. Origin is in final negotiations and due diligence for its first DST acquisition and will offer positions starting at $250,000.

“Our philosophy is to create financial solutions that help our investment partners grow and protect their wealth,” said Michael Episcope, co-CEO of Origin Investments. “Launching Origin Exchange was an easy decision. The 1031 exchange industry is notorious for sky-high fees, and investors deserve a better choice. Our goal is to upend this market by cutting out the middleman, offering high-quality investments, and simplifying the lives of investors who no longer want to actively manage real estate.”  

As it launches the program, Origin has appointed Michael O’Shea, an experienced professional with 17 years of extensive work in commercial real estate, to the newly created position of vice president of Origin Exchange. 

“With Origin Exchange, we are creating access for investors who can come directly to Origin Investments rather than having to add another step or point of contact,” O’Shea said. “Equally as important, Origin’s fee structure is a small fraction of what others typically charge. Ultimately that translates into a greater financial position that over a number of years can produce a substantial difference.”   

Participants in a 1031 exchange can receive benefits including the indefinite deferral of federal capital gains and state income taxes, the potential for passive income, and simplified estate planning. In addition, Origin Exchange offers numerous features and benefits, including:

• Potential future capital diversification: The operating partnership of Origin’s IncomePlus Fund has an option to acquire the DST in exchange for units in its operating partnership. This option, if it is exercised, would diversify the investor’s risk.   
• Potential enhanced liquidity: If the IncomePlus Fund acquires the DST, the OP units exchanged for the DST interest will be eligible to participate in a redemption program that mirrors the redemption program provided by Origin’s IncomePlus Fund.  
• Low fees: Typically, DST investments have sales commission and management fees that can be as high as 14%. Origin Exchange charges an acquisition fee and expenses for organizational and operating costs, but it doesn’t pay brokerage sales commissions, which means more of an investor’s capital is going into the purchase of real estate. On a $250,000 investment, and over time, that difference could provide a substantial additional return.
• Expert deal sourcing: Origin leverages local experts in its target markets and uses Multilytics℠, its proprietary suite of machine-learning models, to identify areas with high potential for growth.  
• Direct access: Investors can access DSTs directly and don’t need to work through a broker. Further, a dedicated investor relations team member can answer any questions.

About Michael O’Shea

Michael O’Shea is a chartered financial analyst who has nearly 17 years of experience working in various capacities for real estate and financial services firms. Most recently he was a senior vice president at Cantor Fitzgerald. He began his career with Inland Securities Corp.  

He has extensive experience in the areas of investor relations, capital raising portfolio management and tax-based investing.

Origin’s IncomePlus Fund

Origin’s Income Plus Fund is an open-end fund that provides income and appreciation by investing in direct finance mechanisms, core-plus and build-to-core assets. Its targeted investment objectives are to provide a 5% to 7% net annual yield, paid monthly; 3% to 4% net annual appreciation; and a 9% to 11% net annual return.

The Fund was launched in early 2019. As of March 31, 2024, it had a net asset value (NAV) of $441.4 million based on investments in 31 projects. The breakdown of NAV is 61% in preferred equity, 18% in common development, and 17% in core-plus assets.