Virtú Investments Launches VRX, a Unique and Tax-Efficient Real Estate Exchange Platform
Innovative solution enables tax-deferred reinvestment of sale proceeds of any real estate asset into a new multifamily property, with future opportunity to enter into a professionally managed fund
LARKSPUR, Calif., April 09, 2024 (GLOBE NEWSWIRE) -- Virtú Investments, a multifamily real estate investment firm primarily engaged in the acquisition and management of apartment properties in the western United States, today announced the launch of VRX, an innovative platform that allows property owners to defer taxes on real estate sales proceeds and invest alongside the Virtú Evergreen Fund, L.P., a professionally managed multifamily fund built for generational ownership, long-term compounding, extreme tax efficiency, and flexible liquidity.
VRX is the latest innovation within Virtú’s legacy of creating tax-advantaged real estate strategies aligned with the needs of investors seeking optimized generational wealth planning, risk management, and estate planning. Through VRX, real estate owners have the opportunity to sell and reinvest their proceeds through a more durable and advantageous structure than the traditional Delaware Statutory Trust (DST).
“The current market for aggregating 1031 exchanges has largely been designed to capture investor dollars and meet the minimum expectations for deferring taxes, with seemingly little consideration for the long-term outcome for owners,” said Michael Green, CEO of Virtú Investments. “Now, through VRX, property owners can not only reinvest their assets through a highly tax-efficient and cost-effective program, but also transition their holdings to a multifamily fund strategy managed specifically for long-term alpha, risk mitigation, and wealth planning.”
Using a combination of two time-tested and tax-friendly real estate strategies – Section 1031 and Section 721 – the VRX platform offers real estate owners, wealth managers and their clients two key opportunities:
- When a real estate property with price appreciation is sold, owners can leverage a 1031 exchange to reinvest the capital into one of the multifamily properties that has been offered by Virtú Investments, specifically through a Tenancy-in-Common (TIC) structure alongside the Virtú Evergreen Fund. This process allows owners to actively invest in a multifamily property that will be managed by Virtú Investments, while also deferring taxes on the sale.
- Following the 1031 exchange and after a limited holding period, owners will have the option to utilize the 721 contribution mechanism to exchange interest in their multifamily property for equivalent interest in the Virtú Evergreen Fund, resulting in diversified and passive exposure across the multifamily sector on an ongoing tax-deferred basis.
Launched in 2015, the Virtú Evergreen Fund is designed to allow investors to perpetually defer taxes on gains and cashflow by also leveraging 1031 exchanges within the fund. This unique “inside-the-fund” 1031 feature provides the fund the flexibility to perpetually adjust its portfolio in pursuit of investment alpha across markets and real estate cycles. The open-end fund currently holds $1.1 billion in real estate across six western U.S. markets, primarily consisting of Class A and B quality multifamily assets valued at between $15 million and $150 million. The Evergreen Fund, which recently announced its reopening, is a key strategy within the Virtú platform, which has owned and operated 23,000 apartments across 33 markets and realized a Net IRR of 19.4% over 26 years.
For more information about VRX please click here.
For more information about the Virtú Evergreen Fund, L.P. please click here.
About Virtú Investments
Virtú Investments is a multifamily real estate investment firm primarily engaged in the acquisition and management of apartment properties in the western United States. Since its founding in 1997, Virtú has acquired and operated 130+ properties, totaling over $3.7B in real estate. Virtú is focused on serving its investors with innovative tax-efficient solutions within the multifamily investment space. Virtú maintains a highly selective acquisitions practice and a fully integrated, in-house property management firm. For more information please visit https://www.virtuinvestments.com/
Media Contacts
Adam Dickter / Josh Gerth
Dukas Linden Public Relations
Virtu@dlpr.com