vineyard

Optional Tax-Favored Estate Planning and
Investment Diversification

Tax-favored

Under one option, instead of selling the property for all cash, the seller can take units in a tax-favored UPREIT structure in exchange for the property, and thereby benefit by being able to defer a considerable portion of any tax liability upon the sale leaseback. These shares provide considerable flexibility for estate or family planning and pay the same dividend as to other REIT shareholders.

Estate Planning

Because of the unique nature of the instruments, the UPREIT shares can be transferred to heirs tax-free in certain circumstances, making UPREITs particularly attractive to small operators or family-owned businesses that may be facing estate planning issues. 

Investment Diversification

This option also offers the advantages of potential gains in unit share values, to receive dividend distributions, the ability to borrow against units, and the benefits of participating in the REIT’s portfolio diversification. 

This UPREIT structure offers many of the same advantages as owning the REIT shares directly.  These being shares in the parent company of VinREIT, Entertainment Properties Trust (NYSE stock symbol: EPR), a large, well-established publicly-held REIT with a successful track record.

Services

Need a list of the pages that should have links here (if not below) and the order they should appear.

Services Main Page

Wine Real Estate Sale Leasebacks

M & A Process

Mergers

Lease and Purchase Option Terms

Advantages of Leasebacks

Wine Business Growth Capital

Strategic Advisory

Valuations and Business Appraisals

 

 

Lease and Purchase Option Terms

Lease Terms

  • Property purchased for cash at full market value
  • Fixed leaseback rate schedule with annual rent increases of usually only 2%, making the lease costs increasingly attractive over time.
  • Base lease term - usually 10 years, plus renewal options
  • Multiple options to renew in 5-10 year increments
  • Additional financing available for property improvements, including planting, with the capital being added to the lease

Purchase Option Terms

A purchase option is provided at the end of the lease period and each renewal period, with the option price and terms tailored to your needs. 
The option price can be set at a fixed price or a formula price, which provides an opportunity to realize potential appreciation in property value.  Alternatively, the option price can be the then-current market value, to qualify the lease as an off-balance sheet operating lease.

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