The 721 Exchange Program
A tax-deferred way to exit active ownership of unanchored retail.
Move out of hands-on management of your strip or neighborhood retail center and into a passive, income-producing position — without triggering the capital-gains tax bill on sale.
What qualifies
- Unanchored / neighborhood retail centers — no big-box anchor
- Necessity-based tenants — medical/dental, food & coffee, fitness, salons, and similar e-commerce-resistant uses
- Growth markets — Texas and the broader Sun Belt
- Well-leased, well-kept centers fit most easily, though every property is evaluated individually
Google Rating
What our customers say
"Simply one of the most effective real estate investment teams out there. Every interaction illustrates how much they authentically care about finding and delivering the right deals at the right time. Truly one of the best!"
Cameron Schettler
"As a real estate investor I purchased 3 homes from them in the past month. Very responsive and professional. Can't wait to do more deals with them soon!"
Gregg Marcazo
"I have worked with Tyler from TCO Assets for several years in several capacities. Always professional, always responsive. Most recently he helped move a property quickly that we didn't have the contacts to get accomplished efficiently and profitably."
Paul Mendel
"I have been buying from the TCO Assets team for the last couple years. They are the most transparent and straightforward group I have worked with. Fast communication, and they know how to get deals DONE. If you are looking to buy investment real estate, this team consistently finds profitable opportunities."
Daniel Strohli
"I have represented TCO Assets on multiple transactions as an agent. They are as professional as they come. Received extremely positive feedback from investors on the other side of transactions. Professional, punctual, transparent, and they personify what good business is all about."
Albert 'Ricky' Stever
"Knowledgeable, friendly, and professional. The people at TCO Assets are great to work with."
Mark Abramovich
"I just started investing with TCO Assets and I've already locked up some great deals!"
Jake Marcus
"They are a great investment company. I did a rehab for them and they pay on time with no issues. I'll be happy to keep working with them."
Javier Hernandez
"Awesome to work with, very communicative and timely. Was a pleasure doing business with TCO and very down to earth."
King42894
"My experience with TCO assets was positive. Transactions and responses to issues were dealt with professionally and in a timely manner. TCO was a great company to work with!"
Mary Kehoe
"These investors are an honor and pleasure to work with regarding our recent real estate transaction."
Neeta Gupta
"Simply one of the most effective real estate investment teams out there. Every interaction illustrates how much they authentically care about finding and delivering the right deals at the right time. Truly one of the best!"
Cameron Schettler
"As a real estate investor I purchased 3 homes from them in the past month. Very responsive and professional. Can't wait to do more deals with them soon!"
Gregg Marcazo
"I have worked with Tyler from TCO Assets for several years in several capacities. Always professional, always responsive. Most recently he helped move a property quickly that we didn't have the contacts to get accomplished efficiently and profitably."
Paul Mendel
"I have been buying from the TCO Assets team for the last couple years. They are the most transparent and straightforward group I have worked with. Fast communication, and they know how to get deals DONE. If you are looking to buy investment real estate, this team consistently finds profitable opportunities."
Daniel Strohli
"I have represented TCO Assets on multiple transactions as an agent. They are as professional as they come. Received extremely positive feedback from investors on the other side of transactions. Professional, punctual, transparent, and they personify what good business is all about."
Albert 'Ricky' Stever
"Knowledgeable, friendly, and professional. The people at TCO Assets are great to work with."
Mark Abramovich
"I just started investing with TCO Assets and I've already locked up some great deals!"
Jake Marcus
"They are a great investment company. I did a rehab for them and they pay on time with no issues. I'll be happy to keep working with them."
Javier Hernandez
"Awesome to work with, very communicative and timely. Was a pleasure doing business with TCO and very down to earth."
King42894
"My experience with TCO assets was positive. Transactions and responses to issues were dealt with professionally and in a timely manner. TCO was a great company to work with!"
Mary Kehoe
"These investors are an honor and pleasure to work with regarding our recent real estate transaction."
Neeta Gupta
Why owners make the move
Why an owner would do this
No single profile — owners come to this for different reasons
Done being a landlord
Tired of tenant calls, leasing, and repairs — without necessarily being ready to "retire".
Concentration risk
Too much net worth sitting in one property, one tenant mix, one market.
Avoiding the 1031 scramble
No interest in racing a 45/180-day clock and overpaying for a replacement just to keep deferring.
Life circumstances
Health, relocation, or simply wanting to be hands-off, regardless of age.
Estate planning
A simpler position to pass to heirs, with the deferred gain potentially erased at step-up.
Ownership transitions
Buying out a partner or unwinding shared ownership without triggering a tax bill.
Passive income
Wants passive income without redeploying capital into another active deal.
Your team
Who you'll work with
Your introduction is handled by experienced acquisition and disposition professionals — the same people who source, evaluate, and close deals across our markets.
Carah Hanley
Danny Brown
Ashley Blumke
The last exchange you'll ever have to make
A 1031 only opens forward. There's never been a graceful way to just stop.
If you've owned long enough, you know the feeling. You built real wealth in retail real estate — bought well, managed well, maybe traded up a few times, deferring gains along the way with 1031 exchanges. On paper, it worked. But every deferral commits you to buying — and managing — another property. Keep going, or sell and hand over decades of deferred tax.
The clock
45 days to identify a replacement, 180 to close — or the gain becomes taxable.
The reinvestment
To keep deferring, you buy again, sometimes overpaying just to beat the deadline.
The management
Every replacement property is another set of tenants, leases, and 2 a.m. calls.
The exit that isn't
Cash out, and a large share of your equity goes to capital-gains and recapture tax. So the cycle continues.
How the three exits compare
A conceptual look at the trade-offs — not tax advice.
Sell outright
Cash out, pay the tax
- Gain deferred — no tax today
- No active management
- Diversified position
- Passive income
- Estate & legacy simplicity
- Liquidity / access to cash
721 contribution
Contribute, go passive
- Gain deferred — no tax today
- No active management
- Diversified position
- Passive income
- Estate & legacy simplicity
- Liquidity / access to cash
1031 exchange
Trade, keep deferring
- Gain deferred — no tax today
- No active management
- Diversified position
- Passive income
- Estate & legacy simplicity
- Liquidity / access to cash
The alternative: one final exchange
Through Section 721 of the tax code, your property is contributed into a professionally managed real estate investment trust (REIT) that specializes in unanchored, necessity-based neighborhood retail. You exit active ownership and move into a passive, income-producing position — while the capital-gains tax stays deferred.
You stop being a landlord. You become an investor in a diversified portfolio, receiving regular income while a professional team handles the rest.
Built on Section 721 of the Internal Revenue Code and structured through a professionally managed REIT operating partnership — a path designed specifically for owners who want out of the day-to-day without a taxable sale.
Two paths in, both tax-deferred
You own the property outright
Contribute directly into the REIT's operating partnership under Section 721 (an "UPREIT" exchange) and receive partnership units in return. No sale, no tax today.
You're mid-sale or mid-1031
Complete a standard 1031 exchange into the REIT's Delaware Statutory Trust (DST) first — satisfying your exchange requirement with qualifying like-kind real estate. After a holding period, that DST interest converts into the REIT's operating partnership via the same 721 step.
How it works
The journey, in four steps
From active ownership to a passive, income-producing position — the path is straightforward.
Contribute
Contribute (or 1031-then-contribute) your retail center to the REIT.
Receive units
Receive operating-partnership units — an ownership stake in the full portfolio.
Collect distributions
Collect regular distributions while the REIT manages every property.
Hold for legacy
Hold for income and legacy, with the capital-gains tax still deferred.
What you get
A passive position with the gain still deferred
Passive income
Regular distributions replace collecting rent and fielding tenant calls.
Instant diversification
A fractional stake across a large, multi-property portfolio instead of concentration in one center.
Continued tax deferral
Because you contributed rather than sold, there's no taxable event today.
A finish line for your family
Heirs generally receive a stepped-up basis at your passing, which can eliminate the deferred gain entirely under current law.
A 721 contribution is a one-way move. For owners who are ready to be done — done sourcing the next deal, done managing tenants, done racing exchange deadlines — that finality is the point.
A word on liquidity
This is a long-term, income-and-legacy move — not a trading position. In exchange for passive income, diversification, and continued deferral, you give up daily liquidity. There is no public market for the resulting units, and you shouldn't count on selling quickly. For most owners, the intended exit is simply holding for life.
This should only be considered by owners who won't need this capital back on short notice.
Next step
You don't need to decide anything today
The next step is a short, no-obligation conversation to walk through current terms and confirm whether your property is a fit.
Own a property that fits the criteria above?
Important disclosures
Educational purpose; not an offer. This material is for general educational and informational purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security, and it is not a recommendation. Any offer is made solely by the REIT through its confidential offering documents, which should be reviewed in full before any decision.
Not tax, legal, or financial advice. Tax treatment — including 1031 exchanges, Delaware Statutory Trusts, and Section 721/UPREIT contributions — depends on your specific facts and current law, which can change. Consult your own qualified tax, legal, and financial advisors before acting.
Risk & liquidity. Interests in a DST and units in a REIT operating partnership are securities involving substantial risk, including loss of principal. They are illiquid with no public market. A 721 contribution is generally irreversible; converting units to shares and any later sale or redemption are generally taxable events. Investment is typically limited to accredited investors.
Role. TCO Assets and its representatives are independent real estate professionals and are not the issuer, sponsor, or manager of the REIT or any related security, and do not provide the REIT's offering documents. Specific terms are provided upon a formal introduction.