Real estate investment industry leader Dwight Kay introduces the very first published comprehensive book dedicated to the increasingly popular 721 Exchange UPREIT, providing an essential roadmap for navigating this powerful and complex tax strategy.
LOS ANGELES, Dec. 11, 2025 /PRNewswire/ — Kay Properties and Investments, a leading national real estate wealth management firm that specializes in Delaware Statutory Trust investments for 1031 exchange investors, announced today that Founder and CEO, Dwight Kay, has authored a new book, “721 Exchange UPREITs: What Investors Need to Know Before Investing.”
The book which is available on Amazon serves as a critical resource for 1031 exchange investors, real estate owners/operators, attorneys, and CPAs seeking to understand the advantages, complexities, and potential dangers of the 721 Exchange UPREIT.
Drawing on decades of direct experience facilitating nearly 10,000 1031 Exchange, DST and 721 UPREIT transactions, Kay’s new book provides a clear, authoritative breakdown of how the Delaware Statutory Trust into a 721 Exchange UPREIT (Umbrella Partnership Real Estate Investment Trust) works.
Why Knowing the Pitfalls of the 721 Exchange UPREIT is So Important
Understanding the 721 Exchange UPREIT process is also incredibly relevant to millions of investors as the DST market saw historic growth over the past five years, expanding from $2 billion in 2015 to more than $10 billion in 2023. As a result, a wave of DSTs are nearing full-cycle maturity, creating an unprecedented number of investors for whom the 721 exchange may not only potentially be an option as they seek an exit strategy to their DST property, but also a critical strategy they must understand.
Kay’s latest book on 721 Exchange UPREITs clearly walks readers through the process of using a 721 Exchange UPREIT as an exit strategy from a Delaware Statutory Trust (DST), allowing them to defer capital gains taxes by converting their DST interests into REIT Operating Partnership Units. Most importantly, the book helps investors better understand the importance of due diligence and what pitfalls and risk factors should be considered prior to investing in a DST with a 721 UPREIT exit strategy.
“Over the years, the use of the 721 Exchange as a Delaware Statutory Trust exit strategy has become increasingly popular among investors. A strong motivation for writing this book was to fill a void in investor education by shedding light on the potential benefits and dangers embedded within the 721 Exchange, a complex strategy often undertaken by 1031 exchange DST investors without a full understanding of its implications. These dangers can potentially expose one’s life’s savings to hidden pitfalls. Drawing from my direct experience with completing many personal 721 Exchange UPREIT investments and from advising thousands of clients nationwide, my aim is to provide a clear, practical guide to help investors navigate 721 Exchange UPREIT waters with a clear overview of the potential benefits, potential risks, case studies on 721 UPREITs and things to consider prior to participating in a DST with a 721 UPREIT exit strategy. The book walks investors through an overview of the 721 Exchange process, highlighting the essential due diligence investors must consider that is often buried in fine print, and provide the clarity investors need to make a informed decision with the help of their CPA and attoreny,” said Dwight Kay.
The book explores critical and often overlooked topics essential for DST and 721 UPREWIT investors, including:
- 721 Exchange UPREIT Due Diligence: A framework for evaluating the sponsor, assets, and structure.
- The Potential Benefits and Pitfalls of Perpetual Life Non-Listed REITs: An examination of the potential benefits of these vehicles as well as the risks involved when dividends are paid from borrowings and dividend reinvestment programs instead of operational income.
- The Importance of AAFO: Why it is preferred for dividends to be fully covered by Adjusted Funds from Operations for potential long-term sustainability.
- The Value of Optionality: How DST investors should look at 721 UPREIT strategies and the optionality that they may or may not provide.
- Understanding 721 UPREIT Tax Protection Agreements: A clear-eyed look at the crucial role of Tax Protection Agreements and other potential safeguards.
Blending detailed observations from real world experience with practical investment strategy, “721 Exchange UPREITs – What Investors Need to Know Before Investing” chronicles a critical overview of the 721 Exchange process from start to finish. Through compelling, actual case studies, Kay showcases what investors that are transitioning out of a Delaware Statutory Trust into a 721 exchange UPREIT vehicle should consider prior to investing.
Dwight Kay founded Kay Properties nearly two decades ago and has helped build the firm into a nationally recognized leader in the 1031 Exchange and Delaware Statutory Trust (DST) space. Kay is also the author of the groundbreaking first book on Delaware Statutory Trusts, titled, “Delaware Statutory Trust Properties – An Introduction to DST Properties for 1031 Exchange Investors”, a work that has been read by over 100,000 investors nationwide.
The Kay Properties team has helped 1031 exchange investors complete nearly 10,000 – 1031 exchange, DST and 721 exchange investments. Under Kay’s leadership, the firm has become renowned for its rigorous due diligence and investor education, and the creation of the www.kpi1031.com marketplace where investors can access anywhere from 20-40 DST offerings from over 25 different sponsor companies.
About Kay Properties and www.kpi1031.com: Kay Properties helps investors choose 1031 exchange investments that help them focus on what they truly love in life, whether that be their children, grandkids, travel, hobbies, or other endeavors (NO MORE 3 T’s – Tenants, Toilets and Trash!). We have helped 1031 exchange investors for nearly two decades exchange into nearly 10,000 – 1031 exchange, DST and 721 UPREIT investments. Please visit www.kpi1031.com for access to our team’s experience, educational library and our full 1031 exchange investment menu.
This material is not tax or legal advice. Please consult your CPA/attorney for guidance. Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee returns and does not protect against loss. Potential cash flow, potential returns and potential appreciation are not guaranteed. There is a risk of loss of the entire investment principal. Please read the Private Placement Memorandum (PPM) for the offerings business plan and risk factors before investing. Securities offered through FNEX Capital LLC member FINRA, SIPC.
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SOURCE Kay Properties and Investments
