Broadstone Asset Management, LLC, oversees the strategic planning, investment and financing activities conducted for the benefit of shareholders of Broadstone Net Lease and Broadtree Residential as well as other investors.
Broadstone managers have overseen billions of dollars in property acquisitions, debt and equity financing and dispositions through both public and private ownership vehicles. We’re comfortable pursuing new acquisitions opportunities, some of which may be offered to accredited investors or through joint venture arrangements.
Broadstone Asset Management currently actively manages two privately offered real estate investment trusts (REITs):
A REIT is a corporation with special tax treatment that combines the capital of many investors to acquire and/or provide financing for all forms of real estate. A REIT is in many ways like a mutual fund for real estate with investors obtaining the benefit of a diversified portfolio under professional management.
Some REITs, like Broadstone Net Lease, use an entity structure called an UPREIT to allow property owners interested in selling their properties to convert their ownership of one or more of their specific real estate properties into an operating company unit which can be immediately or eventually converted into‚ a private or public security on a tax deferred basis. As such instead of recognizing significant taxable gains in a cash sale of a highly appreciated property with a low tax basis, by contributing the property to the REIT through an UPREIT transaction‚ the contributing property owner’s historical cost basis is maintained. If the operating partnership units are gifted to others or end up in the owner’s estate‚ the ultimate recipient will receive a stepped-up basis equal to the value at transfer/death and the inherent gain resulting from the UPREIT transaction will not be subject to capital gains or income tax.