Investment Products Summary

Investment Products Summary

GK Development Offers a Variety of Real Estate Investments

Bond Offerings

A bond offering is a debt security under which the issuer owes the holders a debt and is obligated to repay principal at a later date (maturity date). The bonds generate interest income. These securities do not trade on any public exchange and are not widely offered for sale to the public. GK Investment Holdings, an affiliate of GK Development offers bonds to provide debt financing involved in the purchase and refinancing of real estate investment properties. These investments are traditionally oriented toward investors seeking current income from their real estate investments.

 

Equity Private Placement In Single Real Estate Assets

An Equity Private Placement is a transaction whereby investors can invest in equity securities in the form of common equity, preferred equity or other interests of a private issuer. These securities do not trade on any public exchange and are not widely offered for sale to the public. GK Development offers such investment opportunities in the form of “single asset” real estate investments. This single asset investment structure allows investors to consider an investment in a specific property, not a group of assets. This investment structure can give an investor detailed background on the property which is the subject of the investment offering prior to the investor making an investment.

 

Single Asset Debt Offerings

Debt And Mezzanine Debt/secured Private Placements In Real Estate Assets

A Debt and/or Mezzanine Debt/Secured Private Placements are transactions where investors invest in a debt security or take a secured position in an asset of an issuer. The investor typically receives a current interest payment (or distribution) over the term of the agreement.. GK offers such investments wherein the debt or secured interest is backed by the commercial property or properties. These investments are traditionally oriented toward investors seeking current income from their real estate investments. 

 

Single Asset 1031/DST Offerings

1031, TIC (Tenant in Common), and DST (Delaware Statutory Trust) Offerings

Section 1031 of the Internal Revenue Code provides a strategy for deferring the capital gains and depreciation recapture tax that may arise from the sale of investment/business property. By exchanging, investors may defer tax and reinvest all of the proceeds in the replacement property.

Since 1921 the tax code has allowed that any real estate held for investment or productive use in a trade or business may be exchanged for any other real estate that is held for investment or productive use in a trade or business. An apartment may be exchanged for an office property, office for retail, raw land for a TIC or DST, etc.

Section 1031 of the Internal Revenue Code: http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031

Reasons to Consider a 1031 Exchange:

  • Deferral of Tax on Capital Gains and Depreciation Recapture
  • Relieve the burden of active real estate ownership and property management
  • Potential for improved cash flow and appreciation
  • Ability to exchange into a higher quality property or properties
  • Achieve greater diversification (ownership in multiple properties rather than one)
  • Facilitate estate planning