TENANCIES IN COMMON

Tenancies in Common (TICs) are designed to appeal to investors seeking to complete a tax-free exchange under Internal Revenue Code Section 1031. IRS regulations require that participants in a tax-deferred exchange identify replacement property within 45 days of closing of the relinquished property, and complete the purchase of the replacemant property within 180 days.

Sellers often find it difficult to find quality replacement property at the time of sale. mRA typically has quality property in the pipeline available for identification. An investor does not have to acquire the entire property, only a Tenancy in Common interest in the property of a sufficient size to satisfy the regulations. TIC investors are encouraged to convert their TIC interests into Class B shares after the exchange has been "seasoned" for IRS purposes.