What's the normal hold period for a TIC investment?   Can I sell early?

 Thanks, Lindsay

Hi Lindsay -

The typical hold period on a TIC property will be set forth in the offering documents - typically the estimated hold is somewhere between 7-10 years, but in many cases if the asset managers receive an offer on the property earlier, or market conditions are favorable to sale, the issue will be put to vote before the TIC's before then (ie. a project with an estimated hold period of 7 years may be sold successfully in 3 years).

You must have the ability to sell your interest in the property early, its one of the structural requirements under Rev. Proc. 2002-22; there is typically a procedure for this outlined in the offering documents as well, and the right of first refusal (or in english, "first dibs") is typically offered to the Sponsoring company or the other TIC investors; if they are not interested for whatever reason, the investment may then be offered for resale through outside brokers.

Hi Lindsay,

This is a follow-up to Alexis's post.  Your ability to sell an interest in a TIC Investment will depend on the performance of the specific property, the real estate market and the economy to a certain degree.  The recent TIC market has been exceptionally strong and the ability to sell a TIC interest has not been a problem, although there have been very few people who have wanted to sell.  Changes in the items referenced above will change the ability to sell a TIC interest.