PREP Property Group Launches Dedicated 1031 Exchange Platform: PREP Exchange
PREP Property Group LLC, a national owner and operator of retail real estate, announced the formation of PREP Exchange LLC, an affiliate created to provide accredited investors with 1031 exchange solutions through high-quality, fractional Delaware statutory trust investments.
DST offerings from the affiliate are expected to come to market in early 2026.
PREP Exchange-sponsored products will enable qualified investors to defer capital gains taxes by exchanging appreciated real estate into institutional-grade, necessity-driven net leased retail properties managed by PREP Property’s existing best-in-class operating platform. Each DST offering is expected to be 100% pre-packaged, debt-structured, and immediately income-producing.
“E-commerce cast a cloud over the category for the past 15 years. Armageddon never came to fruition as consumers exhibited a preference to shop online and pickup in store. Retail real estate is experiencing its strongest fundamentals in decades and new supply is at historic lows, making the timing ripe for investors to reposition capital into necessity retail,” said Michael C. Phillips, chief executive officer of PREP Property.
PREP Property listed key benefits of DST offerings sponsored by PREP Exchange as:
- Supported by the existing infrastructure of PREP Property and PREP management’s 30+ years’ experience the real estate business;
- Net lease-focused necessity retail with embedded inflation buffers and strong post-pandemic performance;
- Pre-arranged financing with non-recourse, fixed-rate debt at competitive leverage levels; or all-cash debt-free, depending on the particular transaction; and
- Monthly competitive rate cash flow combined with the potential for long-term appreciation.
“PREP Exchange pairs our decades of net lease retail expertise with a streamlined 1031 solution that removes investment barriers and delivers institutional-quality assets investors have been asking for,” added Phillips.
As previously reported by AltsWire, DST investments are expected to meet Mountain Dell Consulting’s forecast of $7.5 billion in equity raised by the end of 2025, having already bested last year’s $5.66 billion total. As of Nov. 30, the total equity raised for DST offerings in 2025 reached approximately $7.34 billion, according to Mountain Dell’s latest data.
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