Innovative Legacy Fund reaches impressive milestone nearly two years after first-to-market launch
Partners and clients praise Fund for offering a tax-deferred exit strategy for real estate owners that eliminates the burden of managing property, provides membership and estate planning flexibility, and diversifies clients’ portfolios
Brookfield, Wis. (May 11, 2023) – MLG Capital, an investment firm with decades of experience in real estate investment, asset management and tax-deferred exit strategies, today announced that its unique Legacy Fund has surpassed $1 billion in assets, marking a significant milestone for this first-of-its-kind solution.
The Legacy Fund provides owners of commercial real estate a tax-deferred exit option to contribute their property in exchange for units of a professionally managed, diversified real estate fund. Prior to the inception of this unique Fund solution, owners of real estate assets were limited to holding and managing their portfolio or less desirable tax-deferred exit strategies – like 1031 exchanges, Delaware Statutory Trusts, or UPREIT transactions – that often include shortfalls including high fees, limited future tax-sheltering benefits, public market volatility and more.
After years of planning, MLG Capital created the MLG Legacy Fund to provide a solution to this challenge. The Fund’s first acquisition was in February of 2021. Since then, it has grown to exceed $1 billion in assets, including interests in 81 properties across 17 states that encompass over 13.8 million square feet and ±14,500 multifamily units.
“We are proud to offer a solution that enables high-net-worth owners of appreciated real estate assets the opportunity to become passive, enjoy their life without dealing with the burdens of owning and managing property, improve their estate plan, and in many cases enhance their after-tax cash flow,” said Billy Fox, senior vice president at MLG Capital. “This milestone demonstrates the value of the unique Legacy Fund solution in the marketplace. Exceeding $1B in value enhances the diversification the fund offers which will help us attract future investors and continue to deliver attractive after-tax returns to our existing investors.”
Key benefits of the Legacy Fund include:
- Passive Ownership – investors are relieved from the day-to-day burden of managing property and can rely on the experienced investment and property management of MLG Capital and its affiliates.
- Tax-Deferred – assets may be contributed without recognizing capital gains, and contributors may benefit from future depreciation benefits that will be passed through the Legacy Fund LLC to the investors and may increase investor after-tax cash flow.
- Diversification – investors benefit from the property type and geographic diversification the fund offers which includes over $1 billion in assets, with a heavy concentration of multifamily in the Midwest and Sunbelt states.
- Membership and Estate Planning Flexibility – investor members individually receive units in the fund and may redeem units based on their needs, with no impact to longtime partners or family members with different liquidity needs and investment objectives.
“MLG Capital’s tax and legal expertise and its track record made us feel confident in its ability to meet complex needs of our ownership group,” said Gina Williams, an early investor in MLG’s Legacy Fund. “The Legacy Fund’s ability to offer flexible redemption in a tax-deferred solution made it the best option for us.”
The Legacy Fund has also been lauded by estate planning professionals, CPAs and attorneys as a unique solution that provides a new approach to real estate divesting. Marvin Bynum, shareholder at Godfrey & Kahn, recently assisted a client with a Legacy Fund investment and said, “The Legacy Fund was an exciting solution for our client as it helped their family’s goal of preserving wealth in private real estate via a tax-deferred transaction, while reducing our client’s management responsibilities.”
For more information, visit mlgcapital.com/legacy.
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About MLG Capital
MLG Capital is the premier outsourced investment manager in private real estate for investment advisors, family offices and accredited high net worth individuals. Since its inception in 1987, the firm and associated entities have had active, exited, or pending investments totaling approximately ±42.6 million square feet of total space across the United States, inclusive of more than 36,500 apartment units, with exited and estimated more information about MLG Capital and its investments, visit the firm’s newsroom.
For more information, contact:
Katie Whitlock
Laughlin Constable Public Relations
kwhitlock@laughlin.com
414-305-5927
This release does not constitute an offer to sell an investment in a security. Offers to sell an investment in a security can only be made to a qualified purchaser by delivery of a Confidential Private Placement Memorandum (the “Memorandum”), any supplements to the Memorandum and accompanied by a Subscription Document Booklet. The information contained in this release may be preliminary in nature and may have not been independently verified by MLG Capital or its affiliates. The recipient of this release should consult with its own investment, tax and/or legal professionals about the merits of the investment. MLG Capital does not make any representation or warranty as to the accuracy or completeness of any information presented in this release. Any financial information or projections may be initial estimates and may be subject to change without notice to recipient. An investment into a private offering is subject to various risks, none of which are described herein. All figures as of 12/31/2022. Value consists of disposed of assets as well as the current internal valuation of currently held assets as of 12/31/2022. Values may not have been reviewed by an independent 3rd party and may be internal projections.
