721 Exchange Companies: The 2026 Directory of Sponsors, Funds, and UPREIT Platforms

How Do 721 Exchange Companies Work?

A 721 exchange company is the REIT operating partnership that accepts your real estate in exchange for OP units under IRC Section 721^[1]. A qualifying contribution generally does not trigger immediate gain, though exceptions can apply. The sponsor company structures the transaction, manages the REIT, and sets the terms investors live with for the life of their investment.

Two paths can get you to the OP of a REIT, generally without triggering immediate capital gains tax, though exceptions can apply. A direct contribution occurs when an institutional owner transfers a large property straight into a REIT's operating partnership. The REIT evaluates the asset, agrees on a valuation, and issues OP units in return. Individual investors often cannot access this path because most REITs will not acquire a single rental property or small commercial building.

Retail investors may be able to access the institutional REITs through a two-step route, though availability depends on the structure. First, they 1031 exchange into a DST that holds institutional-grade real estate. Second, at DST maturity, the REIT that sponsored the DST may acquire the trust's assets into its operating partnership, and DST investors would receive OP units.

The structure that governs the second step determines your future options. A 721 Required UPREIT DST converts automatically on the sponsor's timeline. A 721 Optional UPREIT DST preserves the investor's choice at the conversion window: take OP units or elect a cash exit. These labels appear on the sponsor's own offering materials, so the structure is verifiable before you subscribe.

In plain English: a 721 Required structure means you are committing to a specific REIT at DST purchase, years before you know how that REIT will perform. A 721 Optional DST preserves the option to walk away. Both structures are legitimate. The decision belongs at the front end, not the back. For a comparison of every vehicle type, see how the different 721 fund types compare.

Which Sponsors Offer 721 Exchanges in 2026? (Directory)

The sponsors offering 721 exchanges in 2026 are profiled below, from the largest public non-traded REITs to the multifamily evergreen funds and the DST platforms with UPREIT paths. Two compliance points before the cards. First, there can be no promise or guarantee at the time of DST purchase that a 721 transaction will happen. A DST marketed as 721-eligible is offering a possibility, not a commitment. Second, sponsor lineups and program terms change. Confirm the structure, minimums, and conversion terms in each sponsor's current offering documents before committing capital. Browse current DST offerings from these sponsors for the latest available inventory.

Blackstone (BREIT)

Blackstone Real Estate Income Trust is the largest non-traded REIT by assets under management, with a diversified portfolio spanning rental housing, industrial, and net lease properties. BREIT accepts DST contributions through the two-step path.

Blackstone's BREIT began limiting redemption requests in November 2022. Requests peaked in January 2023, and across roughly 15 months of restricted redemptions, BREIT returned more than $15 billion to investors. By February 2024, monthly requests had fallen to $961 million (82% below peak) and were fulfilled in full (BREIT notice to stockholders, March 1, 2024^[2]).

The gate episode is now a data point, not a disqualifier. Investors who stayed through the restriction period kept their positions intact. Investors who needed liquidity during that window did not have it. Both outcomes deserve weight when evaluating BREIT as a destination. For the full framework on vetting redemption terms, see how to evaluate REIT redemption terms.

Starwood (SREIT)

Starwood Real Estate Income Trust is a public non-traded REIT, diversified but roughly 71% allocated to multifamily housing as of early 2026. SREIT accepts DST contributions through the two-step path.

SREIT also restricted redemptions beginning in late 2022. In a stockholder letter dated May 23, 2024, filed with the SEC^[3], SREIT cut its monthly redemption cap to 0.33% of NAV and its quarterly cap to 1% (from 2% monthly and 5% quarterly), describing the reduction as temporary with a projected 6-12 month timeline. The management fee was reduced from 1.25% to 1.0% of NAV until full caps return. SREIT had funded roughly $4.9 billion in total stockholder liquidity since inception.

That reduction did not prove temporary. SREIT raised the caps modestly in mid-2025, to 0.5% of NAV monthly and 1.5% quarterly, and then in April 2026 suspended its share repurchase plan for most investors outright^[6]. Only death and qualifying disability requests and accounts under $5,000 are still accepted, each capped at $5 million per month. The Class I annualized distribution was cut at the same time, from 6.3% to 4.7%. This is the single most instructive sequence in the directory: a cap described as temporary in 2024 was narrowed again two years later, which is why redemption terms belong in your diligence rather than your assumptions.

A cap reduction signals that investor outflows exceeded the REIT's liquidity reserves. This is not a failure of the structure, but it is a reminder that redemption terms in the offering documents and redemption terms in practice can look very different.

Capital Square

Capital Square is a DST sponsor with multifamily and specialty offerings. Its affiliated non-traded REIT, Capital Square Apartment REIT, Inc., which does business as Capital Square Housing Trust, has absorbed Capital Square multifamily DSTs through 721 transactions.

In a January 2025 full-cycle transaction, a majority of one DST's investors exchanged their interests for OP units in Capital Square Housing Trust, while the rest chose another 1031 exchange or cash at the same appraised value. The 721 option, hold period, and election terms vary by offering, so confirm them in the private placement memorandum.

ExchangeRight

ExchangeRight is a net-lease DST sponsor whose offerings hold necessity-retail and healthcare properties leased to national and investment-grade tenants. Its Essential Income REIT is the 721 destination: the sponsor's REIT Fast-Track DSTs target a two-year hold before a Section 721 exchange into the REIT's operating partnership, and its all-cash and financed net-lease DSTs list a 721 exchange as one of several exit options.

Not every ExchangeRight offering is UPREIT-compatible, and the ones that are differ in hold period and election mechanics. Verify the path offering by offering in the private placement memorandum.

Bluerock Value Exchange (Diversified Industrial platform)

Bluerock Value Exchange is Bluerock's DST platform. As of mid-2026, the Bluerock Diversified Industrial Portfolio II DST is an example of a 721 Optional structure, giving investors the choice between OP units and a cash exit when the conversion window opens.

Industrial DSTs convert into OP units of Bluerock Industrial Growth REIT, and residential DSTs into the operating partnership of Bluerock Homes Trust. The 721 Optional structure is the optionality play. An investor who buys a Bluerock 721 Optional DST preserves the right to take cash and re-enter the 1031 market if the REIT's performance or composition does not meet expectations at maturity. That flexibility has value, and the offering documents specify the exact terms and window.

Ares Real Estate Income Trust (AREIT)

Ares Real Estate Income Trust is a NAV-based, perpetual-life, public non-traded REIT with diversified sector exposure across industrial, multifamily, and other property types. It was formerly Black Creek Diversified Property Fund, and it is a separate entity from Ares Industrial Real Estate Income Trust, which the similar name invites people to confuse it with. AREIT accepts DST contributions through the two-step path.

Ares Management brings institutional asset management scale to the non-traded REIT space. Program terms, including redemption caps and fee structure, are set in the offering documents and may vary by series. Confirm current terms in the private placement memorandum before contributing.

Brookfield Real Estate Income Trust

Brookfield Real Estate Income Trust, formerly Oaktree Real Estate Income Trust, is a diversified public non-traded NAV REIT offered through the Brookfield Private Wealth platform. Its 721 exchange materials describe the DST-to-UPREIT contribution path, including the OP unit structure and estate planning benefits.

Brookfield registered a DST program of up to $1 billion in 2024. The REIT's operating partnership holds a fair-market-value option on each DST, exercisable during a one-year window that opens two years after the last DST interest is sold, and payable in OP units or cash (prospectus supplement, SEC^[4]). Confirm the current conversion terms and sector focus in Brookfield's offering documents.

Inland Private Capital (IPC Alternative Real Estate Income Trust)

Inland Private Capital is one of the longest-operating DST sponsors in the industry, with decades of experience structuring 1031-eligible offerings. The 721 destination is IPC Alternative Real Estate Income Trust, or ALT REIT, a publicly registered perpetual-life NAV REIT focused on alternative sectors such as self-storage, student housing, and healthcare. ALT REIT acquires 721-designated IPC DSTs into its operating partnership, and investors in an absorbed DST have been offered a choice of cash or OP units.

Inland's portfolio has historically focused on multifamily, self-storage, net lease, and retail properties. DST conversion structure varies by offering, with both 721 Required and 721 Optional options available across the platform's history. Track record at the DST level and performance at the REIT level are two separate questions. Confirm the REIT's current portfolio composition and redemption terms in the offering documents.

Hines (HREX Multifamily platform)

Hines operates the HREX Multifamily platform, with DST offerings that feed into Hines Global Income Trust. As of mid-2026, the HREX Multifamily III DST is an example of a 721 Required structure: the contribution to the REIT's operating partnership for OP units is required by the offering's terms and follows the sponsor's timeline, subject to transaction approval.

Hines is an institutional-grade operator with a global real estate portfolio. The 721 Required path means investors commit to the REIT at DST purchase. For the investor who has already evaluated Hines Global Income Trust and is comfortable with the portfolio, that commitment is straightforward. For the investor who has not done that work, it is premature.

Cantor Fitzgerald (Cantor Fitzgerald Income Trust)

Cantor Fitzgerald Income Trust is a diversified non-traded REIT managed through Cantor Fitzgerald Asset Management. Despite the net-lease reputation of the Cantor name, the portfolio is majority multifamily, with the net-lease exposure concentrated in single-tenant office. The platform offers two-step DST-to-UPREIT transaction strategies across multiple property types.

In February 2026, the trust exercised fair-market-value options and completed tender offers that moved DST interests into its operating partnership in a $74.9 million transaction (AltsWire^[5]). Cantor Fitzgerald brings institutional broker-dealer heritage to the non-traded REIT space. Structure, fees, and redemption terms vary by offering series. Confirm current availability and terms in the private placement memorandum.

How Do You Choose a 721 Exchange Sponsor? Anchor's 8-Point Framework

Shortlisting a sponsor is not the same as shortlisting a property. The REIT is where your equity may end up, so your due diligence has to include the sponsor and the REIT in addition to the DST and its underlying property. Evaluating a DST/REIT sponsor requires answers to these eight questions before signing subscription documents:

1. Does the REIT's sector focus match your portfolio goals? A multifamily-only fund and a diversified core fund carry different risk profiles. Concentration in a single property type amplifies both the upside and the downside.
2. Is the path direct or DST-only? Individual investors may use the two-step DST path. If a sponsor offers both, the direct path typically carries different minimums and terms.
3. Is the conversion 721 Required or 721 Optional? A 721 Required DST locks you into the REIT at purchase. A 721 Optional DST preserves your right to either take cash or opt-into the REIT at the time of sale. I bring this up with every investor who tells me they are certain about a sponsor today, because certainty two years from now is a different matter. Nobody knows what the world will look like in 2-3 years from now when you're forced into a REIT via a required 721 exchange.
4. What is the minimum contribution? Minimums vary by sponsor and offering. Confirm them in the private placement memorandum.
5. What are the OP-unit redemption program terms, and has the sponsor ever gated? Review the REIT's share repurchase program, including monthly and quarterly caps, and note that any redemption of OP units is subject to the partnership agreement's terms and restrictions. Read the seven UPREIT downsides and the guide on how to evaluate REIT redemption terms for the full framework.
6. What is the fee load? Asset management, property management, acquisition, and disposition fees stack on top of one another. Typical ranges across the market: asset management 0.5-1.5% of NAV annually, property management 2-4% of gross revenue, acquisition fees 1-2% of purchase price, disposition fees 1-3% of sale price. Is your broker or advisor charging you AUM on top of the fund-level fees? On a hypothetical $1 million exchange, assuming NAV holds at $1 million, a 1.5% annual asset management fee alone is $15,000 a year before the other layers add on. These ranges are historical observations that vary by sponsor. Use the how to evaluate a REIT guide and the DST due diligence checklist to structure the review.
7. How often is NAV calculated, and who does the appraisal? A quarterly NAV calculated by a sponsor-affiliated appraiser is a different level of price transparency than a daily NAV with a third-party valuation agent. One more question belongs here: where did the DST's property come from? Some sponsors seed a DST with a property sold out of their own REIT, which makes the 721 conversion a repurchase by the original seller. That is not improper, but it puts the sponsor on both sides of the conversion price, so the independence of the appraisal matters more as these are not exactly arm's-length transactions.
8. What is the sponsor's track record, and who sits on the board? A track record is a filter as much as a scoreboard. Look for completed full-cycle transactions, not just capital raised. Independent directors on the board provide a governance check that is absent in sponsor-controlled structures.

Underneath point 8 sits a question that only shows up in bad quarters: how does the sponsor communicate when an asset misses? Look for written quarterly property-level reporting, advance notice before a distribution changes, and prompt disclosure of material events such as a tenant default or a loan maturity problem. A sponsor that goes quiet when a property underperforms is telling you something about the next twenty years. Our guide on what to look for in a REIT sponsor lays out the full reporting standard.

Before committing, set up a call with us at Anchor1031 and we'll walk through the terms with you and your CPA.

Which Sponsors Offer Direct Contribution vs the Two-Step DST-to-UPREIT Path?

A direct contribution to a REIT's operating partnership is the shorter path, but it is available almost exclusively to institutional owners. Most REITs will not underwrite and acquire a single rental property or small commercial building. They acquire stabilized, institutional-grade properties, typically $10 million and above, that fit their existing portfolio strategy.

For individual investors selling properties valued below that threshold, one potential route involves a qualifying 1031 exchange into a DST followed by a possible contribution to an operating partnership. The DST route is not universal, and timing and availability depend on the structure. The first step follows 1031 exchange fundamentals. The second is governed by the DST's offering terms.

Some sponsors in this directory offer both paths. Hines, Inland, and Brookfield have historically accepted direct contributions for institutional-grade assets while also operating DST programs for individual investors. The question is not which path is better. It is which path your property qualifies for. For the full analysis, see can you 1031 directly into a REIT.

How Do You Find a Qualified 721 UPREIT Advisor?

You find a qualified 721 UPREIT advisor by looking for a broker-dealer representative whose practice is built around DSTs and 1031 exchanges, whose firm is contracted with multiple DST sponsors, and who can compare 721-eligible DSTs to traditional exit DSTs on the same page. The role is distinct from a sponsor (who operates the REIT) and a qualified intermediary (who facilitates the 1031 leg). The phrase “721 exchange companies” pulls all three roles into one search, and they are not interchangeable. Below is how to tell them apart and what a qualified advisor is expected to do.

A sponsor is your asset manager. The sponsor operates the REIT or fund that may hold your equity for the long term. Every entry in the directory above is a sponsor.

A qualified intermediary (QI) facilitates the 1031 exchange leg of the two-step process. The QI holds your sale proceeds, ensures the 45-day and 180-day deadlines are met, and transfers funds to acquire the DST interest. The QI's role ends when the DST purchase closes. A QI does not facilitate the 721 contribution. That transaction is between the DST investors and the REIT's operating partnership.

A broker-dealer representative provides the path. Anchor1031, for example, works across multiple sponsors to identify which DST offerings and REIT destinations fit a specific investor's tax situation, estate plan, and risk tolerance. Your Anchor1031 rep does not operate the REIT. They evaluate the sponsors on your behalf and coordinates with your QI, CPA, tax attorney, and sponsor company.

The diligence questions a qualified advisor should be able to walk through are not boilerplate. Whether the DST stands on its own economics without depending on the 721 conversion happening, whether the loan on the property is durable across the full DST hold (a DST cannot refinance under IRS Revenue Ruling 2004-86, so a loan maturing before disposition can force an early sale and a floating rate compresses distributions across the hold with no way to lock in a fixed rate later), whether the underlying submarket has the population and job fundamentals to support the sponsor's rent-growth projections, and how 721 Required and 721 Optional structures behave differently at maturity are the working parts that decide whether an offering fits your situation.

Anchor1031 is a specialist that meets those criteria. Our practice is built around DSTs and 721 exchanges, and this is primarily what we do. Most advisors did not build their careers around 1031 or around real estate. They may complete only a handful of 1031 exchanges a year, and their firms typically contract with one or two DST sponsors, so their reps are limited to those products. That is a structural constraint of a generalist practice, not a criticism of any individual advisor, and it is the practical reason the test below matters.

That last role deserves a plain test. As the 721 structure has spread, many advisors who built their careers in stocks and bonds now have a single 721 fund on the approved product list and nothing else from the 1031 world beside it. If the only DST your advisor can show you is the one that feeds their platform's REIT, you are being sold a product rather than choosing a structure. According to Anchor1031, an advisor should be able to put a traditional exit DST and a 721-eligible DST on the same page and explain why one, the other, or a blend fits your situation. If you want that comparison built for your own exchange, set up a call with us at Anchor1031 and we will put both options in front of you.

According to Anchor1031, the sponsor builds the house you will live in. The QI handles the moving truck. The advisor helps you choose the neighborhood.

Should You Keep Swapping DSTs or 721 Into a Named Sponsor's REIT?

When considering which type of DST to choose, you come to a fork in the road. You can choose a DST with a traditional exit which preserves every option: 1031 exchanges at each maturity, the ability to change sponsors and sectors, and the exit ramp to cash if your circumstances shift. The cost is you have to be involved in making a decision every 5-7 years.

Crossing into a named sponsor's REIT through a 721 can end the decisions, though whether it happens depends on offering terms, eligibility, and transaction approval. Your equity would enter one operating partnership and stay there. You may get broader diversification, management is someone else's problem, and estate planning with OP units can be cleaner because units divide among heirs more easily than property.

Investors can build a diversified DST portfolio that includes both a 721 Required DST and a traditional exit DST in the same 1031 exchange. That combination lets part of the equity pursue the 721 sequence while the rest preserves 1031 optionality. The pros and cons of a 721 via DST lay out both sides in full.

See the real 721 UPREIT case study of a hotel owner who resolved $350,000 of leftover exchange equity with OP units.

According to Anchor1031, the best answer depends on what you are trying to be done with. If the answer is property decisions, the 721 is one potential exit. If the answer is only active management but you still want sector control at each swap, staying in DSTs is the better path. The right call is the one that matches your energy, not your age.

Frequently Asked Questions

Next Steps for the Owner Shortlisting Sponsors

The directory above is a starting point. Every sponsor on this list operates a different REIT with different sector exposure, fee structures, and redemption terms. The right fit depends on your deferred gain, your estate plan, your tolerance for concentration, and whether you want the optionality of a 721 Optional DST or the simplicity of a 721 Required one.

Critical action steps: review the eight-point framework against any sponsor you are considering, read the private placement memorandum for each offering, confirm current program terms directly, and consult your CPA and estate attorney before committing capital.

Browse current DST offerings from these sponsors to see what is available today. To have Anchor evaluate a specific sponsor for your situation, schedule a consultation and bring your exchange timeline.

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