From Family-Owned to Fully Diversified

Background:
The Ramirez family had owned a small portfolio of commercial properties for over 30 years, including a 20,000 sq ft industrial building used by their packaging business. As the second generation prepared to take over, the family was divided: some wanted to sell, others wanted to hold.

The Challenge:
Selling would have triggered a large tax bill and eliminated the family’s stable rental income stream. But holding the property created a different problem: several family members needed a lump-sum payout to support life changes, and the building couldn’t provide that liquidity without being sold. The family needed a middle path.

The BasisBridge Solution:
The family contributed the building to BasisBridge in exchange for fund units via an exchange. With the property inside the fund, the new financing allowed:

• A partial tax-deferred equity rollover

• A tax-free cash-out event based on loan proceeds

• Ongoing quarterly income through the fund’s pooled distributions

• Diversification across a pool of industrial assets rather than a single building

Result:
The Ramirez family avoided a painful tax hit, resolved generational disagreement, and converted their real estate into a liquid, income-producing investment. Everyone retained ownership—without management responsibility.