Exiting a $5M Property Without Triggering a Tax Event

Background:
Jill, the founder of a specialty service firm, owned her headquarters building—a 12,000 sq ft space in a growing suburb. Valued at $5 million, it was fully paid off and producing strong income. But Jill was beginning to think about transitioning out of the business in the next 3–5 years.

The Challenge:
Jill didn’t want to sell the building now and take a major capital gains hit. But she also didn’t want to keep managing the property forever, especially if she retired or sold the business.

The BasisBridge Solution:
Jill contributed the property to the fund through our exchange, and then signed a triple-net lease back to her company to continue operating from the space. Here’s what she gained:

• Avoided all capital gains tax at contribution

• Received BasisBridge units based on the building’s appraised value

• Continued to use the property exactly as before

• Transferred property risk to the fund

• Became a passive investor with access to diversification and upside

Exit Strategy:
When Jill eventually exited her company, the lease was reassigned to the new owner—and she kept her BasisBridge units and income stream without lifting a finger.

Result:
Jill pulled equity out, continued operations seamlessly, and created a retirement-ready, tax-efficient investment that didn’t require a sale.