It goes without saying that you offer a special niche to HNW clients; I hope you can tap into the RIA community to help serve the greater good for the underserved taxable clientele.
The diligent, and competent associates at TripleNet Gateway have provided essential and unique investment solutions to best meet the wishes and preferences for our family. The revocable trust has the investment objective of providing a "balance between capital appreciation and current income with stability of principal". As with many private client investors, tax constraints are a material limitation given low basis real estate, common stock, and other legacy holdings. As a former HNW bank trust portfolio manager, many such fiduciaries prefer to offer "industry standard" and tax-damaging homogeneous fixes such as in-house mutual funds or turnover prone model-based equity portfolios, just like putting a square peg into a round hole.
Due to the prevailing federal and state capital gains tax environment, the grantor was seeking an investment solution that would allow the sale of low tax basis concentrated investment property exposure that provided limited income and a substantial systematic and idiosyncratic market risk in favor of an investment consistent with established "balanced" investment policy. The TripleNet Gateway team proposed a IRC 1031 exchange with diversified replacement property backed by investment grade credit lessees in a Delaware Statutory Trust legal structure that provides favorable investor protections. The 1031 exchange potentially allows investors to keep 100% of value on the sale versus an outright sale that potentially carves out 30 percent or more of wealth to local, state and federal governments, a near impossible feat to recover. TripleNet Gateway affiliates conduct independent and objective quantitative and fundamental research on many NNN investments, which have BBB or better rated fixed income like characteristics, and boils down prospective candidates that offer the greatest projected risk/reward tradeoff.
The staff has guided us as first-time and current clients through the administrative steps with the Qualified Intermediary and others to prudently close on multiple transactions. TripleNet Gateway is available to assist our family in tax depreciation planning, record-keeping and annual tax reporting needs consistent with current regulations; the firm has been proactive in suggesting subsequent 1031 or 721 strategies in conjunction with expert outside legal advisors to best meet the tactical and strategic goals of our family.
We wish to thank TripleNet Gateway for their care and loyalty and the prudent wealth management of our family.
Harold B. Nachtrieb
CFA and Former Chief Investment Officer of the City of Los Angeles