Exit Strategy

Exit strategy is the planned method and timing for liquidating an investment, crystallizing returns, and distributing proceeds to investors.

Exit MethodCharacteristics
Outright saleSell to third-party buyer, clean exit
RecapitalizationRefinance, return capital, retain ownership
Portfolio saleBundle multiple assets for institutional buyer
IPO or listingConvert to publicly traded REIT (rare for single assets)
1031 exchange (US)Tax-deferred exchange (not applicable UAE)
Hold to maturityPerpetual ownership, no exit
Exit Timing ConsiderationsFactor
Market cycle positionSell near peak if possible
Fund term expirationForced sale at fund maturity
Value-add completionExit after stabilization
Capital needsLiquidity requirements drive timing
Tax optimizationMinimize tax impact
Buyer demandInstitutional bid at certain value thresholds

Related Terms

DispositionPlot SaleBulk SaleInstitutional SaleBill of SaleContract of SaleWhole Building SaleAgreement for SaleIRR Sensitivity AnalysisInternal Rate of Return (IRR)Internal Rate of Return (IRR)Liquidity EventSale StrategyValue Realization

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