Virtú Investments Launches Tax-Efficient RE Platform

Virtú Investments, a Larkspur, CA-based multifamily real estate investment firm that primarily acquires and manages apartment properties in the western U.S., announced the launch of VRX, a platform that allows owners to defer taxes on real estate sales proceeds and invest alongside the Virtú Evergreen Fund, L.P.

Through the platform, real estate owners can sell and reinvest their proceeds through a “more durable and advantageous structure” than the traditional Delaware Statutory Trust (DST), the firm said.

“The current market for aggregating 1031 exchanges has largely been designed to capture investor dollars and meet the minimum expectations for deferring taxes, with seemingly little consideration for the long-term outcome for owners,” said Michael Green, CEO of Virtú Investments. “Now, through VRX, property owners can not only reinvest their assets through a highly tax-efficient and cost-effective program, but also transition their holdings to a multifamily fund strategy managed specifically for long-term alpha, risk mitigation, and wealth planning.”

Launched in 2015, the Virtú Evergreen Fund is designed to allow investors to perpetually defer taxes on gains and cashflow by also leveraging 1031 exchanges within the fund. It currently holds $1.1 billion in real estate across six western U.S. markets, primarily consisting of Class A and B quality multifamily assets valued at between $15 million and $150 million.

The open-end fund has owned and operated 23,000 apartments across 33 markets and realized a Net IRR of 19.4% over 26 years, the firm said.

Since its founding in 1997, Virtú has acquired and operated 130+ properties, totaling over $3.7 billion in real estate.