What is a TIC?
A TIC is a type of Tenancy-In-Common that is offered as a replacement property to 1031 exchangers. TIC’s have Sponsors that purchase the property and apply for financing on the property. The properties are generally triple-net with A-rated tenants. TIC’s are sold as. The Securities Exchange Commission classifies TIC’s as a security. As a security, they can only be sold by a securities broker-dealer, and investors are given special disclosures and protections. Securities TIC’s are sold only by the securities broker-dealers and not directly by the Sponsor. TIC’s are generally considered as a possible replacement property by investors that have managed a property (the relinquished property), but are looking for less active management in their replacement property/properties. A TIC investment may also be considered by investors selling raw land who are not looking to take on any property management burden.
