-+ 0.00%

PREP Property Group Launches PREP Exchange, a Dedicated 1031 Exchange Platform Offering Fractional Ownership in Institutional-Quality Real Estate via Delaware Statutory Trusts (DSTs)

PR Newswire·12/16/2025 15:00:00

Listen to the news

PARK CITY, Utah, Dec. 16, 2025 /PRNewswire/ -- PREP Property Group, LLC (PREP), a leading national owner and operator of retail real estate, today announced the formation of PREP Exchange LLC, an affiliate created to provide accredited investors with seamless 1031 exchange solutions through high-quality, fractional Delaware Statutory Trust (DST) investments.

PREP Exchange-sponsored products will enable qualified investors to defer capital gains taxes by exchanging appreciated real estate into institutional-grade, necessity-driven net leased retail properties managed by PREP's existing best-in-class operating platform. Each DST offering is expected to be 100% pre-packaged, debt-structured, and immediately income-producing.

Key benefits of DST offerings sponsored by PREP Exchange include:

Institutional sponsorship – supported by the existing infrastructure of PREP Property Group and PREP management's 30+ year track record in the real estate business
Necessity retail net lease focused – a resilient asset class with embedded inflation buffers and strong post-pandemic performance
Pre-arranged financing – packaged with non-recourse, fixed-rate debt at competitive leverage levels, or all-cash debt-free, depending on the particular transaction
Monthly cash flow – targeting competitive rate cash flow paid monthly combined with potential for long-term appreciation

"E-commerce cast a cloud over the category for the past 15 years. Armageddon never came to fruition as consumers exhibited a preference to shop online and pickup in store. Retail real estate is experiencing its strongest fundamentals in decades and new supply is at historic lows, making the timing ripe for investors to reposition capital into necessity retail," said Michael C. Phillips, Chief Executive Officer of PREP. "PREP Exchange pairs our decades of net lease retail expertise with a streamlined 1031 solution that removes investment barriers and delivers institutional-quality assets investors have been asking for."

The launch of PREP Exchange comes as demand for 1031-eligible DST investment products continues to surge, driven by rising capital gains tax concerns and a limited supply of replacement properties. PREP Exchange's inaugural offering is expected to come to market at the beginning of 2026.

For industry participants wanting more information about PREP Exchange, please reach out to your PREP contact or our sales desk at 833-OWN-PREP (7737).

About PREP Property Group

PREP Property Group is a vertically integrated real estate company founded by Michael C. Phillips, co-founder of Phillips Edison & Company, and built on the foundations of Phillips Edison's strategic and net lease real estate divisions that were spun out in 2015. PREP is focused on transforming retail real estate by repositioning lifestyle centers, power centers and enclosed malls that are undermanaged, capital starved, poorly merchandised and or distressed. PREP's Net Lease division seeks to acquire well-located, single tenant net leased retail properties from non-institutional sellers throughout the United States. The team aims to acquire a diverse mix of tenant credit, uses, and geographies including auto parts, convenience stores, pharmacies, casual dining, quick service restaurants, banks, dollar stores, and medical uses in active retail markets. PREP's investors benefit from its fully integrated operating platform for acquisitions, dispositions, development, redevelopment, leasing and property management. The focus of PREP's Net Lease division is to identify sites with strong real estate fundamentals and improve the leases, terms or creditworthiness creating value in the assets and the portfolio. For more information, please visit www.preppg.com.

Contact:

Tim Brennan

PREP Property Group, LLC

(310) 424-8563

tim.brennan@preppg.com