KB Exchange Trust provides accredited real estate investors with a simplified
1031 exchange solution through Delaware Statutory Trust (DST) ownership interests.
We specialize in medical-centric commercial real estate assets and have sponsored
30 programs representing over $500 million in value.

Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031),
a taxpayer may defer recognition of capital gains and related federal income tax
liability on the exchange of investment property. Current law states that deferrals
can be continued indefinitely although strict identification and timeline rules apply.

A Delaware Statutory Trust (DST) is a separate legal entity created as a trust
under Delaware law. In order to use a DST in a 1031 exchange, it must comply with
the requirements of IRS Revenue Ruling 2004-86, so that a beneficial interest in the
trust is treated as a direct interest in real estate.

Demand for medical-centric real estate is supported by a combination of demographic
trends and a transformation in the way health care services are provided as a result
of the increased access to health care in conjunction with escalating health care costs.
These demographic and healthcare industry trends are likely to continue, supporting
the long-term trend for medical-centric real estate.