TAX-DEFERRED INVESTING MADE SIMPLE
Invest in purpose-built real estate with tax-deferred growth
Exchange your property into high-performing, professionally managed real estate while deferring capital gains taxes.
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Projected fund returns*
Tax benefits
Defer capital gains taxes from your property sale.
Net equity multiple
Targeting 2.30x or greater.
NOI growth
Value-add strategies delivering 50%+ NOI increases in past projects.
*Estimated predictions of performance are not based on actual investment results and are not guarantees of future results.
Our value add track record
*Representative performance of RTS EBMF Fund I from 2016-2022 net of fees. The fund followed a similar strategy of value-add improvements. Past performance is not indicative of future results. **Total distributions across 16 value-add properties acquired between 2011 and 2017 with an average hold of 5.2 years.
What is a 1031 exchange?
A 1031 Exchange allows real estate investors to defer capital gains taxes when selling a property by reinvesting the proceeds into a new, like-kind property. Under Section 1031 of the IRS tax code, this strategy is a powerful tool to preserve equity, increase cash flow, and build long-term wealth.
Now is the time to
invest in 1031 exchanges
Defer capital gains taxes
Avoid losing 20-30% of your equity to taxes by reinvesting into like-kind properties.
Unlock passive income
Transition from active property management to professionally managed investments.
Capitalize on value-add opportunities
Enhance NOI and property values through ArtHaus Partners' proven strategies.
How it works
Begin identifying replacement property
Doing this before the sale is a key to success
Sell the existing property
Share closing statements with ArtHaus Partners
1031 facilitator holds equity
ArtHaus Partners can recommend a facilitator if necessary
Identify ArtHaus Partners replacement property
Within 45 days, list up to 3 properties, at least one of which is a ArtHaus Partners project
Confirm ArtHaus Partners replacement property
Ensure Debt & Equity will both be covered
ArtHaus Partners completes purchase, you join a TIC
Within 180 days of original sale, ArtHaus Partners buys a property, you join on title
The ArtHaus Partners Edge
Acquisitions identified using data, ahead of competition
We identify discounted and distressed acquisition opportunities by analyzing loan databases for early signals of distress, and utilizing our relationships with debt and multifamily brokers.
Track record of using government programs for density and solar
We have leveraged the state Density Bonus Law across 23 buildings and 1900+ units and State ADU legislation enabling up to 25% unit-count increase across 9 ADU projects. Our ~$4MWg solar installations powering 1500 units are designed to tap Inflation Reduction Act (IRA) Incentives, which REITs cannot.
Risk mitigation through efficient capital structure
We reduce our cost of capital by up to 170 bps through mission-based rate discounts from federal agencies, which affords us ~$1-2M in debt savings across the life of an average loan. We also underwrite the downside protection and maintain low leverage.
Design innovation & efficient construction
With decades of construction expertise, we efficiently develop small-format housing to add rentable square footage at lower cost. Our cost per residence is $250K vs the Bay Area average of $570K. Our timeline from acquisition to operation is 30 months vs the SF average of 72 months. We add units (ADUs) at a low ~$150K/unit cost.
Tech-enabled marketing & operational efficiency
We leverage technology to reduce leasing and operating costs including an integrated online leasing platform, virtual tours, and keyless entry. We've leased over 200 units without physical tours.
Value-add case studies
Oakbrook: a sucessful value-add strategy
When we acquired Oakbrook Manor at the height of the COVID-19 pandemic, it was an off-market opportunity with 200 units across three buildings. The property was suffering from poor management and had just 63% occupancy.
Key highlights:
Acquired at a discount
~$220K per unit, $9M below pre-pandemic value
Modernized common areas and upgraded amenities
Added 17 new units to boost revenue and density
Our strategy worked. Occupancy jumped to 94%, and net operating income more than doubled. The property was recently appraised at $293K per unit—a 45% increase in value and a clear validation of our value-add approach.
VIEW CASE STUDYAbout ArtHaus Partners
ArtHaus Partners is a Bay Area-based real estate development and asset management company, focused on moderate-income and student housing in California. Operating in the Bay Area since 1977, we've profitably developed housing in California across 160 different residential and multifamily projects.
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FAQs
A 1031 Exchange allows investors to defer capital gains taxes by reinvesting proceeds from a property sale into a like-kind real estate asset.
The minimum investment amount varies by investor type and investment structure. Please contact us for specific minimum investment requirements and qualification details.
The fund provides a vehicle for 1031 Exchange investors to pool their investments into professionally managed real estate projects, offering diversification and professional management while maintaining tax-deferred status.
Yes, the fund allows you to diversify your 1031 Exchange investment across multiple properties and markets while maintaining the tax-deferred benefits of the exchange.