721 UPREIT PROS | CONTRIBUTION VALUE TO OP UNITS
Prepared September 15, 2026. Educational worksheet, not a valuation or tax opinion.
Source: https://721upreitpros.com/articles/op-unit-valuation-reconciliation-example

1. IDENTIFY THE TRANSACTION
Contributor / asset or DST interest:
Document name, date, section and amendment:
Valuation effective date:
Whole-property, trust-level or investor-level amount?
Ownership percentage / contractual allocation rule:
Is the starting value gross or already net of liabilities and costs?

2. RECONCILE ECONOMIC VALUE
Starting agreed value:
Less liabilities reflected in pricing (only if not already deducted):
Plus documented credits:
Less documented costs charged to contributor:
Other agreed adjustments:
Net contribution value:
Less value allocated to cash or other consideration:
Value allocated to each unit class:
For every line: amount, source, payer, already included?, estimated/final, reviewer question.
Use a separate trust-level and investor-allocation schedule if required.

3. CALCULATE UNITS
Unit class:
Issue price per unit:
Pricing method and effective date:
Net value allocated to class divided by class issue price:
Fractional-unit / rounding / cash-in-lieu rule:
Any separate holdback or true-up rule:

4. HYPOTHETICAL EXAMPLE IN US DOLLARS
2,000,000 property value - 800,000 debt + 20,000 credit
- 70,000 costs - 25,000 repair adjustment = 1,125,000 net value.
All net value allocated to one class; no other charges or consideration assumed.
1,125,000 / 25 = 45,000 OP units.
At 22.50 per unit: 50,000 units. At 27.50: approximately 40,909.0909 units.
Do not copy these assumed inputs into an actual transaction.

5. MATCH THE FINAL RECEIPT
Account / registered owner:
Final class / units / issuance date:
Expected units vs actual units:
Difference and explanation:
Open item / responsible party / contractual response deadline:
Documents delivered to CPA and attorney:

Keep economic value, units issued and tax basis in separate records.
Pricing debt adjustments do not determine partnership tax debt allocations.
No tax, return, liquidity, suitability or conversion guarantee.
Talk to a 721 UPREIT advisor: https://721upreitpros.com/contact