1031 exchange into TIC question

[Chris Mitch]

Hi everyone,

I have a question regarding structuring proceeds from a 1031 exchange into a TIC for a specific property. I included some background below:

Sold a property for $950k that resulted in $600k in 1031 exchange proceeds. Identified 3 properties as part of the 1031 exchange within the 45 day window.

Purchased property #1 in March for $1.5mm and used $250k of 1031 proceeds (this satisfied the replacement property being equal or greater than the relinquished property) .

Scheduled to close on property #2 in July for $1mm using $150k of 1031 funds (this will be within the 180 day period).

The question is around property #3, which was identified within the 45 day window. The property is being purchased by a friend for $3mm, financed 65% debt, 35% equity. He will put down some of the equity, but plans to have 10-15 investors for the remaining balance of the equity (none of them are using 1031 funds, other than myself). Could I use $105k from 1031 exchange funds balance to do TIC as part of the broader syndication? The investment would equate to around 10% ownership in the asset. Are there any structuring headwinds that we need to be aware of?

Thank you.