Firm closes on its first asset with a $10.16 million transaction

Caliber (NASDAQ: CWD), a real estate investor, developer, and manager, today announced the launch of the Caliber 1031 Exchange (“1031 Exchange”), a full-service program that offers accredited investors access to highly curated real estate investment opportunities, enabling them to defer taxes while diversifying their portfolios. Caliber specializes in acquiring and managing high-potential multi-family residential, hospitality, and multi-tenant industrial assets, focusing on growth-oriented regions such as Arizona, Texas, and Colorado.

“Caliber has studied the 1031 exchange market for years and found a gap in the market where we could step in to serve the needs of investors,” said Chris Loeffler, CEO of Caliber. “That gap is offering a low-cost investment into a high-quality asset at our acquisition basis with options for liquidity after a short holding period.”

A 1031 exchange is a tax-deferral strategy that allows real estate investors to sell a property and reinvest all of the proceeds into a like-kind property while deferring capital gains taxes. It is widely used to preserve investment capital, facilitate portfolio growth, and optimize asset allocation. This strategy is particularly valuable for long-term investors looking to maximize returns, manage risk, or transition to more profitable properties while maintaining a favorable tax position. By utilizing 1031 exchanges, investors can defer capital gains taxes indefinitely.

Loeffler continued, “In our first transaction, we were able to match the needs of several investors into a high-quality asset in the time frame needed based on their individual exchange requirements. Caliber is managing this project and will help to administer and manage the asset through its project plan. With our in-house development and construction management capabilities, our team is well positioned to efficiently add value to the existing asset and produce a potentially attractive return. This new program underscores our commitment to growing Caliber’s AUM with quality income-producing assets while creating unique investment opportunities for professional financial advisors and Caliber’s clientele.”

In its first transaction, the Caliber 1031 Exchange executed a $10.16 million acquisition of a 602-unit self-storage facility in Rifle, Colorado, on behalf of a group of investors through a Tenants-in-Common arrangement. Caliber will administer all third-party relationships in connection with managing this property. The business plan calls for adding value through the planned construction of additional climate-controlled storage units.

Investors in 1031 exchanges often face a binary choice between a self-managed strategy acquiring a single asset or a highly distributed strategy through a Delaware Statutory Trust (DST). With Caliber’s expertise in opportunity zone investing and this new 1031 Exchange program, the firm now offers investors two unique ways to defer, reduce or eliminate capital gains taxes.

Unique to Caliber’s program, two years following the initial investment, investors may complete a follow-on tax-deferred 721 exchange into a diversified real estate fund managed by Caliber. This conversion option allows investors to exchange their share of a single asset into a diversified pool of assets with access to limited quarterly liquidity.

About Caliber (CaliberCos Inc.)

With more than $2.9 billion of managed assets, including estimated costs to complete assets under development, Caliber’s 15-year track record of managing and developing real estate is built on a singular goal: make money in all market conditions. Our growth is fueled by our performance and our competitive advantage: we invest in projects, strategies, and geographies that global real estate institutions do not. Integral to our competitive advantage is our in-house shared services group, which offers Caliber greater control over our real estate and visibility to future investment opportunities. There are multiple ways to participate in Caliber’s success: invest in Nasdaq-listed CaliberCos Inc. and/or invest directly in our Private Funds.

Forward-Looking Statements

This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the Company’s public offering filed with the SEC and other reports filed with the SEC thereafter. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250327972134/en/

Caliber has launched a new 1031 Exchange program aimed at providing accredited investors with access to curated real estate investment opportunities, allowing them to defer taxes and diversify their portfolios.