Updated July 21, 2026
A Tenants-in-Common (TIC) structure lets multiple 1031 exchange investors each hold an undivided fractional ownership interest in one larger replacement property — each investor's fractional share still qualifies as "like-kind" real property under IRS Revenue Procedure 2002-22.
Unlike a Delaware Statutory Trust, a TIC investor holds a direct, individually-deeded ownership stake rather than a trust interest, and typically must sign off on major property decisions alongside the other co-tenants under the IRS's specific TIC guidelines — more direct control than a DST, but more investor coordination.
TIC structures let a seller of a smaller LA building 1031-exchange into a fractional share of a much larger institutional-quality asset than they could afford or manage alone — a real option worth knowing about for sellers who want to stay in real estate but exit hands-on management.
From the Sterman LA Multifamily Glossary — defined the way a broker actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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