Upreit

A Reit formed by combining properties from existing Limited Partnerships. The original partners exchange properties held by the partnerships for an Interest in a new transitional operating partnership. After some period, these interests may be sold or exchanged for shares in the REIT.
Example: When Big Spender Realty Partners and Go For Broke Limited Partnership wanted to liquidate, they considered the option of combining their holding and forming an UPREIT. As a result of the transformation, each partner received shares in the new trust. Some investors held on to these shares, whereas others sold them to the public in the stock market.