The Internal Revenue Service recently changed the rulesconcerning 1031 exchanges, allowing much greater flexibility andcreating a whole new investment genre, the Tenants-in-CommonExchange. In a TIC, interest ownership in a property allowsinvestors to defer capital gains taxes.

"We are the first firm in the region to utilize a TIC exchangeand provide investors with a ground floor opportunity to invest inworld-class properties that they may not have on their own," saidSteve Allison, a principal of APCA. "It's the beginning of a newreal estate investment era, and Ashforth Paradigm is leading theway."

The building is located at 212 Elm St. in Davis Square, and wasdesigned by one of its occupants, Arrowstreet, and built in 1989.It consists of a steel frame construction with red brick andlimestone veneer, and was purchased by Elm Street Paradigm LLC inSeptember of 2000 for $13 million. APCA devised a strategy toenhance investor returns on 212 Elm St. by converting the firstfloor from office space to a retail space and maintaining a revenuestream through diversification of tenants and lease expirationdates, according to company officials.