The QI File

Qualified Intermediary

Downstream Exchange

Downstream Exchange Company · Parent: Independent / unpublished · Firm website

FEA membership
FEA member
CES® holders
Not published on cited pages
Fidelity bond
$1,000,000 crime policy (each claim and aggregate; $100,000 retention), posted as the site’s Fidelity Bond Policy
E&O / other cover
$1,000,000 errors and omissions (each claim and aggregate)
How funds are held
Funds unknown
Dual-signature wires
Wire controls unknown
Reverse / improvement / DST
Reverse Yes · Improvement Yes · DST Unknown
Last sourced
2026-09-29

Other published coverage

Footer “Fidelity Bond Policy” link opens an ACORD certificate dated 11/20/2025 naming Downstream Exchange Co., 909 E. Green Street, Pasadena, as insured: coverage line “OTHER Crime,” Underwriters at Lloyd’s London, policy period 11/1/2025–11/1/2026, $1,000,000 each claim, $1,000,000 aggregate, $100,000 retention. The certificate itself says “Crime,” not “fidelity bond.” Footer “Errors and Omissions Policy” link opens an ACORD certificate dated 07/15/2026: Errors & Omissions, Scottsdale Insurance Company, policy period 07/15/2026–07/15/2027, $1,000,000 each claim, $1,000,000 aggregate. Both certificates say they confer no rights on the holder.

Fund handling

Delayed, built-to-suit, and hotel/motel procedures: while Downstream holds your funds you receive a monthly analysis of account activity, plus an analysis when funds arrive or authorized payments go out, and a final analysis after the replacement closes. Team page: a Phillips & Company tax professional is responsible for confirming the wiring of funds in 1031 exchanges. The deposit bank, FDIC wording, per-exchange account title, segregated-vs-pooled language, a QEA/QTA, and dual-signature / exchanger-consent rules are not on the pages cited. The Washington RCW page answers that statute with the fidelity bond and E&O, not with a qualified escrow or trust.

Who it is for

Pasadena QI for exchangers who want Downstream Exchange Company — founded 1979; accommodator work stated as its sole focus; staff of CPAs, an attorney, and a licensed real estate broker — to structure delayed, reverse, built-to-suit, and hotel/motel exchanges with in-house documents reviewed by three professionals and signed by a company officer. Public legal name: Downstream Exchange Company (insurance certificates: Downstream Exchange Co.). An Inc. / LLC suffix is not printed on the pages opened 2026-09-29 and is not invented here. President: C. Anthony Phillips, CPA, also a partner in the CPA firm Phillips & Company; Derek Phillips, Esq., attorney and California real estate broker. Office: 909 East Green Street, Pasadena, CA 91106-2906. Phone (626) 796-1031 / (800) 743-1031. Fax (626) 796-8222. Email support@downstreamexchange.com. CES® holders, a bank or account title, dual-signature, a fee card, float, and DST are not on the pages cited.

Verdict

Long-running Pasadena accommodator that posts both insurance certificates, showing $1,000,000 crime cover (which the site calls its fidelity bond) and $1,000,000 E&O. Company FEA membership is stated on its About page and the firm has a profile in FEA’s Find a QI Company directory. The About page also says it is licensed in Nevada, but a Nevada Division of Mortgage Lending public search did not return a Downstream entity, so that license is not confirmed here. It publishes reverse (Method 1 and Method 2, parking LLCs) and built-to-suit procedures. The custody side is thin: no named bank, no segregated or FDIC sentence, no QEA, and no dual-signature rule — only a monthly account analysis and a staff member who confirms wires. The crime certificate expires 11/1/2026. CES® holders, a fee card, float, and DST are not on the pages opened. Ask for the renewed crime certificate, the live bank and account title, whether funds sit in a separate account per exchange, and who can release a wire before a large transfer.

Notes

This is a QI custody file, not a securities offering. The name on the pages opened is Downstream Exchange Company; the Terms of Use copyright line uses the same name, and both insurance certificates name Downstream Exchange Co. An Inc. or LLC suffix is not printed on the pages opened 2026-09-29 and is not invented here. Confirm the named party on the exchange agreement. Downstream Exchange Company is the intermediary that would hold exchange proceeds. A Delaware statutory trust is typically a securities offering sold by a sponsor and registered representatives — a different product. The pages opened for this file do not publish a DST desk.

About: founded in 1979; accommodator work is “our sole focus”; the firm maintains a fidelity bond and errors and omissions insurance; “We’re members of the Federation of Exchange Accommodators”; “we’re licensed in Nevada.” Company FEA is therefore yes; FEA’s own Find a QI Company directory also carries a Downstream Exchange Company profile (logo only, no further details on the page). No Nevada license number is printed. Nevada licenses exchange facilitators under NRS 645G through its Division of Mortgage Lending; public searches of that division’s register on 2026-09-29 for “Downstream Exchange” and for “Phillips” did not return a Downstream entity or C. Anthony or Derek Phillips. The license claim is therefore not confirmed and Nevada is not listed under state registrations. It may exist under another name or have lapsed — ask for the license number. Every document is prepared in-house, reviewed by three professionals, and signed by a company officer — that describes documents, not wire release.

Team: C. Anthony Phillips, President, a CPA and partner in the CPA firm Phillips & Company, reviews and signs all exchange documents and has spoken at FEA annual conferences. Derek Phillips, Esq., is an attorney and California real estate broker. Several listed staff work concurrently for Phillips & Company or have phillipsco.com addresses. That is shared staff, not a printed statement that Phillips & Company owns the QI, so parent stays Independent / unpublished. No team member is listed as a Certified Exchange Specialist, so cesOnStaff stays unknown.

Insurance: the footer “Fidelity Bond Policy” link opens an ACORD certificate whose coverage line reads “OTHER Crime” — Underwriters at Lloyd’s London, 11/1/2025 to 11/1/2026, $1,000,000 each claim, $1,000,000 aggregate, $100,000 retention. The site calls it a fidelity bond; the certificate says crime. This file records both labels and does not pick one. The “Errors and Omissions Policy” link opens an ACORD certificate for Errors & Omissions — Scottsdale Insurance Company, 07/15/2026 to 07/15/2027, $1,000,000 each claim and aggregate. The Washington RCW 19.310.040 page quotes the statute’s choice between a $1 million fidelity bond and a qualified escrow account or qualified trust, then answers with the bond and the E&O policy. It does not say funds are held in a QEA or QTA.

Custody: procedures pages promise a monthly analysis of activity on your account while Downstream holds funds. A Phillips & Company tax professional is responsible for confirming wires. The bank, FDIC status, account title, segregation, and signature controls are not published. fundsHeld and dualSignature stay unknown.

Reverse procedures and FAQ: Method 1 (the accommodator takes title to the relinquished property) and Method 2 (the accommodator takes title to the replacement property) through LLCs created solely to hold parked property; supplemental property tax is withheld and trued up. Built-to-suit procedures and FAQ: a special purpose entity affiliated with Downstream holds the replacement property while exchange funds pay approved invoices. Reverse and improvement are therefore yes. The site also publishes a hotel/motel exchange procedure.

CES® holders, a Downstream fee card, float, and DST are not on the homepage, about, team, services, procedures, FAQ, RCW, terms, or certificate pages opened 2026-09-29.

Office: 909 East Green Street, Pasadena, CA 91106-2906. (626) 796-1031. (800) 743-1031. Fax (626) 796-8222. support@downstreamexchange.com.

Ask Downstream Exchange Company for the renewed crime certificate after 11/1/2026, its Nevada license number, the live bank and account title, whether each exchange sits in its own account, and who can release a wire — then read those papers, not this summary.

Sources

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Listings are sourced from public pages. Unknown is omitted, not graded. If a fact is wrong or stale, send the primary URL.

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