Luxury apartment complex - DST investment property

Delaware Statutory Trust (DST)

Passive 1031 Investments in Institutional Real Estate

Invest passively in high-quality commercial real estate via DSTs. Delaware Statutory Trusts offer accredited investors a 1031 exchange-friendly path to fractional ownership of large properties - providing regular income without management headaches.

What is a DST?

A Delaware Statutory Trust (DST) is a legal entity that allows multiple investors to share ownership in a single real estate investment. Each investor holds a beneficial interest in the trust, which in turn owns the property/assets.

DSTs are commonly used as replacement properties in 1031 Exchanges because investments in a DST qualify as “like-kind” real estate for exchange purposes. This allows you to defer taxes while handing off day-to-day property responsibilities to professional asset managers.

In a DST structure, investors do not have active control - it's truly passive. DSTs have a finite life (often 5-10 years), after which the property is sold and investors receive their share of proceeds (which can go into another 1031 exchange if desired).

Luxury apartment complex - DST investment

DST Property Types

Access institutional-quality assets across multiple sectors

Multi-Family

Healthcare

Self Storage

Industrial

Key Benefits of DST Investments

Why thousands of 1031 exchangers choose DSTs for passive income

Passive Ownership

No landlord duties at all. The DST sponsor handles property management, leasing, maintenance - everything. Ideal for retiring landlords.

1031 Exchange Eligible

DST interests are pre-packaged to qualify for 1031 exchanges. Many deals close within days, facilitating quick replacements.

Diversification

Spread exchange dollars across multiple properties and asset types to reduce risk. Invest like an institution.

Institutional-Quality Assets

Access A-grade investments: brand-new luxury apartments, large self-storage portfolios, Fortune 500-leased distribution centers.

Potential Monthly Income

Most DSTs pay regular distributions from property rent, often monthly or quarterly. Many aim for 4-7% annualized yields.

Limited Liability & Quick Closings

Your liability is limited to your investment. DST loans are non-recourse. Close in days to meet 1031 deadlines.

Important Considerations

DSTs are not without considerations - we explain these to be transparent

Illiquidity

Your money will typically be tied up for 5-10 years. There is generally no public market to sell your DST interest if you need cash sooner.

Fees and Expenses

DST offerings include various fees: sponsor acquisition fees, broker-dealer commissions, management fees. These are disclosed in the PPM.

Trust Structure & Lack of Control

You have no say in property operations or when to sell. If the market shifts, you rely on the sponsor's decisions.

Sponsor Quality

Performance largely depends on the sponsor. We conduct due diligence on sponsors - their history, past DST outcomes, and financial health.

Our DST Services - How We Help You

From curated offerings to ongoing monitoring, we're your DST partner

Curated Offerings

We maintain a list of vetted DST offerings currently on the market. We curate a short-list that fits your exchange needs.

Due Diligence Review

For each option, we provide sponsor track records, property summaries, tenant info, and our commentary on pros/cons.

Allocation Strategy

For larger exchanges, we advise splitting into multiple DSTs to diversify risk across sectors and geographies.

Transaction Execution

We coordinate subscription documents, liaise with sponsors, and arrange fund transfers with your Qualified Intermediary.

Ongoing Monitoring

We track when DSTs are likely to sell and proactively help you plan the next move for continuous deferral.

Financial district - 721 Exchange UPREIT

Future Liquidity Path

Planning a Future Liquidity Path? - 721 Exchange (UPREIT)

If you invest in DSTs now, you might eventually have the opportunity to convert those DST interests into Operating Partnership units of a REIT - essentially exchanging your DST for REIT shares without triggering capital gains tax.

This is an advanced strategy for when a DST sponsor sells the property and offers a tax-deferred roll-up into their REIT. If this is something you want to aim for, we can select DSTs with a planned UPREIT exit in mind.

Learn About 721 Exchange Strategies

Start Your DST Investment Journey

If DSTs sound like a fit for your needs, let's discuss your options. We provide a free DST consultation where we can show you current offerings and answer any questions.

Call Now: (725) 302-1031

Reminder: DST investments are securities and come with risks, including loss of principal. Distributions are not guaranteed. Be sure to read all offering materials.