DST Investments

Delaware Statutory Trust investment guidance for 1031 exchange investors seeking fractional ownership of institutional-quality real estate with passive income and no management responsibilities.

Delaware Statutory Trust investments allow Washington DC investors to complete a 1031 exchange by acquiring fractional interests in institutional-quality real estate. DSTs qualify as like-kind replacement property under IRS Revenue Ruling 2004-86, making them a powerful tool for investors who want to defer capital gains taxes without the burden of active property management. DST properties typically include single tenant NNN retail locations, multifamily communities, industrial distribution centers, medical office buildings, and self-storage portfolios managed by professional sponsors. Investors receive monthly distributions and benefit from depreciation pass-throughs. We help investors evaluate DST offerings, analyze sponsor track records, review property fundamentals, and coordinate with qualified intermediaries to ensure DST acquisitions close within the 45-day identification and 180-day closing deadlines. DSTs also serve as excellent backup identifications alongside direct property acquisitions.
Get Started

Related Services

45-Day Identification Period

Strategic guidance for the critical 45-day identification window in your 1031 exchange. We help investors identify qualifying replacement properties before the IRS deadline expires.

Qualified Intermediary Coordination

Secure custodial oversight and wiring discipline that preserves every exchange milestone from contract to closing.

Property Identification

Nationwide sourcing of single tenant NNN retail and shopping center properties across all 50 states. We help 1031 exchange buyers quickly find high quality replacement properties with credit tenants, predictable income, and minimal management.

Tax Advisor Coordination

Seamless coordination with your CPA, tax attorney, and financial advisors to ensure your 1031 exchange strategy aligns with your overall tax planning and wealth management goals.

Frequently Asked Questions

How do DSTs qualify as replacement property in a 1031 exchange?

Under IRS Revenue Ruling 2004-86, beneficial interests in a Delaware Statutory Trust qualify as direct ownership of real estate for 1031 exchange purposes. This means Washington DC investors can defer capital gains taxes by exchanging into a DST just as they would by purchasing a property directly. DSTs are particularly useful for investors who want institutional-quality real estate, such as single tenant NNN retail, multifamily, or industrial properties, without management responsibilities.

What are the advantages of DST investments for 1031 exchange buyers?

DSTs offer several advantages: no active management responsibilities, access to institutional-quality properties like single tenant NNN retail with credit tenants, lower minimum investment amounts allowing precise equity matching, monthly income distributions, depreciation benefits, and fast closing timelines that fit within 1031 exchange deadlines. DSTs also serve as excellent backup identifications in case direct property acquisitions fall through. We help Washington DC investors evaluate DST offerings alongside direct property options.

What are the risks and limitations of DST investments?

DST investors cannot make major decisions about the property, including refinancing, major capital expenditures, or accepting new tenants. DSTs have defined hold periods, typically five to ten years, and liquidity is limited during the hold period. Returns depend on the sponsor's management and the underlying property performance. We help Washington DC investors evaluate sponsor track records, property fundamentals, debt structures, and projected returns to make informed DST investment decisions within their 1031 exchange.