Education
The Delaware Statutory Trust.
A Delaware Statutory Trust holds title to institutional-grade real estate; investors own beneficial interests in the trust. Under IRS Revenue Ruling 2004-86, those interests qualify as like-kind replacement property for a 1031 exchange.
A worked example
How the math looks
A family sells a rental and exchanges $800,000 of equity into a DST holding a Class-A apartment community at 60% loan-to-value. The trust's non-recourse debt tops up their debt-replacement requirement automatically, and distributions arrive monthly without a single tenant call.
$800Kof equity exchanged into the trust
60%loan-to-value, pre-arranged and non-recourse
Inside the trust
Five characteristics that matter.
- Up to 499 investors per trust; minimums from $50,000
- Pre-arranged, non-recourse financing at the trust level
- Professional asset and property management
- Monthly distribution potential
- Closes in days, not months — funds transfer in as little as 2–3 business days
Where the trusts invest
- Multi-family
- Self-storage
- Senior housing
- Healthcare
- Industrial
- Corporate-leased triple net
Weighing it
The honest ledger.
The case for
- Truly passive — no tenants, toilets, or trash
- Institutional real estate at fractional size
- Diversification across multiple trusts, sponsors, and markets
- Debt replacement handled by the structure
- Estate planning: interests divide cleanly among heirs
- “Swap 'til you drop” — exchange again and again, then step-up at death
The trade-offs
- Illiquid — plan to hold for the trust's full cycle
- No investor control over management decisions
- Distributions and tax treatment are not guaranteed
When a DST may not fit.
A DST is not right for every investor or every exchange — when it isn't, we say so. Ask us for “When a DST May Not Fit,” one of the most-requested papers in our library.
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Complimentary Investor Evaluation
Bring us the property, the timeline, and the goal. You'll leave the first conversation knowing every option on the table — and what we'd do in your position.