DST Properties List

Sample DST Properties


Debt Amount $ 21,000,000
Minimum Purchase 1031: $ 100,000

JFC Windsor DST: Minimum 1031 investment of $100,000 Projected 7.0% cash-on-cash return in Year 1
The Oaks at Lynchburg DSTMinimum 1031 investment of $100,000 5 3 .85% LTV
Whole Foods Market Fixed Interest Rate of 5.75% Loan to Value: 59.74%.
CVS Pharmacy YEAR BUILT 2010 EXAMPLE: $426,315.79 in debt
AEI Net Lease Portfolio V DST Initial distribution rate: 5.13% Liquidate 10 years

Delaware Statutory Trust (DST) are passive investment option for an investor. With DST, we can also co-invest with other 1031 exchange investors in multiple institutional-grade properties. Under DST, the owner has fractional ownership of equity and debt by fulfilling the exchange requirements of the investor.

Under this, an investor receives 1099 for ordinary income, Mortgage interest write-off, and an operating statement or profit and loss statement for depreciation are allowed by 1098. DSTs also help the investor to enjoy the benefit of owning real estate without dealing with the daily responsibilities of managing the real estate.

What Is A Delaware Statutory Trust (DST)?

Delaware Statutory Trust are the legal entities created as a trust under the Delaware Statutory law. Under this an investor owns a proportional interest along with the rights to distribution from the rental income or sale of the property.

DSTs were set up in the year 1988 by the Delaware Statutory Trust Act, and were recognized by the state law. These are formed as a private administering agreement under which a property is managed, held, administrated, and invested. DST investments are offered as replacement properties to investors looking for deferring capital gains taxes with 1031 Exchange. The main benefit of investing under DST is that under this even small investors can acquire a share of interest in large and developed properties. DST properties are spread across different states of the USA.

Benefits of Purchasing a DST Interest

The investors who purchase an interest in the Delaware Statutory Trust in addition to all the benefits of real estate also have some additional benefits as discussed below:

  1.  In DSTs, if the investment is made for large buildings, then they tend to attract tenants with greater financial strength and stability.
  2. DST’s create an inheritance for our heirs. If the investor has a motive of creating income generating investments for his heirs when the investor is no more, at this time, DST investment is the most worthy investment.
  3. In DST the investment can be diversified as the net proceeds can be split among several different markets and asset types, like if the investor doesn’t want to invest his entire amount in a single property then under DST investor has an option to break his investment among multiple DST properties; therefore it gives the opportunity of diversification.
  4. DST’s are the backup plan because during the identification period of the 1031 exchange DST property can be used as one of the three candidate properties. Suppose the investor is not able to acquire the first two choices of identified candidate property to meet the deadline, DST property remains as an option that can be closed very quickly to meet the exchange deadline.
  5. The investors get free from day to day management of the properties like without managing the property, and the investor may enjoy more leisure time to relax and pursue other interest. The investor can also lease the property, collect rent, service the mortgage, and handle the additional responsibilities by residing far from the location.

All the information provided above has been researched and thought to be knowledgeable for you. For consultation and assistance regarding DST properties, you can call 888-993-2835 or Click here to contact one of our Advisors to know more about DST Properties. You can also email us at info@qualifiedintermediary.com.  

“Our tax-deferred 1031 exchange programs can save millions in taxes, increase investor equity, and compound annual cash flow distributions and returns”