Delaware Statutory Trusts

A passive investment strategy leveraging 1031 tax deferral

DST's offer an IRS approved vehicle for 1031 exchanges, which can defer long term taxes, simplify ongoing tax reporting obligations and liberate investors from hands on property management. They have the potential to provide positive cash flow and ongoing tax benefits.

Delaware Statutory Trusts

Putting Freedom from Management First.

DST's offer an IRS approved vehicle for 1031 exchanges, which can potentially defer long term taxes, simplify ongoing tax reporting obligations and liberate investors from hands on property management. They have the potential to provide positive cash flow and long term capital appreciation.

Tax deferral and minimization

DST's offer an IRS approved vehicle for 1031 exchanges that allow for deferral of long term capital gains tax, state income tax, net investment income tax and depreciation recapture on real estate investment sales.

Maximize tax benefits.

Freedom from property management

Exchanging into DST's allow for direct investment without the burden of property management. Properties are institutional grade and professionally managed by vetted and experienced specialists.

Free up your time.

Institutional quality at low minimums

DST's offer access to properties of a size and scale that is typically unavailable to individual investors. Unlike standard TIC (tenancy in common) arrangements, DST's lower the investment threshold to as little as $25,000.

Access larger investments.

Wealth management

DST structures and 1031 exchanges can retain benefits of real estate investment including potential cash flow, tax advantaged income and passing through costs, depreciation and other tax benefits.

Make the most of your wealth.

Why use Delaware Statutory Trusts?

Property management isn't always easy.

Terrible T's

You've built your wealth with investment property but the management can be time-consuming, difficult, and stressful. Either you're dealing with the 'Terrible T's' of tenants, taxes, trash, and termites or you're managing a property manager.

1031's are complex

Transitioning from active to passive real estate investment through 1031 exchanges can be onerous, risky and complex. From the sale to qualified intermediaries to escrow. From time pressures to extensive documentation and reviews.

Accounting is rigorous

Keeping track of income, expenses, capital improvements, investment basis, new tax laws, etc. can be challenging when it comes to reporting and compliance. DST sponsors provide comprehensive asset management and accounting services to meet many of these needs.

Time is pressing

When seeking replacement property to defer tax by qualifying for a 1031 exchange, the 45-day identification period can create real pressure and lead to a risk of unnecessarily paying capital gains and other taxes.

DST's can be instrumental in your success

By reducing the complexity of 1031 exchanges, DST's provide a streamlined
replacement property solution.

Tax mitigation

Defer long term capital gains and other sale-related tax, while leveraging depreciation and other expenses to reduce taxable income over time. Sponsors provide simple year end profit and loss statements for tax preparation.

Minimize your tax burden.

Total return vehicle

DST's have the potential to deliver passive cash flow with returns similar to institutional quality investments, while giving you the potential to grow your wealth through capital appreciation.

Enjoy and grow your wealth.

Eliminate management

Property management can be cumbersome, but exchanging into DST's allow you to retire from the termites, toilets and tenants. So no more management and no more untimely calls.

Protect your free time.

Simplify reporting

Sponsors manage the accounting function, providing year-end profit and loss statements for tax preparation. With DST's you're less involved in the detail and more free to enjoy your time.

Make tax reporting easy.

Pre-arranged financing

All financing for DST's are secured by the investment sponsor through existing lending relationships. Loans are typically fixed-rate and non-recourse to the investor with 7-10 year terms.

Delegate loan sourcing.

Holding Period

Average DST holding periods usually fall between 7 and 10 years. Managers typically prepare for and execute property sales in line with favorable market conditions.

Use the professionals.

Quickly identify property

We are typically able to provide investors with multiple DST options leading up to and through their 45 day identification period. DST's can also be used for backup purposes or for leftover exchange equity.

Assure your 1031 exchange.

Is a Delaware Statutory Trust right for you?

DST's can make financial and strategic sense for suitable investors.

You're deferring capital gains

You've sold an appreciated property and now need to prioritize deferring capital gains and other related taxes to preserve your wealth.

You're retiring or stepping back

Real estate investment makes eminent sense in your portfolio and in terms of tax advantages, but you're ready to be free from management.

You may want to consolidate

You're looking to consolidate your holdings across multiple real estate investments into fewer, larger investments for ease of management and quality.

You may want to diversify

You see value in diversifying your investment portfolio and would like to include institutional quality real estate to offset traditional investment risks.

You're seeking replacement property

You've sold a property and in preparation for a 1031 exchange you're looking for a viable replacement property within the 45 day timeframe.

You have excess 1031 proceeds

You've purchased property on your own but have excess sale proceeds and rather than pay capital gains tax, you seek 100% tax deferral. DST's with minimums starting at $25,000 can help you avoid boot.

How DST's work

We put your understanding first.

STAX DST Exchange Guide

Our DST Exchange Guide provides a comprehensive overview of the 1031 exchange process and how Delaware Statutory Trust investments work and can be used to help investors gain access to institutional grade properties.

DST's are no magic bullet

Although DST's offer many benefits, they carry the general risks of any
investment and some particular risks worth noting.

Can be difficult to sell.

Illiquid structure

DST investors can't access a secondary market and one is unlikely to develop, so it is very difficult to sell a DST interest.

Can be difficult to sell.

Delegated control

Investors delegate control over their investment to managers and therefore have no opportunity to influence decison making.

No decision making.

Fees and expenses

As with any other investment, investors should understand all fees and expenses prior to making an investment decision.

Always review fees and expenses.

Sale decisions

DST sale decisions are made by sponsors, they are based on market conditions and other variables effecting the sale price.

Selling decisions are independent.

Market risk

DST properties are subject to market risks, including general economic risks, property specific submarket and location risks.

Investing carries risk.

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Completed Investments

Filter Investments :
Carter Mulit-family I
Primarily Southeast
Total Capital Placement
$200,000,000
Loan to value
65-75% LTV Target
1031 Eligible
no
Minimum Investment
$50,000
Type
Multi-Family
Structure
LLC
Multi-Family DST
Bedford, NH
Total Capital Placement
$31,453,687
Loan to value
53.12%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
SENIOR LIVING DST
Phoenix, AZ
Total Capital Placement
$53,544,255
Loan to value
All Cash Offering
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Seniors Housing
Structure
DST
MULTI-FAMILY DST
Lexington, KY
Total Capital Placement
$34,342,000
Loan to value
47.82%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
MULTI-FAMILY DST
Houston, TX
Total Capital Placement
$30,400,000
Loan to value
46.89%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
MULTI-FAMILY DST
Louisville, KY
Total Capital Placement
$32,850,000
Loan to value
53.89%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
MULTI-FAMILY DST
Nashville, TN
Total Capital Placement
$28,250,000
Loan to value
56.59%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
MULTI-FAMILY DST
Destin, FL
Total Capital Placement
$33,450,000
Loan to value
55.22%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
MULTI-FAMILY DST
TX, GA & NC
Total Capital Placement
$72,403,877
Loan to value
54.70%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
Multi-family DST
Augusta, GA
Total Capital Placement
$29,525,000
Loan to value
56.08%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
Multi-family DST
Houston, TX
Total Capital Placement
$35,825,000
Loan to value
47.53%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST
Multi-family DST
Houston, TX
Total Capital Placement
$35,825,000
Loan to value
47.53%
1031 Eligible
Yes
Minimum Investment
25k Cash - 100k Exchange
Type
Multi-Family
Structure
DST

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