DST 1031 Exchange

A Delaware Statutory Trust, or DST, is a way to own a share of a larger property, such as an apartment community, a medical office building, or a portfolio of net leased properties, along with other investors. The IRS has ruled that a DST interest can qualify as like-kind real property in a 1031 exchange, so you can sell your own property and put the proceeds into a DST. We have handled exchanges into DSTs.

Investors often consider DSTs when they want a passive investment with no tenants, repairs, or management, when they cannot find a suitable property in time, or when they want to spread their money across more than one property. Some owners use a DST as a backup if their first choice falls through during the 180 days.

A DST also has tradeoffs. Interests are generally limited to accredited investors, they are typically illiquid, you may not have control over management or when the property is sold, and sponsors charge fees.

As a qualified intermediary, we hold your exchange funds and handle the paperwork. DST interests are securities sold through licensed professionals, and we do not sell them or give investment advice. Talk with your financial advisor, and consult with a CPA or tax attorney before you decide.