DST Investments

Property owners – baby boomers in particular – often find themselves at a point when they’re seeking more passive investment opportunities. Because of this, Tenants in Common (TIC) investment strategy and DSTs have become a preferred investment choice for 1031 exchangors. Delaware Statutory Trusts, provide passive, professionally managed properties that allow owners to enjoy passivity and a steady monthly income.

To discuss your questions regarding DSTs with an advisor, we invite you to contact 1031 Exchange Place. We can also help you find the best DST properties to meet your investment criteria. For a more detailed overview of DST investments, download our FREE E-Book. Simply fill out the form at the bottom of this page with your name and email. Don’t worry, we don’t spam our clients.

How DSTs Work

The DST sponsor acquires the property within the trust and opens the trust for potential investors to purchase a beneficial interest. DST investors may benefit from a professionally managed, potentially institutional quality property. The properties could be a 300-unit apartment building, a 50,000 square-foot medical office property, a pool of net leased properties with Fortune 500 tenants, or even a land lease hosting acres of solar panels. Most DST investments are assets that your average investor could not otherwise afford. However, by pooling money with other investors, they can access a higher grade real estate. Beneficial owners of a DST have no say in how properties are managed or even when they’re liquidated. To most, this is a good thing – after all what they’re interested in is passive income – not managing a real estate portfolio. The benefit to this is that the real estate is managed by an experienced team that also has a vested interest in the performance of the portfolio.

Investors who are familiar with tenants in common (TIC) format may see some similarities with the concept of DSTs; however, it’s important to learn the differences between the two concepts. The most basic difference is that a TIC co-owners each own an undivided, pro-rata share of title to the property, while a DST may have up to 100 investors (and sometimes more), with each investor owning a beneficial interest in the trust which, in turn, owns the underlying asset(s).