Talk to an Advisor
1-800-USA-1031
GET STARTED

How Long Is The Typical Holding Period For A DST Investment?

The holding period for a DST (Delaware Statutory Trust) investment can vary depending on the specific investment strategy and goals of the investor.

Typically, DST investments are designed to be long-term investments, with holding periods ranging from 5 to 10 years or even longer. This is because DSTs are structured as 1031 exchange investments, which allows investors to defer capital gains taxes on the sale of their original property by reinvesting the proceeds into a DST.

Furthermore, DSTs often invest in income-generating commercial real estate properties, such as multifamily apartment buildings, office buildings, or retail centers. These properties generate steady cash flow through rental income, which is typically distributed to investors on a monthly or quarterly basis.

As such, investors in DSTs are often looking for a stable, long-term income stream and may be less focused on short-term capital appreciation. However, it is important for investors to carefully review the terms of the DST investment offering, including the projected holding period, before making an investment decision.