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Offering Price

The Offering Price generally refers to the price at which units or beneficial interests in the trust are offered to potential investors. It represents the amount an investor is expected to pay to acquire a share or stake in the DST.

A Delaware Statutory Trust is a distinct type of legal entity created under Delaware law that allows real estate investors to pool their capital to acquire high-quality, income-producing properties. They have become particularly popular for use in 1031 exchange transactions, where an investor can defer capital gains taxes by reinvesting the proceeds from the sale of a property into a DST.

The Offering Price for DSTs typically takes into consideration various factors, including:

  1. The value of the underlying real estate.
  2. Any debt or mortgage associated with the property.
  3. Initial setup costs and fees associated with the creation and management of the DST.
  4. Potential projected income from the property.

Investors should conduct thorough due diligence before investing in a DST and ensure that they fully understand the terms of the offering, including the Offering Price and any associated fees or costs.