Delaware Statutory Trust placement allows 1031 exchange investors to acquire fractional interests in institutional-quality real estate without the responsibilities of direct property management. A DST holds title to real estate on behalf of many investors, and the Internal Revenue Service has recognized the resulting beneficial interest as like-kind real property for exchange purposes under Revenue Ruling 2004-86 — a distinction that separates a qualifying DST interest from a syndication or crowdfunding equity interest, which is generally treated as a security or personal property and does not qualify. DST interests are themselves securities, and this is not investment or securities advice; any placement is made only through licensed providers.
We review available DST offerings from established sponsors, evaluate sponsor track record, asset quality, projected distributions, and fee structure, then present a curated shortlist aligned with your income requirements and risk tolerance. All placements are coordinated with your Qualified Intermediary and introduced through licensed providers to keep the transaction within exchange compliance and applicable securities regulation.
DSTs solve the management burden problem for investors exiting active landlord duties, but sponsor selection and asset quality vary widely. Due diligence at the placement stage, not after capital is committed, determines whether the investment delivers as projected.
Asset focus
Challenges
- DST sponsor quality, asset selection, and fee structure vary widely, and the differences are not always visible in marketing materials.
- DST interests are generally treated as securities, so any placement requires a licensed provider and appropriate disclosure.
- Investors exiting active management sometimes select a DST offering without adequate diligence on sponsor track record or leverage.
- DST structures limit investor control over property-level decisions, which is a tradeoff some investors do not fully weigh before committing capital.
What we deliver
- A curated shortlist of DST offerings from established sponsors matched to your income and risk tolerance.
- A review of sponsor track record, asset quality, projected distributions, and fee structure for each offering.
- Coordination with your Qualified Intermediary to keep any DST placement within exchange compliance.
- An introduction to a licensed provider for execution of any DST placement.
Related services
Find replacement properties for your 1031 exchange
Understand how federal capital gains tax applies when you sell a rental
Understand the stepped up basis rule for inherited real estate
Understand the structures investors use to earn passive income from real estate
FAQ
Why does a DST interest qualify for a 1031 exchange when a syndication does not?
The Internal Revenue Service recognized a beneficial interest in a Delaware Statutory Trust as like-kind real property under Revenue Ruling 2004-86. A syndication or fund interest, by contrast, is generally a security or personal property interest and does not qualify.
Are DST interests securities?
Yes. DST interests are securities, and any placement is made only through licensed providers with appropriate disclosure. This is not investment or securities advice.
What do you evaluate when reviewing DST offerings?
Sponsor track record, asset quality, projected distributions, fee structure, and leverage, then we present a curated shortlist matched to your income requirements and risk tolerance.
Who is a DST typically a good fit for?
Investors exiting active property management who want passive income and institutional-quality real estate without landlord responsibilities, often later in an investment career or portfolio.
Do you hold or manage the DST investment?
No. We coordinate the introduction and placement through licensed providers and align the timing with your Qualified Intermediary; we do not manage the trust or hold your capital.
Does a DST require the same 45-day and 180-day compliance?
Yes. A DST placement used as 1031 exchange replacement property must still be identified within 45 days and closed within 180 days, exactly like a direct property acquisition.