DST Investments

Delaware Statu­to­ry Trusts pro­vide eli­gi­ble investors with frac­tion­al ben­e­fi­cial inter­ests in pro­fes­sion­al­ly man­aged real estate.

DSTs may be con­sid­ered by investors seek­ing pas­sive own­er­ship, poten­tial Sec­tion 1031 replace­ment prop­er­ty, access to larg­er com­mer­cial assets, or diver­si­fi­ca­tion among prop­er­ties and mar­kets.

DST invest­ments also involve impor­tant risks, includ­ing illiq­uid­i­ty, lim­it­ed investor con­trol, spon­sor risk, mar­ket risk, financ­ing risk, and pos­si­ble loss of prin­ci­pal.

Investors should eval­u­ate the under­ly­ing real estate, spon­sor, financ­ing, fees, pro­ject­ed income, risk fac­tors, and antic­i­pat­ed exit strat­e­gy before invest­ing.

Key Point: A DST should be eval­u­at­ed as a real estate invest­ment first — not sim­ply as a tax-defer­ral vehi­cle.

Relat­ed DSTNews.org Arti­cles

• What Is a Delaware Statu­to­ry Trust (DST)?

• Under­stand­ing Delaware Statu­to­ry Trusts: Risks and Ben­e­fits

• Under­stand­ing DST Risk: What Investors Must Know

Impor­tant Dis­clo­sure: This mate­r­i­al is for edu­ca­tion­al pur­pos­es only and is not tax, legal, account­ing, or invest­ment advice or an offer to sell or solic­i­ta­tion to pur­chase any secu­ri­ty. Pri­vate real estate, DSTs, Oppor­tu­ni­ty Zone invest­ments, pri­vate funds, and UPREIT struc­tures involve risk, includ­ing pos­si­ble loss of prin­ci­pal and lim­it­ed liq­uid­i­ty.