DST interests are generally designed as long-term, illiquid private real estate investments. Unlike publicly traded securities, there is typically no established public exchange where an investor can immediately sell an interest.
In some circumstances, an investor may seek a secondary transfer before the underlying property is sold. A transaction can depend on buyer availability, sponsor approval, transfer restrictions, lender requirements, investor eligibility, current property performance, and market valuation.
A secondary buyer may require a discount from the investor’s original purchase price or estimated underlying value. Investors should generally enter a DST prepared to hold through the sponsor’s exit.
Key Point: A secondary market may provide a potential liquidity option, but it should not be assumed to provide guaranteed liquidity or full value.
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Educational use only. This material is not tax, legal, accounting, or investment advice. Private real estate investments involve risk, including possible loss of principal and illiquidity.