DST presents an exceptional avenue for co-owning institutional-grade real estate with a remarkably low minimum investment requirement. These properties epitomize the caliber and variety typically reserved for esteemed entities such as pension funds, endowments, insurance companies, and prominent REITs. The asset classes available for DST offerings include the following:
Multifamily apartment communities, typically comprising 200 to 500 units, represent class A residences characterized by their upscale amenities. These amenities encompass modern features like fitness gyms, business centers, swimming pools, pet parks, communal cooking facilities, and comfortable lounges. These properties are expertly managed and boast a stable occupancy rate ranging from 90 to 95 percent. Class B multifamily properties, on the other hand, are accompanied by a property improvement plan (PIP) aimed at enhancing both shared spaces and individual units. This strategy aims to elevate rental rates on a per-unit basis throughout the investment period, thereby increasing net operating income (NOI).
NNN lease properties encompass a range of options, from single tenant buildings to expansive shopping malls. The current trend in retail DST offerings involves combining multiple properties, sometimes up to 20 individual single-tenant properties, into a single DST offering with a combined value exceeding $100 million. These properties are supported by national credit tenants such as Walgreens, CVS Pharmacy, Walmart, and Tractor Supply, to name a few, ensuring lease payments.
Senior care properties encompass a wide range, including assisted living centers and memory care centers, catering to the needs of elderly individuals.
The student housing sector is a thriving asset class, particularly near major universities. These properties are often newly constructed, offering top-notch amenities and considered best-in-class options.
While not as glamorous, industrial complexes and warehouses can be highly lucrative investments if the fundamentals align. This category includes properties like Amazon distribution centers, self-storage facilities, and parking lots.
Over the past decade, office buildings have emerged as a prominent DST asset class. This includes suburban class A offices, medical office buildings, bio-life research facilities, and single-tenant headquarters for renowned corporations like Verizon, Sports Authority, and Dunkin’ Donuts.
Past hospitality DST offerings have featured renowned operators such as Marriott and Hilton, presenting opportunities to invest in the hotel industry.