Introducing a Revolutionary Investment Opportunity: The Delaware Statutory Trust (DST)
Experience a groundbreaking investment opportunity with the Delaware Statutory Trust (DST). The DST is a unique legal entity created as a trust under Delaware statutory law, allowing for the pooling of capital from multiple investors. This flexible approach revolutionizes the design and operation of real estate investments.
By investing in a DST, you gain beneficial ownership interest in the trust, which holds fee simple ownership of the real estate. While you won’t have the right to use or possess the property, you do get to co-own it with other qualified investors. And as a beneficial owner, you have the right to participate in your proportional ownership share of the subsequent profits, including projected cash flow, potential appreciation, and tax-deductible depreciation.
The DST opens doors to larger, institutional-quality properties that may have been unattainable on an individual basis. With lower minimum investment amounts, you can diversify your portfolio across different property types, locations, and investment strategies, minimizing risk and potentially increasing returns. Additionally, the DST offers capital gain tax deferral, professional management, potential monthly income, nonrecourse debt, limited liability, and access to national credit tenants. All these advantages are presented in a fully regulated, underwritten, and transparent private security offering.
One of the most groundbreaking aspects of the properly structured DST investment is the opportunity to defer capital gains tax through a like-kind exchange (IRC section 1031). Unlike traditional ways of holding real estate, such as limited partnerships, LLCs, S-corporations, or REITs, the DST qualifies for Section 1031 exchanges. This means you can defer capital gains tax when buying and selling interests in a DST. While this concept may be new to many, DSTs have been offered since 2004, with billions of dollars already invested.
Another significant advantage of investing in a DST is the potential for passive income. DST investments follow a passive investment structure, where experienced asset managers or sponsors handle the day-to-day operations. This allows you to enjoy the benefits of real estate ownership without the hassles of property management, making it an attractive option for those seeking a more hands-off approach.
DST investment properties encompass a wide range of options, including luxury apartment communities, Amazon distribution centers, industrial warehouses, corporate headquarters, hospitality venues, medical offices, student housing, assisted living facilities, and NNN retail stores. Multifamily DSTs, which make up half of the current offerings, include both Class A properties with modern amenities and Class B properties with potential for additional value based on a value-add strategy.
Delve into the rich history of DSTs, which can be traced back to 16th-century English Common Law. However, it wasn’t until the Delaware Statutory Trust Act of 1988 that DSTs gained legal recognition as separate entities. This act offered freedom from common law restrictions and provided liability protection comparable to limited liability companies or partnerships.
While DSTs are a relatively new concept, they have benefited from over 100 years of legislative and judicial landmarks in the United States. These milestones include the adoption of Section 1031 in 1921, the Securities Act of 1933, the landmark case of SEC v. W.J. Howey Company in 1946, the Delaware Statutory Trust Act of 1988, IRS Revenue Ruling 2004-86, and the 2017 Tax Cuts and Jobs Act that preserved 1031 exchanges for real property. These laws have shaped DSTs into a secure and lucrative real estate investment option with exceptional ownership structures.
Syndicated DSTs are private placement offerings exempt from SEC registration under Regulation D of the 1933 Securities Act, available exclusively to accredited investors. With investment minimums as low as $25,000, you can access stabilized institutional-grade properties valued at over $100 million. Register with us to explore our comprehensive listings of DST properties available for 1031 exchange, each undergoing a rigorous due diligence process.
In summary, the DST offers a revolutionary investment opportunity that combines the tax benefits of real estate with the due diligence and full disclosure of securities. Experience the future of real estate investing with the Delaware Statutory Trust.