Securitized real estate maintains all the benefits of real estate but adds the disclosure of a security, and in addition, removes the responsibility of property management.
A Truly Passive Investment

Rental real estate ownership is associated with the burdens of property management and oversight. The investments that DSTs offer is fully managed and overseen by the sponsor and/or property manager. The investor enjoys a truly passive investment, responsible only for cashing the net rental payment check each month or arranging for direct deposit.
With a securitized real estate offering, the investor enjoys the services of nationally reputed real estate management companies (called sponsors) that structure the property acquisition, lease and maintain the property, collect rent, service the mortgage, and eventually sell the property. These management companies have a vested interest in the performance of the property, and typically have strong historical track records with many past DST properties.

A securitized real estate investment eliminates the headaches and time-consuming burdens of active property management, specifically designed to be a solution for rental property investors who wish to retire from the daily burdens and liabilities that come with being a landlord. Such an investment is also perfect for professionals who are dedicated to their career, but still desire to build a well-diversified real estate portfolio with current income and strong appreciation potential. Combined with the 1031 exchange process, such a portfolio can grow, tax-deferred through the course of the investor’s career.


Access to Institutional Grade Investment Properties

A securitized real estate investment presents the opportunity for an individual to join together with other accredited investors to own investment-grade real estate with financially secure, creditworthy tenants under the long-term triple net (NNN) leases and professional management that none of them could own individually. The asset classes available for DST offerings includes the following:


Multifamily Apartment Communities

These properties are often large 200 to 500-unit class A apartment complexes with all the latest accommodations including a fitness gymnasium, business center, swimming pools, pet parks, common cooking facilities, and common lounges. These properties are professionally managed and are stabilized with 90 percent to 95 percent occupancy. Class B multifamily properties are sometimes offered with a capital improvement plan to add value to both common areas and individual units in a campaign to raise rents on a per-unit basis over the hold period and grow net operating income (NOI).


NNN Retail Properties

NNN retail properties range from single tenant buildings to large shopping malls. The trend with the retail DST offering is to combine multiple properties, with as many as 20 individual single-tenant properties under one DST offering with a combined property value to over $100 million, to provide the investor with greater diversification.


Senior Care Properties

Senior care properties include everything from senior assisted living centers to Alzheimer’s centers. With the Baby Boomers reaching their retirement years, the senior care asset class has increased in popularity with DST investors, to the extent that some sponsors are specializing in this single asset class.


Student Housing

With Millennials and Generation Z of college age, and with many colleges underfunded, private student housing located near major universities is a growing asset class.


Industrial & Distribution Centers

Industrial complexes and warehouses are less glamorous but can be cash cows if the fundamentals are right. Included in this class are self-storage and parking lots.



Over the past decade, the office building as a DST asset class has included downtown high-rise skyscrapers, medical office buildings, and single-tenant headquarters for large corporations. Some of the past trophy TIC and DST office buildings include the One World Trade Center, a 573,000 foot, 27-story class A office building in Long Beach, California; Emerald Plaza, a 355,000, 30-story class A office building in downtown San Diego; and 123 North Wacker Drive, a 540,700, 30-story class A office building in Chicago, Illinois. Corporate headquarters properties include buildings for Verizon and Dunkin’ Donuts.



Hotels are often considered the most glamorous real estate investments, and past DST offerings include national operators such as Marriott and Hilton. With a lease term as low as a single day, rents per unit can increase almost instantaneously due to the increase of RevPAR (revenue per available room). The cash flows are typically higher than other asset classes to compensate for the downside vacancy risk, which can be immediate and substantial.