Delaware Statutory Trust (DST) Properties – An Introduction to DST Properties for 1031 Exchange Investors
An Excerpt from Delaware Statutory Trust (DST) Properties – An Introduction to DST Properties for 1031 Exchange Investors ...
Chapter 1: DST 1031 Properties - The Basics
A Delaware Statutory Trust (DST) is an entity that is used to hold title to investment real estate. In some ways, this is similar to how a Limited Liability Company (LLC) can hold title to real estate; however, unlike an LLC, a DST 1031 property will qualify as “like kind” exchange replacement property for a 1031 exchange. This qualification as “like kind” property is pursuant to the Internal Revenue Code Section 2004-86.
The DST entity can be used to hold title to most types of real estate; however, a typical DST 1031 property is a triple net (NNN) leased retail or office property or a multifamily apartment community. A NNN leased property is a property whereby the tenant (and not the landlord) is typically responsible for property maintenance costs, insurance premiums and property taxes.
Other types of DST 1031 properties that have been available to investors have included shopping centers, government leased buildings, self-storage facilities, age-restricted communities, warehouses, distribution facilities, medical office buildings, fast food buildings, pharmacies and grocery stores.
Typically, at any given time, Kay Properties has 30 to 45 DST 1031 properties available to our qualified accredited clients, with a typical minimum investment of $100,000.