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.

About Kay Properties and www.kpi1031.com

Kay Properties is a national Delaware Statutory Trust (DST) specialty firm. The www.kpi1031.com platform provides access to the marketplace of typically 20-40 DSTs from over 25 different DST sponsor companies, custom DSTs only available to Kay clients and a DST secondary market. Kay Properties team members collectively have over 400 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments.

Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.

There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distributions, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals, and risk tolerances. Securities offered through FNEX Capital, member FINRA, SIPC.

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    (Accredited investors are defined under SEC Rule 506 of Regulation D. Generally, an investor is deemed accredited if their net worth is greater than $1,000,000 exclusive of their primary residence and/or their annual income exceeds $200,000 for the current and past two years. Click here to view an applicable SEC bulletin.)
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