Hotel Retirement Solution: 1031 Exchange into DSTs

Hotel owners frequently contact Kay Properties and Investments looking for a retirement solution. They have labored for decades building up their business and now it is time to sell the property and retire. However, optimism is often replaced by anxiety when their CPA calculates the tax consequence to discover the standard of living hoped for may not be feasible.

Kay Properties and Investments works with hotel owners to help achieve their retirement goals through a 1031 exchange into a portfolio of DST properties specifically tailored with the following objectives in mind:

  • Defer Tax Consequence: 1031 Exchange allows the hotel owner to potentially defer capital gains taxes, depreciation recapture tax, and others. DST properties qualify for pass-through tax treatment to the investor, including passive losses like depreciation. Additionally, heirs will receive a step up in basis upon the passing of the original owner, just like other real estate ownership. Investors should always discuss their unique tax considerations with a tax professional prior to investing.
  • Potential for Passive Income: Delaware Statutory Trust properties are truly passive. There are no oversight responsibilities or management obligations whatsoever.
  • Non-recourse debt: No need to apply for a loan, nor does it show up on credit reports. DST debt is held on the property alone. If the hotel owner does not need to take on debt, Kay Properties has debt-free DST options as well.
  • Diversification: Many hotel owners like DSTs because of the ability diversify their investment into various DST properties. Why risk years of hard work and late nights by parking your entire wealth in a single property? Kay Properties develops tailored portfolios of DST properties diversified by asset type and asset class throughout the country. Diversification does not guarantee profits or protect against losses.
  • Legacy Planning:  DST shares are more easily divisible between multiple heirs than a single asset. This way, heirs are much less likely to be forced to make stressful and often controversial decisions of whether they should liquidate a property or not once inherited.

If you would like to speak to a licensed professional at Kay Properties and Investment with experience working with hotel owners, contact the information below to receive your free consultation.

Contact Kay Properties and Investments at:

(855) 466-5927

About Kay Properties and Investments, LLC:

Kay Properties and Investments, LLC is a national Delaware Statutory Trust (DST) investment firm with offices in Los Angeles, San Diego, San Francisco, Seattle, New York City and Washington DC.  Kay Properties team members collectively have over 114 years of real estate experience, are licensed in all 50 states, and have participated in over $9 Billion of DST real estate.  Our clients have the ability to participate in private, exclusively available, DST properties as well as those presented to the wider DST marketplace; with the exception of those that fail our due-diligence process. To learn more about Kay Properties please visit:

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. This email contains information that has been obtained from sources believed to be reliable. However, Kay Properties and Investments, LLC, WealthForge Securities, LLC and their representatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment.  IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice.

There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, 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 WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities. This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this e-mail is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person.  For your protection, please do not transmit orders or instructions by email or include account numbers, social security numbers, credit card numbers, passwords, or other personal information.

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