Please view press release here.
Kay Properties investors, a family who inherited land on the outskirts of a city, tried for years to sell the land all the while learning about 1031 DST offerings as a possible option for their investment. When the property finally sold, the family wanted to lower their risk potential and so invested the entire $2.5M into all cash, debt free DST properties. Betty Friant, Senior Vice President, explained, “The family had tried renting out a few of the small houses on the land in the past with very mixed results. They were tired of the active management of the tenants, toilets, and trash and so let the homes remain vacant instead of dealing with the hassles of management. The family ultimately invested in 9 different DST properties for sale which represented multiple asset classes which included Medical, Industrial, Retail, Net Lease Pharmacy, Self-Storage and even a debt free Multifamily DST in various regions of the country and with various DST sponsor companies and DST asset managers.”
Friant continued, “The clients were able to move from a negative cash flow scenario of paying the annual taxes and upkeep on land and the rundown buildings, to a lifestyle change with potential monthly income and no active management while avoiding the significant tax consequences that would have happened if they hadn’t done a 1031 Exchange. The Delaware Statutory Trust DSTs were a great fit for this particular family to potentially accomplish their goals and objectives.”