What is a Delaware Statutory Trust (DST)?

A Delaware Statutory Trust is a legal entity that holds title to investment-grade real estate (apartments, industrial, medical, retail). Investors buy fractional interests and collect monthly distributions while a professional sponsor handles all management.

Is a DST 1031-eligible?

Yes. The IRS recognizes DSTs as like-kind property for 1031 exchanges, making them a common destination for landlords who want to defer their tax but exit active management.

Who can invest in a DST?

DSTs are restricted to accredited investors — individuals with $200K+ income ($300K joint) or $1M+ net worth excluding primary residence — because they are private securities offered under Regulation D.

What yield can I expect from a DST?

Most DSTs target 4.5%–6.5% annualized cash distributions, paid monthly. Yields are not guaranteed and depend on the underlying property's performance.

How long is my money locked up in a DST?

DSTs are illiquid. A typical hold period is 5–10 years, ending when the sponsor sells the underlying property and returns your principal — at which point you can 1031 again into another DST or another property.

What's the difference between a DST and a REIT?

A REIT is a public company holding many properties; DST interests are direct ownership in a single property and are 1031-eligible. REIT shares are liquid; DST interests are not.

Path 02 · Passive

Done managing tenants. Keep the income.

A Delaware Statutory Trust (DST) lets you exchange your rental property into a fractional interest in institutional-grade real estate — apartment complexes, medical offices, industrial buildings — while still deferring 100% of your taxes under Section 1031. You collect monthly distributions. Someone else handles the toilets.

See if a DST fits How a DST works

DST investments are offered only to accredited investors. DSTs are illiquid and involve significant risk. Distribution rates shown below are historical averages and are not guaranteed. Past performance is not indicative of future results.

In plain English

You own a slice of a big building. They send you a check every month.

A DST is a legal structure that lets a group of accredited investors collectively own a single large property — usually a $30 to $100 million apartment complex, industrial park, or grocery-anchored shopping center. Each investor owns a fractional interest.

A professional sponsor handles everything: leasing, maintenance, financing, eventual sale. You're a passive owner — not a landlord, not a partner. The IRS treats your DST interest as real property, which means it qualifies as like-kind for a 1031 exchange.

Most DST investors receive monthly distributions of 4% to 6% per year on their invested capital, plus their share of appreciation when the property eventually sells (typically 5 to 10 years later).

A typical DST investor

A landlord in their 60s, ready to stop managing.

They sell their duplex for $700,000. They had owned it for 22 years. Their capital gains + recapture exposure is roughly $200,000.

Invested into DST $700,000

Tax deferred $200,000

Estimated monthly income ~$2,900

Tenants to call 0

Illustrative example. Actual distributions vary by offering. Returns are not guaranteed.

DST vs. active 1031

Same tax deferral. Very different lifestyle.

Both options defer your full tax bill. The question is whether you still want to be a landlord.

	Active 1031 — buy another property	DST — passive income
Tax deferral	✓ 100% deferred	✓ 100% deferred
You manage tenants	Yes — or hire a property manager	✕ Never
Day-to-day involvement	Moderate to high	None
Income	Rent (variable, after expenses)	Monthly distributions, ~4–6% annually
Liquidity	Can sell anytime (with new tax event)	Illiquid — typically 5–10 years
Diversification	One property, one market	Often a portfolio of properties
Minimum investment	Full sale proceeds + debt	Typically $100,000 minimum
Accredited investor required	No	Yes

How it works

From sale to first distribution.

Step 01

Open your exchange.

Same as any 1031 — we open a qualified intermediary account before your sale closes. Funds stay there during the identification window.

Step 02

Choose your DST.

Your advisor walks you through current offerings. You see the property, the sponsor's track record, the projected distribution rate, and the holding period.

Step 03

Sign & settle.

Your QI wires your exchange funds to the DST. You receive your ownership documents. Your first monthly distribution arrives within 30 to 60 days.

Sample offerings

What's in our DST shelf right now.

Representative examples — available offerings change weekly. Talk to an advisor for what's open today and whether it fits your situation.

Multifamily312 units

DST-2026-MF-04

Brookhaven Garden Apartments

Class-A garden-style multifamily in suburban Atlanta. Stabilized at 94% occupancy.

Distribution

5.25%

Hold target

7 yrs

Min invest

$100K

Industrial220K sq ft

DST-2026-IN-02

Phoenix Logistics Park

Last-mile distribution facility, 100% leased to a Fortune 500 tenant on a 12-year NNN lease.

Distribution

5.85%

Hold target

10 yrs

Min invest

$100K

Medical office7 buildings

DST-2026-MED-01

Heritage Health Portfolio

Seven-property medical office portfolio across the Sun Belt. Anchored by major hospital systems.

Distribution

4.95%

Hold target

8 yrs

Min invest

$100K

Illustrative only. Specific DST offerings are subject to availability, suitability review, and accreditation verification. Distribution rates are not guaranteed.

Frequently asked

About DSTs, distributions, and how this fits with your situation.

Talk to a passive income advisor

Am I an accredited investor?

You're accredited if you have a net worth above $1 million excluding your primary home, or annual income over $200,000 (or $300,000 with a spouse) for the last two years. Most landlords with a property worth selling qualify.

What happens at the end of the DST's hold period?

When the sponsor sells the underlying property, you have three choices: take the cash (taxable), do another 1031 into a new DST, or do another 1031 into a direct property. Most investors chain DSTs to keep the deferral going.

Can I sell my DST interest if I need cash sooner?

DSTs are illiquid by design. There is a limited secondary market, but most investors should plan to hold for the full term. This is important to understand before you commit.

What are the fees?

Each DST offering discloses its full fee structure in the offering documents. You'll see acquisition fees, asset management fees, and disposition fees laid out before you invest. Your advisor will walk through them with you.

Is the income taxable?

Yes. Monthly distributions are taxable each year, but depreciation usually shelters most of the income on paper. You'll receive a K-1 from the sponsor for your tax return.

DST asset classes

The kind of real estate your equity can roll into.

DST sponsors hold institutional-grade property across these asset classes. Diversifying across two or three is recommended — your specialist will help you pick the mix.

Class-A multifamily

Industrial / logistics

Medical office

Single-tenant NNN

Go passive (DST)

Exit active management without losing the income.

If you're accredited and exiting a property, a DST can roll your basis into institutional-grade real estate with monthly distributions and zero day-to-day work.

See if a DST fits Read about DSTs

Tax-smart strategies

Buying or selling

While you hold

Resources

Company

Done managing tenants. Keep the income.

You own a slice of a big building. They send you a check every month.

A landlord in their 60s, ready to stop managing.

Same tax deferral. Very different lifestyle.

From sale to first distribution.

Open your exchange.

Choose your DST.

Sign & settle.

What's in our DST shelf right now.

Brookhaven Garden Apartments

Phoenix Logistics Park

Heritage Health Portfolio

About DSTs, distributions, and how this fits with your situation.

Take a closer look at passive income.

The kind of real estate your equity can roll into.

Exit active management without losing the income.