A Delaware Statutory Trust (DST) is a form of entity that permits fractional ownership of real estate assets. Multiple investors can share ownership in a single property or a portfolio of properties owned by the DST.
The beneficial interests of a DST are treated as a direct interest in real estate for tax purposes, so the DST interests qualify as “like-kind” property in a 1031 exchange. An investor can defer taxes by investing in a DST rather than in a whole property.
Why consider a DST?
- Potential to own institutional quality real estate
- Diversification by tenant, property type, location
- Turnkey solution: FSCT is responsible for sourcing, due diligence, structuring & financing of debt, and property & program management
- Immediate property identification with an expedited closing process due to imminent timing deadlines
- Certainty of closing on acquisition of replacement property
- Eliminate all property management headaches
- Long-term non-recourse financing in place, if applicable