Delaware Statutory Trusts
DST investments for 1031 exchanges.
A Delaware Statutory Trust, or DST, lets several investors own fractional interests in professionally managed real estate. [TODO: describe how Oak531 offers DST investments, and through which licensed firm]
What a DST is
Fractional ownership, managed for you.
A DST is a trust that holds title to one or more properties. Investors buy beneficial interests in the trust rather than a deed to a building.
Fractional interests
Each investor owns a share of the trust, sized to the amount invested. The trust owns the property.
Passive by design
A sponsor manages the property. Investors do not run day-to-day operations or make management decisions.
Eligible for a 1031 exchange
Under IRS Revenue Ruling 2004-86, an interest in a properly structured DST can be treated as real property for a 1031 exchange.
Before you invest
Risks to weigh.
A DST is an investment, not a guarantee. Read the offering documents in full and review them with your own tax and legal advisors.
A security
DST interests are securities. They are generally offered only to accredited investors. [TODO: confirm with counsel]
Hard to sell
Interests are illiquid. You generally cannot sell before the trust sells the property.
No control
Investors cannot direct how the property is managed, financed, or sold.
Value can fall
Income and value are not guaranteed. You can lose some or all of your investment.
Fees
Sponsors and others charge fees, which reduce returns. They are described in each offering's documents.
Tax treatment
Tax results depend on your situation and on the structure of each offering. Consult your tax advisor.
[TODO: full risk disclosures from counsel or the offering broker-dealer]
Securities offered through [TODO: broker-dealer name], member FINRA/SIPC. [TODO: relationship between Oak531 and the broker-dealer]
Questions about DSTs?
We can walk you through how DSTs work and what to look for in an offering.