Why The DST Structure?
What is a DST?
A Delaware statutory trust or DST is a distinct legal entity created under Delaware law
that may be used in a Section 1031 tax-deferred exchange. Under IRS Revenue Ruling
2004-86, a beneficial interest in the DST is treated as an undivided fractional interest in
the DST’s real estate for federal income tax purposes. Direct 1031 Exchange complies with
the requirements of IRS Revenue Ruling 2004-86. Each DST investor will be issued a tax
opinion from a reputable law firm.
Benefits of Participating in a DST
No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment. IRC Section 1031 (a)(1)
Objective is to pay rental income monthly
Institutional Quality Real Estate
Quality real estate leased by creditworthy tenants in properties of sufficient size to merit attention from institutional investors who may purchase the DST's properties in the future.
Mitigate exposure from a single property by acquiring a portfolio of DST real estate
Avoiding the 3 Ts - toilets, tenants and trash
DST Restrictions for Qualification
DST trustees may not:
• Change existing loan terms or borrow new funds
• Accept financial contributions once an offering is closed
• Use proceeds from the sale of real estate to obtain new real estate (property must be
• exchanged under Section 1031 Guidelines)
• Make anything beyond minor repairs to a property
• Invest cash between distribution dates other than in short-term government debt
• Retain cash other than necessary reserves
• Enter into a new lease, or renegotiate the current
• lease, unless permitted under a master lease
* All days are calendar days, regardless of whether the day falls on a holiday or weekend.
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Securities offered through North Capital Private Securities ("NCPS"), Member FINRA/SIPC, located at 623 East Ft. Union Blvd, Suite 101, Salt Lake City, UT 84047. NCPS does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered. Check out the background of North Capital Private Securities at FINRA's BrokerCheck. This website is intended solely for qualified investors. Investments in private offerings are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in such offerings.