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1031 DST Investments

Discover the Benefits of 1031 DST Investments.

What are 1031 DST Investments?

A 1031 DST (Delaware Statutory Trust) is a type of real estate investment that allows investors to defer capital gains taxes by reinvesting proceeds from a sold property into a new property. This process is facilitated under Section 1031 of the Internal Revenue Code, hence the term "1031 exchange." DSTs are legal entities created as trusts under Delaware law, enabling multiple investors to own fractional interests in large, professionally managed commercial properties.

Structure of a 1031 DST

A 1031 DST is structured to simplify the process of real estate investment for individual investors. Here's how it works:

  1. Formation: The DST is created by a sponsor company, which acquires a property and places it into the trust.

  2. Ownership: Investors purchase beneficial interests in the DST, making them partial owners of the trust's property.

  3. Management: The sponsor manages the property on behalf of the investors, handling all operational duties, including leasing, maintenance, and property management.

  4. Income Distribution: Investors receive regular income distributions based on the performance of the property, typically paid monthly or quarterly.

  1. Sale and Exchange: When the property is eventually sold, investors can again defer taxes by participating in another 1031 exchange, perpetuating the cycle of tax-deferred real estate investment.

Benefits of Investing in 1031 DST's

Investing in 1031 DSTs offers several key benefits that make them an attractive option for savvy investors looking to optimize their real estate portfolios:

  • Tax Deferral: By participating in a 1031 exchange, investors can defer paying capital gains taxes on the sale of their property, allowing more capital to be reinvested.

  • Diversification: DSTs provide access to high-quality, institutional-grade real estate that individual investors might not afford on their own. This enables diversification across different properties and geographic locations.

  • Passive Income: Since the DST sponsor handles all property management tasks, investors can enjoy a truly passive income stream without the headaches of being a landlord.

  • Estate Planning: DST investments can be an effective estate planning tool, enabling the transfer of real estate assets to heirs with potentially reduced tax implications.

  • Access to Premium Properties: DSTs often invest in premium commercial properties, including office buildings, retail centers, multi-family apartment complexes, and industrial facilities.


A 1031 DST can be used to invest in a variety of commercial real estate types, broadening the scope for potential returns and diversification.

  • Multi-Family Residential: Apartment buildings and residential complexes.

  • Commercial Office: Office buildings in prime business districts.

  • Retail: Shopping centers, malls, and standalone retail properties.

  • Industrial: Warehouses, distribution centers, and manufacturing facilities.

  • Healthcare: Medical office buildings and healthcare facilities.

  • Hospitality: Hotels and resorts.


Timing is critical when executing a 1031 exchange. The IRS imposes strict deadlines to ensure compliance:

  1. Identification Period: Investors have 45 days from the sale of their original property to identify potential replacement properties. During this period, investors must submit a written identification of the properties they are considering.

  2. Exchange Period: The purchase of the identified replacement properties must be completed within 180 days from the sale of the original property. This includes the closing date.

These deadlines are non-negotiable, and missing them can result in the disqualification of the exchange, making it essential to plan and execute the process meticulously.

Why Choose a 1031 DST Investment?

Choosing a 1031 DST investment can be a strategic move for investors looking to enhance their real estate portfolios while enjoying significant tax advantages. The benefits of tax deferral, diversification, and passive income make DSTs an appealing option for both seasoned investors and those new to the real estate market. Additionally, the access to high-quality, professionally managed properties can lead to more stable and potentially higher returns.

By leveraging the structure and benefits of 1031 DSTs, investors can efficiently manage their real estate investments, maximize their returns, and build a more robust, 

diversified portfolio. Consider a 1031 DST for your next investment move and experience the advantages of sophisticated real estate investing with the added benefit of tax deferral.

Investing in a 1031 DST could be the perfect opportunity to grow your real estate portfolio and achieve your financial goals. Consult with one of our investment managers to explore how 1031 DSTs can fit into your investment strategy.

Delaware Statutory Trust (DST) Investment Product for Accredited Investors

The Delaware Statutory Trust (DST) investment product is designed exclusively for accredited investors. As a sophisticated and illiquid investment, DSTs typically have an average holding period of 5-7 years.

What Does It Take to Be an Accredited Investor?

To qualify as an accredited investor for a DST investment, you must meet one of the following criteria:

  1. Income Requirements:

    • If filing singly on your tax return, you must have an income of at least $200,000 for the past two years.
    • If married and filing jointly, you must have a combined income of at least $300,000 for the past two years.
  2. Net Worth Requirements:

    • You must have a net worth of over $1 million, excluding the value of your primary residence.

The basic calculation to determine if you are an accredited investor involves subtracting liabilities from assets. Eligible assets include rental properties, retirement accounts, cash, vehicles, investment accounts, and other assets that can be readily converted to cash.

By meeting these criteria, you can take advantage of the unique benefits offered by DST investment products.

Advisory services offered through Great Point Advisors, LLC; an SEC registered investment adviser. Nothing in this communication should be construed as a solicitation to buy or sell any investment. Investments in products such as DSTs can only be made through a PP and are for accredited investors only. This e-mail, including any attachments, is intended only for the person or entity to which it is addressed, and may contain confidential information that is proprietary or privileged. If you are not the intended recipient, pleas immediately notify the sender by replying to this email and delete the message and any attachment(s) from your system. Any review, retransmission, disclosure, saving, copying, printing, modification or other use of this email message or attachments other than by the person or entity to which it is addressed is forbidden. Great Point Advisors, LLC (“GPA”) archives and reviews outgoing and incoming e-mail and it may be produced at the request of regulators or in connection with any litigation. GPA accepts no liability for any errors or omissions arising as a result of transmission. Any proposals, offers or other potential terms described or referred to in this message are "subject to contract" and shall not be binding on any member of GPA or any affiliate thereof, unless otherwise expressed and intended or until documented in a written agreement executed by all necessary parties by their duly authorized representative(s). Past performance is not indicative of future results. Please do not convey securities orders via e-mail, as GPA is not responsible for their timely execution.

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