is an IRS-recognized tax deferral strategy that allows an investor to sell an investment property and acquire a similar property with the intent to defer capital gains and depreciation recapture taxes.
A DST 1031 Exchange is where the investor sells their current investment property and completes their 1031 Exchange by purchasing DST interests as their Replacement Property.
Sale proceeds from the relinquished property must be held in escrow by a QI during the exchange. The QI will receive the proceeds from the sale on your behalf and will keep those funds in an escrow account with their financial institution until you are ready to acquire and close on the replacement property.
A Delaware Statutory Trust (DST) is a legal entity created under Delaware law as a trust that holds title to 100% of the interest in real property. DST private placement offerings are issued by a sponsor through licensed securities brokers and investment advisors.
A DST may own one or more properties across a variety of property types, including, but not limited to, industrial, medical, retail and multifamily.