Delaware Statutory Trust (DST)

A Delaware Statutory Trust (DST) is a legal entity used for real estate investment that allows multiple investors to hold fractional ownership interests in large properties, commonly used as replacement properties in 1031 exchanges. DSTs have largely replaced TICs as the preferred fractional ownership structure because they require no management decisions from individual investors and can qualify as like-kind replacement property under IRS Revenue Ruling 2004-86. Major DST sponsors include Inland Private Capital, Black Creek Group, and Carter Validus. Minimum investments typically range from $100K-$250K. For NNN investors looking to diversify or reduce management burden while preserving 1031 exchange benefits, DSTs offer access to institutional-quality properties like multi-tenant NNN portfolios, medical facilities, and essential retail assets.

Delaware Statutory Trust (DST) is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Delaware Statutory Trust (DST) helps investors make informed acquisition and management decisions.

Delaware Statutory Trust (DST) directly influences how commercial properties are valued, financed, and traded. Changes in Delaware Statutory Trust (DST) can impact cap rates, NOI calculations, and overall investment performance for net lease properties.

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