A Delaware Statutory Trust (DST) is an investment trust established to hold one or more properties in which investors can purchase an ownership interest in the property. Owners hold a passive, fractional interest in the property held by that trust. If structured properly, in addition to tax deferral treatment, this investment product can provide long-term income and asset preservation to accredited 1031 and 1033 Exchange investors.
DSTs include pre-arranged non-recourse financing, with low minimum investment requirements. A nonrecourse debt (loan) does not allow the lender to pursue anything other than the collateral, leaving limited liability only to the equity invested in the fund. This makes it possible to purchase larger, institutional quality real estate across nearly every real estate sector, including: