DSTs enable you to diversify your real estate investment by asset type, size and even geography.
A natural concern of investment property owners today who are considering a property sale and new purchase using a 1031 Exchange, is the income-producing strength of the replacement property. The economic impacts of the coronavirus have wreaked havoc on the commercial real estate industry, rendering once strong property types highly vulnerable.
That’s one reason you may want to consider using the Delaware Statutory Trust (DST) structure for your exchange. Because DSTs have the latitude to purchase properties of different asset types, different sizes and in different locations, you would have access to investment choices that may perform better than others as we work our way through and out of this current recession. Those choices may also offer the potential for better income or capital growth than what is currently available to you with a traditional 1031 Exchange. Perhaps of most importance, the ability to broadly diversify may help you minimize your investment risk.
So, while you may currently own a residential rental property and were thinking of exchanging into a similar property, DST sponsors offer you the ability to have fractional ownership in many different property types including:
- Multi-Family Apartment Buildings
- Single-Tenant Net Lease Retail Properties
- Medical Office Buildings
- Self-Storage Properties
- Student Housing Properties
- Industrial Distribution Centers
- Commercial Office Buildings
- Hospitality Properties
For more information, please feel free to contact our team. You can also schedule a one on one meeting with us at your convenience here.
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