Delaware Statuary Trust
Like NNN's, DST's allows owners to exchange from hands on properties to a passive investments. Basically, you buy a small per-cent of a large property. There are DST's that own Multifamily, Student Housing. Office, Industrial & Retail.
The real estate sponsor firm, which also serves as the master tenant, simply acquires the property under the DST umbrella and opens up the trust for potential investors to purchase a beneficial interest.
The investors may either deposit their 1031 exchange proceeds into the DST or the investor may purchase an interest in the DST directly.
DST investors may benefit from a professionally managed, potentially institutional quality property. The underlying property could be a 500-unit apartment building, a 100,000 square-foot medical office property or a shopping center leased to investment-grade tenants. The possibilities are endless.
Most DST investments are assets that your run-of-the-mill, small- to mid-sized accredited investors could not otherwise afford. However, by pooling money with other investors, they can acquire this type of asset.