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What is a DST?

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A Delaware Statutory Trust (DST) offers a way for investors to own institutional-quality real estate while eliminating the burdens of active management. Instead of dealing with tenants, maintenance, and day-to-day operations, you become a passive investor while still enjoying the benefits of real estate ownership.

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These days, DSTs are commonly used as replacement properties in a 1031 Exchange, making them an ideal solution for landlords looking to step away from active management. They provide access to diversified, professionally managed blue-chip assets such as apartment communities, Amazon warehouses, grocery chains, and other high-quality commercial properties.

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One of the biggest advantages of DSTs is the potential for steady, passive income and many Bay Area investors find that they can dramatically increase their cash flow compared to their local rentals—without any of the stress.

For those nearing retirement or looking to simplify their lives, DSTs represent a practical and efficient transition from active property management to passive ownership, all while gaining the usual advantages of real estate ownership: Appreciation, Tax Write Offs and Cash Flow.

Why Landlords Choose DSTs:

  • 1031 tax deferral

  • Truly passive ownership

  • Professional management

  • Potentially stable, predictable income

  • Estate‑planning benefits

 

DSTs are often ideal for landlords who want to retire from management but still rely on real estate income.

What is a REIT?

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Real Estate Investment Trusts (REITs) and UPREIT structures offer a modern approach to real estate investing by combining the benefits of property ownership with enhanced liquidity and diversification.

 

Through a 1031 Exchange into REIT via an UPREIT structure, investors can transition from owning a single property into shares of a large, diversified real estate portfolio. This may include multiple asset classes across different markets, reducing risk and increasing stability.

 

REITs are designed to generate income without the hassle of property management. They also offer greater flexibility than traditional real estate with liquidity if and when you need it.

 

For many investors, this approach provides a balance of income, growth, and simplicity. It’s particularly appealing for those who want to move away from concentrated risk and hands-on management, while still benefiting from real estate as an asset class.

 

Want to know more? Take 40 minutes of your time and join us to learn why so many landlords are transitioning into retirement by exchanging into DSTs and REITs. Click here to learn more.

What is an UPREIT?

An UPREIT (Umbrella Partnership Real Estate Investment Trust) is a structure where a REIT holds assets through a partnership rather than directly, allowing property owners to contribute real estate in exchange for partnership units instead of cash. This enables investors to defer capital gains taxes, gain portfolio diversification, increase liquidity, and shift from active management to passive income. 

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An UPRET is a DST that is destined to become a REIT

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Why do I need an UPREIT?


In order to comply with IRS regulations, you cannot exchange your current property directly into a REIT. You have to buy a DST, hold it of for a period of year and exchange it into a REIT.

SAMPLE   REITS

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INVESCO REIT - $1B Valuation

Distribution Rate: Avg 6.57%​​

  • Number of Assets: 64

  • Number of Buildings: 64

  • Percentage Leased: 93%

  • Gross Asset Value: $1B

  • Never missed a distribution

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HINES REIT - $6.06B Valuation
Distribution Rate: Avg 6.37%

  • Number of Assets: 143

  • Number of Buildings: 143

  • Percentage Leased: 95%

  • Gross Asset Value: $7B 

  • Never missed a distribution

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JLL REIT - $6.7B Valuation
Distribution Rate: Avg 5.43%

  • Number of Assets: 54

  • Number of Buildings: 170

  • Percentage Leased: 96%

  • Gross Asset Value: $6.06B 

  • Never missed a distribution

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