A property owner can sell their property, and proceeds go directly to a Qualified Intermediary (“QI”), a specialized escrow agent.

An investor identifies a “like-kind” replacement property within 45 days of the sale date via an identification form (“ID Form”) and completes the acquisition within 180 days of the sale date. ^{[ 1 ]}

Key Potential Benefits ^{[ 2 ]}

• Defer capital gains tax

Beneficial interests in a DST serve as “like-kind” replacement property for a 1031 Exchange.

A DST is a passive trust that owns institutional-quality, income-generating real estate. While invested in a DST, investors generally receive consistent income. ^{[ 3 ]}

Key Potential Benefits ^{[ 2 ]}

• Transition from active to passive ownership
• Consistent distributions backed by rental income ^{[ 3 ]}
• Access to institutional-quality commercial real estate

After a holding period of at least two years, the REIT Operating Partnership has the option, but not the obligation, to purchase the DST properties via a 721 exchange, allowing investors to receive OP units in the REIT Operating Partnership (“OP Units”) and maintain tax-deferred basis.

Key Potential Benefits ^{[ 2 ]}

• Regular income and appreciation potential ^{[ 3 ]}
• Diversification into a professionally managed, institutional-quality portfolio ^{[ 4 ]}
• Tax-efficient estate planning
• Enhanced liquidity and divisibility of OP Units
• May eliminate the need for future 1031 exchanges ^{[ 5 ]}