Another popular option for those looking to enter into a 1031 Exchange is to utilize the provisions of a Delaware Statutory Trust (DST). DST’s not only qualify under the guidelines laid out for a 1031 Exchange, but can also simplify the process of identifying properties in the time allotted to successfully complete the exchange. A DST can hold any type of real estate class, be it a multi-family apartment complex, a massive pharmaceutical campus, student housing, or a sprawling shopping center. DST’s are a great option for investors to take their tax-deferred proceeds from a property sale and invest in a more diverse range of real estate opportunities with virtually zero property management responsibility. By using a 1031 Exchange to invest in in a DST, investors are able to purchase a fractional interest in a large, professionally managed commercial property as individual owners within a secure and flexible trust, with possibly less risk and more diversification.
