DST Placement Assistance

A Delaware Statutory Trust, commonly called a DST, is a passive fractional ownership structure that allows a 1031 exchange investor to hold a beneficial interest in institutional grade real estate, such as a large multifamily portfolio or a net leased distribution center, without direct management responsibility. DST placement assistance service helps Jacksonville area exchangers understand DST structures, evaluate available offerings, and coordinate the identification and closing timeline for DST interests, while making clear that we do not sell securities and provide introductions to licensed providers only.

Why investors use DST interests as replacement property

Following Revenue Ruling 2004-86, a beneficial interest in a properly structured Delaware Statutory Trust is treated as a direct interest in real property for 1031 exchange purposes, meaning DST interests qualify as like-kind replacement property. Investors typically turn to DST interests when they want to fully exit active property management, such as after selling a Jacksonville multifamily property they have managed for years, or when their exchange proceeds are too small relative to available whole property options to acquire a well located, well leased asset on their own. Because DST sponsors typically offer interests in a range of sizes, DST placement can also help an exchanger round out an identification list when the exact reinvestment amount does not match available whole property price points.

How DST identification and closing fit the standard exchange timeline

DST interests are identified and closed on the same forty-five day and one hundred eighty day timeline as any other replacement property. Because a specific DST offering, and the specific trust holding a specific property or portfolio, must be identified with the same precision as a street address, we help exchangers narrow available offerings to a short list well before the forty-five day deadline, since DST offerings can sell out of available equity before an exchanger is ready to close.

DST minimum investments commonly start in the twenty-five thousand to one hundred thousand dollar range, though this varies by sponsor and offering, which makes DST interests useful for exchangers who need to place a specific, sometimes smaller, dollar amount to complete their reinvestment requirement alongside a larger whole property acquisition, or who are placing their entire exchange proceeds into one or more DST offerings.

Tenancy in Common interests, often called TIC interests, are a related fractional ownership structure that also qualifies as like-kind replacement property when structured correctly under Revenue Procedure 2002-22, and we evaluate both DST and TIC options depending on the exchanger's control preferences, since TIC structures generally involve more direct decision making rights than a DST but also more complexity in coordinating among co-owners.

Because DST and TIC interests may be securities, we do not sell securities and do not act as a broker dealer or investment adviser. We provide educational information about available structures and introductions to licensed securities professionals and DST sponsors, and any decision to invest should be made only after review with a licensed securities professional and the exchanger's own tax and legal advisors.

We also help exchangers weigh DST offerings against their broader portfolio goals, since some sponsors focus on multifamily portfolios, others on net leased industrial or retail assets, and offering terms, including hold period expectations, distribution rates, and sponsor track record, vary meaningfully across the DST marketplace. Because we do not sell securities, our role is limited to educational comparison and coordinating an introduction to a licensed provider once the exchanger has narrowed their preferences, so the final investment decision is made directly with a licensed securities professional.

Our process typically begins with a short intake conversation covering the exchanger's reinvestment amount, income goals, and hold period preferences, followed by an educational review of available DST offering categories that may fit those goals. From there, once the exchanger has narrowed their interest, we provide an introduction to a licensed securities professional or DST sponsor, who handles the offering specific disclosures, subscription documents, and final investment decision directly with the exchanger.

Because DST and TIC interests may be treated as securities, our role remains limited to education and introduction, and Jacksonville area exchangers considering these structures should expect a licensed securities professional to walk through offering specific disclosures, suitability, and risk factors before any subscription documents are signed.