DST Properties for 1031 Exchange

Browse institutional-quality Delaware Statutory Trust offerings that qualify as replacement property in a 1031 exchange. Each DST on our platform has been vetted and can close in as few as 3-5 days.

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What is a DST Property?

A DST property is commercial real estate held within a Delaware Statutory Trust (DST), where the trust holds legal title and investors own fractional beneficial interests rather than a direct deed. A sponsor acquires the property, structures the trust, arranges financing, and manages the asset throughout the hold period. Investors receive distributions proportional to their ownership stake, funded by rental income and, ultimately, proceeds from the property’s sale.

The structure qualifies as replacement property in a 1031 exchange because IRS Revenue Ruling 2004-86 treats a beneficial interest in a properly structured DST as direct ownership of real property.

Why Complete a 1031 Exchange Into a DST?

A 1031 exchange into a DST allows an investor to defer capital gains tax while transitioning from active property ownership to a passive, professionally managed interest. The following six characteristics explain why investors use this structure.

Close in 3-5 Days

A 1031 exchange into a DST uses property that has already been identified, acquired, and financed, so closings can occur in as few as three to five days. That speed matters against the 45-day identification and 180-day closing deadlines.

Hands-Off Ownership

DST investments are professionally managed by experienced sponsors who handle all property operations, allowing investors to earn passive income without the burdens of active management.

Diversification

Exchange proceeds can be allocated across multiple DSTs rather than a single replacement property, spreading exposure across asset types and geographic markets.

Access to Institutional Real Estate

DSTs allow investors to fractionally own large, institutional-quality real estate—such as medical offices, industrial assets, and multifamily communities—which might otherwise be inaccessible to them individually.

Lower Minimum Investment

DST investments typically require a minimum of $25,000 to $100,000, depending on the sponsor and the specific offering. This is considerably lower than the capital needed to purchase a comparable property outright.

Fulfills Debt Requirements

DSTs secure non-recourse financing, assigning investors their pro-rata share of the debt. This makes it easy to satisfy both exchange and debt requirements.

Review the FAQs below for additional information and a detailed overview of the risks associated with DSTs.

DST vs. QOF vs. REIT: How the Structures Compare

  • Primary Objective
  • 1031 Eligibility
  • Capital Gains Tax
  • Depreciation
  • Liquidity
  • Properties Identified

Delaware Statutory Trust (DST)

  • Income from stabilized property
  • Yes
  • Deferred while exchanges continue
  • Pro rata share; steps up at death
  • Illiquid; hold periods typically run 5-10 years and end when the property is sold
  • Yes, before investment

Qualified Opportunity Fund (QOF)

  • Growth through Opportunity Zone redevelopment
  • No
  • Pre-2027 gains due December 31, 2026. Post-2027 investments follow the revised Opportunity Zone rules.
  • Recapture applies at sale
  • Illiquid; program benefits are tied to long holding periods
  • Often structured as a blind pool

Real Estate Investment Trust (REIT)

  • Diversified portfolio for income, growth, or both
  • No, but 721 exchange may apply
  • No deferral; sale is taxable unless shares are held in a tax-advantaged account
  • Taken at REIT level; steps up at death
  • Public REITs trade daily. Non-traded and private REITs are illiquid and subject to redemption limits
  • No; portfolio changes over time

This comparison is provided for general educational purposes only and summarizes certain common characteristics. Actual tax treatment, liquidity, investment structure and eligibility vary by investment and investor. Investors should review the applicable offering documents and consult their tax and legal advisers.

Why Work With Us?

With over 147 combined years in real estate investments, our team has the necessary expertise to inspire clients to invest with confidence.

1031 Crowdfunding / 1031 CF Properties Leadership

$2.8B

Combined Equity Raised Through Investments

$8.1B

In Combined Real Estate Transactions

1,200+

Accredited Investors Served

4.9/5★

150+ Google Reviews

Trusted by Our Investors

David W.

Excellent choices for 1031 DST Exchanges, without finding and buying replacement property, with capital gains deferred same as a regular 1031. Professional, courteous staff, they are very helpful. A++, Highly Recommended.

Mark M.

We invested in a DST with 1031 Crowdfunding over 2 years ago and we’ve been happy with every step in the process.

Starting with the initial call with them, through the quick and easy identification process and painless closing, it’s been a great experience. Even their site is easy to use, especially when you have to access tax documents at the last minute, like I just did. We currently have an investment property for sale here in Utah and as soon as it goes under contract, 1031 Crowdfunding is the first place we’ll look to park the proceeds.

PS A nice bonus is that our initial DST with them is now returning more than their estimated cash flow from 2 years ago.

Gino F.

As being a new investor with DST Ed was extremely helpful explaining how 1031 exchanges and DST’s operate. He was able to make us feel comfortable investing with 1031 Crowdfunding LLC and his staff have been extremely professional especially Keeley who worked with us to make sure all the documents were done correctly and in a timely manner. They have also been extremely helpful in answering any questions as they arise. I highly recommend them.

These unpaid testimonials may not be representative of your experience and are not a guarantee of future performance or success. Individual’s specific circumstances and experience will vary.

Frequently Asked Questions

DST investments are typically available to accredited investors. Minimum investment amounts vary by offering but are often lower than purchasing an entire property outright.

Because DST offerings are pre-structured and pre-financed, investors can often close in as few as 3-5 days—much faster than with traditional real estate acquisitions. This makes DSTs especially useful when facing tight 1031 exchange timelines.

DSTs may hold a wide range of institutional-quality properties, including multifamily, senior housing, industrial, self-storage, medical office, and other commercial real estate assets.

DSTs may generate income through rental operations. Distributions are typically paid monthly or quarterly, but they are not guaranteed and depend on property performance.

Like all real estate investments, DSTs carry risks, including market conditions, interest rate changes, tenant performance, and property-specific risks. Investors should carefully review offering documents and consult with their financial and tax advisors.

Yes. When the sponsor sells the underlying property, you may complete another 1031 exchange into a new replacement property and continue deferring your gain — or recognize the gain and pay the tax at that time. Note that you cannot exit on your own timeline. The exchange opportunity arises when the sponsor sells, not before.

You can register for a free account to access current DST investment opportunities, review due diligence materials, and work with our team to determine which options align with your investment goals.

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