Comprehensive Guide to DSTs - Delaware Statutory Trust

BOOK A STRATEGY CALL

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

**An accredited investor, in the context of a natural person, includes anyone who: a) earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR b) has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). Click here for information, or details on Accredited Entities.

Untitled*

I agree to all Provident 1031 Terms & Conditions

Directory:

CHAPTER 01 What Is A Delaware Statutory Trust?

CHAPTER 02 The History and Legal Foundations of the DST

CHAPTER 03 How DSTs Work Within a 1031 Exchange

CHAPTER 04 The IRS Rules Governing DSTs

CHAPTER 05 The Tax Benefits of DST Investing

CHAPTER 06 Beyond Taxes: The Other Benefits of DSTs

CHAPTER 07 Who Should Consider A DST?

CHAPTER 08 Understanding the Risks and Considerations of a DST

CHAPTER 09 Types of DST Properties and Asset Classes

CHAPTER 10 The Parties to a DST Investment

CHAPTER 11 A Step-by-Step Guide to Investing in a DST

CHAPTER 12 DST Exit Strategies: When The Trust Sells

CHAPTER 13 The 721 Exchange and the UPREIT

BOOK A STRATEGY CALL

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

Untitled*

I agree to all Provident 1031 Terms & Conditions

Types of DST Properties and Asset Classes

By now you understand how a DST works, what it offers, and what to watch out for. This chapter turns to something more tangible: the actual real estate a DST holds. Because the property is the investment, understanding the major asset classes and how they behave differently is essential to evaluating any offering you might consider.

1031 Exchange Masterclass - Provident 1031 - with Daniel Goodwin

Two Kinds of DST: Anchors & Buoys

Before surveying the property types, it helps to introduce a framework I often return to: the idea of anchors and buoys.

An anchor investment prizes stability. It’s built to deliver steady, predictable income, even if its potential for appreciation is modest… the financial equivalent of a fixed point that holds firm in choppy water. A buoy investment, by contrast, is built to rise. It offers greater potential for growth and appreciation, and can act as a hedge against inflation, though often with more variability along the way.

Neither is inherently better; they serve different goals. And one of the appealing features of the DST marketplace is that it offers both, allowing an investor to weight a portfolio toward income, toward growth, or toward a deliberate blend of the two. As you read through the asset classes below, it’s worth asking of each: is this more of an anchor, or more of a buoy?

The Major Asset Classes

Multifamily (apartments). Among the most popular DST asset types, multifamily housing benefits from a simple truth: people always need a place to live. Because leases typically renew annually, owners can adjust rents as costs rise, making apartments a natural inflation hedge… a classic buoy. Demand tends to be resilient across economic cycles, though the trade-off is the active leasing such properties require, which is why apartment DSTs so often rely on the master lease structure discussed in Chapter 4.

NexPoint Storage IV DST - Provident 1031

Self-storage. Storage facilities have earned a following for their low operating overhead and their tendency to hold up well in both good times and bad; people fill storage units when they’re upsizing and when they’re downsizing. Like multifamily, storage typically features short-term, frequently resetting rents, giving it buoy-like growth and inflation-hedging characteristics.

CEDARst GP Development Fund Shareholder, LLC - Provident 1031 - Sponsor: CEDARst

Net-lease retail and commercial. Here we find the quintessential anchor. In a triple-net (NNN) lease, a single creditworthy tenant — often a nationally recognized brand — signs a long-term lease and pays the property’s taxes, insurance, and maintenance in addition to rent. The result is a highly predictable income stream with minimal management, which is precisely why net-lease assets are a staple of DST offerings. The trade-off is limited upside: a long, fixed lease that delivers stability rarely delivers dramatic appreciation.

IPC Industrial Portfolio DST - Provident 1031 Houston, The Woodlands

Industrial and logistics. Distribution centers and warehouses have been buoyed by the long march of e-commerce, which demands ever more space to store and move goods. These properties frequently come with long leases to strong tenants, giving them anchor-like stability alongside genuine demand-driven growth potential.

Moody Med Center 2 DST - Moody National DST Sponsor, LLC - Provident 1031

Medical office. Buildings leased to medical practices and healthcare providers tend to have “sticky” tenants — a medical office is expensive to relocate — and benefit from the durable tailwind of an aging population. They often behave like anchors, prized for stable, long-term occupancy.

Inspired Senior Living of New Braunfels DST - Inspired Healthcare Capital - Provident 1031

Senior living and student housing. These specialized, demographically driven asset classes follow predictable population trends: an aging society on one hand, steady college enrollment on the other. They can offer attractive characteristics but are more operationally intensive and more sensitive to their specific demographic and location.

Hospitality. National-brand hotels occasionally appear in DST offerings. They carry the highest operational complexity and the most cyclical income of the group — more buoy than anchor, and generally suited to investors comfortable with greater variability in pursuit of greater potential return.

BOOK A STRATEGY CALL WITH DANIEL GOODWIN

CONTACT FORM

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

Untitled*

I agree to all Provident 1031 Terms & Conditions

Single-Asset Versus Diversified DSTs

Beyond the property type itself, DSTs differ in the number of properties they hold.

A single-asset DST owns one property — say, a particular apartment community or a single net-leased store. Its fortunes rise and fall with that one asset. A diversified, or portfolio, DST holds several properties, sometimes spanning multiple asset classes and geographic markets within a single trust. The diversified structure spreads risk: a struggle at one property need not sink the whole investment.

This distinction connects directly to the diversification benefit we discussed earlier. An investor can diversify by spreading a single exchange across several DSTs, by choosing a portfolio DST that is internally diversified, or by doing both. The right approach depends on the investor’s goals, risk tolerance, and the size of the exchange.

Matching Assets to Objectives

There is no universally “best” DST asset class; only the one that fits a given investor’s objectives. An investor seeking dependable retirement income might favor net-lease anchors; one seeking growth and an inflation hedge might lean toward multifamily or storage buoys; many will want a considered mix. What matters is understanding what each asset class is designed to do, so the choice reflects a real strategy rather than a guess.

Of course, the quality of any DST depends not only on what it holds but on who stands behind it. That brings us to the people who make a DST work, the subject of the next chapter.

BOOK A STRATEGY CALL WITH DANIEL GOODWIN

CONTACT FORM

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

Untitled*

I agree to all Provident 1031 Terms & Conditions

Previous Opportunity

Understanding the Risks and Considerations of DSTs

Next Opportunity

BOOK A STRATEGY CALL

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

Directory:

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

Types of DST Properties and Asset Classes

Two Kinds of DST: Anchors & Buoys

The Major Asset Classes

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

Single-Asset Versus Diversified DSTs

Matching Assets to Objectives

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

Understanding the Risks and Considerations of DSTs

Delaware Statutory Trust Guide

Looking For A Qualified Intermediary

Schedule Consultation

Connect with a Qualified Intermediary

Schedule a Consultation

Subscribe to Provident 1031

Step 1 of 3 - What Brings You Here Today?

Step 2 of 3 - Schedule Your Call

Step 3 of 3 - Your Information