The beneficial interests of a DST are treated as a direct interest in real estate for tax purposes, so the DST interests qualify as “like-kind” property in a 1031 exchange. An investor can defer taxes by investing in a DST rather than in a whole property.
A Delaware Statutory Trust (DST) is a form of entity that permits fractional ownership of real estate assets. Multiple investors can share ownership in a single property or a portfolio of properties owned by the DST.
Why consider a DST?
- Potential to own institutional quality real estate
- Diversification by tenant, property type, location
- Turnkey solution: FSCT is responsible for sourcing, due diligence, structuring & financing of debt, and property & program management
- Immediate property identification with an expedited closing process due to imminent timing deadlines
- Certainty of closing on acquisition of replacement property
- Eliminate all property management headaches
- Long-term non-recourse financing in place, if applicable
What’s unique about the FSXchange approach?
- FSCT funds the acquisition of the DST properties in their entirety and allows investors to co-invest with it in institutional quality real estate
- FSCT is a co-investor while offering beneficial interests for accredited investor ownership
- Flexible liquidity options
This information is neither an offer to sell nor a solicitation to purchase interests in Four Springs TEN31 Xchange, LLC programs and is intended solely for information purposes. Investments in real estate are subject to known and unknown risks, uncertainties and other factors, and should be considered only by sophisticated investors who can bear the economic risk of their investment for an indefinite period and who can afford to sustain a total loss of their investment. Specific offerings can only be made through a Private Placement Memorandum (“PPM”). Prospective investors should carefully review the “Risk Factors” section of any PPM.