RENT Magazine Q3 '22

THAT COULD BENEFIT DST INVESTORS MACRO REAL ESTATE TRENDS

Within the universe of 1031 exchanges, Delaware Statutory Trusts (DSTs) are among the fastest growing options for investors participating in 1031 like-kind exchanges.

Like-kind exchanges continue to grow in popularity among real estate investors across the U.S. According to a recent report by Ernst & Young, 1031 like-kind exchanges will generate $55.5 billion in added value to the U.S. in 2021. A DST allows investors to own a fractional interest in a property with other investors, not as limited partners but instead, as individual owners. Each investor receives their own percentage share of the potential income, tax benefits, and potential appreciation of the whole property. A DST allows the minimum investment to often be as low as $100,000, allowing investors to not

only be able to invest in properties that can be too expensive for them to purchase individually, but also invest their money into multiple properties, thus diversifying their real estate portfolios. For example, Kay Properties has DST opportunities with a minimum investment amount of $100,000 with offerings that span multifamily, self-storage, net lease (NNN), industrial and medical office properties. In addition to significant tax benefits and access to institutional-quality real estate, investors are also recognizing several macro-economic trends that are contributing to the popularity of DST investments.

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