What is a Delaware Statuatory Trust?
A Delaware Statutory Trust (DST) is a legal entity formed under Delaware law that allows multiple investors to hold title to real estate assets. It operates similarly to a limited partnership, where investors own beneficial interests in the trust rather than direct ownership of the property. DSTs are commonly used in real estate investment for properties such as apartment complexes, office buildings, or shopping centers. They offer investors a passive ownership structure with potential tax benefits, including the ability to defer capital gains taxes through a 1031 exchange. Additionally, DSTs provide diversification opportunities and professional management of the underlying properties, making them an attractive option for investors seeking to participate in real estate without the responsibilities of direct ownership.