DST Investments
DST Investments are offered as replacement property for accredited investors seeking to defer their capital gains taxes through the use of a 1031 tax deferred exchange and as straight cash investments for those wishing to diversify their real estate holdings. The DST property ownership structure allows the smaller investor to own a fractional interest in large, institutional quality and professionally managed commercial property along with other investors, not as limited partners, but as individual owners within a Trust. Each owner receives their percentage share of the cash flow income, tax benefits, and appreciation, if any, of the entire property. DSTs provide the investor the potential for annual appreciation and depreciation (tax shelter), and most have minimum investments as low as $100,000, allowing some investors the benefit of diversification into several properties.[3]
The DST ownership option essentially offers the same benefits and risks that an investor would receive as a single large-scale investment property owner, but without the management responsibility. Each DST property asset is managed by professional investment real estate asset managers and property managers.
1031 EXCHANGES
CL has extensive experience with 1031 exchanges, both physical property investing and Delaware Statutory Trusts (DSTs).
CL focuses exclusively on industrial real estate. This focus gives investors all the advantages of true specialization. Generally industrial assets are more difficult to find than retail and apartment investments. Focus, specialization and vast industry contacts means CL sees deals that are not listed on CoStar or Loopnet. Further it has the experience and background to vet these projects and truly understand the risks and rewards of a particular asset.
Section 1031 of the IRS tax code allows real estate investors to defer capital gains provided they follow some very specific procedures. It is critical to get qualified advice from your tax and legal advisor. For several tutorials and basic information on 1031s please see:
Investing in a Delaware Statutory Trust (DST) also defers capital gains. See the below for further explanation:
Golden Corral – Part of multi-asset, multi-market 1031 Exchange
Utilizing skills gained while leasing millions of square feet of space, CL negotiated this sale-lease-back, 1031 exchange that included a corporate guarantee that remained in place even if the restaurant operations were sold or transferred to a franchisee. This property was just one of three successfully closed 1031 exchange purchases that resulted from the sale of DST interests.
Details:
- 10,330 square feet
- 15 year sale-lease-back
- Corporate guarantee
- Absolute net lease
- Below market rent and below replacement cost