Our Services
DST Replacement Property Options
Professionally managed DST real estate, offering considerations, and replacement-property tradeoffs
A Delaware Statutory Trust, commonly called a DST, is a legal entity that holds title to one or more large commercial properties and issues fractional beneficial interests to investors. Certain properly structured interests may be eligible as like-kind replacement property. This resource is for Columbus owners comparing professionally managed institutional-grade real estate with another direct acquisition or a net-lease property.
Less Property Management, Different Tradeoffs
A DST may remove day-to-day tenant, leasing, maintenance, and capital-project decisions from the individual owner. In exchange, the sponsor controls the trust and underlying real estate. Investors should compare that reduced workload with the offering's fees, leverage, asset exposure, sponsor experience, projected income, liquidity limitations, transfer restrictions, and loss of direct control.
Certain DST offerings may begin around $100,000, but minimums and availability vary. Because DST interests are private-placement securities, every available offering requires review of its private placement memorandum and related documents with an appropriately licensed securities professional. Eligibility and suitability are investor-specific, and this educational information is not a recommendation to purchase an interest.
Using a DST in a 1031 Exchange
The independent qualified intermediary and the property owner's tax and legal advisors should confirm the exchange timing, identification language, value and debt objectives, and transaction-specific eligibility. Current offering availability can change before an identification is delivered or an acquisition closes, so owners should consider primary and backup paths rather than treating one offering as guaranteed inventory.
A Columbus owner may also compare a DST with directly owned real estate or a net-lease acquisition. The right path depends on the sale objective, desired income profile, control, management capacity, financing, diversification, risk, liquidity needs, and realistic closing probability.
What's Included
- DST offering identification and evaluation
- DST offering-document and risk questions
- Minimum investment requirement analysis
- Independent qualified intermediary introduction
- Identification letter preparation for DST interests
- Deadline tracking for 45-day identification and 180-day closing
- Compliance verification for DST eligibility
Common Situations
Investor in Columbus, OH wants to diversify into multiple DST offerings instead of direct property ownership
Portfolio owner seeks passive management through DST fractional ownership
Investor needs to identify replacement properties quickly and prefers DST liquidity
Frequently Asked Questions
What is a DST and how does it work in a 1031 exchange in Columbus, OH?
A Delaware Statutory Trust in Columbus, OH is a legal structure that allows fractional ownership of large commercial real estate properties. DST interests qualify as like-kind replacement properties for 1031 exchanges, allowing investors to defer capital gains tax while gaining exposure to institutional-quality properties. We help identify qualifying DST offerings and coordinate acquisition within exchange deadlines.
What identification rules apply to DST placements in Columbus, OH?
A DST identified for a Columbus exchange is generally considered within the same identification framework as other replacement property. The independent qualified intermediary and tax advisor should confirm the written identification and transaction-specific requirements.
How is boot calculated in a DST placement exchange in Columbus, OH?
Cash received, debt relief, or other non-like-kind value may create taxable consequences. The property owner's CPA and qualified intermediary should review the exchange values, debt, and proposed DST acquisition before the identification and closing decisions are finalized.
What due diligence is needed for DST placements in Columbus, OH?
Review the private placement memorandum, underlying property, sponsor, fees, conflicts, leverage, projected income assumptions, liquidity restrictions, risks, minimum investment, eligibility, and suitability with appropriately licensed professionals.
Can I combine DST placements with direct property acquisitions in Columbus, OH?
Yes, investors in Columbus, OH can combine DST placements with direct property acquisitions in the same exchange, as long as identification rules are followed. This allows diversification across multiple DST offerings and direct properties. We help structure mixed identification strategies that meet IRS requirements.
Example Engagement
Example of the type of engagement we can handle
Client Situation
Investor selling a commercial property in Columbus, OH wants to identify and acquire DST interests as replacement properties for passive management and diversification
Our Approach
The owner compared available DST interests with direct-property alternatives and brought offering, suitability, identification, and closing questions to the appropriate independent professionals
Expected Outcome
Client identified and acquired DST interests meeting exchange requirements, completed acquisition within deadlines, and successfully deferred capital gains tax while gaining fractional ownership in institutional-quality properties
Educational content only. Educational content only. Not tax, legal, or investment advice.
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