Exchange Structures
Seattle DST Placement Advisory
A Delaware Statutory Trust interest is a security that also qualifies as like-kind replacement property under Revenue Ruling 2004-86, and it is the structure most exchangers reach for when they want institutional-grade real estate exposure without direct management responsibility, or when the identification clock is running short. We help Seattle, WA investors evaluate DST sponsor history, portfolio asset mix, leverage, and distribution policy so they can diversify 1031 proceeds with a clear understanding of the structure. Because DST interests are securities, any recommendation of a specific offering must come from a licensed securities professional; we help you understand how the structure fits your exchange without selling or recommending particular DST offerings ourselves.
What You Get
Key Outcomes
Compare projected cash flow, embedded leverage, and underlying asset type across available offerings
Review sponsor financial health, track record across prior programs, and fee transparency
Document liquidity windows, expected hold periods, and stated exit assumptions for each offering
Understand how a DST interest fits alongside or in place of a direct property acquisition
Deliverables
What We Deliver
- A DST comparison framework covering key risk factors relevant to your situation
- A sponsor due diligence discussion covering track record and disclosed fee structure
- A distribution timetable and reinvestment considerations relevant to your cash flow needs
- Documentation your intermediary and securities professional need to move forward with a subscription
Process
Execution Timeline
Day 3: Discuss DST structures that may align with your objectives and risk tolerance
Day 7: Coordinate with a licensed securities professional on suitability and subscription requirements
Day 10: Coordinate subscription documentation and intermediary communication
Day 30: Confirm the DST interest is documented on your identification letter ahead of the deadline
Common Questions
Frequently Asked
Can a DST help me meet the forty-five day identification in Seattle, WA?
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Yes. DST interests can typically be identified and documented faster than a direct property purchase, which is why they are commonly used as a backup or primary option when the identification window is tight. We help make sure documentation is ready for your intermediary so the DST interest is properly listed on your identification letter.
Do you review DST fees?
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We help you understand the categories of fees typically disclosed in a DST offering, including acquisition fees, asset management fees, and disposition fees, so you can ask informed questions of the sponsor and the securities professional handling the offering, giving you a clearer sense of the all-in cost before you subscribe.
Can I combine DSTs with direct property in the same exchange?
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Yes. A single exchange can include both a DST interest and a directly owned property, as long as the combined replacement value and debt meet your exchange requirements. This blended approach is common when an investor wants some passive exposure and some direct control within the same relinquished sale.
What happens to a DST investment at the end of its hold period?
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When the DST sponsor sells the underlying property, investors typically receive their share of proceeds and can choose to complete another 1031 exchange into a new DST or other replacement property, or recognize the deferred gain at that time. Because DST interests are securities, questions about a specific program's exit terms should go to the offering's securities professional.
Are DST investments guaranteed to preserve my principal?
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No. DST interests carry real estate investment risk, including the possibility of loss of principal, illiquidity during the hold period, and dependence on the sponsor's management decisions. We do not present DST interests as risk-free, and any specific offering's risk factors should be reviewed in the offering documents with a licensed securities professional before subscribing.
Do syndications or crowdfunded real estate offerings work the same way as a DST for 1031 purposes?
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No. Most real estate syndications and crowdfunding platforms structure the investor's interest as an ownership stake in an LLC, which is treated as personal property for tax purposes and generally does not qualify as like-kind replacement property. DSTs are structured specifically to be treated as direct ownership of real property under Revenue Ruling 2004-86, which is what allows them to qualify where a typical syndication interest does not.
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