Johnathan Rickman | Blue Vault
With the high-rate environment continuing to roil markets for real estate, advisors are ever in need of real-time information on how real asset investment strategies are faring in the current economy.
If you could use a status check on markets for Delaware Statutory Trusts (DSTs), we have you covered! Join us on Wednesday, October 30, 2024, at 2 p.m. for “Exploring DSTs: Opportunities and Insights for Savvy Investors,” an informative, hour-long webinar designed to bring you up to speed on this important alts sector. You’ll learn how DSTs are structured, get an update on primary market fundraising, and even learn about secondary market opportunities for DST investments.
Our knowledgeable speakers will also answer any questions you might have about this timely topic. Our panelists are:
• Blue Vault Financial Analyst Zach Mersmann
• Shawn O’Shaughnessy, Sales Director at LODAS Markets
• Janet Correll, Wealth Advisor at SouthPark Capital
• Robert Pecha, Wealth Advisor and Owner of 1031ROB LLC
The Download on DSTs
A Delaware Statutory Trust (DST) is a separate legal entity created as a trust under the laws of the state of Delaware. When used for a 1031 exchange — a swap of one real estate investment property for another that allows for the deferral of capital gains tax — the DST owns the property (or properties), and each investor holds “beneficial interests” in the DST.
The size of each investor’s ownership interest in the DST is proportionate to the amount they invest, compared to all other investors. For example, if the total equity offering is $5 million, an investment of $250,000 represents 2.5% of the DST.
DST Demand and Data
Demand for DSTs among 1031 exchange and other investors remains strong as evidenced by ExchangeRight’s recently fully subscribed All-Cash 4 DST, a $22.9 million portfolio of net-leased real estate. And long-time, national sponsors of 1031 exchange and DST investment programs such as Bluerock Value Exchange continue to launch DST offerings.
It’s not hard to see why this sector of the alts economy is attracting new fundraising. The median rate of distribution for the DST investments that Blue Vault tracks is 4.28%.1
“Fears of inflation and rising tax rates have investors looking for ways to potentially mitigate these risks,” says LODAS Markets’ Shawn O’Shaughnessy, who will speak on the secondary market opportunities for DSTs. “Whether they are completing a 1031 exchange or looking for unique investments, DSTs are an intriguing option.”
Our Webinars: Concise and Compelling
We believe that education is an essential ingredient for wealth advisors to integrate alts into their advisory practices and use offerings best suited for their clients. Our webinars are one of the many ways we help advisors stay informed about the latest trends and connect with peers who already understand alternatives. While designed for the busy professional, they are chock-full of information and free to Blue Vault members and non-members alike.
Whether you’re in-the-know or not, you won’t want to miss this timely discussion on DST strategies, structures, risks, and benefits! Register for the October 30, 2024, webinar today!
References
1Blue Vault. Excludes DSTs with no distributions and covers open offerings as of August 2024.
