Delaware Statutory Trust holding real estate — qualifies as 1031 replacement.

What are typical fees?

5-9% upfront load + 1-2% annual asset management.

How long is the hold?

5-10 years typical. Sponsor decides exit timing.

Can I refinance my DST?

No — DSTs cannot refinance during hold.

Delaware Statutory Trust DST 1031 Replacement Calculator

Delaware Statutory Trust (DST): IRS Rev Ruling 2004-86 approved. Fractional ownership of institutional-quality real estate ($100K-$500K min). Qualifies as 1031 replacement. Investor receives K-1 income, depreciation pass-through. Limitations: no improvements, no refinancing — passive only.

Relinquished property sale ($)

Original basis ($)

DST cash yield %

DST load fee %

DST Mechanics

IRS Rev Rul 2004-86: DST interests qualify as direct real estate ownership for 1031. Sponsor manages property; investor passive. Multiple investors share single property.

Typical Properties

Multi-family apartments (60-70% of DSTs), industrial, medical office, net-lease retail. Asset size $20M-200M. Hold 5-10 years.

Pros vs Cons

Pros: passive, professional management, defer big gains, diversification. Cons: illiquid (no secondary market), load fees 5-9%, no control, sponsor risk.

Source and Disclaimer

IRS Rev Rul 2004-86, 1031 Investment Services Association. Securities-regulated — must use SEC-registered sponsor.

Source: IRS Rev Rul 2004-86, irs.gov 1031. Last updated: May 2026.