In recent years, non-traded and perpetual life REITs (REITs that don't have a predetermined termination date, allowing them to operate and reinvest capital continuously without a forced dissolution) have emerged as attractive vehicles for real estate investors, especially within the 721 UPREIT DST structure. While these vehicles offer tax-deferred exchange benefits and diversified exposure to real estate, investors must scrutinize several key financial metrics to avoid hidden pitfalls.

Kay Properties reviews scores of new DST and 721 UPREIT offerings and DST sponsor companies each year. We take our due diligence process very seriously, ensuring that each potential offering is strictly vetted before it is allowed to be posted on our www.kpi1031.com marketplace. Our goal is to provide our clients with thoroughly reviewed investment opportunities, allowing them to make informed decisions when considering Delaware Statutory Trusts (DSTs) and 721 UPREIT investments. As we consider a DST or 721 UPREIT offering and/or a sponsor firm, we use some very specific items within our due diligence process.

One of the most important questions Delaware Statutory Trust real estate investors need to ask themselves is, “What is my long-term, exit strategy?” One option that more and more investors are interested in is what's called a 721 Exchange UPREIT.

Learn why the Small Bay Industrial asset class is gaining in popularity among Delaware Statutory Trust investors.

As one of the nation’s leading expert real estate investment firms specializing in Delaware Statutory Trust investments, Kay Properties is regularly asked about the nuances and strategies surrounding Delaware Statutory Trust investments for 1031 exchanges or direct cash investments.

Listen to some of Frequently Asked Questions investors ask regarding Delaware Statutory Trusts and 1031 exchanges. This is a must hear episode for anyone interested in learning more about Delaware Statutory Trust investments.

One of the most asked questions we hear from investors is “What are my options for a 1031 Exchange?”

Kay Properties Essentials podcast takes a close look at this questions, and what are the most common strategies for 1031 exchange investors.

Kay Properties & Investments President, Chay Lapin, reviews the debt-free Texas Small Bay 85 DST for 1031 exchange and direct cash investors.

The 68,400 SF asset was constructed in 2000 and is a 100% leased multi-tenant flex/industrial asset located in the coveted northwest submarket of San Antonio, Texas.

One of the most important questions Delaware Statutory Trust real estate investors
need to ask themselves is, “What is my long-term, exit strategy?”
Most Delaware Statutory Trust (DST) investments are typically held for approximately 5-
10 years (although it could be shorter or longer). After that, the DST investment will
typically go “Full-Cycle”, a term used to describe a DST property that is purchased on
behalf of investors and then after a period of time is sold on behalf of investors.
Once your DST investment goes full-cycle, investors need to evaluate what their next
investment move should be. For example an investor could simply cash out and pay the
capital gains and other taxes, enter another 1031 Exchange process, or complete a 721
Exchange UPREIT.

For real estate investors considering Delaware Statutory Trust (DST) investments—whether for a 1031 exchange or as a direct cash investment, it is important to define your investment strategy. For example, are you looking for an investment where you have the abilitiy to potentially generate greater monthly net operating income, or are you more interested in a steady income stream over a long period of time. These two investment strategies are often called the “Anchor and Buoy” investment theory.

DSTs are uniquely suited to help investors potentially achieve the benefits of both strategies, potentially offering the stability of an anchor with the growth opportunities of a buoy.