A Delaware Statutory Trust ("DST") is a business trust that can be used for real estate ownership where a trustee holds title to assets for the benefit of the trust interest owners.

Investors in a DST own an undivided interest in the assets held by the trust.

DSTs may provide a solution for exchangers who may not have the time, energy, or real estate expertise to find and/or manage replacement property.



Access to institutional quality real estate

Institutional Management

Passive Ownership

Institutional Financing

Non-recourse Debt

Tax Reporting (Grantor Letter)

Lower Minimum Investment


Loss of Control

Long-Term Holding Periods

Higher Fees

No Control or Involvement in Property


No Public Market exists for the DST Interests, and it is highly unlikely that any such market will develop.


Under IRS ruling 2004-86, for beneficial interests to qualify as direct interests in real estate for Section 1031 purposes, the DST must be limited in its actions and may not:

1) Exchange DST property for other property.

2) Invest cash between distribution dates in anything other than short-term securities.

3) Accept additional capital to the DST.

4) Renegotiate terms of debt or enter into new financing.

5) Renegotiate existing leases, except in the event of an original tenant bankruptcy or insolvency.

6) Enter into new leases, except in the event of an original tenant bankruptcy or insolvency.

7) Make repairs or improvements other than minor, non-structural repairs.

To deal with these limitations, DSTs contain provisions for "springing" into a limited liability company taxed as a partnership if action prohibited in the DST format is needed.  This is normally not a taxable event, but may limit future 1031 exchange options.

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Offering Disclosure


The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by the respective issuer, or any affiliate, or partner thereof ("Issuer"). All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM.  With respect to the “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/ PPM. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. Past performance is no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.


Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

1031 Risk Disclosure:

·         There is no guarantee that any strategy will be successful or achieve investment objectives;

·         Potential for property value loss – All real estate investments have the potential to lose value during the life            of the investments;

·         Change of tax status – The income stream and depreciation schedule for any investment property may                  affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral            of capital gains and result in immediate tax liabilities;

·         Potential for foreclosure – All financed real estate investments have potential for foreclosure;

·         Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are                illiquid securities. There is no secondary market for these investments.

·         Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a                        property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of                cash flow distributions;

·         Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may                  outweigh the tax benefits