A DST is a legal entity that allows multiple investors to co-own fractional interests in institutional-grade real estate. It’s often used in 1031 exchanges when investors want a hands-off, passive alternative to buying and managing a property themselves. With a DST, you don’t have to deal with tenants, toilets, or turnovers—you’re buying into a stabilized portfolio managed by professionals. For seasoned investors looking to diversify or retire from active landlording, a DST can be a strategic solution. It’s also useful when the timeline of a 1031 exchange is tight, and identifying a whole property isn’t feasible.
