The Delaware Statutory Trust (DST) is the most common ownership structure for investors who want to access investment-grade properties with other accredited investors. Both structures can qualify as a like-kind interest in real estate for the purposes of a 1031 exchange.

The TIC structure has been used for multiple-owner 1031 exchanges for many years and is based on English common law. However, in the last two decades, most investors have started using the DST structure, which is considered simpler and more flexible for owning investment real estate. The DST structure offers tangible advantages for investors.

DSTs are typically available as turnkey, pre-packaged investments with management and non-recourse financing already in place. This makes the process of identifying, acquiring, financing, closing, and operating real estate more efficient. These efficiencies are particularly helpful for investors who need to complete a 1031 tax-deferred exchange within strict time restrictions. Comparing DST ownership structures can provide more information on the options available.