Non-Traded REITs
&
DSTs
1031 exchange eligible investments with professional management but limited liquidity. Popular for tax-deferred property exchanges.
What are Non-Traded REITs & DSTs?
Non-traded REITs are real estate investment trusts that don't trade on public exchanges. They offer professional management and diversification without the daily price volatility of public REITs.
Delaware Statutory Trusts (DSTs) are legal trusts that hold title to real property, allowing fractional ownership. Both are popular for 1031 exchanges because they allow investors to defer capital gains taxes while maintaining passive ownership.
The trade-off is liquidity—these investments have limited redemption programs and may require holding for extended periods.
Key Considerations
Benefits
- • 1031 exchange eligible
- • Professional management
- • Diversified exposure
- • Stable, non-correlated valuation
Considerations
- • Very limited liquidity
- • High fees reduce NAV
- • Valuation delays (quarterly)
- • Complex redemption programs