Multifamily Real Estate Structured Around Investor Solutions.
Consumer First Capital Partners provides access to multifamily real estate investment opportunities through Delaware Statutory Trust structures designed for eligible investors, including individuals exploring qualifying 1031 exchange strategies.
Understanding Delaware Statutory Trusts
A Delaware Statutory Trust (DST) is a legal ownership structure that can allow multiple investors to hold beneficial interests in a trust that owns real estate.
DST investments are commonly used in connection with qualifying Section 1031 exchanges, allowing eligible investors to potentially defer capital gains taxes when exchanging qualifying investment real estate for qualifying replacement property.
Rather than directly managing an entire property, investors acquire beneficial interests in a professionally managed real estate investment.
For eligible investors, DSTs may provide an alternative way to maintain exposure to real estate while transitioning away from direct property ownership and day-to-day management responsibilities.
Tax treatment depends on individual circumstances and compliance with applicable requirements. Consult your independent tax and legal advisors.
An Alternative Approach to Real Estate Ownership
1031 Exchange Considerations
Eligible investors selling qualifying investment real estate may explore DST interests as potential replacement property in a qualifying Section 1031 exchange.
Passive Real Estate Ownership
DST investors generally do not participate in day-to-day property management decisions. Property operations are handled by the sponsor and its designated management professionals, subject to the governing documents.
Multifamily Real Estate Exposure
Investors can obtain beneficial ownership interests in multifamily properties without purchasing and managing an entire apartment community individually.
Portfolio Transition
For property owners seeking to transition away from direct real estate ownership, DST investments may provide another way to maintain qualifying real estate exposure.
Focused on Multifamily Real Estate
Consumer First Capital Partners is focused on multifamily real estate investments, with an emphasis on identifying properties supported by durable residential demand, thoughtful underwriting, and disciplined asset management.
Property Selection
Identify multifamily properties in markets supported by employment, population trends, housing demand, and long-term fundamentals.
Investment Underwriting
Evaluate property-level cash flow, occupancy, rental performance, operating expenses, debt structure, capital requirements, and downside scenarios.
Asset Management
Emphasize disciplined property oversight, operating performance, expense management, and the preservation of real estate value.
Is a DST Worth Exploring?
DST investments may be worth evaluating for certain real estate owners and investors depending on their financial objectives, tax circumstances, and investment preferences.
- 01Property owners considering the sale of investment real estate.
- 02Investors evaluating a qualifying 1031 exchange.
- 03Individuals seeking a more passive approach to real estate ownership.
- 04Wealth managers and financial professionals evaluating real estate alternatives for eligible clients.
From Property Sale to Real Estate Investment
- Step 1
Evaluate Your Objectives
Understand your real estate holdings, investment goals, and potential exchange requirements.
- Step 2
Explore Available Opportunities
Review multifamily DST investment opportunities and their respective offering documents, investment structures, risks, and terms.
- Step 3
Coordinate With Your Advisors
Work with your qualified intermediary, tax advisor, legal counsel, and financial professionals to evaluate exchange eligibility and transaction timing.
- Step 4
Complete Investment Documentation
Eligible investors complete the applicable subscription documents and investment verification requirements.
- Step 5
Ongoing Property Management
Following investment acceptance and closing, the property is operated in accordance with the trust documents and offering materials.
Frequently Asked Questions
What is a Delaware Statutory Trust?
A DST is a legal trust structure that allows investors to own beneficial interests in real estate held by the trust. DST interests may qualify as replacement property in certain Section 1031 exchanges when applicable requirements are met.
Can a DST be used in a 1031 exchange?
Certain beneficial interests in properly structured DSTs may qualify as like-kind replacement property under Section 1031. Eligibility depends on the trust structure, transaction, and applicable tax requirements. Investors should consult their tax advisors.
Do DST investors manage the property?
Generally, no. The sponsor and designated property management professionals oversee operations within the limitations of the DST structure and governing documents.
Are DST investments liquid?
DST investments are generally illiquid and are not publicly traded. Investors should be prepared to hold their interests for an extended period. Transfers or sales may be restricted, and a secondary sale is not guaranteed.
Can I sell my DST investment?
Investors may be able to transfer or sell their beneficial interests subject to the trust documents, offering restrictions, applicable securities laws, and sponsor or trustee approval where required. There is no assurance that a buyer will be available.
Are DST investments guaranteed?
No. DST investments involve risks, including potential loss of principal, changes in property values, operating expenses, financing risks, and limited liquidity. Distributions and returns are not guaranteed.
What is the minimum investment?
Minimum investment requirements vary by offering. Refer to the applicable offering documents for specific investment terms.
Does every DST qualify for a 1031 exchange?
No. The structure must satisfy applicable IRS requirements, and the investor's transaction must independently satisfy Section 1031 requirements.
Let's Discuss Your Real Estate Investment Objectives.
Whether you are evaluating a 1031 exchange, transitioning from direct property ownership, or exploring multifamily real estate investments, our team welcomes the opportunity to learn more about your objectives.
Investments in Delaware Statutory Trusts involve substantial risks, including the potential loss of principal, limited liquidity, real estate market risk, financing risk, tenant and operating risk, and other risks described in the applicable offering documents. DST interests are not publicly traded, and investors may not be able to sell or transfer their interests when desired.
Certain DST beneficial interests may qualify as replacement property in a Section 1031 exchange under applicable IRS guidance, including Revenue Ruling 2004-86. Qualification is not automatic and depends on the structure of the trust and the circumstances of the investor's exchange. Investors should consult their own tax and legal advisors.
Nothing on this website constitutes an offer to sell or a solicitation of an offer to buy securities. Any offering will be made solely through applicable offering documents and only in jurisdictions and to investors where legally permitted.
Any investment opportunity will be subject to applicable eligibility requirements, investment minimums, subscription acceptance, and definitive offering documentation.
Past performance, if presented in applicable offering materials, is not indicative of future results. No assurance can be given that any investment objectives will be achieved.
Consumer First Capital Partners does not provide legal, tax, or individualized investment advice through this website.