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What are the limitations of DSTs?

While Delaware Statutory Trusts (DSTs) offer tax benefits and passive ownership, they also come with certain limitations that investors should consider before investing.

Lack of liquidity: DST interests are highly illiquid and cannot be easily sold or converted into cash. Investors should be prepared for a long-term hold and must qualify as accredited investors, typically requiring a net worth of $1 million or more.

No management control: DSTs are fully passive investments, meaning all decisions are made by the sponsor. Investors have no direct control over property management, leasing or the timing of a sale.