AUGUST 14, 2023 – Marking its inroad into the Delaware Statutory Trust market, BV Capital has fully subscribed Bridgeview‘s inaugural offering, BV Design Multifamily DST, raising $31.14 million for the acquisition and renovation of a 214-unit class A ...
DSTs and 1031 Exchanges
For real estate investors, a 1031 Exchange is a popular tax deferral option, and Delaware Statutory Trusts (DST) provide a passive 1031 option for investors who no longer want the hassle of direct asset ownership. A 1031 Exchange enables real estate investors to defer paying taxes (including capital gains taxes, state income tax and depreciation recapture on the transfer of rental property). DSTs are qualified for 1031 Exchanges because, in the eyes of the tax code, they qualify as direct property ownership.
How DSTs Work With 1031 Exchanges
Delaware Statutory Trusts are investment vehicles, similar to LLCs or limited partnerships that investors use to own a fraction of a commercial or high-caliber property. Every investor acquires a pro-rata portion of ownership in a DST by investing and this continues until each fractional investor owns the property that the DST initially purchased.
A 1031 DST Exchange is a type of syndication in the sense that a separate legal entity is formed for the purpose of purchasing a property. A 1031 exchange is possible because the IRS considers the DST investor's ownership of the security equity share ownership. The IRC Section 1031 recognizes each beneficiary in the trust as having a personal stake in the new property.
The 1031 Exchange Process
Sell Relinquished Property
Investor sells property and proceeds are escrowed with a Qualified Intermediary (QI)
Identify Replacement Property
Qualified Intermediary transfers funds for purchase of replacement property
Acquire Replacement Property
Investor receives new property
or DST interest.
For a DST to qualify for a 1031 exchange, the sale proceeds of the transferred property must get invested into a like-kind property of comparable or superior value. 1031 Exchange rules state that investors have 45 days from the sale date of the relinquished property to identify a suitable replacement property and 180 days to close on the purchase of it.
As DSTs provide a pre-packaged investment vehicle, exchange investors can do their due diligence immediately and satisfy the 45-day ID deadline and the 180 days required by the 1031 exchange laws.
Benefits of 1031 DSTs
Expand Your Portfolio with High-Caliber Commercial Real Estate
DSTs can eliminate the hassles associated with direct asset ownership while owning a fraction of institutional-grade properties.
Bridgeview DST Investment Programs are sold by broker dealers and registered investment advisors authorized to do so.
Contact your financial professional to learn more. Or, for help finding a financial professional please fill out the form below or contact BV at ir@bvcapitaltx.com for more information on 1031 DST Investments.
BV's Open DST OFFERING
DELAWARE STATUTORY TRUST : 1031 EXCHANGE
BV Student Housing Texas Portfolio DST
The BV Student Housing Texas Portfolio DST is an opportunity for Investors seeking to participate in a Section 1031 Exchange and for cash investors seeking cash flow and appreciation potential.
The portfolio consists of two stabilized student housing properties, "Liberty Lofts" at Texas Christian University (TCU) in Fort Worth, TX and "Midtown Urban" at The University of Texas at Arlington (UTA) in Arlington, TX.
Bridgeview DST Investment Programs are sold by broker dealers and registered investment advisors authorized to do so.
BV's Fully Funded DST Project
DST/1031 Exchange, Press Releases
Bridgeview Enters DST Market, Fully Subscribes $31M Raise for Class A Project in Dallas
AUGUST 14, 2023 – Marking its inroad into the Delaware Statutory Trust market, BV Capital has fully subscribed Bridgeview‘s inaugural offering, BV Design Multifamily DST, [...]