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A DST Doesn’t Always End With a Property Sale: What Advisors Should Know About Exit Paths
Blue Vault cites a Top1031 study of 1,738 securitized DST offerings showing that a property sale is only one possible exit. Among 143 dated outcomes from 2024 through September 8, 2026, the study classified 57% as property sales, 20% as Section 721 conversions and 15% as foreclosure or documented distress.
The report puts the median holding period for dated terminal exits in mature cohorts at 6.4 years. It emphasizes that receiving REIT operating-partnership units differs from receiving sale proceeds. The percentages describe the study's identified outcomes and should not be read as probabilities for an individual offering.
Research considerations
DST coverage can involve new offerings, acquisitions, financing, sponsor developments, or exits. When considering an offering, the property portfolio, sponsor experience, capital structure, fees, and exit assumptions deserve a closer review alongside the announcement.
- Does the announcement concern a specific offering, the sponsor, or the broader DST market?
- What do the current offering documents say about the properties, debt, fees, risks, and exit assumptions?
This Sequoia Research summary was prepared with AI assistance from the credited source. It is not independent verification of the source’s claims. The original publisher retains authorship of its reporting; follow the source link for the complete article.
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