Is it possible to do a 1031 exchange by selling a Delaware Statutory Trust (DST)?
A DST is a unique creature. When you own the beneficial interest in a DST, you are deemed to own your share of the underlying real estate. As long as the DST is still a DST, you could likely do a 1031 exchange on the disposition of your beneficial interest.
If the DST has already matured into an UPREIT, then you don’t own an interest in real estate any longer. Rather, you own a partnership interest, which is not eligible for 1031 exchange. So it really depends where the DST is on the procedural timeline.
You can do a 1031 exchange into any real estate in the US that is like-kind. If you sell your beneficial interest in a DST and come back into cash with your intermediary, you don’t have to buy another DST. You can buy any real estate that’s held for investment or business purposes.
Contact an Experienced Qualified Intermediary
If you are looking for a 1031 exchange qualified intermediary, CPEC1031, LLC has you covered! We have been operating in the 1031 exchange industry for more than two decades. During our time in business, we have gained valuable knowledge and insights that we can put to use on your next like-kind exchange. Reach out to us today at our Twin Cities office to learn more about 1031 exchanges and see if you are a good candidate for a 1031 exchange of your investment real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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