Independent, fiduciary guidance for investors reinvesting 1031 proceeds in Delaware Statutory Trusts
“I’d love to sell our property, if only I knew what to do with the money.”
“If we sell outright, our aggregate tax bill will exceed 40%.”
“I am tired of being a landlord. I would rather travel.”
“Our commercial real estate is too concentrated. I wish we could diversify like our retirement accounts.”
“My kids will struggle to manage my real estate. Is there a way to simplify my estate?”
“My parents moved into assisted living. They need truly passive income.”
Selling the property is the easy part. Deciding where the proceeds go is not.
replacement property
Choosing which DST, and which sponsor, is where independent judgment matters. That is the only work we do.
Owners tired of being landlords
You have built equity over decades. Now you would rather travel than manage tenants. We help you move to truly passive income without triggering the tax bill.
Couples planning for a surviving spouse
When the spouse who manages the property is ill or elderly, the other will need income that does not depend on running buildings.
Simplifying an estate for the next generation
Your children inherit professionally managed interests, not properties they must learn to run, divide or sell under pressure.
Owners with concentrated real estate
One or two properties can hold most of a family’s net worth. A DST portfolio spreads that across property types, markets and sponsors, the way you already diversify your securities.
The record behind the advice
Forty years underwriting institutional finance, including the years it went wrong.
After 2008, Nick spent a decade working through the restructurings and bankruptcies of the sponsors that failed, on behalf of the investors left holding them. Judgment about a DST offering is only worth what the person making it has lived through, and that decade is what stands behind every recommendation.
Forty years
In institutional investment banking and private equity, financing public infrastructure, hospitals, universities and nonprofits.
Since 2004
Advising on fractional real estate for 1031 exchanges, from the year the IRS ruling made the DST structure viable.
Through 2008
A decade of workouts with failed sponsors and the investors left in them. It is what shapes how every offering gets underwritten today.
“Clients are not shopping for tools. They are struggling to solve problems. We see ourselves as carpenters. Financial carpenters. With maybe nicer clothes.”
The basics
What is a Delaware Statutory Trust?
- A legal entity, formed under Delaware law, that holds title to investment real estate.
- Investors buy beneficial interests in the trust, not the property itself.
- Under IRS Revenue Ruling 2004-86, a properly structured DST interest qualifies as like-kind replacement property in a 1031 exchange.
- The sponsor acquires the property, arranges the financing and manages it.
- Investors receive their share of the net income while the trust holds the property, and their share of the proceeds when it is sold.
Passive ownership
Institutional-grade property
Suited to the exchange calendar
Real constraints
What an independent DST advisor does
We evaluate DST offerings the way an institutional investor evaluates a financing: skeptically, completely, and on your behalf alone.
Market-wide sponsor evaluation
Deal-level underwriting
Exit-strategy realism
Portfolio construction
Exchange coordination
Monitoring for the life of the investment
Independent judgment, start to finish
Sponsor evaluation, underwriting and exchange coordination, then monitoring for the life of the investment.
The fiduciary difference
Advice that answers only to you.
Prassas Capital is a state-registered investment adviser, and we owe you a fiduciary duty for as long as the relationship lasts.
From first conversation to the final sale of the asset
Conversation
Your property, your sale timeline, and what the proceeds need to do for you.
Review
Income needs, risk tolerance, estate considerations and the exchange calendar.
Underwriting
Screening and analysis of available offerings across the market.
Recommendation
A written portfolio recommendation with the reasoning behind every choice.
Closing and beyond
Closing through your qualified intermediary, then monitoring until the property is sold.
If your sale is in sight, the useful time to talk is before the 45-day clock starts.
Insights
Anatomy of a Delaware Statutory Trust
How the trust is structured, who controls it, and what investors actually own.
Delaware Statutory Trust Sponsors: Does It Matter?
Why the manager behind the offering can matter as much as the property itself.
Yield Tricks DST Sponsors Play
Reserves, fee waivers, rate buy-downs and other ways a projected yield can be enhanced, and what each costs you.