Sell your apartment building, defer capital gains taxes, and receive monthly income — without property management.
Request a DST ConsultationAfter years of managing tenants, navigating rent control, dealing with SCEP inspections, and keeping up with Los Angeles' ever-changing regulations — many apartment owners are simply done. They want out. But they're not sure how to exit without giving away a large portion of what they've built.
The problem is that selling often creates a significant tax event. Between capital gains and depreciation recapture, it's common for owners to lose 30–40% of their equity to taxes. For many, that's enough to keep them stuck — holding a property they no longer want to own.
Delaware Statutory Trusts (DSTs) offer a compelling alternative. Through a properly structured 1031 exchange, you can sell your building, defer your capital gains taxes, and replace your rental income with passive distributions — no tenants, no maintenance, no management. Just income.
A DST allows multiple investors to own fractional interests in large, institutional-quality commercial properties — the kind that would normally be out of reach for individual buyers.
DSTs are IRS-approved replacement properties for 1031 exchanges. This means you can sell your apartment building and reinvest the proceeds — potentially deferring all capital gains taxes.
Investors receive regular distributions — typically monthly or quarterly — generated from the rents paid by the property's tenants. No active involvement required.
The DST sponsor handles all property management — tenants, maintenance, operations, and reporting. You simply receive your distributions. No phone calls, no repairs, no headaches.
For owners who've built significant equity and are ready for a change, DSTs offer a clean, tax-efficient exit that most people don't know about.
Exit property management completely — no more tenants, vacancies, or repairs
Potentially defer capital gains taxes through a 1031 exchange
Receive monthly or quarterly passive income distributions
Invest in institutional-quality commercial properties nationwide
Stop dealing with LA rent control, SCEP inspections, and compliance burdens
Here's what a typical DST investment can look like for a Los Angeles apartment seller using a 1031 exchange.
$597K
Invested via 1031 Exchange
7.75%
Annual Return
~$46K
Annual Passive Income
~$3,900
Monthly Income
Many DSTs use cost segregation and accelerated depreciation schedules, which can offset a significant portion of your taxable income from distributions.
In some cases, a large portion of the monthly income you receive may be sheltered from federal taxes due to depreciation benefits. Your CPA can walk you through the specifics.
* This example is for illustrative purposes only. Returns are not guaranteed. Results vary based on DST offering, investment amount, and market conditions. Consult your CPA or financial advisor before making any investment decisions.
The process is straightforward when you work with an advisor who understands both the real estate and the 1031 exchange requirements.
List and close on your apartment building sales in Los Angeles. Your proceeds are held by a qualified intermediary to preserve the exchange.
Work with a qualified intermediary to initiate the 1031 exchange. You have 45 days to identify a replacement property and 180 days to close.
Select a DST offering that meets your needs. Your exchange proceeds are invested into the trust as the replacement property, satisfying the 1031 exchange requirements.
Once invested, you begin receiving regular income distributions — typically deposited directly to your bank account each month or quarter.
The DST sponsor handles all operations — tenants, maintenance, property management, reporting, and planning the eventual exit. You have zero management responsibilities.
When you invest in a DST, you're partnering with a professional real estate company called a sponsor. Here's what they do on your behalf:
Sponsors identify, vet, and purchase institutional-quality properties, then structure the DST offering for investors.
Sponsors handle tenants, leases, maintenance, and day-to-day property operations. Investors remain completely passive.
Most DSTs have a defined hold period of 5–10 years. At the end, the sponsor sells the property and distributes the proceeds — which investors may roll into another 1031 exchange.
DSTs invest in large-scale, professionally managed commercial real estate. These are often newer properties leased to financially strong, national tenants — a very different profile from LA apartment buildings.
DSTs aren't for everyone — but for the right seller, they can be a powerful tool for wealth preservation and income replacement.
If you've owned your building for years and have significant appreciation, selling without a tax strategy could cost you hundreds of thousands of dollars.
If you're exhausted by tenants, repairs, inspections, and the day-to-day grind of ownership, a DST lets you exit cleanly without sacrificing your income.
For retirees or near-retirees, DSTs provide a structured, predictable income stream without the stress or liability of being a landlord.
If you want your equity working for you — without the active involvement — DSTs offer a professionally managed, income-producing alternative.
The information on this page is for educational purposes only and does not constitute tax, legal, or financial advice. DST investments involve risk, including the potential loss of principal, and are not suitable for all investors. Past performance is not indicative of future results. All investors should consult with their CPA, attorney, and qualified financial advisor before making any investment decisions. DST investments are illiquid and may not be redeemable prior to the sponsor's planned exit.
If you're thinking about selling your apartment building, we can walk you through your options — including DST opportunities and tax strategies that most sellers never consider.
There's no obligation. Just a clear, honest conversation about what's possible for your situation.
Request a DST Consultation