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Delaware Statutory Trust 1031 Exchange: A Full Guide

September 3, 2026

By team Precision Exchange

A Delaware Statutory Trust (DST) is a specialized legal entity allowing multiple investors to own undivided fractional interests in high-quality, professionally managed real estate. For a Delaware Statutory Trust 1031 exchange, these interests qualify as "like-kind" property, enabling investors to defer capital gains taxes while transitioning to passive ownership.

What is a Delaware Statutory Trust 1031 exchange?

A Delaware Statutory Trust 1031 exchange is a strategic real estate transaction that combines the tax-deferral benefits of Internal Revenue Code Section 1031 with the fractional ownership structure of a DST. In this arrangement, a sponsor firm acquires a large-scale commercial property—such as a Class A office building, a multi-family apartment complex, or a distribution center—and places it into a trust. Investors then purchase

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