A Delaware Statutory Trust can own one or more commercial real estate properties, and the range is broader than many investors assume. Common examples include multifamily apartments, office, industrial, retail, self-storage, medical office, student housing, hospitality, and senior living properties.
Common Property Types in a DST
DSTs are generally used to hold commercial real estate rather than owner-occupied homes or vacation property. In practice, sponsors often focus on income-producing assets that can be operated passively for investors.
Common DST property types include:
• Multifamily apartment communities
• Office buildings
• Industrial warehouses and distribution facilities
• Retail properties, including single-tenant net lease retail
• Self-storage facilities
• Medical office buildings
• Student housing
• Hospitality assets such as hotels
• Senior living or senior housing properties
Multifamily has long been a major part of the DST market, but it is not the only option. Realized materials note that DSTs have never been limited to apartments and can be used across a large number of property types, including retail, hospitality, industrial, office, self-storage, and medical office.
Can a DST Own More Than One Property?
Yes. A DST may hold a single property or multiple properties, depending on how the offering is structured.
That matters for investors who want exposure to multiple assets without buying several separate replacement properties. In some cases, a single DST can provide diversification by geography, tenant base, or property type. In other cases, a DST offering is built around a single asset, such as an apartment community or a self-storage facility.
Why Property Type Matters to Investors
The property type inside the DST helps shape the investment’s risk profile, income characteristics, and sensitivity to market conditions.
A few practical considerations include:
• Lease structure: Net lease retail or industrial assets may operate differently from multifamily or hospitality.
• Tenant demand: Demand drivers vary by sector. Student housing, self-storage, and medical office do not move for the same reasons.
• Cash flow pattern: Some assets may emphasize current income, while others may lean more toward appreciation potential.
• Operating complexity: Hospitality and senior housing can involve more operational intensity than a stabilized office or net lease property.
For a 1031 exchange investor, the key point is not simply whether a property is allowed in a DST. It is about whether that property type fits your liquidity needs, hold-period expectations, income objectives, and tolerance for real estate market risk.
The Bottom Line
A DST can own many types of professionally managed commercial real estate, from apartments and warehouses to retail, medical office, hospitality, and senior housing. That flexibility gives investment property owners more options when identifying replacement properties, but the underlying asset still warrants careful review before investing.
Frequently Asked Questions
Can a Delaware Statutory Trust own residential real estate?
Yes, but usually in the form of investment-oriented residential assets such as multifamily apartment communities or student housing. A DST is typically used for income-producing real estate held for investment, not for a personal residence, second home, or property you plan to occupy yourself.
Are all DSTs made up of apartment properties?
No. Multifamily has been common in the DST market, but DSTs can also own office, industrial, retail, self-storage, medical office, hospitality, and senior housing properties. Investors should review each offering individually because the property type can affect income potential, expenses, and overall investment risk.
Can I use a DST with more than one property for a 1031 exchange?
In many cases, yes. A DST may hold one property or multiple properties and still be used as replacement property in a 1031 exchange if the structure meets applicable requirements. Because exchange rules and suitability issues can be complex, investors should consult qualified tax, legal, and financial professionals before proceeding.
