1031 Exchange-Ready, Passive Institutional Real Estate
A Delaware Statutory Trust (DST) is a legal structure that allows multiple investors to hold fractional ownership interests in institutional-quality real estate. Investors participate in the income, appreciation, and tax benefits of the underlying property based on their proportional investment. DSTs are commonly used in 1031 exchanges because they are structured to meet IRS “like-kind” property requirements, allowing investors to reinvest proceeds from the sale of real estate and potentially defer capital gains taxes, subject to applicable rules and timelines.
A simplified structure designed for passive ownership, professional management, and efficient 1031 exchange execution
Delaware Statutory Trust (DST) investments allow investors to exchange into institutional real estate while maintaining tax deferral. Investors own a fractional interest in professionally managed assets, receiving passive income without day-to-day responsibilities.
DST interests are designed to qualify as replacement property for a 1031 exchange, helping investors reinvest proceeds efficiently while adhering to strict timelines and regulations.
Kingsbarn and third-party managers oversee all aspects of the asset, from operations to reporting, allowing investors to benefit from real estate ownership without operational involvement.
DST investments are structured to generate income from property operations, with distributions typically made on a recurring basis, depending on asset performance.
Each investment structure is designed to meet different objectives. Understanding your goals is the first step in selecting the right path.
For 1031 Exchange Investors
If you are completing a 1031 exchange and seeking a passive solution, DST investments provide tax deferral while eliminating the responsibilities of direct ownership.
For Investors Seeking Passive Income
For those prioritizing consistent income and simplified ownership, both DST investments and funds offer professionally managed, hands-off exposure to real estate.
For Investors Seeking Greater Control
Kingsbarn’s Managed Direct Ownership® program offers a more traditional ownership structure with professional management, providing increased transparency and alignment with long-term strategies.
For Investors Seeking Diversification
Investment funds provide exposure across multiple assets and markets, offering a broader allocation through a single investment.
The 1031 exchange process is governed by strict IRS timelines. Understanding these key milestones is essential when planning a DST investment.
Delaware Statutory Trust (DST) investments provide a streamlined path for investors to access institutional-quality real estate while transitioning from active ownership to a fully passive structure. Designed with 1031 exchange investors in mind, DSTs combine tax efficiency, professional asset management, and durable income potential within a simplified ownership model, allowing investors to step away from day-to-day responsibilities while maintaining real estate exposure. Each offering is structured to meet IRS requirements for 1031 exchanges, enabling the deferral of capital gains while preserving continuity of investment. By pooling capital into professionally managed properties, investors gain access to diversified, high-quality assets that may otherwise be difficult to acquire individually. This approach is particularly well-suited for those focused on capital preservation, consistent income, and long-term portfolio alignment without the complexities of direct ownership.
Delaware Statutory Trust (DST) investments offer a compelling combination of tax efficiency, passive ownership, and access to institutional-quality real estate. Designed for 1031 exchange investors and long-term wealth preservation, DSTs provide a streamlined way to maintain real estate exposure while reducing operational complexity. Below are key benefits that make DST investments an attractive solution for investors seeking income, diversification, and simplicity.
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As a DST sponsor, Kingsbarn oversees the full lifecycle of each investment, from sourcing and acquisition to structuring, asset management, and investor reporting. Our integrated platform combines in-house underwriting with experienced third-party operators to ensure each offering is carefully vetted and aligned with long-term performance objectives.
We take a disciplined, institutional approach to evaluating opportunities, focusing on market fundamentals, asset quality, and risk-adjusted return potential. Each investment is structured to meet the requirements of 1031 exchange investors while maintaining flexibility and transparency throughout the process. By maintaining oversight at every stage, we are able to deliver institutional-quality opportunities designed to generate consistent income while prioritizing capital preservation for investors.
Our DSTs are managed by professional, third-party firms. For investors transitioning from actively managing properties to passive ownership, our ownership structure alleviates the burden of day-to-day management and replaces it with the freedom of time for travel and leisure. Ownership distributions from cash flow are paid monthly. Investors receive monthly operating reports and a year-end tax package directly from the management firm.
The 45-day “Identification” or “ID” period is a very short window for most 1031 exchange investors to find and nominate quality 1031 exchange replacement properties. Because DST investments are already acquired and ready for an investor’s exchange, the closing process into the DST can take as little as three business days. For those investors who are ready to exchange into the DST upon their close of escrow, this expedited closing process greatly reduces the risk of missing the IRS exchange deadlines (45-day ID period and 180-day total exchange period). For those investors who are nearing the end of their 45-day ID period and have not yet found an investment property to their liking, the DST can offer an immediate and simplified solution. For this reason, DSTs also make great “back-up properties”… in other words, using a DST as one of your nominations in case of a problem with a sole-property nomination.
The debt financing for each property is non-recourse to the DST investors. The Sponsor is the guarantor of all recourse obligations under the loan agreement. DST investors have no liability to their personal assets due to the bankruptcy-remote provisions of the DST. These provisions provide that any potential creditors of the Trust, including the lender, are prohibited from reaching any of the DST investors’ individual or other assets. Additionally, because an LLC is not required to hold the DST interests, investors do not have to incur annual state filings and the fees associated therewith.
Investing in DST properties, unlike a 721 Exchange (UPREIT), allows investors to continue to exchange properties over and over again until the investor’s death. Upon the death of the investor, under current tax laws, the heir(s) receive a “step up” in basis, thereby avoiding capital gains taxes on the original exchange, as well as all subsequent property exchanges.
The first mortgage for the DST property is obtained by the Sponsor and is recorded on the property prior to the investors taking ownership of the DST. DST investors are allocated their portion of the debt based on their pro rata share of ownership interests. The DST eliminates the need for investors to obtain individual financing on their own, as the DST is the sole borrower. Many DST investors appreciate having “in-place” financing that is set and secured with established fixed rates and terms.
All transaction costs are included in the total DST offering price. Costs for legal, financing, title, escrow, appraisals, third-party reports, commissions, loan reserves, and closing costs are part of the total DST offering price.
As investors begin to think about bequeathing investments to their heirs, real estate investments can be tricky, especially if the heirs are not experienced in owning and managing commercial real estate. We all want the transition to be as easy for our heirs as possible. DST investing eliminates the opportunity for heirs to argue over what to do with inherited investment property. Heirs may receive distributions on a pro rata basis and, upon the sale of the DST investment, each heir may individually choose what to do with his or her inherited portion of any proceeds. For example, one heir can continue to exchange property interests, while another may sell and receive cash proceeds.
Because a DST Private Placement Offering is allowed by the IRS to have up to 499 investors, the minimum investment amounts are typically much lower than if an investor were to individually purchase a solely-owned property. Most of our DST investments have a minimum equity investment requirement of just $100,000, which makes it easy for DST investors to diversify their portfolio.
A DST is a “pooled-equity” investment that allows investors to collectively purchase a property of higher value by aggregating their equity together. More combined equity means more buying power, and with that comes the opportunity to purchase properties that might otherwise be out of a single investor’s reach. These higher-valued properties may also be more attractive and better suited to an investor’s individual preferences.
DST Investors have direct ownership in the real estate through a Trust Agreement with the Trust. The benefits of direct ownership in the real estate, such as mortgage interest deductions and depreciation, flow through to the individual investors on a pro rata basis. Investors can, therefore, reduce their individual tax liability on the distributions they receive from their DST interests.
Financial advisors utilize diversification as a strategy to reduce investment risk. DST investing can provide the same opportunity to real estate investors due to the low minimum investment requirements. This allows investors to easily make multiple, smaller investments rather than purchasing a single, solely-owned property. It can be a daunting task for individual investors to make multiple property purchases on their own while meeting all the timing requirements under Section 1031 of the Internal Revenue Code.
Investors wishing to perform a 1031 exchange for tax purposes have a short window of only 45 days to identify three potential exchange properties. It can be difficult for individual investors to perform thorough investigations on their own, let alone within the ID timeframes allowed under 1031 regulations. The implications of “going down the road” — investigating a property during the ID period — only to ultimately uncover things about the property you didn’t know or didn’t like, can make the exchange process potentially precarious. With a DST property, the purchasing process commences with an abundance of information at your fingertips. The Sponsor provides financial information about the DST property(ies) which typically includes leases, appraisals, property condition reports, and financial projections. Having access to information early in the process allows you to make investment decisions without undue pressure.
Louie Goros leverages his brokerage background and extensive knowledge of commercial real estate to provide his clients with structured real estate investments through Kingsbarn’s diversified investment programs.
Prior to joining Kingsbarn, Louie helped lead a large brokerage team at Marcus & Millichap with over $400,000,000 in transaction volume. There, he specialized in acquisitions and dispositions of multifamily apartment buildings in San Diego County and facilitation of 1031 exchanges. During Louie’s career in brokerage, he represented a wide range of investors, helping them create and preserve wealth through investment sales and advisory services.
Louie proudly served in the United States Marine Corps with 1st Reconnaissance Battalion at Camp Pendleton, CA. Following his honorable discharge from the military, Louie went on to obtain a Bachelor of Science degree in Business with a concentration in small business management and entrepreneurship from the University of Phoenix.
Outside of the office, Louie enjoys staying fit and spending time with his wife, Brogan, and two-year old daughter, Taya.
Office: 424.343.9000
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Office: 424.343.9000
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Anthony is a highly accomplished real estate professional with a proven track record in the commercial real estate industry. He has extensive experience in sales, leasing, and asset management, making him a trusted advisor to clients looking to optimize their real estate portfolios.
Anthony comes to Kingsbarn having worked at Pacific Coast Commercial, one of the largest independent commercial real estate brokerage firms in southern California. Anthony led his team in the sales and leasing of investment properties throughout San Diego County, and now draws upon this experience to provide a unique, full-service approach to helping clients surpass their investment goals and better manage their real estate portfolios.
Anthony earned his B.S. in Business Management with honors from San Diego State University, where he developed a strong foundation in finance, marketing, and strategic planning. Apart from his professional life, Anthony is actively involved in his community, participating in local nonprofit organizations. He enjoys outdoor activities, including hiking, fishing, and golfing.
Office: 650.782.3304
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Office: 562.452.9000
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