1031 DST Sponsors: List of Delaware Statutory Trust Investment Companies
1031 Delaware Statutory Trust (DST) investments are typically created and managed by real estate sponsors that acquire properties, structure offerings, and sell fractional ownership interests to investors.
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ToggleWhile some DST sponsors have strong track records, others have been associated with investor complaints, underperforming assets, and investment losses.
If you invested in a DST offering and experienced losses, it is important to evaluate both the sponsor’s role and whether your financial advisor properly vetted the investment.
What Is a 1031 DST Sponsor?
A DST sponsor is the company responsible for:
- Identifying and acquiring real estate assets
- Structuring the Delaware Statutory Trust
- Securing financing
- Managing or overseeing the property
- Distributing income to investors
Sponsors play a critical role in the success or failure of a DST investment. Poor management decisions, excessive leverage, or market miscalculations can lead to significant investor losses.
Why the DST Sponsor Matters
Many investors focus on tax benefits and projected income but overlook the importance of the sponsor.
Key risks related to DST sponsors include:
- Inexperienced or undercapitalized sponsors
- Overly aggressive projections
- High fee structures
- Conflicts of interest
- Poor property selection or management
Even well-known sponsors can experience issues during changing market conditions, particularly in sectors like office, retail, and multifamily housing.
Common 1031 DST Sponsors
Below is a list of companies known for sponsoring 1031 DST offerings. This list is not exhaustive, and inclusion does not imply misconduct.
Major 1031 DST Sponsors
Below are some of the most active sponsors in the DST market. Where available, you can learn more about specific companies and their offerings.
- Capital Square 1031 DST investments
- ExchangeRight DST offerings and portfolios
- Inland Private Capital Corporation DST programs
- Cantor Fitzgerald DST investments
- Inspired Healthcare Capital DST Investments
- NexPoint DST offerings
- AEI DST investments
- Bluerock Value Exchange DST programs
- Four Springs TEN31 Xchange DST investments
- Hamilton Zanze DST offerings
- JLL Exchange DST programs
- Madison Capital Group DST investments
- Cove Capital DST offerings
- Carter Exchange DST investments
Expanded List of 1031 DST Sponsors and Offerings
Below is a broader list of DST sponsors and example offerings associated with 1031 DST investments:
A – C
- AEI
- ARCTRUST
- Ares Diversified Real Estate Exchange (ADREX)
- Ares Industrial Real Estate Exchange (AIREX)
- American Capital Group
- Arrimus Capital
- Baker Tilly / BT REI Manager LLC
- Black Creek Industrial Exchange
- Bluerock Value Exchange
- Cantor Fitzgerald
- Capital Square 1031
- CAI Investments
- Carter Exchange
- Core Pacific Advisors
- Cove Capital
- Croatan Investments
- Cunat Exchange
D – I
- DPM Self Storage
- Essex Realty Investments
- ExchangeRight
- Four Springs TEN31 Xchange
- Go Store It
- Griffin Capital
- Hamilton Zanze
- Hasta DST Ventures
- IDEAL Capital Group Holdings
- Inland Private Capital Corporation
- InCommercial
- Inspired Healthcare Capital Investments
J – R
- JLL Exchange
- Landmark Dividend
- Livingston Street Capital
- Madison Capital Group
- Madison Realty Companies
- Moody National Companies
- Nelson Brothers/Versity/Crew Investments
- Net Lease Capital Advisors
- New Star Exchange
- NexPoint
- RK Properties
- REVA Kay
S – V
- Southern Star
- Starboard Realty Advisors
- Syndicated Equities
- Trilogy Real Estate Group
- Valeo Groupe Americas
DST Sponsor Risks and Investor Complaints
Investors may experience losses in DST investments due to issues involving the sponsor, including:
- Declining property performance
- Rising interest rates impacting financing
- Tenant vacancies or defaults
- Mismanagement or poor oversight
- Inability to refinance or exit investments
In some cases, investors report that the risks associated with DST sponsors were not fully disclosed at the time of the recommendation.
Can You File a Claim Involving a DST Sponsor?
In most cases, investors do not file claims directly against the DST sponsor. Instead, claims are typically brought against the brokerage firm or financial advisor who recommended the investment.
These claims may involve:
- Failure to conduct proper due diligence on the sponsor
- Unsuitable investment recommendations
- Overconcentration in DSTs or illiquid products
- Misrepresentation of risks and expected returns
FINRA Arbitration for DST Investment Losses
Investors who suffered losses in DST investments may be able to recover damages through FINRA arbitration.
This process allows investors to pursue claims against brokerage firms for misconduct related to the recommendation of complex products like DSTs.
Learn more about your legal options on our main page:
[1031 DST Investments: Risks, Complaints, and Recovery Options]
Have You Suffered Losses in a DST Investment?
The White Law Group represents investors nationwide in claims involving complex investment products, including Delaware Statutory Trusts. You can learn more about FINRA claims we have filed on our Press and Media page.
If you suffered losses in a DST investment, contact us for a free consultation at 1-888-637-5510.
