How Long Do DST Investments Last?
Typical hold periods and what happens when the property sells.
Typical range
Most DSTs are projected to hold their properties for roughly 5 to 10 years, but the actual timing depends on market conditions and the sponsor's decisions. It is not guaranteed.
At the end
When the property sells, you can typically roll proceeds into another 1031 exchange, take cash and recognize the gain, or in some programs consider a 721 exchange.
Planning implications
Because you can't choose your exit date, money you may need in the near term generally shouldn't be placed in a DST.
Have questions about your situation?
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Schedule a Strategy CallEducational information only; not tax, legal, or investment advice. DSTs involve risk, including loss of principal, and are available only to accredited investors. Consult your own advisors.