Delaware Statutory Trust
A powerful investment vehicle for real estate investors, private wealth, family offices and private equity.
Delaware Statutory Trust
BT REI Manager, LLC (BT REI), a wholly owned subsidiary of Baker Tilly, is a sponsor of Delaware Statutory Trust (DST) investments.
As one of the largest advisory, tax and assurance firms in the U.S., Baker Tilly has a coast-to-coast network of relationships with real estate-centered clients that enable us to source institutional quality assets off-market. BT REI also sources assets through Baker Tilly’s extensive network of strategic relationships and partnerships.
Our process
- We originate DST investments that achieve Section 1031 like-kind exchange results for investors to defer real estate capital gains.
- To drive operating income to provide distributions to investors, our DST programs target newer, stabilized assets that do not require significant capital for immediate upgrades or to address deferred maintenance.
- To avoid bidding wars, we source DST assets off-market primarily through Baker Tilly’s industry groups that specialize in multifamily housing, higher education, healthcare, and manufacturing and distribution.
- We strive to provide investors with superior after-tax risk-adjusted returns through institutional-quality real estate investment properties through cash flow, appreciation and tax benefits.
There can be no assurance these objectives will be achieved.
This is not an offer to sell securities. An offer to sell the interests in a DST of Baker Tilly may be made only pursuant to the Private Placement Memorandum of the applicable DST (the “Memorandum”). The information contained herein is qualified in its entirety by the applicable Memorandum. The offering of interests is being made by means of the applicable Memorandum only to accredited investors who meet minimum accreditation requirements, as well as suitability standards as determined by a qualified broker-dealer or investment advisor. All prospective investors must read the applicable Memorandum, including the “Risk Factors,” prior to investing.
All investments involve risk. An investment in interests in DSTs is speculative, illiquid and involves a high degree of risk and there is no guarantee that investors will receive any return. Risks include, but are not limited to, the impact of inflation; risks associated with investments in real estate including financing risks, environmental risks and industry-specific real estate risks including the student-house industry; reliance on the master tenant, the property manager and the DST manager to operate and manage the properties and the DSTs; the inflexibility of the DST structure; competition; conflicts of interest; and tax risks.
Our properties
Fully subscribed
Quarters at Ames
- 518-bed student housing community near Iowa State University acquired in September 2022
- Five-year average occupancy of 96.4% with three of the five years achieving 100% occupancy
- Preleased 80.5% [1] for the 2024/25 academic year with rental growth of 4.3% [2]
Fully subscribed
Quarters at Bloomington
- 477-bed student housing community near Indiana University acquired in January 2022
- Five-year average occupancy of 99.6% with four of the five years achieving 100% occupancy
- Preleased 95.8% [1] for the 2024/25 academic year with rental growth of 12.1% [2]
[1] Preleasing is as of March 20, 2024
[2] Rent growth is based on signed leases for 2024/25 as of March 20, 2024
DST offerings sponsored by Baker Tilly are sold through authorized broker dealers and registered investment advisors. Please contact your financial professional or reach out to us for an introduction to one of our selling partners.
Our professionals
Our team is led by investment bankers and corporate finance specialists that have over 100 years of combined experience advising clients in evaluating strategic and financial alternatives and identifying cost-effective financing alternatives and sources.
We have significant experience assisting clients with investment structuring, diligence, capital raising, identifying cost-effective alternative sources of capital, securing tax credit and incentivized financing, and creating and executing real estate acquisition and disposition strategies. We also have experience distributing Regulation D private placements through independent broker-dealers, registered investment advisors, family offices, high-net-worth individuals and accredited investors nationwide.
This core team draws on the expertise and resources of the broader Baker Tilly real estate advisory team to bring best-in-class resources to vet, structure and offer institutional quality real estate investments.
DST basics
What is a DST?
A DST is a trust formed under the Delaware Statutory Trust law that allows passive, fractional ownership in real estate while qualifying as a “like-kind” real estate replacement property under Section 1031. Properties held in a DST can be located anywhere in the U.S. and investors in a DST do not incur a tax liability in Delaware (unless the investor or the DST property happens to be in Delaware).
Who should consider a DST investment?
Accredited investors who seek to achieve any of the following investment objectives:
- Passive real estate investment
- Investment in professionally managed institutional-grade assets
- Portfolio diversification
- Stable cash flow
- Tax-sheltered cash flow
- Section 1031 exchange tax deferral
There can be no assurance these objectives will be achieved.
The investor’s guide to a 1031 exchange via a DST
Learn how to execute a 1031 exchange, calculate boot and document identified replacement properties.
What are the benefits of investing in a DST?
DST investments include many asset classes such as: multifamily apartments, hotels, single tenant triple-net office, retail and industrial properties, student housing, medical office buildings, and multitenant office, retail and industrial facilities.
- Access to institutional grade investment properties – Most DST programs have a relatively low minimum investment, which allows investment in larger institutional grade properties that many investors could not otherwise access on their own.
- Diversification – With low minimum investment requirements, investors can allocate proceeds from selling a single property across multiple DSTs and asset classes to achieve diversification within their real estate portfolio.
- Passive investment – DST programs are managed by experienced sponsors and property managers, which alleviates investors from the burdens of property management and operations involved in traditional real estate ownership. Thus, investors enjoy a 1031-exchange benefit through a truly passive real estate investment with the comfort of knowing that the DST properties are professionally managed.
- Nonrecourse debt – When investing in a DST to achieve a 1031 like-kind exchange objective, an investor needs to invest the net equity from the sale of their property. They will also be allocated a portion of the DST debt supporting the DST asset which is allocated pro rata and nonrecourse to each investor. However, investors may need to invest in more than one DST in order to replicate the debt-to-equity ratio of the property they sold.
- Income and appreciation – The vast majority of DSTs hold investment grade properties with stable operating cash flow, which often generate immediate cash flow to investors.
- Tax advantages – Investing in DSTs offers the same tax advantages as investing in traditional real estate, including, without limitation, depreciation and interest deductions.
- Back-up plan – Investors often struggle to find a single replacement property that meets all of the Section 1031 exchange requirements within the 45-day identification period. DSTs can also serve as a back-up in the event you cannot identify and close on a replacement property within the required time periods.
There can be no assurance these objectives will be achieved.
Resource
1031 Like-kind Exchange Estimator Tool
Baker Tilly’s 1031 Like-kind Exchange Estimator Tool estimates the amount of tax potentially due if a like-kind exchange strategy is not undertaken, and the amount of taxes potentially deferred if an exchange is completed using assumptions furnished by a real estate owner or investor.
Securities offered on a best-efforts basis by Green Vista Capital, LLC, member FINRA/SIPC, dealer manager for BT REI Manager, LLC sponsored offerings. BT REI Manager, LLC and Green Vista Capital, LLC are unaffiliated entities.
Baker Tilly Capital, LLC, a registered broker-dealer, member FINRA/SIPC and affiliate of BT REI Manager, has agreed to assist in marketing the securities in a wholesaling capacity.
The information contained herein has been compiled from sources believed to be reliable; however, there can be no guarantee as to the accuracy or completeness of such information. Certain information contained herein constitutes “forward looking projections or statements.” Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward looking statements. Furthermore, this report does not constitute an audit, examination, or review in accordance with the International Standards on Auditing, nor we do express any opinion or make any other form of representation outside of what is stated within this report. Unless otherwise stated in the report, BT REI Manager, LLC has not sought independent confirmation of the accuracy or authenticity of any of the information contained in the financial statements or other documents provided. BT REI Manager, LLC’s review of documents and information is strictly limited to what was necessary for the preparation of the report. Neither BT REI Manager, LLC, nor its partners, employees or contractors are responsible for the accuracy or authenticity of the underlying information and documents on which the report is based, the opinions of other professionals, or the accuracy of the various work product contributed by other entities. Accordingly, neither our firm, nor any of its members or employees or contractors, will accept responsibility for the accuracy or authenticity of such information presented in the report. In addition, the report reflects the circumstances as they existed up to the report date. BT REI Manager, LLC accepts no obligation to update the report or to revise it because of events or transactions occurring subsequent to the date of the report. This information should not be construed as a recommendation or an offer of services.
BT REI Manager, LLC and Baker Tilly Capital, LLC are subsidiaries of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.
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