When it comes to investing in a Delaware statutory trust (DST), investors should understand that not all asset classes are equal.
Typically, Delaware statutory trusts include core real estate asset classes such as retail, multifamily, net lease, industrial, medical office buildings and self-storage facilities. And while all real estate investing contains the potential for risk, when it comes to investors evaluating which asset classes to include in their Delaware statutory trust or 1031 exchange, the process should always start with what asset classes to avoid in order to mitigate the exposure to excessive risks associated with a specific asset class.
