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Delaware Statutory Trusts

KB MILL CREEK, DST

A Three-building Office Campus in South Orange County, California

A 1031 Exchange Solution

Flexible-equity investments in commercial income properties

Delaware Statutory Trusts (DSTs) provide real estate investors with a way to invest passively in commercial real estate and a simplified 1031-exchange solution.

Kingsbarn, as a sponsor of DSTs, acquires high-quality commercial income properties, places non-recourse financing on the properties, and retains a national, third-party property and asset management firm to manage the properties and makes monthly distributions to all investors.

Ownership in the Trust is based on a pro-rata share of the equity invested. For example, if a property requires $5 million of equity to acquire and an investor purchases $1 million worth of the Trust, they will own 20% of the Trust and, as such, shall receive 20% of the cash flow distributions as well as 20% of the depreciation allocation in order to shelter the income from income taxes.

Kingsbarn acquires properties anchored by companies that are generally publicly traded and highly regarded with revenues exceeding $1 billion annually.

The DST ownership structure makes these investments ideal for investors who are in a 1031 exchange. The investment amount is flexible, starting at $100,000, which is also beneficial to 1031 exchange investors who are trying to invest an amount equivalent to their downleg exchange.

DSTs ... A Simplified 1031 Exchange Solution

DST Benefit Financing

With a DST, you can complete a 1031 exchange into an institutional-quality property without having to obtain your own financing. The debt is obtained by the DST and is allocated to each investor on a pro-rata basis.

DST Benefit Promptness

A DST acquisition is streamlined so that a purchaser and/or their advisor(s) can review all due diligence materials promptly in Kingsbarn’s online Document Vault. Typically, a purchaser would have to order their own reports and then wait 30-45 days to receive the reports before any review would be possible.

DST Benefit Closing

The closing process is designed to go at the speed that the purchaser chooses. Once the purchaser is ready to invest, they can close in as few as a couple of days.

Download The Benefits of DST Investing

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GLOSSARY

1031 Exchange

The Internal Revenue Code Section 1031 (a) (1) says, "no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment." What does the code really mean? Property that is held for investment can be exchanged for any other property that is being held for investment and the owner will be allowed to defer paying capital gains taxes.

What are some properties held for productive use in a trade or business or for investment? The list includes apartments, single-family rentals, office buildings, retail centers, warehouses, farms, hotels, and raw land, to name a few.

The way the code reads, any combination of these properties can be exchanged. For example that means an apartment can be exchanged for an office building, a warehouse exchanged for a retail center, or raw land exchanged for a single-family rental.

In an exchange of real property for real property, the fact that any real property is improved or unimproved is immaterial, because that fact relates only to the grade or quality of the investment property and not to its kind or class.

This website does not offer to sell, or a solicitation of an offer to buy, securities. Offers can only be made through the Private Placement Memorandum which contains various and important risk disclosures. This web site does not purport to be complete and should be viewed in conjunction with the Private Placement Memorandum. An investment of this sort is speculative and involves a high degree of risk. Projections of future performance contained herein are based on specific assumptions discussed more fully in the Private Placement Memorandum and do not constitute a guaranty of future performance.

DST Interests in any of the properties displayed on this website may be sold only to "accredited investors," as defined in Regulation D under the U.S. Securities Act of 1933, as amended (the "Securities Act"), which, for natural persons, refers to investors who meet certain minimum annual income or net worth thresholds. Offers and sales of DST interests have not and will not be registered under the Securities Act or the laws of any U.S. state or non-U.S. jurisdiction and may be offered only pursuant to an exemption from such registration. Neither the U.S. Securities and Exchange Commission nor any other regulatory authority has passed upon the merits of an investment in the DST Interests, has approved or disapproved of DST Interests or passed upon the accuracy or adequacy of this website and any supplementary materials describing the DST Interests. DST Interests are also not subject to the protections of the Investment Company Act of 1940, including the limitations on self-dealing, affiliated transactions and leverage contained therein. DST Interests are subject to legal restrictions on transfer and resale in accordance with the governing documents of the Trust and applicable securities laws, and investors may be unable to sell or transfer their DST interests. In addition, there is no public market for the DST interests and no such market is expected to develop in the future. Investing in the DST securities involves risk, and investors should be able to bear the loss of their investment.