DST Secondary Market

Need to Sell Your DST Interests? We Can Help.

Whether you are administering an estate, settling a trust, or a living investor seeking early liquidity, we connect motivated sellers with qualified 1031 exchange buyers through a licensed broker-dealer. We have the buyer network, the securities licensing, and the broker-dealer infrastructure to facilitate secondary DST transactions from start to finish.

$30B+
DST equity actively held nationally
1031
Qualified buyers ready to close quickly
Who We Help

DST Interests Are Hard to Sell.
We Make It Possible.

There is no public market for DST beneficial interests. Finding a qualified buyer requires specialized market access and securities licensing. We provide both.

Professional Fiduciaries

PPFs administering estates with DST interests need to liquidate efficiently. If the heirs are interested in selling, we can help find qualified buyers and facilitate the transaction from start to finish.

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Heirs and Family Trustees

Inheriting DST interests you did not choose and do not want to hold is a frustrating situation with no obvious path to liquidity. We have the network and potential buyers to make it happen.

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Living Investors Seeking Exit

Sometimes circumstances change and a DST investor needs liquidity before the trust disposes naturally. We can facilitate a secondary market sale to a qualified 1031 buyer.

How It Works

Four Steps to Liquidity

The secondary market for DST interests is specialized but navigable. Here is exactly what the process looks like from first call to closing.

01
Initial Assessment

We review your DST interests, assess feasibility, and check the PPM for right of first refusal provisions. We then discuss next steps in a private conversation.

02
Pricing Discussion

We discuss the interest, the seller's situation, hold period remaining, and realistic expectations for the transaction given current market conditions.

03
Buyer Matching

We match the interest with qualified 1031 exchange buyers from our active network. DST secondary interests qualify as 1031 replacement property, giving buyers strong economic motivation to close quickly.

04
Transaction and Closing

The transfer is executed through Emerson Equity LLC, a registered broker-dealer. Standard documentation includes the Assignment and Assumption Agreement and sponsor consent process.

Why Work With Us

The Network, the Licensing,
and the Infrastructure to Transact

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Private Data-Driven Conversations

In private one-on-one engagements we work through the relevant market data, hold period considerations, and transaction mechanics with buyers and sellers. That informed conversation is what helps both parties reach agreement on a price that works.

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Active 1031 Buyer Network

DST secondary interests qualify as 1031 replacement property. Our network of qualified exchange buyers have strong economic motivation to close quickly, which compresses the discount relative to other buyer pools.

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Licensed Broker-Dealer Infrastructure

DST interests are securities. Transfers require a licensed securities representative and registered broker-dealer. We have the infrastructure to execute these transactions compliantly and efficiently.

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Compliant Transaction Execution

Every transaction is executed through Emerson Equity LLC with proper documentation and suitability review. We handle the compliance infrastructure so the transaction closes correctly.

Why We Are Different
Better Data. Better Buyers. Better Pricing.

When buyers lack knowledge about risk and return, and there are more sellers than potential buyers, discounts widen to compensate for the unknown. That is the reality of most DST secondary transactions today.

Our goal is to narrow that gap. By giving buyers a real analytical framework to evaluate risk and return across multiple scenarios, and by maintaining an active pool of qualified 1031 buyers, we believe sellers who work with us have a better chance of achieving a fair price than those who go it alone or work with providers who lack the same tools and buyer relationships.

  • DSTs cannot be refinanced. Loan maturity is the hard exit deadline
  • Shorter remaining hold periods reduce the illiquidity discount
  • 1031 buyers close faster than institutional secondary funds
  • Private conversations inform both buyer and seller on realistic pricing
What You Receive

We Facilitate the Transaction.
You Make the Decision.

Our role is to connect motivated sellers with qualified buyers and provide the infrastructure to execute the transaction compliantly through a licensed broker-dealer. In private one-on-one conversations we work through the relevant market data, hold period considerations, and transaction mechanics. Contact us to schedule a call.

1
Sale Price Index Model

Applies an institutional Sale Price Index for the submarket to the original all-in investment cost. Primary model for multifamily, industrial, and most non-NNN assets.

2
NOI Growth and Cap Rate Model

Income-based approach using observed institutional NOI growth and cap rate movement. Independent cross-check on Model 1.

3
Sponsor Pro Forma NOI + Cap Rate

Uses the sponsor's original PPM pro forma capitalized at current market cap rates. Preferred for NNN-leased properties.

What You Receive
The Conversation Comes First

Every secondary DST transaction starts with a private conversation about the specific interest, the seller's situation, and whether a transaction makes sense. Contact us to discuss yours.

Included with Every Transaction
  • Private discussion of market data and transaction mechanics
  • Sponsor quarterly report for current operating context
  • Property market analytics charts for the subject property
  • PPM review for right of first refusal and transfer provisions

Get Started
Common Questions

Frequently Asked Questions

Can a DST beneficial interest actually be sold?

Yes, with important caveats. DST interests are securities and any transfer must be executed through a licensed broker-dealer. The buyer must be an accredited investor. There is no public market, so finding a qualified buyer requires specialized market access. We provide both the broker-dealer infrastructure and the buyer network.

What discount should I expect relative to the original investment?

The discount varies based on hold period remaining, property performance, asset class, and current market conditions. The price will be determined by what the highest bidder is willing to pay. Our IRR framework gives buyers the data to evaluate the interest at different price points across multiple scenarios, so they can form their own view of what makes sense. Our 1031 buyer network helps surface buyers who are motivated to close.

How long does a secondary DST sale take to close?

After an initial conversation, The transaction itself can close in as little as one week or take 60 days or more depending on buyer availability and timing, and critically how the PPM reads on right of first refusal provisions. We review the PPM carefully before engaging on any transaction.

What documents are needed to get started?

We need the original PPM and the most recent sponsor quarterly report. For estate situations, basic trustee authorization may also be needed. For living investors seeking an early exit, no estate documentation is required.

Can a DST interest be refinanced instead of sold?

No. Unlike conventional real estate, DSTs cannot be refinanced under IRS Revenue Ruling 2004-86. The loan maturity date represents a hard structural endpoint requiring sale or disposition. This makes the remaining hold period one of the most important factors in valuing and pricing a secondary transaction.

What is the fee for a secondary sale?

We charge a transaction fee on the sale, typically structured as a percentage of the equity interest. Contact us to discuss the fee structure for your specific situation.

Get Started

Tell Us About Your DST Interests

Start with a conversation. No commitment required. We will assess your situation, discuss what is realistic, and walk you through the process.

We Handle the Complexity.
You Get the Clarity.

DST secondary sales are specialized transactions that require the right expertise, licensing, and buyer network. We have spent years building the infrastructure to make this process as straightforward as possible for sellers, trustees, and their advisors.

Contact
Mike Ghirardo
Email
mike@1031investmentstrategies.com
DST Estate Valuation
1031 Investment Strategies, LLC

Registered Representative, Emerson Equity LLC
Member FINRA / SIPC
Novato, California

Important Disclosure

For more information on Emerson Equity, please visit FINRA's BrokerCheck website. You can also download a copy of Emerson Equity's Customer Relationship Summary to learn more about their role and services.

Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only.

Securities through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

1031 Risk Disclosure:
There is no guarantee that any strategy will be successful or achieve investment objectives. Potential for property value loss: All real estate investments have the potential to lose value during the life of the investments. Change of tax status: The income stream and depreciation schedule for any investment property may affect the property owner's income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. Potential for foreclosure: All financed real estate investments have potential for foreclosure. Illiquidity: Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. The secondary market for these investments is very limited, and early sale is not guaranteed. Reduction or Elimination of Monthly Cash Flow Distributions: Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions. Impact of fees/expenses: Costs associated with the transaction may impact investors' returns and may outweigh the tax benefits.