Investing In DSTs As 1031 Replacement Options

Investing In DSTs As 1031 Replacement Options

Every investor seeks higher returns out of their investment. The situation that favors you may not be suitable for other investors. As an investor, you must know what you need and should invest accordingly. For example, if you own an investment property but don’t want to bear landlord responsibilities, you can trade it for a DST property.

A Delaware Statutory Trust or a DST is a privately-owned trust that buys, manages, and sells income-producing assets. A DST has different grades of properties in its portfolio, and all assets are managed by professionals. You can invest in a DST property or buy DST shares with the help of a real estate broker or agent, who may also help you locate a 1031 DST property.

DSTs generally have a large structure, and a single DST may have a hundred or even more investors. This provides an opportunity for small investors to own large income-producing assets along with other investors, which otherwise they may not be able to afford individually.

How can you find DST properties in Connecticut

You don’t need to get on the streets for locating 1031 exchange DST properties. You can consult a real estate broker, and they can provide you with different DST investment options. Once you’ve picked a DST in which you want to invest, you can explore the properties included in its portfolio.

There is another way using which you can locate DST properties, and it’s a lot easier. You can consult a 1031 exchange advisor or expert, and they can suggest you different DST investment options.

Connecticut 1031 exchange market – 

Connecticut is quite popular among 1031 investors. Favorable attributes like good quality schools, luxurious homes, and nearness to economic centers like New York City make Connecticut a perfect place to live and invest in real estate. In Connecticut, real estate has witnessed a total appreciation of 53.15% since 1990, with 1.69% being the average annual rate of appreciation in the state.

As of April 2016, the average listing price in the state was recorded to be $422,214. This makes Connecticut a competitive real estate market where buyers are asked to pay high prices. However, the median sales price in the state was found to be considerably low at $215,000 in the same year. This shows that the state has a good scope for negotiation, and patience may play a vital role in the 1031 exchange Connecticut market. Though the entire 1031 exchange Connecticut market is favorable for 1031 investors, the following three cities are the best locations to find a replacement property.


If you’re looking for one of the most affordable avenues in Connecticut, Bridgeport should be at the top of your list. With $280K, Bridgeport has a relatively low average home price as compared to the rest of the state. Though the city has experienced some urban decay and political struggles in the last few years, its nearness to New York City guarantees investment returns regardless of everything. Presently, abandoned buildings in the city are being reoccupied on a large scale, and Bridgeport is attracting more and more wealthy urbanites.


Though Cornwall is a small town in Litchfield County, it is known for its older buildings with historical values and convenient amenities. Approximately, more than 42% of Cornwall’s real estate date to 1939 or before. Investors find Cornwall real estate market attractive because of the fairly low cost of properties, which is ideal for investors who want to enter into this market. The median value of 1031 properties in Cornwall is $416,677. A limited number of properties are priced at $92K or lower. It is the best option for 1031 investors looking to kickstart their investment without spending a lot of money.


Greenwich, with over 60,000 inhabitants, features a big white-collar population and some of the most expensive income-producing properties in the country. Plus, it also offers reliable real estate appreciation. A steady and enormous increase can be seen if you look at real estate appreciation in the city over the last 20 years or the last few months. Since 1990, Greenwich’s real estate has witnessed an upward growth of 197%.

Other cities like Fairfield, Stonington, Milford, and Old Saybrook also have the same scope for 1031 investors. While Bridgeport and Greenwich are known for institutional-grade properties and healthy populations, Cornwall is best for living a peaceful life post-retirement.

“Our tax-deferred 1031 exchange programs can save millions in taxes, increase investor equity, and compound annual cash flow distributions and returns”