DST sponsors
Kay Properties & Investments
Kay Properties & Investments runs a Delaware Statutory Trust marketplace for 1031 exchange investors. Registered users see 20 to 40 DST offerings at a time from more than 25 sponsor companies, plus DSTs structured for Kay clients only and a secondary market in existing DST interests.
Investors register for access to the kpi1031.com marketplace and review offerings that state asset type, minimum investment and loan-to-value. Listings crawled ranged from all-cash, debt-free industrial and net lease portfolios to leveraged multifamily and mixed-use, with minimums from $25,000 to $100,000. Every offering is a Regulation D Rule 506(c) private placement open only to accredited investors, and the firm publishes education on the 721 exchange UPREIT route, including a book and a weekly webinar.
The firm says it has worked with 1031 exchange investors for nearly two decades and has been involved in over 9,100 DST, 1031 and 721 exchange investments, with more than 12,000 transactions in total, 4,015 investors nationwide and $50 billion in total DST 1031 offerings participated in. It puts its team's combined real estate experience at 340 years.
What Kay Properties sells is a security, not a deed: read each private placement memorandum in full, including the risk section, and check sponsor, debt, and hold period deal by deal. The site does not state how the firm is paid on an offering, so ask who compensates it and how much before subscribing.
Best for
Accredited 1031 exchange investors who want passive fractional ownership and a menu of DSTs from multiple sponsors rather than one sponsor's inventory. Not for investors who want control of the asset, or who are not accredited.
What they do
- DST replacement property sourcing for 1031 exchanges
- Access to 20-40 DST offerings from 25+ sponsor companies
- Custom DSTs available only to Kay clients
- DST secondary market
- 721 exchange UPREIT guidance
- 1031 exchange education, webinars and published guides
What stands out
- Marketplace carries 20 to 40 DST offerings at a time from more than 25 sponsor companies.
- Reports involvement in over 9,100 DST, 1031 and 721 exchange investments.
- Says 4,015 investors nationwide have invested through the firm.
- All offerings are Regulation D Rule 506(c) placements limited to accredited investors.
Common questions
- What is a 1031 exchange DST?
- A Delaware Statutory Trust is a legal entity created to hold title to investment real estate. It is a passive form of ownership that lets an investor spread money across several properties rather than one, and because a DST interest counts as like-kind property it can serve as replacement property in a 1031 exchange to defer capital gains tax.
- Who is allowed to invest in these DST offerings?
- Accredited investors only. The site describes an accredited investor as having a net worth over $1 million excluding the primary residence, or annual income over $200,000, or $300,000 with a spouse, with the same expected in the current year. Accredited entities are those owned entirely by accredited investors or holding investments over $5 million.