A DST is established as a formal legal structure designed to be owned by multiple beneficial owners, with the underlying trust structure owning the real estate.

In order to be recognized by the IRS as a properly structured DST, a DST must avoid the “Seven Deadly Sins”:

Thus, the use of a DST will generally be limited to long-term “A” credit Triple-net leased properties (a
“box-in-one”) or properties leased to an affiliate of the Sponsor who will operate the property on a
triple-net-basis (a “master lease”).