ADISA Publishes A Guide to DST 1031 Best Practices (2022)

INDIANAPOLIS, Nov. 30, 2022 /PRNewswire/ -- ADISA, the nation's largest trade association for the alternative and direct investment space, announced today the publication of A Guide to DST 1031 Best Practices (2022), a manual designed to highlight certain best practices related to Delaware statutory trusts (DSTs), which are the preferred structure used to facilitate securitized 1031 exchanges.

"1031 exchanges are increasingly popular tax-advantaged investments and are projected to raise more than $8 billion in investor equity in 2022," said ADISA Executive Director John Harrison. "As more investment sponsors enter the 1031 market, ADISA sought to provide a set of best practices for these sponsors, as well as investors and advisors who are evaluating a possible offering. This guide was a collaborative effort between industry participants, including ADISA's Standards, Education & Publications Committee, and volunteer members comprised of financial advisors, sponsors, attorneys and more. We are extremely proud of this publication and grateful to the volunteers for their efforts."

ADISA first published its guide to certain tenant-in-common (TIC) best practices in 2006, when TICs were the dominant structure used in securitized 1031 exchange offerings. Since then, the guide has evolved with the needs of the industry. A Guide to DST 1031 Best Practices (2022) covers a variety of topics related to DSTs and 1031 exchanges, including the history and foundational principles; like-kind exchanges; private placement memorandums and disclosures; due diligence; DST securities practices; and general DST restrictions, benefits, and structures. The guide is intended for use by sponsors, broker-dealers, registered representatives, investment advisors, attorneys, CPAs, qualified intermediaries, other professional advisors, and investors.

To download the guide, please visit ADISA's website.

The Alternative & Direct Investment Securities Association is the nation's largest trade association representing the non‐traded alternative investment space. ADISA's members are typically involved in non-traded real estate investment trusts, business development companies, master limited partnerships and private and public funds (LPs/LLCs), 1031 exchange programs (DSTs/TICs), energy and oil and gas interests, equipment leasing programs, or other alternative and direct investment offerings. The association was founded in 2003 and has approximately 5,000 members who are key decision makers, representing more than 220,000 professionals throughout the nation – including sponsor members who have raised in excess of $200 billion in equity and serve more than 1 million investors. ADISA is a 501(c)(6) non-profit organization, registered to lobby, and also has a related 501(c)(3) charitable non-profit (ADISA Foundation) assisting with scholarships and educational efforts.

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SOURCE ADISA