INTRODUCTION
Explore Your 1031 Exchange Solutions
Choosing the right 1031 exchange vehicle can make all the difference in preserving capital gains deferral and achieving your long-term real estate goals.
Below, you’ll find three distinct strategies — DSTs, 721 UPREITs and TICs — each tailored for different ownership preferences, liquidity needs and risk tolerances. Use the quick links to jump directly to the solution that interests you.
Delaware Statutory Trusts (DSTs)
Overview
Delaware Statutory Trusts (DSTs) are legal entities that allow multiple investors to own fractional interests in a professionally managed, institutional-quality property. The trust structure enables passive ownership, with potential income, appreciation, and tax benefits shared among investors. DSTs are often used in 1031 exchanges to help investors defer capital gains taxes while diversifying their real estate holdings.
Perch Wealth specialists source and vet DST offerings to match your portfolio goals, timelines and risk tolerance.
Exchange Process
After you sell your relinquished property, a Qualified Intermediary holds the proceeds from your sale until you are ready to reinvest them into your chosen DSTs. You identify DST options within 45 days and complete the exchange by day 180, all coordinated by your Perch Wealth advisor.
Our team guides you through the entire process, from selecting DSTs that align with your goals, to completing subscription documents with your dedicated Transaction Coordintor, we make sure you receive regular status updates and are informed every step of the way.
DST Investor Benefits
Passive Management
Passive ownership with professional asset management
Broad Diversification
Diversification across multiple asset classes and locations
Limited Liability
Limited liability protection for individual investors
Low Minimums
Lower minimum investment thresholds versus direct purchase
Hands-Off Ownership
No landlord or day-to-day property management duties
Tax Deferral
Full preservation of your 1031 tax-deferred status
721 UPREITs
Overview
A 721 UPREIT enables you to contribute real estate into an Umbrella Partnership Real Estate Investment Trust (UPREIT) in exchange for operating partnership (OP) units. This structure preserves your 1031 tax deferral while granting access to a diversified REIT portfolio.
By contributing property to an OP, you become an indirect shareholder in a public or private REIT, receiving quarterly or monthly income distributions. The Perch Wealth team has access to numerous UPREIT options that may be suitable for your investment portfolio.
Exchange Mechanics
Perch Wealth coordinates with top REIT sponsors to transfer your property into the UPREIT’s OP. You receive OP units valued at closing; there’s no strict 45/180-day replacement timeline, and you benefit from ongoing REIT distributions.
In many cases, you can defer capital gains indefinitely until you exchange or sell your OP units under Section 721. Perch Wealth can assist in coordinating tax tracking and basis allocation, ensuring your 1031 benefits are maximized.
721 UPREITs Key Advantages
Diversified Portfolio
Exposure to a diversified, professionally managed REIT portfolio
Liquidity Option
Potential liquidity via conversion of OP units into publicly traded shares
Income Distributions
Ongoing income distributions from REIT operations
Simplified Ownership
Simplified ownership structure across multiple assets
Tax Deferral
Preservation of 1031 tax deferral without timeline pressures
Institutional Access
Access to institutional-level real estate with minimal direct oversight
Tenancy-in-Common (TICs)
Structure & Ownership
Tenancy-in-Common (TIC) arrangements allow multiple investors to hold undivided fractional interests in a single property deed. Each co-owner maintains an individual ownership percentage and voting rights, offering direct real-estate exposure within a 1031 exchange.
TIC properties are professionally managed by experienced sponsors who handle leasing, maintenance and reporting—so you can enjoy direct ownership benefits without day-to-day oversight. Each co-owner’s share is legally documented, establishing clear governance and transferability protocols.
Exchange Workflow
Perch Wealth helps you identify TIC replacement properties during your 45-day identification window. Your Qualified Intermediary then facilitates the TIC acquisition by day 180 to satisfy IRS 1031 exchange rules.
Our specialists conduct rigorous sponsor and property vetting, and financial modeling to shortlist TICs that match your risk profile and investment goals.
Important Considerations
Ownership Agreements
Joint ownership agreements required among all co-investors
Lender Approval
Lender approvals typically needed on an owner-by-owner basis
Sponsor Vetting
Careful sponsor selection is critical for financing and governance
Direct Control
Direct fractional ownership grants individual voting and control rights
Consensus Decisions
Potential need for unanimous consent on major property decisions
Co-Owner Coordination:
Active coordination among co-owners for management and exit planning
Why Partner with
Perch Wealth
Trusted by investors for clarity and results.
Perch Wealth has placed over $5 billion in DST equity and guided thousands of clients through complex 1031 transactions, leveraging our deep market relationships to match you with replacement properties tailored to your objectives.
From personalized property sourcing to seamless exchange processing, our team ensures all IRS requirements are met—so you can focus on growth potential, not paperwork.
$500M +
Placed Equity
1,000+
Clients Served
45 Day
ID Window
100%
On-Time Closings
100%
Compliance Rate
