721 UPREIT DSTs: Exploring the Hidden Risks
In today’s complex real estate market, understanding the nuances of 721 UPREIT DST structures is essential for any investor.One of the critical features of these arrangements is that the REIT holds the option — but not the obligation — to purchase the DST’s property through the UPREIT strategy. This subtle distinction can have profound implications for investors, making due diligence not just advisable, but critical.The anatomy of a 721 UPREIT DST structureIn a typical 721 UPREIT DST transaction, a property is initially transferred into a Delaware statutory trust (DST), allowing...



