The first half of 2026 was busy and fruitful for the attorneys in Ansell.Law’s Commercial Real Estate practice, especially for transactions involving Delaware Statutory Trusts (DSTs). In two logistically and legally complex multi-party, multi-property, and multi-state transactions, Ansell.Law’s Melanie Scroble spearheaded the acquisition and financing of both an eight-property portfolio and a five-property portfolio, including a national pharmacy chain and a national bank chain, located in several states along the East Coast, on behalf of two related DSTs.
These deals highlighted the firm’s CRE capabilities and reach, while also serving as a testament to the group’s agility, attention to detail, and ability to efficiently coordinate, manage, and close high-value transactions that also entail a high degree of difficulty.
“The closings for each portfolio involved different sellers, different attorneys, different title companies with their own documents and protocols, and different purchase agreements,” Scroble says. “The most significant challenge involved the fact that each portfolio had to close on the same day to satisfy its financing requirements. If one closing was delayed, it could have created a chain reaction that would have delayed or potentially derailed all of the other transactions. We got it done, and I am proud of everyone here who worked so hard to make that happen.”
More About Delaware Statutory Trusts
For those wishing to invest in institutional-grade properties but lacking the capital or management capabilities to do so, and for those looking for a tax-advantaged IRS Section 1031 exchange tailored specifically to their needs, Delaware Statutory Trusts (DSTs) can serve as an ideal vehicle for accomplishing either or both of those objectives.
A DST is a passive investment vehicle that allows multiple accredited investors to hold fractional, undivided ownership in institutional-grade properties, such as medical offices, large multifamily developments, or industrial spaces, that are typically out of reach for a single buyer.
There are several advantages to investing in a DST rather than a traditional acquisition of commercial property:
- 1031 Exchanges tailored to the required value. Backed by a 2004 IRS revenue ruling, DSTs are widely used as replacement properties in IRS Section 1031 exchanges to defer capital gains taxes. In these transactions, one of the biggest challenges is finding a suitable replacement property with a value that matches, but ideally does not exceed, the property being replaced. By investing in a fractional DST ownership share, a buyer can tailor their investment to match the amount needed for the exchange.
- No operational or management responsibilities. DST shares are passive investments that require no involvement in a property’s daily operations, tenant relations, and maintenance. Professional third-party sponsors typically handle these tasks, while investors simply collect dividends.
- Easier access point and diversification. Investment minimums in DSTs generally start around $100,000, allowing for access to otherwise out-of-reach commercial properties and making it easier to allocate funds across multiple trusts to diversify by asset class and geographic location.
If you would like to learn more about DSTs or would like assistance with a contemplated investment or transaction, please contact Melanie Scroble at Ansell.Law.