1031 exchange resources

The clock starts at closing. Know what's actually available before it does.

A 1031 exchange gives an owner 45 days from closing to identify replacement property and 180 days to close on it. For a Los Angeles multifamily owner, there are two practical replacement paths: DST fractional interests in institutional-grade net lease assets, and direct ownership of a triple-net leased property. Both are covered below, with current pricing.

Pricing figures reflect Q1 2026 market data. Sources are cited at the bottom of this page.

45 days to identify

Written, signed identification delivered to the qualified intermediary or another party to the exchange, describing replacement property by legal description, street address, or distinguishable name.

180 days to close

Or the due date of that year's tax return with extensions, whichever comes first. The 45-day and 180-day clocks run at the same time, not back to back.

Held for business or investment

Both the relinquished and replacement property have to be held for use in a trade or business or for investment. Personal use disqualifies it.

Funds held by a qualified intermediary

Sale proceeds cannot pass through the seller's hands during the exchange without breaking it.

Track one: DST offerings

Fractional interests in institutional-grade net lease assets.

A Delaware Statutory Trust splits ownership of one or more triple-net leased assets into fractional interests that qualify as 1031 replacement property. Minimums typically run $50,000 to $100,000, which lets proceeds from one Los Angeles apartment building spread across several properties instead of concentrating in one.

2024 DST volume

Sponsors raised roughly $5.66 billion.

2025 DST volume

More than $8.4 billion, an increase of nearly 50% year over year.

Major sponsors

Ares Real Estate Exchange, JLL Exchange, and Inland Private Capital are among the largest sponsors currently offering.

What DSTs typically hold

Multifamily led the 2025 raise at 37% of DST equity, followed by industrial at 32% and retail at 12%, with the remainder split across senior housing, self-storage, student housing, and hospitality.

Important boundary

DST interests are securities. This is real estate brokerage, not securities advice.

Boris Almengor holds a California real estate license, CalDRE #02092597, not a securities license. He can introduce owners to qualified DST sponsors and help them think through whether a DST fits their timeline and goals. He does not place DST interests, recommend a specific offering, or advise on them as an investment. Those decisions belong with the sponsor's registered representative, a qualified intermediary, and the owner's own tax and legal counsel.

Track two: Direct triple-net ownership

One deed, one closing, full control.

A directly owned net lease property, where the tenant pays taxes, insurance, and maintenance, is a more straightforward replacement than a fractional interest. The highest-value end of this market is not dollar stores. It's investment-grade ground leases and long corporate leases with the strongest credit tenants.

McDonald's ground leases

The sector's institutional benchmark. 15-year corporate ground leases trade 4.30% to 4.60%, with recent deals near 4.40%.

Overall net lease market

Averaging around 6.80% across single-tenant net lease properties.

For potential sellers

Discuss the sale and replacement-property strategy together.

Start with the current property, likely proceeds, timing, objectives, and the kinds of replacements that may fit.

Request a property valuation

For active buyers

Create a private exchange acquisition profile.

Record the exchange status, deadlines, equity, debt, target markets, property types, and deal-breakers.

Create buyer profile

Primary sources

Verify pricing and mechanics at the source.

Cap rates change with financing costs and demand. These are the primary sources behind the figures above, current as of Q1 2026.

Open 3 primary sources