Jenner.com discusses Delaware Statutory Trusts as Alternative Borrower for Tenants in Common Programs, what DSTs are, Lender Benefits and the IRS Requirement Causing Lender Concerns.
A DST borrower with a master tenant owned and controlled by a quality sponsor should be an attractive borrower for a lender. Various financing sources have embraced the DST structure. A steady market should develop for DSTs because they are much less complex than the structure of a typical TIC transaction, they shield investors from liabilities with respect to the mortgaged property and they remove the investors from involvement in operation of the property.
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A Delaware Statutory Trust as an Alternative Borrower for Tenant-in-Common Programs
Website: Jenner
Original Article by: Arnold S. Harrison, Esq
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https://jenner.com/system/assets/publications/7654/original/Harrison_Delaware_Statutory_Trust_Alternative_052606a.pdf?1323121346