Most Delaware Statutory Trusts have ten years fixed rate financing associated with them. The sponsor will be mindful of this and generally does all they can to watch the market for the best time to sell and sell the property before year ten. However, no guarantee can be made as to when the property will sell.
Historically, the sponsors of DSTs that we work with have an approximately six-year holding period.
And some of the DSTs have sold within two to four years if they were in strong, growing markets.
However, given the current elevated pricing for quality properties around the country, I anticipate that many DSTs will go a full eight to ten-year hold period.