Why Capital Recycling Matters

Optionality Capital
Traditional DST Sponsor
Capital In $XXM Buy Asset 1 property Hold 7-10 yrs Sell Year 10 Return Capital locked for entire period 1 investor cohort served per $1 deployed
Static / Capital locked
Optionality Capital
Capital $XXM Buy NNN Asset Form DST Sell to 1031 Investors (same quarter) CAPITAL RECYCLED Q1 Q2 Q3 Q4 Properties held 2-5 yrs, then sold 4 investor cohorts served per $1 deployed
Dynamic / Capital recycling quarterly
Metric Traditional DST Sponsor Optionality Capital
Capital velocity 1x 4x
Hold period 7 - 10 years 2 - 5 years
Investors served per $1 1 4+