HIGHLY LIQUID DSTs
Working Capital Facility — Teaser Presentation
2–5 Year Hold  |  Exit Optionality  |  Quarterly Capital Recycling
CONFIDENTIAL — FOR QUALIFIED INVESTORS ONLY
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The Opportunity
THE 1031 INVESTOR’S DILEMMA
$
$100B+
Annual 1031 Volume
Property owners who sell investment real estate — rentals, commercial, multifamily — face immediate capital gains tax unless they exchange into replacement property under IRC §1031.
45 / 180
Day Identification / Closing Deadline
Investors must identify replacement property within 45 days and close within 180 days. Extreme time pressure drives demand for turnkey, pre-packaged DST offerings.
7–10 Yrs
Traditional DST Lock-Up
Traditional DSTs trap investors in 7–10 year holds with no liquidity and no exit. Investors need passive real estate — but they also need flexibility and a way out.
Optionality Capital solves this. We offer Highly Liquid DSTs with 2–5 year hold periods and built-in exit optionality: at disposition, investors can cash out OR roll proceeds into another 1031 exchange. Same tax deferral. No long-term capital trap. Investors get the passive, hands-off real estate they need — without sacrificing liquidity.
Source: Federation of Exchange Accommodators; IRC §1031
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The Engine
QUARTERLY CAPITAL RECYCLING
NNN CREDIT-TENANT RETAIL  •  SOUTHEAST US  •  6%+ CAP RATES
$ Capital In ACQUIRE NNN DST SALE RECYCLE Q1 Dollar General FL • $2.1M • 6.25% ACQUIRE NNN DST SALE RECYCLE Q2 Walgreens GA • $2.4M • 5.90% ACQUIRE NNN DST SALE RECYCLE Q3 CVS Pharmacy VA • $1.8M • 6.50% ACQUIRE NNN DST SALE RECYCLE Q4 Dollar General NC • $1.5M • 6.75% CAPITAL RETURNED 1 cohort served 2 cohorts served 3 cohorts served 4 cohorts served $1.5–3M PER ASSET 4x Investor Cohorts SAME WORKING CAPITAL 2–5 Yr INVESTOR HOLD PERIOD Exit Optionality CASH OUT OR RE-EXCHANGE
Illustrative. Tenants, geographies, amounts, and cap rates are representative of Crexi pipeline. Actual results will vary.
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Economics
CAPITAL PROVIDER ECONOMICS
Senior Position in Capital Stack
Capital provider sits senior to sponsor equity. Repaid directly from DST interest sales proceeds each quarter — not from property cash flow or refinancing events.
Short-Duration Deployment: 60–90 Day Cycles
Capital is deployed to acquire NNN assets, DST is formed and interests sold to 1031 investors within 60–90 days. No multi-year lock-up for the capital provider.
Quarterly Capital Turns — 4x Annual Velocity
Same working capital pool serves 4 investor cohorts per year. Capital recycles each quarter, generating returns on each turn without requiring new capital commitments.
Backed by Real Property — NNN Credit Tenants
Underlying collateral is triple-net leased retail with national credit tenants (Dollar General, Walgreens, CVS-type profiles). 10–20+ year remaining lease terms. SE US focus.
CAPITAL STACK CAPITAL PROVIDER Senior Position • Repaid from DST Sales SENIOR SPONSOR EQUITY Subordinate Position JUNIOR 1031 Investor Purchases Retire the Facility Proceeds flow: 1031 Buyer → DST Interest Purchase → Capital Provider Repaid
Legal Foundation
Bolker v. Commissioner (1985, affirmed 9th Circuit) — no minimum holding period if investment intent proven. IRS conceded this position.
Revenue Ruling 2004-86 — confirms DST interests qualify as like-kind property under §1031.
60–90
Day Cycle
4x
Annual Turns
Senior
Capital Stack
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Summary
INVESTMENT HIGHLIGHTS
Highly Liquid DSTs — 2–5 Year Hold
Shorter hold periods vs. 7–10 year industry standard. Built-in exit event at disposition — investors can cash out or roll into another 1031 exchange.
NNN Credit-Tenant Retail — SE US Focus
Triple-net leased properties in FL, GA, VA, NC. National tenants (Dollar General, Walgreens, CVS-type). $1.5–3M per asset. 10–20+ year lease terms. Targeting 6%+ cap rates.
$100B+ Addressable Market
Annual 1031 exchange volume exceeds $100B. 45/180-day deadlines create urgency. Demand for quality, turnkey DST replacement property consistently outstrips supply.
4x Capital Velocity — Quarterly Recycling
60–90 day deployment cycles. Same working capital serves 4 investor cohorts annually. Senior position repaid from DST interest sales each quarter.
Strong Legal Foundation
Bolker v. Commissioner (1985, 9th Cir.) — no minimum hold if investment intent proven. Rev. Rul. 2004-86 confirms DST interests are like-kind property under §1031.
Exit Optionality for Investors
At disposition, 1031 investors choose: take cash or roll into another tax-deferred exchange. No capital trap. This flexibility drives stronger demand and faster placement.
OPTIONALITY CAPITAL LLC
Contact: [Name], Managing Partner
Email: info@optionalitycapital.com
Phone: (555) 000-0000
[Address Line 1]
[City, State ZIP]
optionalitycapital.com
This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer would be made only pursuant to a private placement memorandum and only to qualified investors. Past performance is not indicative of future results. Investment involves risk, including the possible loss of principal.
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