OPTIONALITY CAPITAL
Highly Liquid DSTs
Exit Optionality for 1031 Exchange Investors
Working Capital Facility — Teaser Presentation
April 2026
CONFIDENTIAL — FOR QUALIFIED INVESTORS ONLY
OPTIONALITY CAPITAL
The Opportunity
$100B+
Annual 1031 exchange volume
Massive addressable market
7–10 yrs
Traditional DST lock-up period
The problem
2–5 yrs
Optionality Capital hold period
The solution
Property owners who sell investment real estate must identify replacement property within 45 days and close within 180 days — or lose their tax deferral. DSTs offer a passive, hands-off solution to this time-sensitive need. But traditional DSTs create a new problem: capital is locked for 7–10 years with no liquidity. Investors feel trapped. Optionality Capital solves both problems — shorter 2–5 year holds with a built-in exit event where investors can cash out or roll into another 1031 exchange at disposition.
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OPTIONALITY CAPITAL
How the Engine Works
$25M
Q1
$50M
Q2
$75M
Q3
$100M
4.0x
Q4
Same $25M working capital pool — recycled quarterly via 60–90 day deployment cycles — serves 4x investor cohorts annually
Target Assets
NNN credit-tenant retail
Dollar General, Walgreens, CVS-type profiles
10–20+ year lease terms remaining
Geography & Pricing
Southeast US — FL, GA, VA, NC
$1.5M–$3M per asset
Cap rates: 5.75%–6.75% (targeting 6%+)
Deployment Cycle
60–90 days per turn
Acquire → form DST → sell interests → return capital → repeat
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OPTIONALITY CAPITAL
Capital Provider Economics
Capital Stack
Capital Provider — Senior Position First Out
Sponsor Co-invest
1031 Investor Equity
Key Terms
  • Short-duration working capital: 60–90 day deployment cycles
  • Quarterly capital turns — 4x annual velocity
  • Repaid from DST interest sales proceeds each quarter
  • No long-term capital lock-up
  • Backed by real property: NNN assets with national credit tenants
  • Senior position in capital stack — first dollars out
Capital Deployed
NNN Asset Acquired
DST Formed & Filed
Interests Sold to 1031 Investors
Capital Returned
60–90 days per cycle — then repeat
Supported by Bolker v. Commissioner (1985, affirmed 9th Circuit) — 40 years of unchallenged precedent on investment intent holding periods. IRS conceded this position. Rev. Ruling 2004-86 confirms DST interests qualify as like-kind property.
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OPTIONALITY CAPITAL
Investment Highlights
Asset & Market
  • NNN credit-tenant retail — Dollar General, Walgreens, CVS-type profiles
  • Southeast US focus: FL, GA, VA, NC
  • 6%+ cap rates, 10–20 year lease terms, $1.5M–$3M per asset
  • $100B+ addressable 1031 exchange market
Structure & Edge
  • 4x annual capital velocity via quarterly recycling
  • Senior position — repaid from DST sales proceeds
  • Exit optionality: investors cash out or re-exchange at 2–5 yr disposition
  • Legal foundation: Bolker v. Commissioner (1985) + Rev. Ruling 2004-86
OPTIONALITY CAPITAL LLC
[Contact Name], Managing Partner
[email]@optionalitycapital.com
(555) 000-0000
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. Investment involves risk and possible loss of principal. Past performance is not indicative of future results.
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