DST Capital Lifecycle

From working capital deployment to investor exit

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Working capital & liquidity"] LP["🏦 Affiliated Liquidity Provider"] SP["⚡ Optionality Capital
Sponsor"] ACQ1["🏢 Q1: Acquire NNN Assets
Industrial, retail, medical"] DST1["📋 Form DST #1
Delaware Statutory Trust"] INV1["👥 Q1 1031 Investors
Buy DST interests w/ exchange $"] RECYCLE["♻️ Capital Recycled
Proceeds repay LP, fund next batch"] ACQ2["🏢 Q2: Acquire New Assets"] DST2["📋 Form DST #2"] INV2["👥 Q2 1031 Investors"] HOLD["⏳ Hold Period
2–5 years, tenants pay rent"] SALE["🏷️ Property Disposition"] EXIT["🔄 Investor Exit
Cash out or re-exchange
into next 1031
"] RET["📈 Returns to Capital Providers
Principal + preferred return"] CP -->|"$$$"| LP LP -->|"Working capital"| SP SP -->|"Deploy capital"| ACQ1 ACQ1 -->|"Place into trust"| DST1 DST1 -->|"Sell interests"| INV1 INV1 -->|"Proceeds flow back"| RECYCLE RECYCLE -->|"Repay + redeploy"| ACQ2 ACQ2 --> DST2 DST2 --> INV2 DST1 --> HOLD DST2 --> HOLD HOLD -->|"Sell properties"| SALE SALE --> EXIT SALE --> RET style CP fill:#1e3a5f,stroke:#4a9eff,stroke-width:2px style LP fill:#1e3a5f,stroke:#4a9eff,stroke-width:2px style SP fill:#2d1f5e,stroke:#7c5cfc,stroke-width:2px style ACQ1 fill:#0f3d2e,stroke:#22c55e,stroke-width:2px style DST1 fill:#0f3d2e,stroke:#22c55e,stroke-width:2px style INV1 fill:#3d2e0f,stroke:#f59e0b,stroke-width:2px style RECYCLE fill:#0f2d3d,stroke:#06b6d4,stroke-width:3px style ACQ2 fill:#0f3d2e,stroke:#10b981,stroke-width:2px style DST2 fill:#0f3d2e,stroke:#10b981,stroke-width:2px style INV2 fill:#3d2e0f,stroke:#f59e0b,stroke-width:2px style HOLD fill:#1a1a2e,stroke:#8892a8,stroke-width:1px style SALE fill:#3d0f0f,stroke:#ef4444,stroke-width:2px style EXIT fill:#3d2e0f,stroke:#f59e0b,stroke-width:2px style RET fill:#1e3a5f,stroke:#4a9eff,stroke-width:2px