DST Capital Lifecycle
From working capital deployment to investor exit
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flowchart TD
CP["💰 Capital Providers
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