Step-by-Step Guide to Investing in CAI’s Single-Tenant DST

Why Single-Tenant Properties Matter in DSTs

For accredited investors seeking stable income potential, tax deferral options, and a hands-off real estate experience, CAI’s single-tenant Delaware Statutory Trusts (DSTs) may offer a compelling solution. These are institutional-quality investments—but participating isn’t as simple as clicking a button. DSTs are governed by SEC regulations and involve a deliberate process with important steps.

This guide walks you through the typical path to investing in CAI’s DSTs, so you know what to expect and how to approach the process with clarity.

Step 1: Confirm Accredited Investor Eligibility

DSTs are private placement offerings, which means they’re only available to accredited investors. This isn’t just a formality—it’s a regulatory safeguard. Investors need to meet certain income or net worth thresholds, and CAI will require verification to move forward.

Why does this matter? Because DSTs involve illiquid real estate investments that may require a multi-year commitment. Confirming eligibility early helps streamline the process and ensures you’re positioned to participate.

Step 2: Determine Your Investment Strategy

CAI’s DSTs are structured to accommodate two types of investors: those completing a 1031 exchange and those investing directly with post-tax capital.

If you’re executing a 1031 exchange, the goal is typically to defer capital gains from the sale of real estate. This process involves IRS timelines and coordination with a Qualified Intermediary (QI). On the other hand, direct investors may be focused on income generation, diversification, or estate planning goals. Both paths are valid, but they involve slightly different steps, which makes clarifying your strategy upfront essential.

Step 3: Consult Your Advisors

No DST investment should be made in a vacuum. Real estate investments carry specific risks and tax implications, and your financial and legal advisors can help determine whether the structure aligns with your overall objectives.

This is especially true for 1031 exchange participants, where timing and compliance are key. But even direct investors benefit from input on tax treatment, estate transfer implications, and the role DSTs play within a broader portfolio.

Step 4: Review the Offering Materials Thoroughly

Once a DST offering is identified, it’s time to dive into the details. CAI provides a Private Placement Memorandum (PPM) and supporting documents that outline the asset profile, lease structure, tenant background, financial projections, and exit strategy.

Take the time to understand the fundamentals: Who is the tenant? What is the length and structure of the lease? Where is the property located, and what’s driving local market demand? CAI’s focus on mission-critical, single-tenant assets in resilient industries is a key part of the value proposition—but investors should always conduct their own diligence to ensure alignment.

Step 5: Prepare for 1031 Requirements (If Applicable)

CAI works with QIs regularly and can help facilitate a smooth coordination process, but these deadlines are non-negotiable. Getting the QI involved early ensures your exchange stays compliant from start to finish.

Step 6: Reserve Your Interest and Complete Documentation

After reviewing the offering and confirming suitability, you’ll reserve a beneficial interest in the trust. This typically includes signing a subscription agreement, completing a suitability questionnaire, and submitting verification of accredited status.

CAI’s DSTs are often filled on a first-come, first-served basis, so it’s important to move efficiently once you’ve made a decision. Funding instructions and timing will be provided as part of the subscription process.

Step 7: Fund and Close the Investment

Closing procedures vary slightly depending on your investment type. For direct investors, funds are wired directly. For 1031 investors, the QI will transfer proceeds at closing. In both cases, the DST trustee holds legal title to the property, and you receive a fractional beneficial interest in the trust.

Once the transaction is finalized, you’ll receive a confirmation of your investment and—if applicable—begin receiving distributions based on the terms outlined in the offering.

Step 8: Monitor Performance and Stay Informed

DSTs are passive investments, but ongoing communication still matters. CAI provides regular updates, including distribution notices, property performance summaries, and annual tax documentation.

While DSTs are designed for longer-term holds, you’ll be informed along the way. It’s important to understand that these investments are not liquid, and most investors remain in place until the asset is sold and the trust dissolves.

Closing Thoughts: A Structured Path with a Trusted Sponsor

Investing in a DST isn’t difficult—but it does require structure, guidance, and alignment with your goals. CAI’s approach offers a well-defined path from inquiry to execution, backed by institutional diligence, clear communication, and a focus on essential-use real estate.

Whether you’re completing a 1031 exchange or investing for income and diversification, CAI’s single-tenant DSTs are meant to provide long-term value with professional oversight.

Next Step: Want to explore current DST offerings? Contact CAI or speak with your advisor to get started.