Kodiak Capital Advisors, LLC (KCA), a Dallas-based commercial real estate investment and asset management company, recently acquired their property in North Texas, which was purchased utilizing the Delaware Statutory Trust (DST) 1031 funding structure. The newly constructed, 54,370-square-foot Hobby Lobby store is located at the southeast corner of West Plano Parkway and West Park Boulevard near Willowbend in Plano, Texas.
“We are excited to have completed one of North Texas’ first Delaware Statutory Trust acquisitions by a Dallas-based Sponsor,” said Scott Landers, Kodiak Capital Advisors Executive Vice President. “DSTs are a new territory for the majority of 1031 investors. We are one of roughly 20 active DST sponsors in the United States providing investment properties through this structure. Purchasing the Hobby Lobby store is the first of many DST transactions we have planned for 2017 and subsequent years.”
A DST is an ownership structure that is created for business purposes, which can also be referred to as an Unincorporated Business Trust. It is offered as a 1031 exchange replacement property for accredited investors seeking to defer their capital gains taxes, and as a straight cash investment for investors wishing to diversify their real estate holdings.
The DST property ownership structure allows smaller investors to own an undivided and fractional interest in commercial assets of institutional quality with professional management. The DST structure allows for multiple investors, not as limited partners, but as individual owners of a beneficial interest within a trust.
“There are many benefits of investing in a DST property. One of the main advantages of a DST is allowing an investor to combine funds from the sale of their property with the funds of other investors to purchase larger and unique assets. Through DSTs, investors of all sizes can have access to diverse properties normally not available to them,” said Landers.
In addition to the acquisition of Hobby Lobby, Kodiak Capital Advisors closed on the sale of three properties over the course of 2016:
- Country Club Plaza is a 51,889-square-foot, mixed-use center located in the north Dallas suburb of Frisco at the edge of Stonebriar Country Club and adjacent to the Westin Stonebriar Hotel. Scott Landers from Kodiak Capital Advisors arranged the transaction for an investor.?
- Uptown Center, located at the intersection of Howell and Worthington Streets in the Uptown submarket of Dallas, is a 111,274-square-foot, 10-story, Class A, mixed-use office tower. Scott Landers from Kodiak Capital Advisors arranged the transaction for an investor.?
- 701 Highlander Office Building is a five-story, Class A office building located in south Arlington’s I-20 Corridor with 72,518 square feet of office space. Scott Landers from Kodiak Capital Advisors arranged the transaction for an investor.
About Kodiak Capital Advisors, LLC
Kodiak Capital Advisors, LLC (KCA) is a commercial real estate investment and management company specializing in DST real estate syndications and property asset management services. Before founding KCA in 2016, Denny Landers spent thirty-eight years syndicating and managing over $160 million of 1031 Exchange equity in Tenant-In-Common (TIC) co-ownership structures in over a million square feet of commercial properties. For more information, visit www.kodiakcapitaladvisors.com.
