Mountain Dell: DST Fundraise Surpasses $5.3B Halfway Into December

Delaware statutory trust offerings have raised approximately $5.14 billion of equity as of Nov. 30, 2024, an 11.8% bump from the previous end-of-month $4.59 billion. This is according to year-to-date data from Mountain Dell Consulting.

Located in the Salt Lake City region, Mountain Dell Consulting is a consulting and research firm focused on real estate-oriented investment programs. It has sourced and compiled data on the securitized 1031 exchange market since 2003.

Nearly $541.3 million was raised in November, a 5.6% decrease from the roughly $573.4 million raised in October. Despite last month’s dip, the previous month far made up for it; October’s equity raise was a whopping 32.5% increase from the total raised in September.

As the first two weeks of December have contributed nearly $188 million more to the DST year-to-date total, Mountain Dell Consulting’s prediction of $5.5 billion raised by year’s end appears to be on track. This was based on full-cycle equity coming back into new programs as well as regular transaction volume.

This would be more than a 9% increase in equity raised compared to the low-end of the range $5.04 billion amassed in 2023. In 2021, for context, DST sponsors raised $7.2 billion. This record year was surpassed a year later when DSTs attracted approximately $9.2 billion in 2022.

Controlling 17% of the market share, Ares Real Estate Exchange was the clear leader in year-to-date sales with approximately $893.9 million equity raised. According to Mountain Dell, other sponsors rounding out the top five and representing the highest percent of market share through the end of November 2024 were:

JLL Exchange with a year-to-date tally of approximately $553.3 million (11%);

Inland Private Capital Corporation with a year-to-date tally of approximately $532.4 million (10%);

Hines Real Estate Exchange with a total equity raise of approximately $350.1 million (7%); and

ExchangeRight Real Estate with a year-to-date tally of approximately $348.4 million (7%).

As of the end of November, 50 active sponsors were sponsoring 92 programs. Industrial and multifamily continued to be the most popular asset types, comprising 35% and 22% of the offerings, respectively.

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