Transaction Story — 1031 Exchange into DST
39 Long Beach Apartment Buildings Sold for $78.9M
Exchanged Into Passive Income Through a DST
39 Long Beach Apartment Buildings Sold for $78.9M - Zero Management Since Day One
A Long Beach investor spent years building a large multifamily portfolio. When the time came to exit active management for good, Stepp Commercial executed a complete portfolio sale and redeployed the equity into a Delaware Statutory Trust generating $2.6 million in Year 1 passive income.
Discuss Your Exchange
A Large Portfolio. A Desire for Simplicity. A Perfect Fit for a DST Exchange.
After years of actively managing 39 apartment buildings across Long Beach, the investor was ready to step back entirely. The portfolio had built significant equity, the properties were performing, and the timing was right for a strategic transition into something that required no day-to-day involvement.
The answer was a 1031 exchange into a Delaware Statutory Trust - a structure that allows investors to own institutional-quality commercial real estate passively, with monthly distributions and zero management responsibility from closing day forward.
Exit the Long Beach apartment portfolio, defer 100% of capital gains through a 1031 exchange, and redeploy equity into diversified income-producing assets with no landlord responsibilities whatsoever.
Stepp Commercial managed the entire process - from portfolio valuation through DST selection and closing - working alongside best-in-class DST partners. One point of contact. Full accountability. Results that exceeded expectations.
Why Investors Choose a DST Exchange
A Delaware Statutory Trust is an IRS-approved structure that qualifies as like-kind property for a 1031 exchange. It allows investors to own a fractional interest in institutional-grade commercial real estate - completely passively - while maintaining all the tax benefits of direct ownership.
39 Properties Sold. 7 Institutional DST Assets Acquired.
Stepp Commercial managed the full disposition of the Long Beach portfolio and coordinated the DST acquisition in parallel - ensuring all IRS 1031 exchange deadlines were met and equity was fully redeployed into income-producing replacement properties.
Long Beach Portfolio
Delaware Statutory Trust
Two Years. Thirty-Nine Closings. Monthly Income Ever Since.
A portfolio of this size required careful phased execution - marketing and closing properties in coordinated batches while keeping exchange options open at every step, and identifying DST replacement assets that matched the investor's income and diversification goals.
Full Portfolio Valuation and Exchange Structuring
Stepp Commercial assessed all 39 properties, evaluated market conditions across Long Beach neighborhoods, engaged a Qualified Intermediary, and built a phased disposition plan that kept the investor's 1031 exchange window protected throughout.
Listing Agreement: June 2022Phased Marketing Across 39 Properties
Properties were brought to market in batches, leveraging Stepp Commercial's established Long Beach investor network. Each closing was sequenced to maximise proceeds while preserving exchange flexibility across varying building sizes and price points.
39 Properties - Coordinated Over 2 YearsIdentifying the Right DST Portfolio
Working alongside best-in-class DST partners, Stepp Commercial identified seven institutional assets across office, medical, and logistics - building a diversified income portfolio tailored to the investor's cash flow targets and geographic preferences.
7 DST Assets StructuredEquity Deployed. Passive Income Begins.
$40.4 million invested across seven institutional assets. $2,647,901 in Year 1 cash distributions. Zero management responsibilities from closing day forward. All capital gains 100% deferred through the 1031 exchange structure.
100% Tax Deferred · $2.6M Year 1 Passive Income
Ready to Step Away From Active Management?
A DST exchange lets you exit your California apartments, defer capital gains, and collect monthly passive income from institutional properties. Stepp Commercial manages the entire process.
Part I: 18 Properties Across Long Beach
The first wave of the portfolio included 18 properties across Long Beach. Each was brought to market and closed as part of the coordinated two-year disposition plan.
| Property | Sold | Status |
|---|---|---|
 335 Orange Avenue Long Beach, CA |
Sold | Closed |
 432 Walnut Avenue Long Beach, CA |
Sold | Closed |
 436 Gaviota Avenue Long Beach, CA |
Sold | Closed |
 441 Dawson Avenue Long Beach, CA |
Sold | Closed |
 621 Cerritos Avenue Long Beach, CA |
Sold | Closed |
 722 Maine Avenue Long Beach, CA |
Sold | Closed |
 736 Olive Avenue Long Beach, CA |
Sold | Closed |
 811 Gardenia Avenue Long Beach, CA |
Sold | Closed |
 820 Lime Avenue Long Beach, CA |
Sold | Closed |
 834 Walnut Avenue Long Beach, CA |
Sold | Closed |
 1042 Gaviota Avenue Long Beach, CA |
Sold | Closed |
 1049 E 5th Street Long Beach, CA |
Sold | Closed |
 1086 Stanley Avenue Long Beach, CA |
Sold | Closed |
 1128 Stanley Avenue Long Beach, CA |
Sold | Closed |
 1512 Florida Avenue Long Beach, CA |
Sold | Closed |
 2652 E 15th Street Long Beach, CA |
Sold | Closed |
Part II: 21 Properties - Full Data and Photography
The second wave covered 21 properties with complete transactional data. Each listing was photographed professionally. Click any image to open the full gallery.
| Property | Zip | Units | List Price | Sold Price | Cap Rate | Status |
|---|---|---|---|---|---|---|
 1855 Stanley Avenue 90755 | 90755 | 6 | $1,850,000 | $1,795,000 | 4.9% | Sold |
 500 Almond Avenue 90802 | 90802 | 4 | $1,600,000 | $1,437,500 | 6.0% | Sold |
 494 Almond Avenue 90802 | 90802 | 3 | $950,000 | $787,500 | 5.7% | Sold |
 784 Rose Avenue 90813 | 90813 | 9 | $3,275,000 | $3,022,500 | 4.2% | Sold |
 1710 E 6th Street 90802 | 90802 | 1 | $725,000 | $800,000 | 2.9% | Sold |
 1219 E. Appleton Street 90802 | 90802 | 4 | $1,850,000 | $1,695,000 | 5.6% | Sold |
 1510-1520 Orizaba Avenue 90804 | 90804 | 15 | $4,750,000 | $3,810,000 | 6.0% | Sold |
 391 Ximeno Avenue 90814 | 90814 | 4 | $1,650,000 | $1,500,000 | 4.9% | Sold |
 1535 Loma Avenue 90804 | 90804 | 8 | $2,950,000 | $2,700,000 | 5.1% | Sold |
 1740 Stanton Avenue 90804 | 90804 | 10 | $3,600,000 | $3,050,000 | 5.1% | Sold |
 1216 E Florida Avenue 90802 | 90802 | 4 | $1,650,000 | $1,550,000 | 4.9% | Sold |
 521-523 Rose Street 90802 | 90802 | 2 | $900,000 | $875,000 | 4.8% | Sold |
 1716 E. 6th Street 90802 | 90802 | 4 | $1,500,000 | $1,275,000 | 5.5% | Sold |
 1721-1723 E. 5th Street 90802 | 90802 | 2 | $725,000 | $700,000 | 4.4% | Sold |
 916-924 St. Louis Avenue 90804 | 90804 | 16 | $6,400,000 | $5,000,000 | 6.5% | Sold |
 932 St. Louis Avenue 90804 | 90804 | 1 | $1,000,000 | $850,000 | 5.2% | Sold |
 503-505 Rose Avenue 90802 | 90802 | 2 | $1,000,000 | $998,000 | 4.5% | Sold |
 1711 E. 5th Street 90802 | 90802 | 2 | $1,000,000 | $950,000 | 4.9% | Sold |
 507-509 Rose Avenue 90802 | 90802 | 2 | $1,650,000 | $1,278,000 | 4.3% | Sold |
 2033 Cedar Avenue 90806 | 90806 | 8 | $2,400,000 | $1,950,000 | 4.2% | Sold |
 1726 E. 6th Street 90802 | 90802 | 3 | $1,150,000 | $1,100,000 | 4.6% | Sold |
| Part II Total - 21 Properties | $42,875,000 listed | $37,123,500 sold | 4.96% avg | |||
Inside the Portfolio - Property by Property
Each property was professionally photographed as part of the marketing process. Click any image to view the full gallery for that property.
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$40.5M Redeployed Into 7 Institutional Assets. $2.6M in Year 1.
All exchange proceeds were invested into seven Delaware Statutory Trust assets across multiple states and asset classes - office, medical, logistics, and a diversified fund. Monthly distributions began immediately. Zero management required from day one.
Stepp Commercial performed a high number of complex transactions seamlessly, selling 39 of my apartment buildings across Long Beach within two years. In divesting from the older, time-intensive buildings in my portfolio and investing the equity into Delaware Statutory Trusts, I have increased my annual cash flow considerably with zero management responsibility. Robert and his team have been an invaluable partner throughout the process, and the results have exceeded my expectations.
Every Objective. Achieved.
Thirty-nine properties sold. One hundred percent of capital gains deferred. $2.6 million in passive income in the first year alone. And not a single management call since closing.
Over 100 Completed Exchanges. 13.6% Average Return.
Most brokers refer clients to a DST provider and step away. Stepp Commercial oversees the entire exchange process - from portfolio valuation through DST closing - working alongside best-in-class DST partners with a single point of accountability throughout.
We develop deep relationships with best-in-class DST partners and oversee every step of the exchange ourselves - rather than simply making an introduction and stepping aside. One team. Full accountability. Start to finish.
Over 100 completed 1031 exchanges across 15 years of practice. An average delivered return of 13.6% for exchange clients. Every exchange structured to meet both IRS requirements and the investor's specific financial goals.
The Team Behind This Transaction
From Active Management
to Passive Income.
A Long Beach investor came to us managing 39 apartment buildings. Today they collect monthly distributions from seven institutional properties and take no management calls. What would that look like for you?