Using Delaware Statutory Trusts in Real Estate Investments: Opportunities and Legal Risks

Mr. Hannon attorney and certified public accountant, advises clients on tax planning and tax-savings structures for real estate investments, developments, and joint ventures, with particular focus on Delaware Statutory Trusts (DSTs) and Section 1031 like-kind exchange planning. His practice spans three interconnected disciplines—real estate tax, transactional tax, and cross-border tax—allowing him to counsel clients on tax-driven structures involving real estate throughout the United States. Mr. Hannon brings deep knowledge of the regulations governing like-kind exchanges under Section 1031 of the Internal Revenue Code and regularly advises on the use of Delaware Statutory Trusts and tenant-in-common structures to facilitate the exchange process. He counsels sponsors, funds, and REITs on DST formation, master lease structuring, UPREIT conversions, bridge equity arrangements, post-exchange refinancing, and drop-and-swap transactions. His practice extends to both emerging sponsors and established real estate funds seeking to use DSTs to increase capitalization, helping clients navigate the tax-oriented issues unique to DST financing and loan structures. Mr. Hannon also brings significant experience advising existing owners and equity providers on the tax and structural challenges presented by distressed real estate. A frequent panelist on webinars and symposiums addressing tax planning for real estate transactions, Mr. Hannon has also served as adjunct faculty at DePaul University Graduate School of Business in its MBA program where he taught a course on tax and structural planning for real estate transactions.

Mr. Lobie has broad, but deep, tax law knowledge, and assists clients with tax planning, structuring, controversy, and litigation matters. He has extensive experience advising clients, including for-profit, nonprofit, and tax-exempt clients that range from Fortune 500 companies to universities, on the tax and corporate considerations that are relevant to entity choice, acquisitions, business combinations, dispositions, and operational issues. Mr. Lobie also represents clients before the US Circuit Courts, the US Tax Court, various state tax courts, the Internal Revenue Service, and other state and local tax authorities on a variety of litigation and controversy matters.