Can an DST make a Capital Call?

Question

As an investor in Delaware Statutory Trusts I was under the impression that by investing in DST's you were safe from a Capital Call. Well, I just heard of a Crew Enterprises/Versity property where the Sponsor did just that. Can someone explain how they can do that?

Jon Taylor · Answer

@Brett Henricks No, a Delaware Statutory Trust (DST) cannot make capital calls. Once investors contribute funds, no additional investments are allowed.

Paul Kampa · Answer

Their San Diego property, 4th & J, disbursement paid 100% of their anticipated distribution during 2022, fell to 75% in 2023, fell again to 25% in 2024 but stopped paying in the 4th quarter, then they paid 25% during Feb and Mar of 2025 before stopping payment in April.

David Peacock · Answer

I am an investor in two Versity (now Crew) properties, Astoria and the Flats At Shadowglen and the distributions for both have stopped again. I received a 4% distribution for 18 months then  nothing for a year then a couple of months ago they started up again at 1%. This month we were informed they are stopping again until further notice. My dealer, Ed Fernandez from 1031 Crowdfunding told me Crew is working through some leadership issues and the goal is to resume distributions at some point but no timeline as of now. Very disappointing. Overall I still think DSTs are a good option for a 1031 exchange but if I had to do it again I would only go with the largest sponsors with a long track record. I have another DST property with RK Avli and they have paid 4% every  month for 31/2 years no problems.

David Peacock · Answer

I am in two Versity/Crew properties that have stopped paying distributions and I have not heard anything about a capital call. Per the prospectis that is not allowed.

Ashley Romiti · Answer

Hello Brett - No, a DST sponsor cannot make a capital call. It is one of the 7 deadly sins of DSTs.

https://perchwealth.com/understanding-delaware-statutory-trusts-dsts-rules-regulations/#:~:text=Once%20a%20DST%20offering%20is,make%20capital%20calls%20from%20investors.

1. Once a DST offering is closed, no future capital contribution is permitted to the DST by either existing or new investors.

Unlike other types of real estate syndications or funds, once a DST offering has closed, that DST may not request additional contributions or make capital calls from investors. This is because when you invest in a DST, you receive a pro rata share of ownership in the property based on the value of your initial investment. Any future investments could potentially change ownership percentages, and by extension, may dilute someone’s ownership share. Doing so would impact investors’ claims to the DST assets and therefore, no further contributions are allowed once the DST offering closes.

John M. · Answer

I never heard of it either.

Steve Schaeffer · Answer

Hello Brett,

Can you provide more specifics as to where you found this at?

Chris Seveney · Answer

I was under the same impression that a DST cannot make a capital call.

Brett Henricks · Answer

I have seen the evidence of this Capital Call by Versity/Crew Enterprises. What laws have potentially been broken here?

Can an DST make a Capital Call?

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