DSTs, 721 UPREITs, & Tax Efficient CRE Strategies: Dwight Dunton - Bonaventure

In this episode of Deal Flow Friday, David Moghavem sits down with Dwight Dunton, Founder and CEO of Bonaventure, a vertically integrated real estate investment firm with over $2.9 billion in assets under management and 9,200 apartment units across the Mid-Atlantic, Midwest, and Southeast.

With 27 years of experience building Bonaventure, Dwight shares how the firm has carved out a unique niche in tax-efficient real estate investing, leveraging Delaware Statutory Trusts (DSTs), 1031 exchanges, and 721 UPREIT structures to help investors preserve wealth, defer taxes, and compound capital over the long term.

The conversation explores how DSTs and UPREITs are becoming increasingly attractive in today's challenging multifamily environment, particularly for property owners facing declining valuations, loan maturities, and significant embedded tax liabilities. Dwight breaks down how these structures work, why demand is accelerating, and how Bonaventure is developing innovative financing solutions to help investors transition from direct property ownership into diversified real estate portfolios.

David and Dwight also discuss the importance of supply constraints versus economic growth when selecting multifamily markets, the advantages of long-term ownership over short-term investment strategies, and why market turbulence is creating new opportunities for well-capitalized operators.

Chapters:

00:00 Introduction to Bonaventure

04:11 Why Develop Multifamily When You Can Buy Below Replacement Cost?

07:30 Why Supply Constraints Matter More Than Job Growth

10:20 The Long-Term Hold Strategy: Five Years to Forever

13:07 Understanding DSTs, 1031 Exchanges & TIC Structures

18:21 How the 1031-to-721 UPREIT Strategy Works

21:14 Using 721 UPREITs as an Acquisition Advantage

23:44 Why Demand for DSTs & UPREITs Is Accelerating

26:14 Solving High-LTV Challenges With Innovative Gap Financing

31:12 Why Bonaventure Focuses on Family Capital

35:32 Advice for Operators Entering the DST & UPREIT Business

39:35 Opportunity Zones, DSTs & Bonaventure's Growth Strategy

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